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With the arrival of festive season, stock prices of all major logistics companies shot up on Monday – the larger trigger being the huge demand for supply chain to make sure that the goods reach on time and safely from the factory to the end-customer. The FMCG and e-commerce sectors are helping the logistics sector, said experts.
Record FASTag
Interestingly, media reports indicated that toll collections through FASTag transactions recorded an all-time high of ₹122.81 crore on Saturday. FASTag toll collection reached a record ₹3,356 crore in revenue in October 2021 from around 21.42 crore transactions. The 4 million strong truck community has a strong contribution in the toll payment, experts said.
The October e-way bill generation was 84 per cent higher than in May and 8 per cent more than in September. The daily e-way generation rose 4.7 per cent to 23.71 lakh in October compared with 22.65 lakh in September.
Upbeat results
Companies like Gati, Blue Dart, All Cargo, Snowman Logistics and VRL Logistics all have reported better financial results and some profits as against losses seen last year due to Covid-19.
For instance, in the second quarter of the current fiscal, Gati’s revenue was up 19 per cent y-o-y at ₹401 crore, Blue Dart reported 30 per cent increase in revenue at ₹1,124 crore, and VRL Logistics’ revenue in Q2 grew by 45 per cent to ₹636 crore.
Gati said that it achieved the highest ever quarterly tonnage and revenue in express business. It was a similar trend among other companies, experts said.
Balfour Manuel, Managing Director, Blue Dart, says, “The company witnessed strong pull back in demand during the quarter as wave II of the pandemic started slowing down. All economic indicators like GDP growth, Index of Industrial Production, GST collections etc. reflected strong recovery. Growth during the quarter is testimony to heightened business activities of key industrial verticals.”
Ahead of the festive season, Snowman Logistics expanded its operational capacity, and began operations of its temperature-controlled warehouse at Siliguri, West Bengal. It is also expanding its e-commerce warehousing facility in Pune in addition to its 54,000 sq ft warehouse in Mumbai.
Most of the leading logistics companies have started doing well after a long time and post-Covid the demand has gone up substantially. Today, to be successful in business, the supply chain is extremely important and the tariffs have gone up after almost a decade of downward spiral. This has resulted in reasonable top line growth as well as disproportionately higher growth in bottom line in the recent quarters, said market expert V Nagappan.
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