Half yearly performance

Consolidated sales was down by 29% to Rs 1242.97 crore. Lower sales together with 160 bps decline in OPM to 2.8% saw the operating profit down by 55% to Rs 35.10 crore. Spurred further by 25% jump in OI to Rs 11.06 crore, the fall in PBIDT was restricted at 47% to Rs 46.16 crore. After accounting for higher interest and depreciation, the PBT before EO was a loss of Rs 2.14 crore compared to a profit of Rs 46.42 crore in the corresponding previous period. The loss at PAT was Rs 1.63 crore (against a profit of Rs 29.98 crore) after accounting for a tax write back of Rs 0.51 crore compared to a provision of Rs 16.44 crore in the corresponding previous period. Eventually the net profit after MI was a loss of Rs 0.83 crore (against a profit of Rs 29.84 crore in corresponding previous period) after accounting for higher share of loss from associate and higher minority interest.  

Segment profit of SCM was down by 31% to Rs 87.17 with its revenue down by 23% to Rs 1196.50 crore and 90 bps contraction in segment margin to 7.3%. However the EMS segment reported a loss of Rs 0.06 crore (against a profit of Rs 18 crore in corresponding previous period) with its sales down by 76% to Rs 46.47 crore.  

Commenting on the performance, Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, "We have seen a strong rebound in our supply chain operations during the quarter. Our fulfillment logistics solutions & services continued to witness strong growth driven by E-commerce, Pharma and FMCG verticals. We also continued to see strong growth from the Farm segment during the quarter. While we are not yet completely back to normalcy since the advent of Covid-19 pandemic, our focus on select industry verticals, our deep partner network and our ability to fulfil customer requirements efficiently, has enabled year-on-year growth in our supply chain business. We have in this period, also scaled up the speed on technology adoption with several IT systems and functionalities going live, which will enable seamless data flow and support businesses better. During the quarter we launched two new built-to-suit warehouses aggregating 0.8 million square feet and continued to see strong demand for value-added services & solutions. The business environment is steadily improving. With improving auto demand, combined with growth in our E-commerce, Consumer and Freight Forwarding business, we remain positive that the execution of our strategy will continue to provide strong momentum."