Capitaline

Results 27-Apr-22

Analysis

Mahindra Logistics

Net down on higher depreciation

Consolidated net sales of Mahindra Logistics for the quarter ended March 2022 has increased 10.13% to Rs 1072.68 crore. Operating profit margin has jumped from 4.74% to 5.12%, leading to 19.06% rise in operating profit to Rs 54.96 crore. Employee cost decreased from 7.28% to 7.15%. Other expenses fell from 87.98% to 87.50%. Freight charges fell from 85.56% to 85.35%. Other income rose 22.37% to Rs 5.69 crore. PBIDT rose 19.37% to Rs 60.65 crore. Provision for interest rose 61.96% to Rs 9.07 crore. PBDT rose 14.09% to Rs 51.58 crore. Provision for depreciation rose 43.37% to Rs 37.39 crore. Profit before tax down 25.82% to Rs 14.19 crore. Share of profit/loss was 80% lower at Rs 0.01 crore. Provision for tax was expense of Rs 3.08 crore, compared to Rs 3.97 crore. Effective tax rate was 21.69% compared to 24.16%. Minority interest decreased 825% to Rs -1.11 crore. Net profit attributable to owners of the company decreased 2.78% to Rs 12.23 crore.

Sales of Supply Chain Management segment has gone up 11.40% to Rs 1,045.24 crore (accounting for 97.44% of total sales). Sales of Enterprise Mobility Service segment fell 23.12% to Rs 27.44 crore (accounting for 2.56% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 3.80% to Rs 64.24 crore. PBIT of Supply Chain Management segment fell 1.36% to Rs 63.97 crore (accounting for 99.58% of total PBIT). PBIT of Enterprise Mobility Service segment fell 86.01% to Rs 0.27 crore (accounting for 0.42% of total PBIT).

PBIT margin of Supply Chain Management segment fell from 6.91% to 6.12%. PBIT margin of Enterprise Mobility Service segment fell from 5.41% to 0.98%. Overall PBIT margin fell from 6.86% to 5.99%.

Yearly performance

Net sales (including other operating income) of Mahindra Logistics has increased 25.10% to Rs 4083.03 crore. Sales of Supply Chain Management segment has gone up 25.25% to Rs 3,938.68 crore (accounting for 96.46% of total sales). Sales of Enterprise Mobility Service segment rose 21.22% to Rs 144.35 crore (accounting for 3.54% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 10.49% to Rs 249.06 crore. PBIT of Supply Chain Management segment rose 9.50% to Rs 243.48 crore (accounting for 97.76% of total PBIT). PBIT of Enterprise Mobility Service segment rose 81.76% to Rs 5.58 crore (accounting for 2.24% of total PBIT).

PBIT margin of Supply Chain Management segment fell from 7.07% to 6.18%. PBIT margin of Enterprise Mobility Service segment rose from 2.58% to 3.87%. Overall PBIT margin fell from 6.91% to 6.10%.

Operating profit margin has jumped from 4.11% to 4.84%, leading to 47.27% rise in operating profit to Rs 197.66 crore. Employee cost decreased from 9.08% to 7.35%. Other expenses rose from 86.80% to 87.57%. Freight charges rose from 84.70% to 85.58%.

Other income fell 30.22% to Rs 12.19 crore. PBIDT rose 38.34% to Rs 209.85 crore. Provision for interest rose 46.94% to Rs 29.52 crore.

PBDT rose 37.03% to Rs 180.33 crore. Provision for depreciation rose 50.04% to Rs 134.51 crore.

Profit before tax grew 9.23% to Rs 45.82 crore. Provision for tax was expense of Rs 11.25 crore, compared to Rs 10.02 crore. Effective tax rate was 24.55% compared to 25.82%.

Minority interest decreased 105.79% to Rs -2.49 crore. Net profit attributable to owners of the company increased 23.57% to Rs 37.07 crore.

Management Comment

Rampraveen Swaminathan – Managing Director and CEO of Mahindra Logistics said, “We continue to witness a challenging external environment with global supply chain volatility, chip shortages, fuel & commodity cost pressures and continuing waves of the Covid-19 pandemic. Despite these headwinds, we delivered continuing growth in Q4, FY21-22, driven by account acquisition and execution of our strategy of providing customized, integrated solutions to our customers. Our revenue growth was driven by E-commerce, Consumer, Automotive and Freight Forwarding businesses. Strong momentum in Supply Chain has offset the impact of Wave 3 of the Covid-19 pandemic on the Enterprise Mobility business. We remain focused on improving operational efficiencies and margin expansion.”

Final Dividend

To pay a Final Dividend of Rs. 2.00 per equity share of the face value of Rs. 10/- each (20%) for the financial year ended 31 March 2022. The dividend payout is subject to the Members’ approval at the forthcoming 15 th Annual General Meeting (“AGM”) of the Company. The Register of Members and Share Transfer Books of the Company will remain closed for the purpose of payment of dividend, if approved by Members at the AGM, from Saturday, 23 July 2022 to Friday, 29 July 2022 (both days inclusive). The final dividend on equity shares for the financial year ended 31 March 2022, as recommended by the Board of Directors and if approved and declared at the ensuing AGM in 2022, will be paid/dispatched by the Company in permitted modes on or after Saturday, 30 July 2022 within the stipulated timelines to those Shareholders or their mandates:

Others

Equity capital increased from Rs 71.67 crore as of 31 March 2021 to Rs 71.87 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 58.18% as of 31 March 2022 ,compared to 58.34% as of 31 March 2021 .

Loan funds rose to Rs 399.47 crore as of 31 March 2022 from Rs 269.48 crore as of 31 March 2021. Sundry debtors were lower at Rs 479.42 crore as of 31 March 2022 compared to Rs 485.60 crore as of 31 March 2021. Cash and bank balance declined from Rs 197.77 crore as of 31 March 2021 to Rs 132.14 crore as of 31 March 2022. Investments rose to Rs 116.08 crore as of 31 March 2022 from Rs 55.07 crore as of 31 March 2021 . Fixed assets increased to Rs 540.99 crore as of 31 March 2022 from Rs 378.20 crore as of 31 March 2021. Intangible assets stood at Rs 4.33 crore.

Cash flow from operating activities decreased to Rs 199.73 crore for year ended March 2022 from Rs 293.70 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 105.65 crore, compared to Rs 71.15 crore during the year ended March 2021.

Mahindra Logistics : Consolidated Results

	Quarter ended			Year ended
Particulars	202203	202103	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	1,072.68	974.00	10.13	4,083.03	3,263.72	25.10
OPM (%)	5.12	4.74	38 bps	4.84	4.11	73 bps
OP	54.96	46.16	19.06	197.66	134.22	47.27
Other Inc.	5.69	4.65	22.37	12.19	17.47	-30.22
PBIDT	60.65	50.81	19.37	209.85	151.69	38.34
Interest	9.07	5.60	61.96	29.52	20.09	46.94
PBDT	51.58	45.21	14.09	180.33	131.60	37.03
Depreciation	37.39	26.08	43.37	134.51	89.65	50.04
PBT	14.19	19.13	-25.82	45.82	41.95	9.23
Share of Profit/(Loss) from Associates	0.01	0.05	-80.00	0.01	-0.39	LP
PBT before EO	14.2	19.18	-25.96	45.83	41.56	10.27
EO Income	0	-2.75	-	0	-2.75	-
PBT after EO	14.2	16.43	-13.57	45.83	38.81	18.09
Taxation	3.08	3.97	-22.42	11.25	10.02	12.28
PAT	11.12	12.46	-10.75	34.58	28.79	20.11
Minority Interest (MI)	-1.11	-0.12	-825.00	-2.49	-1.21	-105.79
Net profit	12.23	12.58	-2.78	37.07	30	23.57
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	12.23	12.58	-2.78	37.07	30	23.57
EPS (Rs)*	1.70	2.04	-16.69	5.15	4.47	15.38

* EPS is on current equity of Rs 71.94 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Mahindra Logistics : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202203	202103	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Supply Chain Management	97.44	1,045.24	938.31	11.40	96.46	3,938.68	3,144.64	25.25
People Transport Solution	0.00	0.00	0.00	-
Enterprise Mobility Service	2.56	27.44	35.69	-23.12	3.54	144.35	119.08	21.22
Total Reported Sales	100.00	1,072.68	974.00	10.13	100.00	4,083.03	3,263.72	25.10
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	1,072.68	974.00	10.13	100.00	4,083.03	3,263.72	25.10
PBIT
Supply Chain Management	99.58	63.97	64.85	-1.36	97.76	243.48	222.35	9.50
People Transport Solution	0.00	0.00	0.00	-
Enterprise Mobility Service	0.42	0.27	1.93	-86.01	2.24	5.58	3.07	81.76
Total PBIT	100.00	64.24	66.78	-3.80	100.00	249.06	225.42	10.49
Less : Interest		1.20	0.94	27.66		4.38	5.29	-17.20
Add: Other un-allcoable		-48.85	-49.46	1.23		-198.86	-180.93	-9.91
PBIT Margin(%)
Supply Chain Management		6.12	6.91	-79.12		6.18	7.07	-88.90
People Transport Solution		0.00	0.00	0.00
Enterprise Mobility Service		0.98	5.41	-442.37		3.87	2.58	128.75
PBT	100.00	14.19	16.38	-13.37	100.00	45.82	39.20	16.89

Previous News

Mahindra Logistics reports consolidated net loss of Rs 17.41 crore in the December 2023 quarter
( Results - Announcements 30-Jan-24 07:26 )

Mahindra Logistics
( Results - Analysis 03-Mar-24 10:57 )

Mahindra Logistics
( Results - Analysis 27-Oct-23 23:38 )

Mahindra Logistics slides on reporting dismal Q2 numbers
( Hot Pursuit - 25-Oct-23 09:40 )

Mahindra Logistics reports consolidated net loss of Rs 15.93 crore in the September 2023 quarter
( Results - Announcements 25-Oct-23 07:34 )

Mahindra Logistics gains on acquiring Rivigo's B2B express biz
( Hot Pursuit - 27-Sep-22 10:17 )

Mahindra Logistics to divest its 39.79% stake in Transtech Logistics
( Corporate News - 20-Dec-23 10:55 )

Mahindra Logistics consolidated net profit declines 21.47% in the December 2022 quarter
( Results - Announcements 02-Feb-23 07:40 )

Mahindra Logistics director resigns
( Corporate News - 23-Mar-23 19:09 )

Mahindra Logistics completes acquisition of Rivigo Services
( Corporate News - 10-Nov-22 11:21 )

Volumes soar at Amara Raja Batteries Ltd counter
( Hot Pursuit - 18-Jul-23 14:30 )