Snowman reports loss of Rs 61 lakh in Q3FY2025, revenue up 6%

Snowman Logistics reported a net loss of Rs 61 lakh in the third quarter of financial year 2024-25 compared to a profit of Rs 4.2 crore in Q3FY2024.

Revenue from operations increased six percent to Rs 131.8 crore, says an official release.

For the first nine months, revenue was up 10 percent at Rs 415.5 crore and net profit dropped 83 percent to Rs 1.8 crore from Rs 10.6 crore in the same period last year.

"The industry is currently navigating headwinds due to a slowdown in consumption patterns during Q3, especially in the QSR business," says Prem Kishan Dass Gupta, Chairman, Snowman Logistics. "In addition, as Amazon no longer requires dedicated fulfilment centres for their cold chain business, we have discontinued the warehouses leased for them. Regarding our ongoing projects, our Kolkata expansion has been delayed from Q3 to Q4; however the project is nearing completion and expected to commence operations during the current quarter.

"In addition, our Krishnapatnam expansion is well underway and expected to commence in Q1 of next year. We remain positive about growth in broader demand and are actively evaluating multiple new locations to expand our capacity in the next financial year through both owned and asset-light models."

Warehousing revenue was down eight percent at Rs 54 crore during the third quarter and one percent at Rs 169 crore for the first nine months.

Transportation services revenue increased 10 percent to Rs 35 crore in Q3FY2025 and Rs 106 crore in nine months, up 10 percent.

"Our transportation services have experienced a healthy growth of 10%, while Snow Distribute (trading and distribution business), has significantly expanded by 27.6 percent, reinforcing its growing role in our diversified portfolio," says Padamdeep Singh Handa, CEO & Whole-time director, Snowman Logistics. "We have achieved a sequential improvement, reaching an impressive 90 percent utilisation rate, with expectations of further enhancements as demand continues to stabilise.

"The ice cream and dairy segment is expected to rebound with the onset of summer season. The seafood segment is already seeing signs of healthy revival. The QSR segment is on a positive trajectory towards normalisation post Q4FY25."

Snowman operates 41 warehouses across 20 cities with over 2,600 employees.

The stock closed the day with a loss of nearly nine percent at Rs 57.10 on the BSE.