Transport Corporation of India’s profit fell 5 percent year-over-year to $2.75 million in the fiscal second quarter ending Sept. 30, as the integrated supply chain and logistics services provider was hit by rising operating costs and tight market conditions.
The company’s operating revenue grew 3 percent year-over-year to $90.5 million in the second quarter, while operating revenue from the freight division dropped to $39 million from $40 million. The express segment reported a $2 million operating profit against revenue of $24 million.
"Higher interest incidence and increased costs due to higher fuel prices have led to a muted profit after tax in the July-September quarter over the previous year. With domestic credit conditions becoming dearer, business outlook for the next few months will be challenging," TCI said.
The company’s overall revenue for the first half rose 4 percent year-over-year to $174 million, but profit remained almost flat at $5.4 million.
Gurgaon-based TCI, with a fleet of over 6,000 trucks and six cargo vessels for coastal shipping, has a pan-Indian distribution network covering nearly 13,000 locations.
For fiscal 2010-11 ended March 31, the company posted a profit of $11.4 million, up 20 percent from $9.3 million the previous year.