Share prices of major logistics companies have been badly hit in the last one month with 9 out of 12 companies have been in the red due to muted financial results in Q3 FY23 and subdued activity in the overall sector.

Changes in stock prices of major logistics companies on BSE in the last one month

The share price of Mahindra Logistics was the worst hit with a 23.1 per cent decline in the last month. This was followed by Gati with a decline of 23 per cent and Concor with a 15.8 per cent drop, according to BSE data.

Q3 FY23 results

Gati reported a net loss of ₹13 lakh against a net profit of ₹1.25 crore on a revenue of ₹63 crore (₹64.94 crore).

Similarly, VRL Logistics’ net profit declined to ₹49.20 crore (₹60.49 crore) on a revenue of ₹681.58 crore (₹678.39 crore), while Blue Dart reported a net profit of ₹86.93 crore (₹122.18 crore) on a revenue of ₹1,337 crore (₹1254.75 crore).

Shashi Kiran Shetty, Founder and Chairman, Allcargo Group, said that there has been a temporary slowdown in the global trade due to disruptions in China and the Russia–Ukraine conflict. .

However, this as a short-term trend and global trade flows will normalise as we are already noticing a pick up in volumes, Shetty added.

Logistics data

Logistics activity in India was subdued last month with daily average e-way bill generations declining 2 per cent month-on-month (m-o-m). The fleet utilisation level stood at 80-85 per cent during the month. Daily average FASTag toll collections dropped 3 per cent m-o-m in January 2023, said a report by Motilal Oswal Financial Services.

EXIM container volumes handled by Indian Railways increased 6 per cent year-on-year (y-o-y) with the market share of Indian Railways in EXIM containers rising to 35.4 per cent as of January 2023 against 34.9 per cent in January 2022.

Overall, the container volumes handled at ports rose 4 per cent y-o-y. Volumes handled at major ports rose 12 per cent y-o-y to 70 million tonnes. Last month, iron ore and coal registered 29 per cent and 45 per cent y-o-y growth, respectively. Diesel consumption declined to 7.2 million tonnes during the month, the report said.

A report by Amicus Growth Advisors said the global logistics sector is valued at $5.2 trillion, while the sector accounts for 8-20 per cent of India’s GDP. Indian logistics market is estimated to grow to $380 billion by 2025 at a compound annual growth rate between 10 per cent and 12 per cent.

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