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Snowman Logistics expects higher double-digit growth in FY25 and targets revenue of ₹800-1,000 crore in FY26

Posted on by darion

Snowman Logistics forecasts higher double-digit growth in FY25 and aims to achieve a profit of ₹800-1,000 crore in FY20, according to Sunil Nair, CEO and whole-time director, in an interview with CNBC-TV18.

“We expect higher double-digit growth numbers this year and, as we reported earlier, in FY26 we expect a level between ₹800 crores and ₹1,000 crore top line,” he said.

The company has achieved ₹126 crore top line this quarter and ₹30 crore EBITDA total for the year. This is ₹503 crore revenues and EBITDA of ₹108 crores. “We crossed the threshold for the first time ₹500 crore on the top line and ₹100 crore EBITDA,” he said.

Snowman Logistics continues to focus on providing temperature-controlled logistics services for dairy products, fruits and vegetables, poultry and meat, seafood and pharmaceutical products.

Over the next two years, the EBITDA margin is expected to decline by 100-200 basis points (bps), mainly due to the change in distribution strategy. The company has set the target level of investment expenditure at ₹215 crore for FY25, z ₹50 crore already incurred.

Read also | Gateway Distriparks expects peak ₹1,500 crore revenues in FY24

“The Lucknow capacity will be available in July and the Kolkata capacity will become operational in September. Apart from these two investments, we are currently investing in Krishnapatnam and are also building a tailor-made model in Nagpur.

We will be adding a few more locations in the next financial year such as Bhubaneswar, Ahmedabad and Mumbai. Over the next two years, by the end of this financial year, taking into account the projects under implementation, we will invest approx. ₹215 crores, of which ₹We have already spent ₹50 crore and we will spend the rest in the next 12 months,” he said.

Taking all this into account, Nair expects warehousing revenues to grow by about 30%. Snowman Logistics aims to achieve a capacity of 1.75 lakh pallets by the end of FY25, up from the current 1.41 lakh pallets, and further increase it to 2 lakh pallets by FY26.

Snowman Logistics’ overall e-commerce growth remains moderate and no change in revenue mix is ​​expected. The current market capitalization of the company is ₹1023 crores.

For more information, see the attached video