Consolidated net sales (including other operating income) of Mahindra Logistics for the quarter ended Dec 2023 has increased 5.09% to Rs 1397.23 crore. Operating profit margin has declined from 4.72% to 3.74%, leading to 16.75% decline in operating profit to Rs 52.23 crore. Employee cost increased from 7.11% to 7.71%. Other expenses rose from 88.17% to 88.55%. Other direct service cost rose from 85.31% to 85.50%. Other income fell 59.50% to Rs 2.26 crore. PBIDT fell 20.24% to Rs 54.49 crore. Provision for interest rose 9.69% to Rs 16.42 crore. PBDT fell 28.64% to Rs 38.07 crore. Provision for depreciation rose 3.33% to Rs 51.46 crore. Profit before tax reported loss of Rs 13.39 crore compared to profit of Rs 3.55 crore. Share of profit/loss was 26.79% lower at Rs -0.71 crore. Provision for tax was expense of Rs 6.83 crore, compared to Rs 1.88 crore. Effective tax rate was negative 66.44% compared to 62.88%. PAT was a loss of Rs 17.11 crore against a profit of Rs 1.11 crore in the corresponding previous period. Minority interest was a share of profit of Rs 0.30 crore against a loss of Rs 0.28 crore of loss. Net profit attributable to owners was a loss of Rs 17.41 crore against a profit of Rs 1.39 crore in the corresponding previous period. Sales of Supply Chain Management segment has gone up 3.86% to Rs 1,313.38 crore (accounting for 94.00% of total sales). Sales of Enterprise Mobility Service segment rose 29.04% to Rs 83.85 crore (accounting for 6.00% of total sales). PBIT of Supply Chain Management reported loss of Rs 9.94 crore compared to profit of Rs 5.97 crore. PBIT of Enterprise Mobility Service reported profit of Rs 0.37 crore compared to loss of Rs 2.42 crore. PBIT margin of Supply Chain Management segment fell from 0.47% to 0.76%. PBIT margin of Enterprise Mobility Service segment rose from negative 3.72% to 0.44%. Overall PBIT margin fell from 0.27% to -0.68%. For year-to-date (YTD) results analysis.
Consolidated net sales (including other operating income) of Mahindra Logistics has increased 5.17% to Rs 4055.21 crore. Sales of Supply Chain Management segment has gone up 3.67% to Rs 3,805.58 crore (accounting for 93.84% of total sales). Sales of Enterprise Mobility Service segment rose 34.88% to Rs 249.63 crore (accounting for 6.16% of total sales).
PBIT of Supply Chain Management reported loss of Rs 16.80 crore compared to profit of Rs 157.50 crore. PBIT of Enterprise Mobility Service reported loss of Rs 0.37 crore compared to profit of Rs 5.18 crore. PBIT margin of Supply Chain Management segment fell from 4.29% to 0.44%. PBIT margin of Enterprise Mobility Service segment fell from 2.80% to 0.15%. Overall PBIT margin fell from 4.22% to -0.42%. Operating profit margin has declined from 5.08% to 4.25%, leading to 12.04% decline in operating profit to Rs 172.43 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 0.17% to 0.01%. Employee cost increased from 6.65% to 7.67%. Other expenses fell from 88.10% to 88.07%. Other direct service cost fell from 85.66% to 85.03%. Other income rose 24.96% to Rs 15.02 crore. PBIDT fell 9.91% to Rs 187.45 crore. Provision for interest rose 46.45% to Rs 50.73 crore. PBDT fell 21.16% to Rs 136.72 crore. Provision for depreciation rose 17.47% to Rs 157.71 crore. Profit before tax reported loss of Rs 20.99 crore compared to profit of Rs 39.17 crore. Share of profit/loss was 34.62% higher at Rs -1.02 crore. Provision for tax was expense of Rs 22.99 crore, compared to Rs 11.95 crore. Effective tax rate w crore as negative 126.39% compared to 31.77%. PAT was a loss of Rs 41.18 crore against a profit of Rs 25.66.
Minority interest was a share of profit of Rs 0.71 crore against a loss of Rs 1.44 crore of loss. Net profit attributable to owners was a loss of Rs 41.89 crore against a profit of Rs 27.1 crore in the corresponding previous period.
Key Operational highlights
3PL Supply Chain services growing 5% YoY driven by growth in automotive and engineering,
consumer, and durables.
• 3PL supply chain and last mile delivery businesses grew over 20% sequentially driven by
festive peak. Revenues impacted vs prior year due to customer site consolidations.
• Freight forwarding and Express businesses continue to show improvements in volume on a
sequential quarter basis. Continuing focus on volume growth and yield management.
• Strong quarter of order intake across the 3PL supply chain business, driven by growth in
FMCG, Engineering and Auto.
• Warehouse space under management stood at 20 mn sq. ft. in the 3PL business. Current
expansions in Chakan, Kolkata, Nasik, and Guwahati are on track.
• Completed the 2
nd
tranche of share purchase in Whizzard/Zip Zap Logistics (a last mile
delivery company) in Dec`23. MLL now owns 60% stake in the company. The acquisition will
complement MLL’s existing last mile delivery business & Edel and will help drive deeper
penetration.
Management Comment
Commenting on the performance, Mr. Rampraveen Swaminathan, Managing
Director and CEO of Mahindra Logistics Ltd. said,
“ Q3 FY 2023-24 was a period of moderate demand. Continuing growth in engineering and FMCG segments
were offset by slow growth in other markets. The festive season was marked by volume growth but was offset
by lower volumes due to capacity consolidation and increased shut downs, especially in Ecommerce and some
Automotive OEM customers. During the quarter, the 3PL supply chain business demonstrated stable growth.
The Freight forwarding business continued to demonstrate sequential growth, despite global headwinds. We
continued to make progress in the B2B express business with growth in volume and enhancements in service
levels. Our multi-client warehousing expansion remain on track with new expansion announcements of 1.1
Million Square Feet. We are optimistic of strong growth driven by order intake across our businesses and
continued improvement the express business and integration of the rivigo acquisition, in coming quarters”
Promoters’ stake was 58.04% as of 31 December 2023,compared to 58.10% as of 31 December 2022 .
| Mahindra Logistics : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
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| Particulars | 202312 | 202212 | Var.(%) | 202312 | 202212 | Var.(%) | 202303 | 202203 | Var.(%) |
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| Net Sales (including other operating income) | 1,397.23 | 1,329.55 | 5.09 | 4,055.21 | 3,855.78 | 5.17 | 5,128.29 | 4,140.76 | 23.85 | | OPM (%) | 3.74 | 4.72 | -98 bps | 4.25 | 5.08 | -83 bps | 5.07 | 4.45 | 62 bps | | OP | 52.23 | 62.74 | -16.75 | 172.43 | 196.04 | -12.04 | 259.76 | 184.27 | 40.97 | | Other Inc. | 2.26 | 5.58 | -59.50 | 15.02 | 12.02 | 24.96 | 15.85 | 13.58 | 16.72 | | PBIDT | 54.49 | 68.32 | -20.24 | 187.45 | 208.06 | -9.91 | 275.61 | 197.85 | 39.30 | | Interest | 16.42 | 14.97 | 9.69 | 50.73 | 34.64 | 46.45 | 51.57 | 29.82 | 72.94 | | PBDT | 38.07 | 53.35 | -28.64 | 136.72 | 173.42 | -21.16 | 224.04 | 168.03 | 33.33 | | Depreciation | 51.46 | 49.8 | 3.33 | 157.71 | 134.25 | 17.47 | 189.5 | 141.72 | 33.71 | | PBT | -13.39 | 3.55 | PL | -20.99 | 39.17 | PL | 34.54 | 26.31 | 31.28 | | Share of Profit/(Loss) from Associates | -0.71 | -0.56 | -26.79 | -1.02 | -1.56 | 34.62 | -2.79 | 0.01 | PL | | PBT before EO | -14.1 | 2.99 | PL | -22.01 | 37.61 | PL | 31.75 | 26.32 | 20.63 | | EO Income | 3.82 | 0 | - | 3.82 | 0 | - | 0 | 0 | - | | PBT after EO | -10.28 | 2.99 | PL | -18.19 | 37.61 | PL | 31.75 | 26.32 | 20.63 | | Taxation | 6.83 | 1.88 | 263.30 | 22.99 | 11.95 | 92.38 | 7.12 | 11.25 | -36.71 | | PAT | -17.11 | 1.11 | PL | -41.18 | 25.66 | PL | 24.63 | 15.07 | 63.44 | | Minority Interest (MI) | 0.3 | -0.28 | PL | 0.71 | -1.44 | PL | -1.65 | -2.49 | 33.73 | | Net profit | -17.41 | 1.39 | PL | -41.89 | 27.1 | 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 | -17.41 | 1.39 | PL | -41.89 | 27.1 | PL | 26.28 | 17.56 | 49.66 | | EPS (Rs)* | -1.99 | 0.19 | PL | -3.11 | 3.76 | 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) | 202312 | 202212 | Var.(%) | % of (Total) | 202312 | 202212 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
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| Sales | | Supply Chain Management | 94.00 | 1,313.38 | 1,264.57 | 3.86 | 93.84 | 3,805.58 | 3,670.71 | 3.67 | 94.92 | 4,867.72 | 3,938.68 | 23.59 | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | 6.00 | 83.85 | 64.98 | 29.04 | 6.16 | 249.63 | 185.07 | 34.88 | 5.08 | 260.57 | 202.08 | 28.94 | | Total Reported Sales | 100.00 | 1,397.23 | 1,329.55 | 5.09 | 100.00 | 4,055.21 | 3,855.78 | 5.17 | 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 | 1,397.23 | 1,329.55 | 5.09 | 100.00 | 4,055.21 | 3,855.78 | 5.17 | 100.00 | 5,128.29 | 4,140.76 | 23.85 | | PBIT | | Supply Chain Management | 103.87 | -9.94 | 5.97 | PL | 97.85 | -16.80 | 157.50 | PL | 97.31 | 153.80 | 243.48 | -36.83 | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | -3.87 | 0.37 | -2.42 | LP | 2.15 | -0.37 | 5.18 | PL | 2.69 | 4.25 | 8.05 | -47.20 | | Total PBIT | 100.00 | -9.57 | 3.55 | PL | 100.00 | -17.17 | 162.68 | PL | 100.00 | 158.05 | 251.53 | -37.16 | | Less : Interest | | 0.00 | 0.00 | - | | 0.00 | 4.34 | - | | 4.34 | 4.68 | -7.26 | | Add: Other un-allcoable | | 0.00 | 0.00 | - | | 0.00 | -119.17 | - | | -119.17 | -220.54 | 45.96 | | PBIT Margin(%) | | Supply Chain Management | | -0.76 | 0.47 | -122.89 | | -0.44 | 4.29 | -473.22 | | 3.16 | 6.18 | -302.22 | | People Transport Solution | | 0.00 | 0.00 | 0.00 | | Enterprise Mobility Service | | 0.44 | -3.72 | 416.55 | | -0.15 | 2.80 | -294.72 | | 1.63 | 3.98 | -235.25 | | PBT | 100.00 | -9.57 | 3.55 | PL | 100.00 | -17.17 | 39.17 | PL | 100.00 | 34.54 | 26.31 | 31.28 |
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