Sales of Supply Chain Management segment has gone up 14.65% to Rs 1,372.34 crore (accounting for 94.59% of total sales). Sales of Enterprise Mobility Service segment rose 3.87% to Rs 78.42 crore (accounting for 5.41% of total sales).
Profit before interest, tax and other unallocable items (PBIT) reported loss of Rs -9.22 crore compared to loss / profit of Rs. -4.63 Cr. PBIT of Supply Chain Management segment fell 207.30% to Rs -11.37 crore (accounting for 123.32% of total PBIT). PBIT of Enterprise Mobility Service reported profit of Rs 2.15 crore compared to loss of Rs 0.93 crore.
PBIT margin of Supply Chain Management segment fell from negative 0.31% to negative 0.83%. PBIT margin of Enterprise Mobility Service segment rose from negative 1.23% to 2.74%. Overall PBIT margin fell from 0.36% to -0.64%.
Full year results analysis.
Net sales (including other operating income) of Mahindra Logistics has increased 7.36% to Rs 5505.97 crore. Sales of Supply Chain Management segment has gone up 6.37% to Rs 5,177.92 crore (accounting for 94.04% of total sales). Sales of Enterprise Mobility Service segment rose 25.90% to Rs 328.05 crore (accounting for 5.96% of total sales).
PBIT of Supply Chain Management reported loss of Rs 28.17 crore compared to profit of Rs 153.80 crore. PBIT of Enterprise Mobility Service segment fell 58.12% to Rs 1.78 crore (accounting for -6.74% of total PBIT).
PBIT margin of Supply Chain Management segment fell from 3.16% to 0.54%. PBIT margin of Enterprise Mobility Service segment fell from 1.63% to 0.54%. Overall PBIT margin fell from 3.08% to -0.48%.
Operating profit margin has declined from 5.07% to 4.16%, leading to 11.83% decline in operating profit to Rs 229.04 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 0.13% to 0.01%. Employee cost increased from 6.91% to 7.35%. Other expenses rose from 87.89% to 88.48%. Other direct service cost fell from 85.41% to 85.14%.
Other income rose 12.93% to Rs 17.9 crore. PBIDT fell 10.40% to Rs 246.94 crore. Provision for interest rose 32.17% to Rs 68.16 crore. PBDT fell 20.20% to Rs 178.78 crore. Provision for depreciation rose 10.28% to Rs 208.99 crore. Profit before tax reported loss of Rs 30.21 crore compared to profit of Rs 34.54 crore. Share of profit/loss was 63.44% higher at Rs -1.02 crore. Provision for tax was expense of Rs 25.68 crore, compared to Rs 7.12 crore. Effective tax rate was negative 93.69% compared to 22.43%. Net loss (after MI) was Rs 54.74 crore against a profit of Rs 26.28 crore.
Key Highlights
3PL Supply Chain services growing 14% in Q4FY23 on YOY basis, full year growth of 7%
driven by growth in automotive and engineering, consumer.
Freight forwarding and Express businesses continue to show improvements in volume on a
sequential quarter basis. Express business continued with the positive trend on network and
cost optimization.
Strong quarter of order intake in Mobility and 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.
During the year completed the 2nd 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 Comments :
Commenting on the performance, Rampraveen Swaminathan, Managing
Director and CEO of Mahindra Logistics Ltd. said,
“The quarter gone by was marked by an increasing volume recovery and growth as we saw positive momentum
across our businesses, with strong growth in 3PL and Mobility segments. Our B2B express business has started
seeing the benefits of cost optimization, as we continued to improve operating margins & EBITDA. The mobility
segment remains on a recovery path. Overall In FY 2023-24, excluding one-time charges, earnings across our
core 3PL and other businesses were stable and improving. Completion of the 2nd tranche of investment in Zip
Zap Logistics will help us further consolidate and provide an expanded range of services form last mile delivery
and micro-fulfilment. We remain focused on driving the value of logistics solutions by integrating services
across India, leveraging our technology, process and human capital.”
Other developments
The Board has recommended a dividend of Rs. 2.50 per share on equity share of Rs. 10 each (25%) subject to approval of members of the company at the forthcoming Annual General Meeting.
Loan funds declined from Rs 834.05 crore as of 31 March 2023 to Rs 739.29 crore as of 31 March 2024. Sundry debtors were higher at Rs 701.90 crore as of 31 March 2024 compared to Rs 652.49 crore as of 31 March 2023. Cash and bank balance declined from Rs 126.23 crore as of 31 March 2023 to Rs 71.07 crore as of 31 March 2024. Investments declined from Rs 99.87 crore as of 31 March 2023 to Rs 5.86 crore as of 31 March 2024. Fixed assets declined from Rs 829.13 crore as of 31 March 2023 to Rs 793.67 crore as of 31 March 2024. Intangible assets increased from Rs 4.33 crore to Rs 58.76 crore. Equity capital increased from Rs 71.98 crore as of 31 March 2023 to Rs 72.04 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 58.04% as of 31 March 2024 ,compared to 58.09% as of 31 March 2023 .
Cash flow from operating activities increased to Rs 226.86 crore for year ended March 2024 from Rs 119.40 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 70.94 crore, compared to Rs 71.03 crore during the year ended March 2023.
| Mahindra Logistics : Consolidated Results |
| | Quarter ended | Year ended |
|---|
| Particulars | 202403 | 202303 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,450.76 | 1,272.51 | 14.01 | 5,505.97 | 5,128.29 | 7.36 | | OPM (%) | 3.90 | 5.01 | -111 bps | 4.16 | 5.07 | -91 bps | | OP | 56.61 | 63.72 | -11.16 | 229.04 | 259.76 | -11.83 | | Other Inc. | 2.88 | 3.83 | -24.80 | 17.90 | 15.85 | 12.93 | | PBIDT | 59.49 | 67.55 | -11.93 | 246.94 | 275.61 | -10.40 | | Interest | 17.43 | 16.93 | 2.95 | 68.16 | 51.57 | 32.17 | | PBDT | 42.06 | 50.62 | -16.91 | 178.78 | 224.04 | -20.20 | | Depreciation | 51.28 | 55.25 | -7.19 | 208.99 | 189.5 | 10.28 | | PBT | -9.22 | -4.63 | -99.14 | -30.21 | 34.54 | PL | | Share of Profit/(Loss) from Associates | 0 | -1.23 | - | -1.02 | -2.79 | 63.44 | | PBT before EO | -9.22 | -5.86 | -57.34 | -31.23 | 31.75 | PL | | EO Income | 0 | 0 | - | 3.82 | 0 | - | | PBT after EO | -9.22 | -5.86 | -57.34 | -27.41 | 31.75 | PL | | Taxation | 2.69 | -4.83 | PL | 25.68 | 7.12 | 260.67 | | PAT | -11.91 | -1.03 | -1,056.31 | -53.09 | 24.63 | PL | | Minority Interest (MI) | 0.94 | -0.21 | PL | 1.65 | -1.65 | PL | | Net profit | -12.85 | -0.82 | -1,467.07 | -54.74 | 26.28 | PL | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | -12.85 | -0.82 | -1,467.07 | -54.74 | 26.28 | PL | | EPS (Rs)* | -1.38 | -0.11 | -1,113.41 | -4.47 | 3.65 | PL | | | * EPS is on current equity of Rs 72.05 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) | 202403 | 202303 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
|---|
| Sales | | Supply Chain Management | 94.59 | 1,372.34 | 1,197.01 | 14.65 | 94.04 | 5,177.92 | 4,867.72 | 6.37 | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | 5.41 | 78.42 | 75.50 | 3.87 | 5.96 | 328.05 | 260.57 | 25.90 | | Total Reported Sales | 100.00 | 1,450.76 | 1,272.51 | 14.01 | 100.00 | 5,505.97 | 5,128.29 | 7.36 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 1,450.76 | 1,272.51 | 14.01 | 100.00 | 5,505.97 | 5,128.29 | 7.36 | | PBIT | | Supply Chain Management | 123.32 | -11.37 | -3.70 | -207.30 | 106.74 | -28.17 | 153.80 | PL | | People Transport Solution | 0.00 | 0.00 | 0.00 | - | | Enterprise Mobility Service | -23.32 | 2.15 | -0.93 | LP | -6.74 | 1.78 | 4.25 | -58.12 | | Total PBIT | 100.00 | -9.22 | -4.63 | -99.14 | 100.00 | -26.39 | 158.05 | PL | | Less : Interest | | 0.00 | 0.00 | - | | 0.00 | 4.34 | - | | Add: Other un-allcoable | | 0.00 | 0.00 | - | | 0.00 | -119.17 | - | | PBIT Margin(%) | | Supply Chain Management | | -0.83 | -0.31 | -51.94 | | -0.54 | 3.16 | -370.36 | | People Transport Solution | | 0.00 | 0.00 | 0.00 | | Enterprise Mobility Service | | 2.74 | -1.23 | 397.34 | | 0.54 | 1.63 | -108.84 | | PBT | 100.00 | -9.22 | -4.63 | -99.14 | 100.00 | -26.39 | 34.54 | PL |
|