During the quarter ended 30 June 2020, Snowman Logistics, an integrated temperature-controlled logistics service provider, recorded a revenue of Rs 55.12 crore against Rs 62.07 crore in Q1 FY19-20. The decline in revenue was attributable to the disruption in road transport due to the migration of drivers. However, the company’s warehousing occupancy increased due to a surge in demand for high-quality temperature-controlled warehousing as a result of which the EBITDA increased to Rs 17.87 crore from Rs 17.10 crore in the corresponding quarter of the previous year. As a result, EBITDA margin increased from 27% to 32.4%. PAT increased to Rs 0.78 crore in the current quarter from a loss of Rs 8.99 crore in the same period in the previous year.
Rise in demand amid Covid-19
As cold chain logistics was deemed an essential service by the Ministry of Home Affairs, all facilities of the company remained operational throughout the lockdown period and the overall warehouse occupancy had increased in the current quarter from various segments such as healthcare products, groceries, dairy, seafood, meat, poultry and QSR products. The company claimed to have implemented all necessary precautions and followed the guidelines recommended by WHO and other various healthcare bodies to ensure the safety of our employees, customers, and all other stakeholders.
Speaking about the quarter performance, Sunil Nair, chief executive officer of Snowman Logistics, said, “At Snowman, our commitment to our partners is unwavering. Despite the lockdown, we ensured that there are no service disruptions and that we continue to meet our clients’ demands. The lockdown has witnessed an increase in temperature-controlled warehouse demand, especially for food, pharmaceuticals and other essentials from our partners. We would always go extra miles with our customers to ensure we serve them in business and serve communities during such challenging times. Today, we are well-positioned to cater to such demands at all our facilities across India.”
Commenting on the results, Prem Kishan Dass Gupta, chairman, Snowman Logistics said, “The demand for high-quality cold chain logistics infrastructure has grown exponentially in the food and pharmaceutical industry due to the circumstances surrounding Covid-19, and our customers trust the quality of services provided by Snowman as a leader in this industry. We are continuing to expand and add cold storage capacities in both new and existing locations to cater to this growing demand.”
Snowman Logistics has 31 strategically located temperature-controlled warehouses, with a total pallet capacity of 1,13,208 across 16 cities, including the key markets of Mumbai, Chennai, Bengaluru, and Kolkata. The company offers services to various sectors, including butter and cheese, canned food items, poultry and meat, seafood, healthcare, and pharmaceutical products. Snowman owns 33 warehouses across the country with 293 reefer vehicles.