Snowman Logistics reports 11% increase in Q1 FY2019-20 revenue

August 14, 2019: Temperature-controlled logistics service provider Snowman Logistics has reported revenue of Rs62.07 crore, a 11 percent increase in the quarter ended June 30, compared to the same period last year (Rs55.76 crore).

EBITDA (earnings before interest, tax, depreciation and amortization) increased to Rs16.25 crore from Rs13.69 crore, due to an Ind-AS (Indian Accounting Standards) adjustment of Rs3.28 crore, registering a 19 percent growth for the same period in the previous year.

“Revenues have mainly increased due to increase in transportation business. In this quarter, there has been an increase in storage of pharmaceutical products and we have also started providing back end services to a large QSR chain. However, the overall warehousing business was affected on account of Fani Cyclone in the company’s facilities in the eastern region, specifically in the seafood industry. With the impact of Fani behind us, we expect seafood volumes to resume to normal levels in the coming months," said Sunil Nair, CEO, Snowman Logistics Limited.

From April 1 this year, Snowman Logistics adopted new accounting standard Ind-AS 116 on leases and the lease agreements with the landlords are covered under the same. Ind-AS 116 requires lessees to recognise most leases on their balance sheets. They have to use a single accounting model for all leases, with limited exemptions. During Q1 FY2019-20, the company recognised Rs3.05 crore as interest on lease liability.

Prem Kishan Gupta, chairman, Snowman Logistics Limited said, “We expect the economic growth to accelerate in the coming months, which will further fuel the consumption need resulting in an increase in demand for the movement of temperature-controlled goods and warehousing solutions. Our outlook for the future is buoyant and we remain committed to continue investing in people, technology and allied resources, what we believe are the essential prerequisites for expanding in the cold chain business."

Snowman Logistics has 1,04,343 pallet capacity, 31 warehouses across the country and 293 reefer vehicles for operations in key markets of Mumbai, Chennai, Bengaluru and Kolkata.