Q4 Results: Mahindra Logistics Looks To Improve Margin, Expand Warehousing Business
The company expects to outgrow the overall industry growth in FY20.
Mahindra Logistics Ltd. said growth in warehousing and value-added services business would lead to margin expansion in the future.
There has been a lot of consolidation and investment in the warehousing business after the introduction of Goods and Service Tax, its Chief Executive Officer Pirojshaw Sarkari told BloombergQuint, adding that the company’s warehousing business is also witnessing higher demand from the consumer facing industry.
We are well poised to take on the warehousing boom happening in the next year or two.Pirojshaw Sarkari, CEO, Mahindra Logistics
The company’s revenue and profit jumped over 13.7 percent and 14.4 percent, respectively, for the three months ended March. Its margin, however, contracted by 20 basis points.
Sarkari expects the company—one of the largest third-party logistics solutions provider—to outgrow the overall industry growth in the financial year 2019-20.
Q4 Earnings 2019 (YoY):
- Revenue rises 13.7 percent at Rs 1,014.7 crore
- Net profit jumps 14.4 percent at Rs 23.9 crore
- Ebitda up 8.2 percent at Rs 40.9 crore
- Margin contracts by 20 basis points to 4 percent
Watch the full interview here: