IGI Logo

India's Mahindra Logistics swung to a loss in the first quarter on Monday, hurt by higher expenses and lukewarm demand.

The freight carrier posted a consolidated net loss after tax of 85.5 million rupees ($1.04 million) in the three months ended June 30, compared with a profit of 135.2 million rupees a year earlier.

Consolidated total expenses surged nearly 10% to 12.99 billion rupees.

The company had earlier flagged an impact on its business from slowing network expansion in e-commerce and consumer markets, which analysts believe led to weakening demand resulting in a muted quarter with limited volume growth.

It had also cautioned about a spillover from larger events like global financial turmoil and unseasonal rain in some parts of the country.

The last time the company had posted a loss after tax was in the quarter ended June 2020, during the COVID-19 pandemic that hit the cargo movement industry as economic activities across the world came to a halt.

Consolidated revenue from operations rose about 8% to 12.93 billion rupees, lifted by more than 6% growth in its mainstay supply chain management business.

The company, in an exchange filing, said demand is expected to improve in FY24 with the return to office being normalised.

Its enterprise mobility services segment surged 39% to 794.6 million rupees.

The logistics arm of Mahindra Group, which competes with Delhivery, offers services like cargo and freight movement, workforce management and warehousing facilities to multiple industries.

Shares of Mahindra Logistics ended 2.7% lower after the results.