Shares of Snowman Logistics surged 6 percent on August 2, hitting a 52-week high at Rs 52.90, after reporting robust quarterly performance in the quarter-ended June.
Revenue came in at Rs 128.8 crore during the June quarter, a significant jump from Rs 87.3 crore in the same quarter last fiscal. Whereas, net profit rose to Rs 3.4 crore against Rs 1.9 a year ago.
Operating margin, though, shrunk to 20 percent in the quarter under review as compared with 22 percent in the previous quarter and 24 percent a year ago.
At 9:57 am, shares of the cold chain storage company were trading up 2.7 percent at Rs 51.34 on the BSE.
Sunil Nair, the CEO of Snowman Logistics, expressed satisfaction with the full utilization of the capacities added last year, which has contributed positively to both their revenue and profit. Additionally, the company is witnessing strong growth from its key customers, which instills confidence in their ongoing expansion investments, he added.
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To further enhance its capabilities, Snowman Logistics is actively pursuing asset-light initiatives like SnowLink and dry warehouse leasing to increase its capacity, Nair said.
Prem Kishan Dass Gupta, the Chairman of Snowman Logistics, announced that the company has allocated around Rs. 200 crores of capital expenditure to be invested in the next 24 months. This investment will be financed through a combination of internal accruals and debt.
Gupta emphasized that customers are now seeking to shift from the unorganized sector to reliable and quality-conscious service providers who can enhance their supply chain and provide access to pan-India markets. Snowman Logistics is well-positioned to capitalize on this growing demand, he believes.
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