Mahindra Logistics profit falls 19 pc to Rs 16 cr in Dec quarter

New Delhi, Feb 4 () Mahindra Logistics on Tuesday reported a 19.13 per cent fall in consolidated net profit to Rs 15.67 crore for the December 2019 quarter.

The company had clocked a profit of Rs 19.34 crore in the year-ago period, according to a BSE filing.

Its total income declined to Rs 909.94 crore during the quarter, against Rs 982.67 crore in the corresponding period a year ago.

The firm's total expenses declined to Rs 888.60 crore in the October-December 2019 period as against Rs 951.80 crore in the year-ago period.

"Q3 FY20 (third quarter of 2019-20) revenue from non-Mahindra non-auto supply chain businesses grew by 12 per cent over Q3 2018-19. While despite seasonal improvement in demand, overall demand environment remains soft in the auto industry," the company said in a statement.

The firm said it was a strong quarter for the e-commerce vertical, driven by higher demand during the festival peak and added that it will continue to expand value-added services for our e-commerce customers.

Rampraveen Swaminathan, managing director and CEO of Mahindra Logistics, said, "We continue to demonstrate resilient performance despite the challenging environment in the automobile sector. While our efforts to grow business in the auto vertical remain on track, we continue to deliver strong growth in e-commerce and consumer businesses."

He also said that during the quarter, the company continued to see benefits from cost reduction and productivity improvement initiatives. "We are increasing our capabilities and remain focused on expanding our value-added services and solutions offerings to our customers."

In a separate release, the company said that as recommended by the nomination and remuneration committee, the board of directors have inducted Swaminathan on the board by appointing him as the managing director and CEO of the company from Tuesday for a period of 5 years.

Zhooben Bhiwandiwala, chairman of the board of directors, said, "Ram's induction on the board with direct operational responsibility will provide significant confidence and contribution to all stakeholders." NAM HRS