Key takeaways of the call

Q4FY21 witnessed continued growth driven by market recovery and execution of its strategy of providing customized, integrated solutions to its customers.

Revenue growth was driven by E-commerce, Automotive, Consumer and Freight Forwarding businesses. Strong momentum in Supply Chain has offset the continuing softness in the Enterprise Mobility segment, which remains impacted by the Covid-19 pandemic.

The company continue to expand and grow its service lines. During the quarter, ‘Edel', the 100% electric powered vehicle solutions of the company, commenced operations in last mile delivery services.

Warehousing – continue to focus on adding 1.5-2 million square feet of warehousing space every year.

FY22 became uncertain with significant growth in the spread of the Covid-19 pandemic. On vertical basis there are several trend both opportunities and challenges.

Auto – industry was PLI scheme is a catalyst to manufacturing. Scrapping, continued improvement in farm sector. Strong and favourable monsoon, remain upbeat of medium term prospect despite short-term challenges.

E-commerce have emerged as important mode of shopping during pandemic. Expect upward trend to continue and persist during this fiscal.

Consumer and pharma – 2020 crisis into opportunity. Clocking strong growth and expect to continue than trend. Pandemic reiterated the importance of diversify supply source for pharma industry.

Enterprise mobility faced headwind of work from home policy of various clients. In Q4FY21 there was some improvement but resurgence of Covid with most states re-impose restriction on mobility there was a disruption. But with vaccination of large number of the population, there will be gradual improvement going forward. Driving cost optimisation in the short term in this division.

In Q4FY20, the impact of covid was RS 65-70 crore of which about 75% is on SCM and balance in enterprise mobility. SCM side is largely on M&M Auto side lot of despatches were impacted.

Lot of growth in plain storage segment in warehousing. Get to more complex solutions rather than storage services which will give better margin.

Bajaj Electrical – the company has to offer Complete End-to-End redesign and outsourcing of Bajaj Electricals' Logistics. The company will deploy a dynamic network. The fulfilment network comprise built to suit locations numbering 11 spread across the country connected to 2 master distribution locations. The company is looking at about 2 mln sft of warehousing space for Bajaj Electricals.

With-in transportation all services are not having same margin profile. With-in transportation the freight forwarding and distribution business has driven growth and that has better margin leading to margin improvement.

Top 20 customers still account for 65% of the business of the company.

In second half of FY20 and H1FY21 the company has acquired new customers in e-commerce and pharma, consumer etc. and in second half the focus was on consolidation of that.

Acquisition of new customers was not easy during the pandemic. Always gets slowdown in situation like this.

Supply volatility - there is lot of volatility in-terms of local operations of the customers. Many locations there was shut down of non essentials. It is very difficult interms of operation and cost challenges.

Demand it is hard to predict right now. While discretionary product movement is facing sharp dips, that of essentials such as pharma etc see no dip. So currently it is mixed bag. It will take some time to get some clear view.

Operations side see lot of disturbance with surge in covidi.e migration of labour, higher absentismetc in different geographies.

Transportation – No huge disturbance yet. Since lockdown is not national, there is no significant impact yet on Line haul. The vehicles are still in road. Till states goes to lockdown together there won't be disturbance on movement.