Patel Logistics Dec-quarter net profit soars 67 pc

Despite a challenging environment and the devastating floods in Chennai, leading logistics player Patel Integrated Logistics today reported a healthy 67.40 per cent growth in December quarter net profit at Rs 6.11 crore.
The city-based company said its revenue rose to Rs 389.5 crore, up 14.25 per cent over the same period last year.
The company's Vice Chairman Areef Patel attributed the good set of numbers to effective control on operational cost in a challenging environment.
"Notwithstanding the not-so-conducive external factors like the general dip in the logistics sector, we could maintain the bottomline growth, largely because we could improve our functioning by introducing new technologies and by reducing operation costs by streamlining the process.

"The Chennai floods and the resultant closing down of operations for several days hit the revenue trajectory," Patel said.
He, however, was quick to note that e-commerce is emerging as a key contributor to the topline growth and the company is looking to take it to the next level by setting up last-mile delivery points.

The company's December-quarter numbers are noteworthy, especially since most logistics firms have seen massive hits to their bottomlines.
For instance, Gati reported a massive 33 per cent decline in net income, Snowman Logistics saw its profit sink 22.33 per cent and the state-run Container Corporation also reported a 23 per cent in profit during the December quarter.

VRL Logistics performed comparatively better, reporting a marginal 1.6 per cent decline in net income.
During the quarter, Patel Integrated Logistics raised Rs 18.73 crore in its first phase of funding from Mauritius-based PE firm Frontline Strategy to expand its e-commerce operations.
Patel said the company is using the funds to start new branches which would cater only to the e-commerce segment.
"Over the next six months, the company would have 50-60 new e-commerce branches, mostly in small towns," he said.