Snowman Logistics reported its Q2FY22 earnings numbers. Sunil Nair, CEO and Wholetime Director at Snowman Logistics, discussed the company’s performance.
“We are expecting 20 percent increase in revenues (in FY22). All the efforts are in that direction,” he said.
The company has achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 19 crores as against Rs 15 crores last year.
“We hope to continue this run-rate of EBITDA for the second half as well,” he said.
In the previous quarter, the company’s capacity was 1.07 lakh pallets. By the end of this quarter (Q2FY22), it was supposed to reach 1.14 lakh pallets. And it has reached that level now, Nair noted.
“Our Coimbatore facility is expected to come up in November. So, by the end of next quarter, we will be at 1.2 lakh pallets in warehousing space,” he said.
The e-Commerce business is contributing around 8 percent to the business. Nair expects it to go to 12 percent by the end of the current year.
In terms of capex plans, he stated, “We are going to invest around Rs 425 crores in the next three years. We have started hunting for land. We have shortlisted some land and may buy a couple of pieces this quarter. We expect to add another 15 percent capacity in the next 12-18 months in terms of pallet position, and we will also be adding two more eCommerce facilities in the next six months.”
The company expects to fund the expansion through debt and internal accruals.
“Around 3-4 percent revenue contribution came from the COVID-19 vaccine business,” he said.
For the full interview, watch the accompanying video.
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