Driven by a double-digit growth at its e-commerce delivery arm, leading logistics player Patel Integrated Logistics today reported an over three-fold rise in net profit at Rs 3.65 crore on an income of Rs 454 crore that grew 11.25 per cent in the December quarter.
The city-based company's vice-chairman Arif Patel attributed the massive spike in the bottomline to the steep decline in fuel cost and the resultant higher margins. This has helped the company report a 11.25 per cent rise in topline as well.
In the year-ago period, the company had reported Rs 1.14 crore net profit on an income of Rs 408 crore, which helped it report a 218.31 per cent spike in net profit.
"Our e-commerce arm has done extremely well clipping at double digit topline which more than doubled to Rs 3.5 crore," Patel told PTI.
After the successful tie-up with Amazon, the company is also looking sewing up more exclusive alliances with more companies, primarily smaller ones, he added.
"The rise in the profit has been mainly due to cut in diesel price which saw around 30 per cent fall in the recent times. Besides, the management also took steps to focus on businesses that can give a healthy bottom line," Patel said explaining the good set of numbers.
There was a concentrated effort to cut the costs in operations and improve operational efficiency. The company has rightsized itself and has started reaping the benefits of an integrated back office, Patel added.
"Going ahead, we look forward to GST implementation, further boost on the e-commerce front for which we have a dedicated division now and further cut in prices of diesel. The revenue in e-commerce should grow by 12-15 per cent from the current level of 4-7 per cent during the last quarter," he added.
Patel Logistics commands 70-80 per cent share in air cargo market in the country, making it the most preferred choice for the e-tailers.
Recently, the company inked an air cargo alliance with the online marketplace Amazon to ensure next day delivery across the country. Patel Logistics is also in talks with more e-commerce players, sensing a boom time also for logistic players.
The company that began with just one truck in 1959 has grown to become the largest homegrown player with hundreds of trucks and 800 offices spread across the country. Today it handles around 5 lakh tonne cargo worth Rs 12,000 crore annually.
