Key takeaways of the call

Delivered strong performance in Q1FY22 despite the challenging external environment due to the rapid spread of Wave 2 of the Covid 19 pandemic.

The regional lockdowns, high commodity costs and fuel prices impacted demand across the end markets.

Strong focus on customer retention, new account acquisition and cost reduction helped the company to offset challenges.

Warehouse space under management stands at 18.1 million Square feet (sft). Contracted 4 million sft which will get commissioned over next 12-15 months.

Order pipeline continue to be healthy. Witnessed continued acceleration in order intake. Lot more order intake from existing customers.

Implementation of strategic initiatives of the company continued through the quarter.

Recovery started from June 2021 optimistic about coming quarters. Anticipate a strong uptick in the economic activity in rest of the year. The environment is to be stable yet expect challenges ahead.

Enterprises Mobility business was muted by second wave and continued WFH. But green shoots are visible as more employees have started to come to officeswith vaccination. The company is optimistic about the business in the long-term perspective. Expect enterprise mobility to recover to historical level by 2023-24. So the focus of the company is to create additional revenue streams in the mobility business.

Expanding services and see strong growth in freight forwarding business new services propels growth for this segment.

Auto – Impact of Covid pandemic related lockdown was lesser in June 2021 as OEMs started restocking. Industry experts are optimistic about revival of the auto industry. While there are areas of concern such as supply side issues especially for semiconductors, commodity price hike, consumer affordability etc., there are areas of optimism for auto sector and the longer term trend is positive. Farm sector remain robust despite covid tough times, new model launches will help further impetus to the sector. It was a mixed quarter for consumer durables. E-ecommerce continued its growth. This segment went newer high with EV at last mile is future of logistics and sustainable in the long term.

M&M group contribution to revenue stood at 52% up from 50%.

In normal year the unallocable expense as % of revenue will return to 4.5%.

Sales turnover of Rs 10000 crore in next 5 year is the vision of the company and of which 30% to be from warehousing.

The company intends to continue building up warehousing and to raise revenue contribution from the current 20%. Expects its new 1.2msf facility to be fully utilised.

The Bajaj Electricals deal will start contributing later this fiscal year.