Rising operating costs and tight market conditions hurt profit growth at Transport Corporation of India, the country’s largest integrated supply chain and logistics services provider.
The company’s net profit in the second quarter stayed almost flat year-over-year, at $2.5 million, while operating revenue for the three months to the end of September grew 4 percent from a year earlier to $89 million.
Operating income from the freight division fell 6 percent to $35 million from $37 million in the same quarter last year. Income from the express segment increased 10 percent year-over-year to $25.6 million, but operating profit declined 11 percent to $1.7 million from $1.9 million a year ago.
The logistics provider’s operating expenses for the second quarter totaled $84 million, up 5 percent from $80 million in the year-ago quarter.
TCI’s overall revenue from April through September, the first fiscal half, rose 7 percent year-over-year to $175 million, but net income during the six-month period remained nearly flat at $5 million.
The Gurgaon-based company operates a fleet of more than 6,000 trucks and five cargo vessels for coastal shipping operations, supplemented by a pan-Indian distribution network covering nearly 13,000 locations.
For fiscal 2011-12, which ended March 31, the company posted net profit of $10.8 million, up 19 percent from the previous year.