- Revenue up by 11% compared to the corresponding quarter last year
- EBITDA increased by 19% compared to the previous year
- Company adopted new accounting standard IND-AS 116
During the quarter ended June 30, 2019, Snowman Logistics Ltd. recorded a revenue of INR. 62.07 Crores as against INR. 55.76 Crores for the same period in the previous year, registering a growth of 11%. EBITDA increased to INR. 16.25 Crores from INR. 13.69 Crores, due to an Ind-AS adjustment of INR. 3.28 crores, registering a 19% growth for the same period in the previous year. PAT decreased to INR (8.99) Crores from Profit of INR 0.74 Crores in the corresponding quarter of the previous year due to a onetime deferred tax asset reversal of INR (8.50 Cr) on account of reduction in tax rates in the finance bill presented in July 2019.
Effective April 1, 2019, the company has adopted new accounting standard Ind-AS 116 on Leases and the lease agreements with the landlords are covered under the same.
- The company has applied the standard to its leases by using Modified retrospective approach.
- The company has recognized an asset of INR 138 Cr towards Right of Use (ROU). The ROU represents the equivalent amount of Lease Liability recognized under this standard.
iii. The ROU asset is amortized over the remaining term of the lease on a Straight line basis under depreciation and amortization in the financials to the extent of 2.35 Cr. in the Q1, FY 20’.
- During Q1 FY2019-20, the company has recognized INR 3.05 Cr. as Interest on Lease Liability.
W.e.f July 2019, the Finance Bill has revised applicable tax rate for companies having turnover below INR 400 Crores to 25% from 30%. This has resulted in a change of effective tax rate leading to a deferred tax impact of 8.95 Cr. which has been written off.
Commenting on the results, Mr. Prem Kishan Gupta, Chairman, Snowman Logistics Limited said, “We expect the economic growth to accelerate in the coming months, which will further fuel the consumption need resulting in an increase in demand for the movement of temperature-controlled goods and warehousing solutions. Our outlook for the future is buoyant and we remain committed to continue investing in people, technology and allied resources, what we believe are the essential prerequisites for expanding in the cold chain business.”
Speaking about the quarter performance, Sunil Nair, CEO, Snowman Logistics Limited said, “Revenues have mainly increased due to increase in transportation business. In this Quarter, there has been an increase in storage of pharmaceutical products and we have also started providing back end services to a large QSR chain. However, the overall warehousing business was affected on account of Fani Cyclone in the Company’s facilities in the Eastern Region, specifically in the seafood industry. With the impact of Fani behind us, we expect seafood volumes to resume to normal levels in the coming months.