Mahindra Logistics Q1 results: Reports loss of Rs 17 crore

New Delhi: Mahindra Logistics on Thursday reported a consolidated loss of Rs 17 crore for the quarter ended June 30, 2020 impacted by the coronavirus pandemic.

The logistics arm of the Mahindra Group clocked a consolidated profit after tax of Rs 19 crore during the first quarter of the previous fiscal, it said in a statement.

The revenue fell 54.39 per cent in the quarter to Rs 410 crore as against Rs 899 crore in the year-ago period.

"The company's operations in the quarter gone by were impacted due to lockdowns and disruptions across the country," it said in a statement.

The operations gradually resumed in a phased manner with requisite precautions, it said adding that the company has taken actions to reduce operating costs and fixed costs in the current environment.

Despite the current scenario, warehouse space under management increased by 0.25 million square feet, it said.

The company has ensured effective working capital and cash flow management resulting in positive free cash generation in June quarter, the statement added.

“In these challenging conditions, the company has delivered a resilient performance with strong customer retention, cost reduction and improved cash flows," CEO and MD of Mahindra Logistics Rampraveen Swaminathan said.

The quarter was expectedly a tough quarter, with the full impact of nationwide lockdowns and disruptions due to the COVID-19 pandemic, he said adding, significant reduction in industrial activity, widespread Work From Home (WFH) and lower business sentiments impacted the overall economy and the industry.

"We witnessed sequentially improving May & June, while the demand remains below pre-COVID-19 levels in most end markets. Our employees health & safety has been our top priority, and we launched programs for safe return to work, skilling and wellness. We have partnered closely with our customers in providing essential services," Swaminathan said.

Economic activity has started improving and Mahindra Logistics is well positioned to drive recovery in the coming quarters, he said adding that it has grown customer relationships in e-commerce, FMCG & Pharma, and continue to strengthen focus on delivering solutions, driving operations excellence and leveraging technology.

Mahindra Logistics is an integrated logistics service provider, specializing in supply chain management and enterprise mobility.