Leading logistics player Patel Integrated Logistics today reported a 123.20 per cent increase in net profit at Rs 4.04 crore for the quarter to September, despite a 15 per cent decline in revenue at Rs 263.6 crore.
Patel Logistics vice-chairman Areef Patel attributed the improved bottom line to cost reduction and better operational efficiencies, which saw its EBITA rise 23 per cent and interest cost coming down by Rs 31.3 lakh.
Effective management of truck hire charges on 30 largest designated routes has resulted in the benefit of 5.31 per cent during the quarter, he added.
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"We continue to draw steam from our bottom-line strategy that focuses on adopting the latest technology, skill upgrade and cost cutting. This has helped us steady the margins, despite a slight slump in the overall income. The new age business also continues to be the promising addition to the overall growth," Patel said.
He said the government focus on infrastructure, GST Bill and the proposed aviation policy should further boost sentiments of the logistic sector, apart from the excitement being given by the e-commerce sector.
Patel said the company will continue to focus on high margin business and cost cutting, strengthening sales team to increase penetration into the retail segment.
