Capitaline

Results 28-Jan-22

Analysis

Mahindra Logistics

OPM eases 80 bps dragging OP down 10% despite higher sales

Consolidated net sales of Mahindra Logistics has increased 7% to Rs 1117.88 crore. Operating profit margin has declined from 5.1% to 4.3%, leading to 10.01% decline in operating profit to Rs 47.66 crore. Employee cost decreased from 7.63% to 6.85%. Other expenses rose from 87.32% to 88.45%. Freight charges rose from 85.70% to 86.56%. Other income rose 48.86% to Rs 2.62 crore. PBIDT fell 8% to Rs 50.28 crore. Provision for interest rose 36.45% to Rs 7.45 crore. PBDT fell 13.05% to Rs 42.83 crore. Provision for depreciation rose 46.95% to Rs 35.71 crore. Profit before tax down 71% to Rs 7.12 crore. Provision for tax was expense of Rs 2.05 crore, compared to Rs 6.56 crore. Effective tax rate was 28.79% compared to 26.43%. PAT was down 72% to Rs 5.07 crore. Share of profit/loss were nil compared to a loss of Rs 0.14 crore in previous period. MI was a share of profit of Rs 0.62 crore against a share of loss of Rs 0.01 crore. And eventually the net profit attributable to owners of the company decreased 69% to Rs 5.69 crore.

Sales of Supply Chain Management segment has gone up 6.45% to Rs 1,074.95 crore (accounting for 96.16% of total sales). Sales of Enterprise Mobility Service segment rose 16.31% to Rs 42.93 crore (accounting for 3.84% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 22.34% to Rs 60.09 crore. PBIT of Supply Chain Management segment fell 24.13% to Rs 57.80 crore (accounting for 96.19% of total PBIT). PBIT of Enterprise Mobility Service segment rose 90.83% to Rs 2.29 crore (accounting for 3.81% of total PBIT).

PBIT margin of Supply Chain Management segment fell from 7.54% to 5.38%. PBIT margin of Enterprise Mobility Service segment rose from 3.25% to 5.33%. Overall PBIT margin fell from 7.39% to 5.38%.

Nine month performance

Consolidated net sales has increased 31.47% to Rs 3010.35 crore. Sales of Supply Chain Management segment has gone up 31.14% to Rs 2,893.44 crore (accounting for 96.12% of total sales). Sales of Enterprise Mobility Service segment rose 40.20% to Rs 116.91 crore (accounting for 3.88% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 16.50% to Rs 184.82 crore. PBIT of Supply Chain Management segment rose 13.97% to Rs 179.51 crore (accounting for 97.13% of total PBIT). PBIT of Enterprise Mobility Service segment rose 365.79% to Rs 5.31 crore (accounting for 2.87% of total PBIT).

PBIT margin of Supply Chain Management segment fell from 7.14% to 6.20%. PBIT margin of Enterprise Mobility Service segment rose from 1.37% to 4.54%. Overall PBIT margin fell from 6.93% to 6.14%.

Operating profit margin has jumped from 3.85% to 4.74%, leading to 62.05% rise in operating profit to Rs 142.70 crore. Employee cost decreased from 9.85% to 7.42%. Other expenses rose from 86.30% to 87.60%. Freight charges rose from 84.33% to 85.66%.

Other income fell 49.30% to Rs 6.5 crore. PBIDT rose 47.90% to Rs 149.2 crore. Provision for interest rose 41.13% to Rs 20.45 crore. PBDT rose 49.03% to Rs 128.75 crore. Provision for depreciation rose 52.78% to Rs 97.12 crore. Profit before tax grew 38.61% to Rs 31.63 crore.

Provision for tax was expense of Rs 8.17 crore, compared to Rs 6.05 crore. Effective tax rate was 25.83% compared to 27.03%. PAT was up 40% to Rs 23.46 crore. Share of profit/loss were nil in both the periods. Minority interest decreased 26.61% to Rs -1.38 crore. Net profit attributable to owners of the company increased 42.59% to Rs 24.84 crore.

Management comment

Commenting on the performance, Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, “The quarter gone by was a challenging one. Demand from the auto sector continued to be impacted due to semi-conductor supplies; and the festive season too saw moderate growth. We continued to deliver strong revenue performance, especially across Consumer, Pharma and International freight forwarding. Our margins saw pressure due to seasonal manpower costs, lower than expected demand and start-up costs for new projects. The focus continues to be on optimizing operating costs. We remain focused on delivering technology driven, integrated solutions for enterprise customers.“

Others

Promoters’ stake was 58.18% as of 31 December 2021, compared to 58.35% as of 31 December 2020.

Mahindra Logistics : Consolidated Results
	2112 (3)	2012 (3)	Var.(%)	2112 (9)	2012 (9)	Var.(%)	2103 (12)	2003 (12)	Var. (%)
Sales	1117.88	1046.75	7	3010.35	2289.72	31	3263.72	3471.14	-6
OPM (%)	4.3	5.1		4.7	3.8		4.1	4.6
OP	47.66	52.96	-10	142.70	88.06	62	134.22	158.27	-15
Other inc.	2.62	1.76	49	6.50	12.82	-49	17.47	13.98	25
PBIDT	50.28	54.72	-8	149.20	100.88	48	151.69	172.25	-12
Interest	7.45	5.46	36	20.45	14.49	41	20.09	17.63	14
PBDT	42.83	49.26	-13	128.75	86.39	49	131.60	154.62	-15
Dep.	35.71	24.30	47	97.12	63.57	53	89.65	73.43	22
PBT before EO	7.12	24.96	-71	31.63	22.82	39	41.95	81.19	-48
EO Exp	0.00	0.00		0.00	0.00		2.75	0.00
PBT after EO	7.12	24.96	-71	31.63	22.82	39	39.20	81.19	-52
Taxation	2.05	6.56	-69	8.17	6.05	35	10.02	25.74	-61
PAT	5.07	18.40	-72	23.46	16.77	40	29.18	55.45	-47
Share of Profit/(Loss) from Associates	0.00	-0.14	-100	0.00	-0.44	-100	-0.39	-0.61	-36
Minority Interest	-0.62	0.01	-6300	-1.38	-1.09	27	-1.21	-0.28	LP
Net profit	5.69	18.25	-69	24.84	17.42	43	30.00	55.12	-46
EPS (Rs)*	#	#		#	#		4.5	7.7
* EPS is on current equity of Rs 71.86 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Mahindra Logistics: Consolidated Segment Results
Particulars	% to total	2112 (3)	2012 (3)	Var. (%)	% to total	2112 (9)	2012 (9)	Var. (%)	% to total	2103 (12)	2003 (12)	Var.(%)
Sales
Supply Chain Management (SCM)	96	1074.95	1009.84	6	96	2893.44	2206.33	31	96	3144.64	3103.53	1
Enterprise Mobility Services (EMS)	4	42.93	36.91	16	4	116.91	83.39	40	4	119.08	367.61	-68
Total	100	1117.88	1046.75	7	100	3010.35	2289.72	31	100	3263.72	3471.14	-6
PBIT
Supply Chain Management (SCM)	96	57.80	76.18	-24	97	179.51	157.50	14	99	222.35	252.92	-12
Enterprise Mobility Services (EMS)	4	2.29	1.20	91	3	5.31	1.14	366	1	3.07	33.81	-91
Total	100	60.09	77.38	-22	100	184.82	158.64	17	100	225.42	286.73	-21
Less: Interest (net)		1.14	1.17	-3		3.18	4.35	-27		5.29	17.63	-70
Less: Others Un-allocable Exp/Income (net)		51.83	51.25	1		150.01	131.47	14		180.93	187.91	-4
Add: EO
PBT		7.12	24.96	-71		31.63	22.82	39		39.20	81.19	-52
Note: Figures in Rs crore
Source: Capitaline 2000

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