Snowman Logistics posted mixed Q1FY22 earnings. Revenue rose around 20 percent, led by food and pharma. However, margins have contracted quite sharply for the company. Sunil Nair, CEO and Wholetime Director at Snowman Logistics, discussed the performance.

“The demand is there. Our revenues have gone up by 20 percent. Since we had estimated revenues going up in Q4FY21 and Q1FY22, we had to do some preparatory work in terms of mobilising people resources and setting up few other corrections in the infrastructure. That resulted in spending a little bit more money for those preparations. That is the reason there is pressure on the margin,” he said.

He believes that with the increased revenue, the company will be able to record better profit from Q2FY22 onwards.

In terms of vaccine distribution, he mentioned, “Almost 88-89 percent of our utilisation was there before vaccine. So vaccine is around 3-4 percent of our revenue and we expect it to go up by a couple of percentage points.”

According to him, pharma as a whole is becoming quite attractive. “Pharma has been 10 percent of our revenue. With this vaccine addition, overall pharma contribution will become around 14-15 percent,” he shared.

The company’s current net debt is around Rs 30-35 crore and it has Rs 35-40 crore cash in its books.

On capex, he further mentioned, “The Rs 250 crore that we plan to raise will completely be used for new capacity creation. We will also be adding our internal accruals and some debt to that and we will be investing around Rs 425 crore in three years’ time.”

For the full interview, watch the accompanying video.

(Edited by : Dipika Ghosh)

First Published:Jul 28, 2021 1:25 PM IST