This Airfreight and Logistics Penny stock reports 30 per cent profit growth; Maintains healthy dividend payout of 183 per cent

Reported 7.01 per cent Volume increase, reaching an impressive 13,874 tonnes, Successful launch of the FreightPILL Mobile App.

In the second quarter of fiscal year 2024, the company reported a revenue from operations of Rs 78.90 crore, reflecting a quarter-over-quarter growth of 9.94 per cent. However, when compared to the same quarter in the previous year Q2 FY23, there was a decline of 14.45 per cent. Despite the fluctuating revenue, the net profit for Q2 FY24 reached Rs 1.34 crore, exhibiting a strong quarter-over-quarter increase of 29.58 per cent. In a year-over-year comparison, the net profit demonstrated a moderate growth of 7.70 per cent.

Operational Update

The company has reported a significant quarter-over-quarter increase of 7.01 per cent in total volume, reaching an impressive 13,874 tonnes. Additionally, a notable development includes the successful launch of the FreightPILL Mobile App an advanced Enterprise Information System Software. This innovative app empowers users to seamlessly capture operational information across diverse practical scenarios, enhancing efficiency and data accessibility.

Management Commentary

Commenting on the Q2FY24 performance, Mr. Mahesh Fogla, Executive Director, Patel Integrated Logistics Ltd. said, “We hope to maintain a robust growth trajectory quarter after quarter. Our strategic focus on digital transformation has opened new dimensions in efficiency and service excellency. Monetizing non-core assets serves as our strategic beacon, converting resources into growth capital that propels our company's upward trajectory. The acquisition of funds through sale of idle land in Chennai will fortify our growth plans, solidifying our path toward sustained success in the dynamic landscape of air freight logistics.

Given the delayed Diwali this year, we anticipate a surge in growth in the quarters ahead. Propelled by favourable market conditions and a positive macro environment for the logistics sector, we are optimistic about the sustained momentum; and our endeavour will be to consistently deliver value to our stakeholders.”

Strength of the Stock

This is a penny stock trading at Rs 15.95. The company has reduced its debt, and its stock is trading at 0.86 times its book value. The company has been maintaining a healthy dividend payout of 183%.

About Company

Patel Integrated Logistics Ltd is in the business of Co-Loading of Airfreight and Logistics.

Disclaimer: The article is for informational purposes only and not investment advice.