Mahindra Logistics against a profit a year ago, has reported a swing to a fourth-quarter net loss on Monday. This loss is attributed to the higher operating expenses in a weak-demand environment.
Mahindra Logistics logged a consolidated net loss after tax of 8.2 million rupees (around $100,000) for the three months ended March 31, contrasted with profit of 74 million rupees a year prior.
Total expenses climbed 18% to 12.81 billion rupees with operating expenses jumping 15.7%.
3PL provider like Mahindra Logistics is currently facing a challenging demand environment due to softness in e-commerce movements and consumer durable segments, analysts said.
Contributing to more than 90% to the company’s revenue, the supply chain management segment plummeted to a loss of 37 million rupees from a profit of 639.7 million rupees a year ago.
Mahindra Logistics mobility services segment also reported a loss of 9.3 million rupees, down from a profit of 10.4 million rupees a year ago.
The logistics arm of Mahindra Group, which competes with firms such as Delhivery, had flagged demand weakness at its investor conference in February and had expected the trend to continue till December 2023.
Revenue from operations increased 16.9% to 12.73 billion rupees.
Shares closed 1.3% down ahead of results on Monday and were down 25.3% year-to-date.