Mahindra Logistics stock price declined by more than 4 per cent on Wednesday during morning trade after the company failed to impress the market by incurring a net loss of Rs 15.93 crore in Q2FY24.
In the same period of the previous fiscal year, Mahindra Logistics had reported a profit of Rs 12.19 crore. The operating income witnessed a significant 85.37 per cent decline on a quarter-on-quarter basis and a substantial 92.6 per cent year-on-year decrease. In comparison to the prior quarter, there was a moderate 5.53 per cent increase in revenue.
At 11:30 am, the shares of the logistics firm were trading at Rs 362 price level, down by over 1.94 per cent or 7 points on the National Stock Exchange.
"The overall logistics industry is well poised driven by the long-term focus on infrastructure, manufacturing, consumption growth, and positive regulatory trajectory.” said Rampraveen Swaminathan, Managing Director and CEO at Mahindra Logistics Ltd. The company remains focused on accelerating margins driven by synergies in the network business and other cost reduction programs, he added.
The firm's operational EBITDA witnessed a 20.7 per cent decrease, falling to Rs 53.6 crore from Rs 67.6 crore in the previous fiscal's corresponding period. During the present quarter, the EBITDA margin stood at 4 per cent, down by 110 basis points when compared to the same period the previous year.
On a year-to-date basis, the shares of Mahindra Logistics have declined to more than 27 per cent or 139 points on the National Stock Exchange.