Snowman reports optimistic results in pessimistic market outlook backed by Strong Fundamentals and Robust Business Model

During the quarter ended March 31, 2020, Snowman Logistics Ltd recorded a revenue of INR. 60.98 Crores as against INR. 59.80 Crores for the same period in the previous year. EBITDA decreased to INR. 15.39 Crores from INR. 16.67 Crores for the same period in the previous year, PST decreased to INR. (1.34) Crores from INR. 5.45 Crores in the corresponding quarter of the previous year and PAT decreased to INR (1.17) Crores from INR 5.42 Crores in the corresponding quarter of the previous year.

On an annual basis, revenue during 2019-20 was INR. 240.20 Crores as against to INR. 232.55 Crores during the previous year. EBITDA increased to INR. 63.38 Crores from INR. 62.24 Crores. EBITDA of FY 20 Includes positive impact of INR.13.58 Crores due to newly adopted Lease Accounting (Ind As 116) and corresponding EBITDA% impact is 5.7%.

PBT decreased to INR. (6.31) Crores from a profit of INR. 10.86 Crores during the previous year. PBT was negatively impacted by INR. 8.49 Crores on account of Ind AS 116 adoption in current year and PAT decreased to INR. (15.01) Crores from a profit of INR. 9.72 Crores during the previous year. The Company has reversed deferred tax assets by INR. 8.95 Crores on account of new income tax rate applicable for companies having turnover below INR. 400 Crores due to which the tax expense was recognized to such extent. The total impact on PAT due to Onetime Deferred tax reversal (INR. 8.95 Crores) and lnd AS 116 adoption (INR. 8.49 Crores) is INR. 17.44 Crores.

Commenting on the results, Mr. Prem Kishan Gupta, Chairman, Snowman Logistics Ltd said, "We are satisfied with the results posted by the Company in a year in which it had to face a series of cyclones which impacted the seafood industry. After brief phase of consolidation, the Company is back on its expansion mode and will be starting work on setting up new warehouses during the current year.

Sp.eaking about the results, Mr. Sunil Nair, CEO, Snowman Logistics said, "The Company has been constantly working on process improvements to ensure the best service levels to customers. This is reflected in the increase in customer base. Entry into the E-Commerce space by tying up with one of the leading players in this business shows that the company is well poised to handle the changing business environment."

Shares of Snowman Logistics Ltd was last trading in BSE at Rs.28.75 as compared to the previous close of Rs. 29.2. The total number of shares traded during the day was 11923 in over 118 trades.

The stock hit an intraday high of Rs. 29.25 and intraday low of 28.1. The net turnover during the day was Rs. 340499.

Source : Equity Bulls

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