Company’s total warehousing capacity stands at 90,000 pallets
Bangalore, Aug 11, 2015: The first quarter financial results ofSnowman Logistics Limited, one of the larger integrated temperature controlled logistics service providers in the country has shown satisfactory performance while the company continued to build up its capacity.
The company’s revenues for Q1FY16 increased by 20% to Rs.59.20 crore from Rs. 49.33 crores in the same period last year. The EBITDA for the quarter increased by 6% to Rs12.42 crore compared to Rs. 11.72 crore.
The net profit saw a significant jump of 134% to Rs.5.53 crore from Rs.2.37 crore over the same period previous year.
Capex & Capacities
For the quarter ended June 30, 2015, Snowman Logistics incurred a capital expenditure of Rs. 31.11 crore.
The company added 4,500 pallet warehouses at Mumbai. This takes the total installed capacity at Mumbai to 22,370 pallets, which is the larger capacities in any single city in the country.
Snowman’s total warehousing capacity now stands at 90,000 pallets. Expansion is also underway at Bangalore, Baramati, Jaipur, Cochin and Kolkata, which would take the total capacity to 1,14,000 pallets by March 2016.
Client Addition
Major clients added during the quarter include a three year service agreement with international food services giant COMPASS. Compass India is a part of £18 Billion Compass
Group PLC UK. Snowman will manage the supply chain requirements of their food services division in India.
Operational developments:
The company plans to offer processing activities, bonded facility, dedicated facility for leading pharma clients, vendor consolidation and a host of other value added services.
The increased scrutiny and focus of FSSAI on food safety in the recent past, as well as growing customer awareness on safety and hygiene issues, is making customers shift to ISO and FSSAI certified players like Snowman.
Management’s Comments
Commenting on the results, Mr. Gopinath Pillai, Chairman, Snowman Logistics said, “The outlook for the business continues to be good. We will be aggressively growing capacities as we would like to leverage our first mover position in the industry and position ourselves for the continuous growth in demand. With the impending implementation of GST, the market dynamics are bound to change in favor of organized and large service providers; Snowman is well positioned to benefit from this change.” CCI Newswire
