Consolidated net sales (including other operating income) of Mahindra Logistics for the quarter ended Sep 2022 has increased 28.39% to Rs 1326.33 crore. Operating profit margin has jumped from 4.54% to 5.10%, leading to 44.18% rise in operating profit to Rs 67.59 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 0.24% to 0.08%. Employee cost decreased from 7.68% to 6.25%. Other expenses rose from 87.54% to 88.57%. Freight charges rose from 85.31% to 86.39%. Other income rose 43.78% to Rs 3.35 crore. PBIDT rose 44.16% to Rs 70.94 crore. Provision for interest rose 54.98% to Rs 10.74 crore. PBDT rose 42.38% to Rs 60.2 crore. Provision for depreciation rose 25.79% to Rs 43.55 crore. Profit before tax grew 117.36% to Rs 16.65 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 4.74 crore, compared to Rs 3.05 crore. Effective tax rate was 29.55% compared to 39.82%. Minority interest decreased 74.51% to Rs -0.89 crore. Net profit attributable to owners of the company increased 138.09% to Rs 12.19 crore.
- Sales of Supply Chain Management segment has gone up 29.13% to Rs 1,263.40 crore (accounting for 95.26% of total sales). Sales of Enterprise Mobility Service segment rose 15.21% to Rs 62.93 crore (accounting for 4.74% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 16.62% to Rs 71.58 crore. PBIT of Supply Chain Management segment rose 15.05% to Rs 67.89 crore (accounting for 94.84% of total PBIT). PBIT of Enterprise Mobility Service segment rose 55.70% to Rs 3.69 crore (accounting for 5.16% of total PBIT).
- PBIT margin of Supply Chain Management segment fell from 6.03% to 5.37%. PBIT margin of Enterprise Mobility Service segment rose from 4.34% to 5.86%. Overall PBIT margin fell from 5.94% to 5.40%.
Half yearly performance
Consolidated net sales (including other operating income) of Mahindra Logistics has increased 31.83% to Rs 2526.23 crore. Operating profit margin has jumped from 4.57% to 5.28%, leading to 52.38% rise in operating profit to Rs 133.30 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 0.13% to 0.26%. Employee cost decreased from 8.08% to 6.41%. Other expenses rose from 87.23% to 88.05%. Freight charges rose from 85.06% to 85.84%. Other income rose 46.36% to Rs 6.44 crore. PBIDT rose 52.09% to Rs 139.74 crore. Provision for interest rose 49.35% to Rs 19.67 crore. PBDT rose 52.55% to Rs 120.07 crore. Provision for depreciation rose 30% to Rs 84.45 crore. Profit before tax grew 159.05% to Rs 35.62 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 10.07 crore, compared to Rs 6.12 crore. Effective tax rate was 29.09% compared to 44.51%. Minority interest decreased 52.63% to Rs -1.16 crore. Net profit attributable to owners of the company increased 206.44% to Rs 25.71 crore.
Sales of Supply Chain Management segment has gone up 32.32% to Rs 2,406.14 crore (accounting for 95.25% of total sales). Sales of Enterprise Mobility Service segment rose 22.87% to Rs 120.09 crore (accounting for 4.75% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 20.49% to Rs 150.45 crore. PBIT of Supply Chain Management segment rose 17.38% to Rs 142.86 crore (accounting for 94.96% of total PBIT). PBIT of Enterprise Mobility Service segment rose 140.19% to Rs 7.59 crore (accounting for 5.04% of total PBIT).
PBIT margin of Supply Chain Management segment fell from 6.69% to 5.94%. PBIT margin of Enterprise Mobility Service segment rose from 3.23% to 6.32%. Overall PBIT margin fell from 6.52% to 5.96%.
Key highlights
Growth in the quarter propelled by continuing recovery in automotive industry and
sustained growth in consumption end markets including telecom
• Steady growth in B2B express and last mile delivery (including eDel) services
• Mobility business though not scaled back to pre-covid levels continues to improve on
operational efficiency
• In the quarter we have unveiled more than 1 Mn sq.ft. of warehouse space across locations
like Nashik, Bhiwandi and Luhari
Management comment
Commenting on the performance, Rampraveen Swaminathan, Managing
Director and CEO of Mahindra Logistics Ltd. said,
“We continued our growth momentum in the Q2 of FY23 with 28% YoY increase in revenue. Business
volume increase has been led by auto recovery and continued organic volume growth in other sectors.
In addition to 3PL contract logistics, we continued to invest in last mile and B2B express which have
maintained a strong growth momentum. During the quarter we witnessed broader impact of inflation,
increase in front line manpower costs and supply shortages of trailers and car carriers. While the shortterm operating environment continues to be characterized by global recessionary trends, pricing
volatility and overall inflation, we continue to drive optimization in operations for us and our clients.
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.”
Other developments
Equity capital increased from Rs 71.78 crore as of 30 September 2021 to Rs 71.96 crore as of 30 September 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 58.11% as of 30 September 2022 ,compared to 58.25% as of 30 September 2021 .
Cash flow from operating activities decreased to Rs 41.11 crore for YTD ended September 2022 from Rs 83.01 crore for YTD ended September 2021. Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 45.19 crore, compared to Rs 59.31 crore during the YTD ended September 2021.