Mumbai, February 03, 2025 – Snowman Logistics Limited (NSE: SNOWMAN | BSE: 538635) announced its unaudited financial results for the quarter ended December 31, 2024. The company's financial performance saw a decline in quarterly revenue and profitability compared to the previous quarter.
Key Financial Highlights (INR Lakhs)
| Particulars | Q3 FY25 (Dec 31, 2024) | Q2 FY25 (Sep 30, 2024) | Q3 FY24 (Dec 31, 2023) | 9M FY25 (Dec 31, 2024) | 9M FY24 (Dec 31, 2023) |
|---|---|---|---|---|---|
| Revenue from Operations | 13,184.74 | 14,344.67 | 12,404.57 | 41,551.97 | 37,683.15 |
| Total Income | 13,391.33 | 14,451.91 | 12,521.54 | 41,942.74 | 38,073.67 |
| Total Expenses | 13,453.13 | 14,367.67 | 11,867.59 | 41,668.73 | 36,332.82 |
| Profit Before Tax (PBT) | (61.80) | 84.24 | 653.95 | 274.01 | 1,740.85 |
| Net Profit (PAT) | (61.39) | 61.45 | 424.81 | 179.04 | 1,055.86 |
| Earnings Per Share (EPS) | (0.05) | 0.03 | 0.25 | 0.11 | 0.63 |
- Quarterly Performance: Revenue fell 8.1% QoQ and increased 6.3% YoY.
- Profitability Decline: The company reported a net loss of INR 61.39 lakhs, reversing the previous quarter's profit of INR 61.45 lakhs.
- Year-to-Date Growth: Revenue for the nine-month period grew 10.2% YoY, but PAT fell sharply by 83% YoY.
Segment-Wise Performance
| Segment | Q3 FY25 Revenue (INR Lakhs) | Q2 FY25 Revenue (INR Lakhs) | Q3 FY24 Revenue (INR Lakhs) |
|---|---|---|---|
| Warehousing Services | 5,388.12 | 5,566.88 | 5,836.63 |
| Transportation Services | 3,547.88 | 3,581.66 | 3,239.34 |
| Trading & Distribution | 4,248.74 | 5,196.13 | 3,328.60 |
- Warehousing Services declined 3.2% QoQ and 7.7% YoY.
- Transportation Services remained relatively stable but grew 9.5% YoY.
- Trading & Distribution saw a significant 18.2% QoQ decline, but improved 27.7% YoY.
Corporate Updates & Regulatory Matters
- Income Tax Proceedings:
- Snowman Logistics is involved in a tax dispute regarding INR 6,110.91 lakhs of deductions under Section 35AD of the Income-tax Act, leading to a demand of INR 3,177.40 lakhs.
- The company has challenged these demands, and rectification orders have reduced the liability to INR 2.76 lakhs.
- A formal application under the Vivad Se Vishwas Scheme, 2024 was filed on January 31, 2025 to resolve the issue.
- Goods & Services Tax (GST) Dispute:
- The company received demand orders amounting to INR 1,020.53 lakhs related to GST disputes in Maharashtra, West Bengal, and Karnataka.
- Snowman has filed an appeal and deposited INR 178.17 lakhs under protest.
- A provision of INR 77 lakhs has been accounted for in the financial results.
- Land & Asset Purchase:
- Snowman signed an Agreement to Sell with Gateway Distriparks Limited (GDL) to acquire 7.63 acres of land and two warehouses in Krishnapatnam for INR 2,000 lakhs.
- INR 1,800 lakhs has been paid as advance, with the transaction expected to conclude next quarter.
- Interim Dividend:
- The Board of Directors declared a 10% interim dividend (INR 1 per share) on August 08, 2024, amounting to INR 1,670.88 lakhs, which has been fully paid.
- Change in Control:
- Gateway Distriparks Limited (GDL) acquired additional shares in Snowman Logistics, resulting in Snowman becoming a subsidiary of GDL from December 24, 2024.
Management Commentary
Prem Kishan Dass Gupta, Chairman of Snowman Logistics, commented:Strategic Outlook
- The company expects improved performance in the next quarter driven by:
- Completion of the Krishnapatnam acquisition, expanding warehousing capacity.
- Ongoing tax dispute resolution, which may reduce financial uncertainty.
- Stabilization in trading and distribution revenue.
Conclusion
While Snowman Logistics faced a decline in quarterly revenue and profitability, YoY growth remains positive. The company's expansion efforts, tax dispute resolutions, and new parent entity (GDL) position it for long-term stability and growth.Stock market participants will be watching for further clarity on regulatory matters and the success of strategic investments.