Logistic Company BlackBuck Sees Revenue Growth
Logistic Company BlackBuck Sees Revenue Growth

Logistics Company BlackBuck has seen revenue grow seven-fold, while its losses also grew more than five times in the financial year 2016-17, in which the Tiger Global-backed company also said it reached operational break-even.

Zinka Logistics Solutions (the registered name of BlackBuck) saw revenues grow to to Rs 566 crore in FY 16-17 from Rs 81 crore the year before while losses increased to Rs 86 crore from Rs 16.5 crore, as per documents filed with the Registrar of Companies and sourced from Tofler.

Company said in a statement “The robust growth was also coupled with operational break-even of the company operations. This was driven by strong unit economics of the business model of BlackBuck and strong customer (shippers and carriers) confidence. company saw its transportation costs shoot up to Rs 573 crore from Rs 82 crore last year, with lorry hire charges going up to Rs 528 crore from Rs 76 crore. Most of the losses are of investment-nature and purely directed into technology and products. We will be ramping up our investments in these areas. Demonetization led to dramatic drop in shipment volumes of clients and hence led to drop in revenues for BlackBuck. The posted revenues would have been much higher without demonetization”.

Company also said “Macroeconomic factors like GST and their downstream effect into the logistics industry would affect the ecosystem in FY18 and company expects to be in a strong position to take advantage of the same. With another year's worth of data with the company to aid it's pricing and matchmaking algorithms, we expect to have healthier and stable margins in the next year negating effects of seasonality and short-term price variability”.

 
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