Automobile slump since the beginning of the last fiscal and Covid-19 pressures in the fourth quarter seems to have seriously impacted the financial performance of Mahindra Group’s logistics arm. Mahindra Logistics last week reported its financial numbers for 2019-20 and Q4 which earmark a fall of 10 percent in annual revenue – Rs 3471 Crore in the FY 20 as against Rs. 3851 Crore in the previous fiscal.
The company, one of the leading 3PL solution providers in the country, saw its profits (after tax) declining by 37 percent – from Rs 86 crore to Rs 55 crore- at the end of the fiscal. During Q4, the company had seen its revenue falling by as much as 20 percent – Rs 812 crore as against Rs 1015 crore in FY19.
Commenting on the performance, Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, “Q4 2019-20 was a challenging period, with continued softness in auto sector and the onset of the Covid-19. The nation-wide shutdown of industries, facilities and movement of goods has had an impact on logistics, transportation & mobility.” On the outlook for the near run, he further said, “We are closely tracking the impact of Covid-19 on the economy. As things continue to evolve, we are working along with our customers and partners to ensure safety and ramp up of operations.”