Source: LiveMint.com, Aug 08, 2017
The logistics sector broadly comprises the road transport sector (consisting of unorganized small businesses, trucking, fleets and large transport companies), the storage and warehousing sector and finally third-party logistics (3PL). These can be further classified into big and small players and asset heavy/light companies. Given this classification, comparing industry performance as a whole is a complicated exercise. We tackle this by analysing data pertaining to 166 companies during 2010-2015 from the Centre for Monitoring Indian Economy (CMIE)’s industrial database to arrive at some useful insights into the industry’s performance.
We look at two key performance measures—profit after tax (PAT) as percentage of income and profit before interest, taxes, depreciation and amortization (PBITDA) as percentage of income.