Snowman Logistics shares fell as much as 8 per cent on Friday after the cold supply chain company reported 67 per cent drop in its June quarter profit.
Navi Mumbai-based Snowman Logistics reported a net profit of Rs 1.8 crore in Q1 compared to a profit of Rs 5.46 crore in the corresponding quarter of last fiscal. Its sales declined 16 per cent to Rs 50 crore as against Rs 59 crore last year.
During the June quarter, Snowman Logistics exited its loss-making food services business and reduced its exposure in long-distance road transportation, factors that impacted the topline.
"The drop in revenue is a result of Snowman's decision to focus on its core business-temperature controlled warehousing," the company said in a release to Bombay Stock Exchange.
However, Snowman Logistics's EBITDA (earnings before interest, tax, depreciation and amortization) increased by 20.4 per cent to Rs 14.75 crore compared to Rs 12.25 crore in the previous fiscal as its operating expenses decreased by 34 per cent to Rs 24 crore in the June quarter.
The reduction in operating cost led to improvement in its operating margin to 29.7 per cent compared to 20.7 per cent in the same period last year.
Snowman Logistics shares closed 6.45 per cent lower at Rs 73.30 apiece compared to 1.31 per cent gain in the broader Sensex.
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