Western Carriers (India) shows resilience with steady Q2 growth amid challenging logistics market

Western Carriers (India) Limited (Western Carriers) announced its unaudited financial results for the second quarter and first half of FY25, showing resilience in a challenging logistics market. The company, a leader in multi-modal, asset-light logistics solutions, reported steady growth in profits and margins, despite limited revenue expansion caused by subdued export markets.

Western Carriers Financial Performance in Q2 FY25

The revenue from operations in Q2 FY25 was almost unchanged at ₹ 4,314.33 million, compared to ₹ 4,258.51 million in the corresponding quarter last year. This stability came despite a significant drop in overall export market activity, which weighed heavily on logistics industry growth. Western Carriers managed to grow its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), excluding other income, by 7.68% to ₹ 361.41 million, demonstrating effective cost optimization measures.

EBITDA margins also improved by 50 basis points, rising to 8.38% from 7.88% in Q2 FY24. Net Profit After Tax (PAT) was also up, recording a growth of 3.61% to reach ₹ 189.56 million, compared to ₹ 182.96 million in Q2 FY24. The PAT margin remained stable, coming in at 4.39%, compared to 4.30% a year ago.

H1 FY25 Performance: Growth in EBITDA and Margins

For the half-year ended September 2024, Western Carriers’ revenue grew by 3.23% year-on-year, reaching ₹ 8,541.42 million compared to ₹ 8,274.22 million in H1 FY24. EBITDA, excluding other income, increased by 10.36%, reaching ₹ 716 million, while the margins expanded by 54 basis points to 8.38%.

Western Carriers attributed this growth to its focused cost optimization initiatives and the expansion of its client portfolio, particularly in the steel manufacturing segment. The PAT for the half-year grew by 5.86%, rising to ₹ 378.56 million from ₹ 357.59 million recorded in the previous year.

Expert Analysis: Resilient Strategy Amid Challenging Market

According to Kanishka Sethia, Whole-Time Director and CEO of Western Carriers, the overall slowdown in export growth had a significant impact on the logistics industry, but the company remained committed to improving operational efficiency and optimizing costs. Sethia mentioned that although revenue growth faced setbacks due to a stagnant export market, EBITDA growth was driven by effective cost controls and operational optimizations.

He also emphasized that the company has strengthened its foothold in the logistics space by building deeper relationships with key clients across sectors such as metals, FMCG, pharmaceuticals, and oil & gas, all of which led to repeat business opportunities. Sethia further explained that the new partnerships, especially in the steel sector, are expected to add to the growth momentum in the upcoming quarters.

Expanding Partnerships and Future Focus

Sethia highlighted Western Carriers’ strategy of adding new clients while retaining strong relationships with its existing customer base. He pointed out that this approach enabled the company to withstand the challenges of the logistics market more effectively than its competitors. Western Carriers is also exploring opportunities to expand its customer offerings, with a renewed focus on end-to-end logistics solutions.

The company is leveraging its integrated multi-modal capabilities to offer a variety of services, including road, rail, and waterway logistics. Western Carriers’ asset-light model, which reduces capital-intensive investments while maximizing service efficiency, remains a critical factor in maintaining profitability in volatile markets.

About Western Carriers (India) Limited

Western Carriers was founded in 1972 and has since grown into a prominent multi-modal logistics service provider. The company operates primarily in India, focusing on providing customized, integrated logistics solutions to clients across several sectors, including metals, pharmaceuticals, FMCG, and oil & gas. Western Carriers aims to simplify logistics through value-added services and has been recognized for its efficiency with multiple awards, including Tata Steel‘s “Support for New Trials” and BALCO‘s “Best Business Partner” award.

Looking Ahead: Optimism in Challenging Times

Sethia expressed optimism regarding the future, stating that Western Carriers plans to further its expansion initiatives and focus on integrating newer services into its logistics offering. The company’s asset-light model and integrated approach have been instrumental in weathering industry downturns, and it expects these strengths to continue supporting growth amid the ongoing uncertainties in the global logistics market.