A prominent logistics company has reported a 55% decline in standalone profit, amounting to ₹10.15 crore for the April-June 2024 quarter. This profit decrease reflects higher initial expenses, increased manpower costs, and elevated warehouse leasing fees. However, the firm’s revenue showed a robust 10% increase, climbing to ₹1,156.66 crore from ₹1,050.92 crore in the same period last year. This positive revenue growth highlights the company’s resilience and its ability to expand its market presence even in challenging times.
The contract logistics sector demonstrated a solid 9% revenue growth year-over-year, while the freight forwarding segment saw an impressive 12% increase in revenue quarter-over-quarter, driven by a surge in demand for inbound ocean cargo. The express business also achieved a 2% year-over-year revenue improvement, despite facing some challenges in profit margins. Significant progress was noted in the mobility and last-mile delivery sectors, with warehouse space managed in the third-party logistics (3PL) segment exceeding 20 million square feet. This expansion underscores the company’s commitment to enhancing its logistics infrastructure and capabilities.
Order bookings in both the 3PL and cross-border businesses were strong, with the cross-border segment benefiting from heightened demand for inbound ocean cargo. This continued growth reflects a healthy market outlook and the firm’s strategic positioning in the logistics industry. The company’s executive emphasized that while the profit decrease was influenced by initial costs and increased expenses, the ongoing cost optimization efforts are set to drive a substantial improvement in overall performance. With a strong revenue trajectory and strategic investments, the firm is well-positioned for a successful year ahead.
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