Mahindra Logistics  hosted a conference call on Nov 7, 2022. In the conference call the company was represented by   Rampraveen Swaminathan, Managing Director and CEO.

Key takeaways of the call

Business volume increase has been led by continuing recovery in automotive industry,  stable farm segment sales and continued organic volume growth in other sectors.  Sustained growth in consumption end markets including telecom augured well for the company. 

Continued investment in   last mile delivery (including eDel) services and B2B express yielding fruits and these two business have  maintained strong growth momentum in Q2FY23.

During the quarter the company have witnessed broader impact of inflation, increase in front line manpower costs and supply shortages of trailers and car carriers.

The company continues to drive optimization in operations for the benefit of it and clients despite short-term operating environment continues to be characterized by global recessionary trends, pricing volatility and overall inflation.

Mobility business though not scaled back to pre-covid levels continues to improve on operational efficiency. Impact on Mobility due to flexible working policies.  Market recovery for ITes segment has been slow, Gradual recovery expected ahead.

The focus of company as far as mobility business is on newer business and increasing scale.

In Q2FY23, the company has unveiled more than 1 million square feet  of warehouse space across locations like Nashik, Bhiwandi and Luhari. About 6.5 lakh sq.ft warehouse ready to be handed over for commercial use from Q3 F23 in Bhiwandi, Maharashtra

The recently announced National Logistics Policy will be a catalyst for sector reforms and will enhance digitization, multi modal logistics and lower cost of logistics.

MLL acquires B2B Express Business of Rivigo and this acquisition will augment the company''s existing B2B express business.  The acquired business of Rivigo operates in Asset Light Model and provides End to End Services.

Increased M&M auto volumes backed by high demand of SUVs, pickups and small CVs .

Witnessing price volatility in Freight Forwarding business; ocean freight rates are seeing correction.

Some of key priorities in H2FY23 are improve revenue mix by increasing share of warehouse & value-added services; achieve faster Turnaround and scale up of recent acquisitions and increase scale of network services.