India’s Mahindra Logistics reported a fifth straight quarterly loss on Monday, hurt by subdued volume growth at its mainstay business of supply chain management.
Consolidated net loss for the logistics arm of Mahindra Group stood at 128.5 million rupees (USD 1.5 million) in the quarter ending March 31, compared with a loss of 8.2 million rupees a year ago.
The company declared a dividend on 2.5 rupees per share.
Logistics companies expect to see a muted fourth quarter as activity slowed ahead of general elections in India.
Demand slowdown in key manufacturing sectors like auto and industrial goods directly impacts third-party logistics companies.
Mahindra Logistics, which makes more than 90% of its revenue from supply chain management, has 80% of this revenue flowing in from automobile segment.
While diesel and aviation turbine fuel (ATF) prices declined 2% and 7%, respectively, year-on-year in the fourth quarter, this did not offset the impact of muted volumes.