Contract logistics saw a 9% year-on-year revenue growth in Q1 FY25, while the freight forwarding business experienced a 12% increase quarter on quarter, driven by higher demand for inbound ocean cargo. Additionally, the company's express business achieved a 2% increase in revenue year-on-year and saw a 16% reduction in PAT losses due to continuous cost optimization efforts.
"Despite the muted demand environment, the quarter gone by saw healthy order booking in 3PL and cross-border business. The cross-border business saw good traction, driven by a growth in demand for inbound ocean cargo," said Rampraveen Swaminathan, Managing Director and CEO at Mahindra Logistics Ltd.
MLL also highlighted improvements in mobility, last-mile delivery, and auto outbound logistics. The warehouse space under management in the third-party logistics business exceeded 20 million square feet.
"The mobility, last-mile delivery and auto outbound logistics business 2x2, continued their improvement journey and delivered a healthy performance," Swaminathan added.
"Earnings were impacted due to extended startup costs, coupled with higher manpower and warehousing lease costs. The Express business was impacted by lower volumes, which was offset by our cost optimization initiatives. We expect to see strong improvement in the overall operating performance in the later part of the year," Swaminathan said.
The company's future outlook focuses on continued growth and operational improvements, despite challenges in the current demand environment.
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