BENGALURU (Reuters) – Indian freight carrier Mahindra Logistics on Monday reported a loss for a third straight quarter, hurt by mounting expenses and muted demand.
The logistics arm of the tech-to-tractors conglomerate Mahindra group posted a consolidated loss after tax of 159.3 million rupees ($1.92 million) for the July-September quarter compared with a profit of 121.9 million rupees a year earlier.
A decline in freight rates and increased competition have hurt Mahindra Logistics’ profitability in recent quarters.
The company, which competes with firms such as Delhivery, reported a marginal 2.9% on-year rise in revenue from operations to 13.65 billion rupees, which was offset by a 5.1% jump in its total expenses to 13.80 billion rupees.
The company’s mainstay segment of supply chain management incurred a loss of 90.9 million rupees compared with a profit of 765.7 million rupees in the year ago quarter.
Shares of Mahindra Logistics closed down 3.2% at 369 rupees ahead of the results. They had gained 1.3% in the September quarter.
($1 = 83.1303 Indian rupees)
(Reporting by Manvi Pant and Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)