SNOWMAN LOGISTICS :

FINANCIAL & COST

PERFORMANCE ANALYSIS
Unlocking Value in Cold Chain Solutions
Group Members : Sarathi Mondal,Barun Hazra,Soumybarata
Mondal,Amartya Mondal,Subhajit Das
What do we mean “Study of Financial &
Cost Performance Analysis” of a Company?

 Financial & Cost Performance analysis of a company involves assessing how

well the company is managing its financial resources and controlling its cost to
achieve its objective.This analysis typically includes :
 Financial Ratios & Metrics
 Income Statement Analysis
 Balance Sheet Analysis
 Cash Flow Statement Analysis.
 Overview of the Company

 Snowman Logistics Ltd (Snowman) , a cold storage warehousing & transportation business
which was incorporated as Snowman Frozen Foods Ltd on March 17 ,1993 by Prem Kishan
Dass Gupta.In 2006 “ Gateway “ an intermodal logistics player with verticals of container
freight and inland container depots acquired the company and changed the name to Snowman
Logistics Ltd by year 2011.Though it started itself as trader of marine products in 1988 in four
locations.By 2014 it emerged with an Initial Public Offering and were operating 23 temperature
controlled warehouse in 14 different location .
 Market Overview

 India’s cold chain storage & logistics market was valued at around US$ 4.7 billion in the year
2014 and projected to grow at 17% between 2020 to 2025.According to India’s Ministry of Food
Processing Industries, by 2018 India had 7916 cold storage chambers with the capacity of 36.2
million tonnes in which UP holds 40% share and other states like Punjab,WB,Gujarat accounts
32% of the capacity.The industry’s future key drivers were growth in organized
retail,urbanization,and related lifestyle changes, a growing pharmaceuticals sector,increased
focus on quality and product sensitivity,consumerism,change in framing patters and growing
demand for nutraceutical foods.
 ACCOUNTING ISSUES & FINANCIAL
PERFORMANCE OF THE COMPANY
 After being listed in IPO in 2014 Snowman shows a impressive growth in revenue for two
years.But introduction of IND AS 116 by Indian Government in 2015 this Snowman faces a lot
of trouble in its business.After being a company of net woth 5 billion Snowman started to follow
the new standard from 2019 onwards.
 IND AS 116 state that the leases were to be classified as capital leases.Thus the depreciation was
charged and an interest expense was charged on lease liabilities. This standard slowly started
affecting its net profit.
 Snowman also have tried many times Income Smoothening Strategy before being registered as
IPO.
 BUSINESS STRATEGY & CHANGES
 They in aim of competing with the others big players in this unorganized and fragemented
market brought a complete solution to its customers by serving from cold storage to
transportation including value added services which improved their margins too.
 But after 2016 due to IND AS 116 they changed their business model to focus on its core line of
temperature-controlled warehousing with its distribution business catering only own warehouse.
 They also tried to restructure their customer industry mix. With the same aim in June 2020 they
tied up with Amazon.com Inc just for warehousing facility.They thought it will be a high margin
business with less capital.
Financial Performance Overview

YEARLY INCOME EXPENDITURE & PROFIT FROM 2014

TO 2021
3000
2500
2000
1500
1000
500
0
2014 2015 2016 2017 2018 2019 2020 2021
-500

TOTAL INCOME TOTAL EXPENDITURE PROFIT AFTER TAX

Cost Structure & Analysis
OPERATING COST VARIABLE DATA

2014 2015 2016 2017 2018 2019 2020 2021

WAREHOUSE PALLETS(LAKHS) VEHICLES

FROM THE ABOVE DATA WE CAN CONCLUDE THAT FROM 2016 ONWARD THE COMPANY CHANGED
ITS BUSINESS MODEL BY BEING FOCUS ONLY ON TEMPEERATURE CONTROLLED WAREHOUSING
AND TO INCRAESED ITS TRANSPORTATION MARGIN ITS STARTED TO RELEASE ALL LEASED
VEHICLE AND CONTINUE ITS BUSINESS THROUGH OWN VEHICLES.
 Key financial ratio analysis of Snowman
LIQUDITY RATIO ANALYSIS DEBT TO EQUITY RATIO ANALYSIS
0.7
3
0.6
2.5
0.5
2
0.4
1.5
0.3
1 0.2

0.5 0.1

0
0 2015 2016 2017 2018 2019 2020 2021
2015 2016 2017 2018 2019 2020 2021

ASSEST TRUNOVER RATIO

0.5
0.4
0.3
0.2
0.1
0
2015 2016 2017 2018 2019 2020 2021
COMPARISION OF RATIO ANALYSIS
WITH OTHER PLAYERS
RETURN ON INVESTMENT RATIO

VRL Logistics Ltd. Mahindra Logistics Snowman Allcargo Logistics Transport Corporation of
India

Series 1

From the above data we can state the profitability of Snowman Logistics before tax is comparatively
very lower than the others big players of supply chain.
CONCLUSION
THANK
YOU