Consolidated net sales (including other operating income) of Mahindra Logistics for the quarter ended Sep 2023 has increased 2.90% to Rs 1364.76 crore. Sales of Supply Chain Management segment has gone up 1.19% to Rs 1,278.44 crore (accounting for 93.68% of total sales). Sales of Enterprise Mobility Service segment rose 37.17% to Rs 86.32 crore (accounting for 6.32% of total sales). PBIT of Supply Chain Management reported loss of Rs 9.09 crore compared to profit of Rs 76.57 crore. PBIT of Enterprise Mobility Service segment fell 75.07% to Rs 0.92 crore (accounting for -11.26% of total PBIT). PBIT margin of Supply Chain Management segment fell from 6.06% to 0.71%. PBIT margin of Enterprise Mobility Service segment fell from 5.86% to 1.07%. Overall PBIT margin fell from 6.05% to -0.60%. Operating profit margin has declined from 5.10% to 3.93%, leading to 20.74% decline in operating profit to Rs 53.57 crore. Employee cost increased from 6.25% to 7.55%. Other expenses fell from 88.57% to 88.52%. Freight charges fell from 86.39% to 85.39%. Other income rose 96.42% to Rs 6.58 crore. PBIDT fell 15.21% to Rs 60.15 crore. Provision for interest rose 53.91% to Rs 16.53 crore. PBDT fell 27.54% to Rs 43.62 crore. Provision for depreciation rose 18.92% to Rs 51.79 crore. Profit before tax reported loss of Rs 8.17 crore compared to profit of Rs 16.65 crore. Share of profit/loss was 75.41% higher at Rs -0.15 crore. Provision for tax was expense of Rs 7.29 crore, compared to Rs 4.74 crore. Effective tax rate was negative 87.62% compared to 29.55%. For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Mahindra Logistics has increased 5.22% to Rs 2657.98 crore. Sales of Supply Chain Management segment has gone up 3.58% to Rs 2,492.20 crore (accounting for 93.76% of total sales). Sales of Enterprise Mobility Service segment rose 38.05% to Rs 165.78 crore (accounting for 6.24% of total sales).
PBIT of Supply Chain Management reported loss of Rs 6.86 crore compared to profit of Rs 142.86 crore. PBIT of Enterprise Mobility Service reported loss of Rs 0.74 crore compared to profit of Rs 7.59 crore. PBIT margin of Supply Chain Management segment fell from 5.94% to 0.28%. PBIT margin of Enterprise Mobility Service segment fell from 6.32% to 0.45%. Overall PBIT margin fell from 5.96% to -0.29%. Operating profit margin has declined from 5.28% to 4.52%, leading to 9.83% decline in operating profit to Rs 120.20 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 0.26% to 0.01%. Employee cost increased from 6.41% to 7.61%. Other expenses fell from 88.05% to 87.85%. Freight charges fell from 85.84% to 84.81%. Other income rose 98.14% to Rs 12.76 crore. PBIDT fell 4.85% to Rs 132.96 crore. Provision for interest rose 74.43% to Rs 34.31 crore. PBDT fell 17.84% to Rs 98.65 crore. Provision for depreciation rose 25.81% to Rs 106.25 crore. Profit before tax reported loss of Rs 7.60 crore compared to profit of Rs 35.62 crore. Share of profit/loss was 69% higher at Rs -0.31 crore. Provision for tax was expense of Rs 16.16 crore, compared to Rs 10.07 crore. Effective tax rate was negative 204.30% compared to 29.09%.
Other highlights Continuing growth and consolidation across the supply chain businesses, with growth in
some markets offsetting headwinds.
• 3PL Supply Chain services growing 4% YoY driven by growth in automotive and engineering,
consumer, and durables. Ecom volumes remained weak during the quarter and softness
continued to roll over. However, the activity levels picked up towards the end of the quarter
to prepare for a peak during the festive season in Q3. The Global Freight Forwarding industry has witnessed a period of lower-than-expected
performance largely influenced by softness in the freight prices and global uncertainty. Our
focus is to provide reliable tech-enabled freight forwarding services and deliver tailor-made
solutions to customers to enhance their supply chain efficiency. Continued focus on margin improvement resulted in earnings growth across businesses
other than the MLL Express business. Volumes in the MLL Express business increased by 4% during the quarter. Despite positive
momentum on customer additions, volume uptick from these customers mainly happened
at the end of the quarter. The company remains focused on expanding network coverage
and service levels. Lower volumes and higher transport costs during the quarter continued
to drag the improvement plan. The Mobility business continues to see an uptick on account of growth in existing customers
and acquisition of new clients. Warehouse space under management stood at 19 million sq. ft. in the 3PL business. Current
expansions in Chakan, Kolkata, Nasik, and Guwahati are on track. Launch of 6.5 lakh sq. ft. multi-client warehouse in Bhiwandi, Mumbai to manage the
fulfilment and distribution for automotive, e-commerce and FMCG industries. Management Comments
Commenting on the performance, Mr. Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd. said, “The overall logistics industry is well poised driven by long term focus on infrastructure, manufacturing, consumption growth and positive regulatory trajectory. Overall new order intake remained robust across our business segments and we continued to consolidate our business operations in Q2, 2024. Our organic growth in 3PL remained positive driven by our end market diversification programs, despite headwinds in the Ecommerce segment. Margin improvements remained on track driven by operating cost reduction and product mix improvements in 3PL, Last Mile Delivery and Mobility businesses. We have implemented appropriate actions to strengthen the network, customer service and volume enhancements in MLL Express and cross border logistics businesses. With the upcoming festive season we hope to see a positive demand uptick and we remain focused on accelerating margins driven by synergies in the network business and other cost reduction programs. Others Equity capital increased from Rs 71.96 crore as of 30 September 2022 to Rs 72.04 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00. Promoters’ stake was 58.04% as of 30 September 2023 ,compared to 58.11% as of 30 September 2022 . Cash flow from operating activities increased to Rs 110.27 crore for YTD ended September 2023 from Rs 41.11 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 37.64 crore, compared to Rs 45.19 crore during the YTD ended September 2022. Loan funds rose to Rs 716.57 crore as of 30 September 2023 from Rs 537.82 crore as of 30 September 2022. Inventories declined from Rs 1.24 crore as of 30 September 2022 to Rs 0.02 crore as of 30 September 2023. Sundry debtors were higher at Rs 652.54 crore as of 30 September 2023 compared to Rs 604.07 crore as of 30 September 2022. Cash and bank balance declined from Rs 159.72 crore as of 30 September 2022 to Rs 44.41 crore as of 30 September 2023. Investments declined from Rs 94.43 crore as of 30 September 2022 to Rs 33.58 crore as of 30 September 2023. Fixed assets increased to Rs 568.50 crore as of 30 September 2023 from Rs 533.89 crore as of 30 September 2022. Intangible assets increased from Rs 25.91 crore to Rs 236.04 crore. | Mahindra Logistics : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
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| Particulars | 202309 | 202209 | Var.(%) | 202309 | 202209 | Var.(%) | 202303 | 202203 | Var.(%) |
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| Net Sales (including other operating income) | 1,364.76 | 1,326.33 | 2.90 | 2,657.98 | 2,526.23 | 5.22 | 5,128.29 | 4,140.76 | 23.85 | | OPM (%) | 3.93 | 5.10 | -117 bps | 4.52 | 5.28 | -75 bps | 5.07 | 4.45 | 62 bps | | OP | 53.57 | 67.59 | -20.74 | 120.20 | 133.30 | -9.83 | 259.76 | 184.27 | 40.97 | | Other Inc. | 6.58 | 3.35 | 96.42 | 12.76 | 6.44 | 98.14 | 15.85 | 13.58 | 16.72 | | PBIDT | 60.15 | 70.94 | -15.21 | 132.96 | 139.74 | -4.85 | 275.61 | 197.85 | 39.30 | | Interest | 16.53 | 10.74 | 53.91 | 34.31 | 19.67 | 74.43 | 51.57 | 29.82 | 72.94 | | PBDT | 43.62 | 60.20 | -27.54 | 98.65 | 120.07 | -17.84 | 224.04 | 168.03 | 33.33 | | Depreciation | 51.79 | 43.55 | 18.92 | 106.25 | 84.45 | 25.81 | 189.5 | 141.72 | 33.71 | | PBT | -8.17 | 16.65 | PL | -7.6 | 35.62 | PL | 34.54 | 26.31 | 31.28 | | Share of Profit/(Loss) from Associates | -0.15 | -0.61 | 75.41 | -0.31 | -1 | 69.00 | -2.79 | 0.01 | PL | | PBT before EO | -8.32 | 16.04 | PL | -7.91 | 34.62 | PL | 31.75 | 26.32 | 20.63 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | -8.32 | 16.04 | PL | -7.91 | 34.62 | PL | 31.75 | 26.32 | 20.63 | | Taxation | 7.29 | 4.74 | 53.80 | 16.16 | 10.07 | 60.48 | 7.12 | 11.25 | -36.71 | | PAT | -15.61 | 11.3 | PL | -24.07 | 24.55 | PL | 24.63 | 15.07 | 63.44 | | Minority Interest (MI) | 0.32 | -0.89 | PL | 0.41 | -1.16 | PL | -1.65 | -2.49 | 33.73 | | Net profit | -15.93 | 12.19 | PL | -24.48 | 25.71 | PL | 26.28 | 17.56 | 49.66 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | -15.93 | 12.19 | PL | -24.48 | 25.71 | PL | 26.28 | 17.56 | 49.66 | | EPS (Rs)* | -1.18 | 1.69 | PL | -1.12 | 3.57 | PL | 3.65 | 2.44 | 49.66 | | | * EPS is on current equity of Rs 72.04 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 |
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| Mahindra Logistics : Consolidated Segment Results | td>-| | Quarter ended | Year to Date | Year ended |
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| % of (Total) | 202309 | 202209 | Var.(%) | % of (Total) | 202309 | 202209 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
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| Sales | | Supply Chain Management | 93.68 | 1,278.44 | 1,263.40 | 1.19 | 93.76 | 2,492.20 | 2,406.14 | 3.58 | 94.92 | 4,867.72 | 3,938.68 | 23.59 | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | 6.32 | 86.32 | 62.93 | 37.17 | 6.24 | 165.78 | 120.09 | 38.05 | 5.08 | 260.57 | 202.08 | 28.94 | | Total Reported Sales | 100.00 | 1,364.76 | 1,326.33 | 2.90 | 100.00 | 2,657.98 | 2,526.23 | 5.22 | 100.00 | 5,128.29 | 4,140.76 | 23.85 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 1,364.76 | 1,326.33 | 2.90 | 100.00 | 2,657.98 | 2,526.23 | 5.22 | 100.00 | 5,128.29 | 4,140.76 | 23.85 | | PBIT | | Supply Chain Management | 111.26 | -9.09 | 76.57 | PL | 90.26 | -6.86 | 142.86 | PL | 97.31 | 153.80 | 243.48 | -36.83 | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | -11.26 | 0.92 | 3.69 | -75.07 | 9.74 | -0.74 | 7.59 | PL | 2.69 | 4.25 | 8.05 | -47.20 | | Total PBIT | 100.00 | -8.17 | 80.26 | PL | 100.00 | -7.60 | 150.45 | PL | 100.00 | 158.05 | 251.53 | -37.16 | | Less : Interest | | 0.00 | 2.95 | - | | 0.00 | 4.34 | - | | 4.34 | 4.68 | -7.26 | | Add: Other un-allcoable | | 0.00 | -60.66 | - | | 0.00 | -110.49 | - | | -119.17 | -220.54 | 45.96 | | PBIT Margin(%) | | Supply Chain Management | | -0.71 | 6.06 | -677.17 | | -0.28 | 5.94 | -621.26 | | 3.16 | 6.18 | -302.22 | | People Transport Solution | | 0.00 | 0.00 | 0.00 | | Enterprise Mobility Service | | 1.07 | 5.86 | -479.79 | | -0.45 | 6.32 | -676.66 | | 1.63 | 3.98 | -235.25 | | PBT | 100.00 | -8.17 | 16.65 | PL | 100.00 | -7.60 | 35.62 | PL | 100.00 | 34.54 | 26.31 | 31.28 |
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