Capitaline

Results 30-Jul-22

Analysis

Mahindra Logistics

Sales up 36%, net jumps 311%

Consolidated net sales (including other operating income) of Mahindra Logistics for the quarter ended Jun 2022 has increased 36% to Rs 1199.9 crore. Operating profit margin has jumped from 4.6% to 5.5%, leading to 62% rise in operating profit to Rs 65.71 crore. Employee cost decreased from 8.54% to 6.58%. Other expenses rose from 86.86% to 87.48%. Freight charges rose from 84.77% to 85.24%.

Other income rose 48.56% to Rs 3.09 crore. PBIDT rose 61.16% to Rs 68.8 crore. Provision for interest rose 43.11% to Rs 8.93 crore. PBDT rose 64.25% to Rs 59.87 crore. Provision for depreciation rose 34.81% to Rs 40.9 crore. Profit before tax grew 210.47% to Rs 18.97 crore. Provision for tax was expense of Rs 5.33 crore, compared to Rs 3.07 crore. Effective tax rate was 28.69% compared to 50.25%. PAT was up 349% to Rs 13.64 crore. Share of profit/loss were nil in both the periods. Minority interest decreased 8% to Rs -0.27 crore. Net profit attributable to owners of the company increased 311% to Rs 13.52 crore.

Sales of Supply Chain Management segment has gone up 36.03% to Rs 1,142.74 crore (accounting for 95.24% of total sales). Sales of Enterprise Mobility Service segment rose 71.70% to Rs 57.16 crore (accounting for 4.76% of total sales).

Growth in SCM business revenue was driven by growth across all segments. While M&M transportation was up 40% to Rs 562.1 crore that of M&M warehousing was up 38% to Rs 54.3 crore. The non M&M transportation was up 17% to Rs 315 crore and that of Non M&M warehousing was up 62% to Rs 211.3 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 14.82% to Rs 78.87 crore. PBIT of Supply Chain Management segment rose 10.41% to Rs 74.97 crore (accounting for 95.06% of total PBIT). PBIT of Enterprise Mobility Service segment rose 393.67% to Rs 3.90 crore (accounting for 4.94% of total PBIT).

PBIT margin of Supply Chain Management segment fell from 8.08% to 6.56%. PBIT margin of Enterprise Mobility Service segment rose from 2.37% to 6.82%. Overall PBIT margin fell from 7.87% to 6.57%.

Business highlights

Steady volume growth in consumer, discrete manufacturing & E-Commerce contributed to 36% YoY growth in Sup p hy Chain Segment revenue in the quarter.

Integration of acquisition in Whizzard (Last Mile Delivery) on track

Meru acquisition achieving strong traction on customer experience & cost synergies

Management comment

Commenting on the performance, Mr. Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd. said, "We continued to demonstrate strong growth in the quarter gone by, despite the uncertain external environment. Demand growth in farm & auto segment, combined with continuing growth in other markets has been strong. Our focus on customer value creation through integrated solutions and network services continues to find greater adoption with customers. We remained focused on driving cost management, accelerating digital transformation, enhancing human capital and executing our strategic platforms for profitable growth."

Promoters’ stake was 58.12% as of 30 June 2022, compared to 58.31% as of 30 June 2021.

Mahindra Logistics : Consolidated Results
	2206 (3)	2106 (3)	Var.(%)	2203 (12)	2103 (12)	Var. (%)
Sales	1199.90	883.20	36	4140.76	3263.72	27
OPM (%)	5.5	4.6		4.5	4.1
OP	65.71	40.61	62	184.27	134.22	37
Other inc.	3.09	2.08	49	13.58	17.47	-22
PBIDT	68.80	42.69	61	197.85	151.69	30
Interest	8.93	6.24	43	29.82	20.09	48
PBDT	59.87	36.45	64	168.03	131.60	28
Dep.	40.90	30.34	35	141.72	89.65	58
PBT before EO	18.97	6.11	210	26.31	41.95	-37
EO Exp	0.00	0.00		0.00	2.75
PBT after EO	18.97	6.11	210	26.31	39.20	-33
Taxation	5.33	3.07	74	11.25	10.02	12
PAT	13.64	3.04	349	15.06	29.18	-48
Share of Profit/(Loss) from Associates	-0.39	0.00		0.01	-0.39	-103
Minority Interest	-0.27	-0.25	8	-2.49	-1.21	106
Net profit	13.52	3.29	311	17.56	30.00	-41
EPS (Rs)*	#	#		2.4	4.5
* EPS is on current equity of Rs 71.94 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

	Quarter ended				Year ended
	% of (Total)	202206	202106	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Supply Chain Management	95.24	1,142.74	840.07	36.03	96.46	3,938.68	3,144.64	25.25
People Transport Solution	0.00	0.00	0.00	-
Enterprise Mobility Service	4.76	57.16	33.29	71.70	3.54	144.35	119.08	21.22
Total Reported Sales	100.00	1,199.90	873.36	37.39	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	1,199.90	873.36	37.39	100.00	4,083.03	3,263.72	25.10
PBIT
Supply Chain Management	95.06	74.97	67.90	10.41	96.80	243.48	222.35	9.50
People Transport Solution	0.00	0.00	0.00	-
Enterprise Mobility Service	4.94	3.90	0.79	393.67	3.20	8.05	3.07	162.21
Total PBIT	100.00	78.87	68.69	14.82	100.00	251.53	225.42	11.58
Less : Interest		1.39	6.24	-77.72		4.68	5.29	-11.53
Add: Other un-allcoable		-58.51	-56.34	-3.85		-220.54	-180.93	-21.89
PBIT Margin(%)
Supply Chain Management		6.56	8.08	-152.21		6.18	7.07	-88.90
People Transport Solution		0.00	0.00	0.00
Enterprise Mobility Service		6.82	2.37	444.99		5.58	2.58	299.86
PBT	100.00	18.97	6.11	210.47	100.00	26.31	39.20	-32.88

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