Mahindra Logistics Limited Recorded Losses in FY24: A Quick Look at Results

Mahindra Logistics Limited (MLL), one of India’s integrated logistics & mobility solutions providers, recently announced the results for the quarter (Q4 FY2024) and year (FY 2024) ended March 31, 2024.

Quarterly Performance

The company’s revenue increased to ₹1,451 crore, compared to ₹1,273 crore in Q4 FY2023 (PCP). In addition, EBITDA for the period amounted to ₹57 crore as compared to ₹64 crore, reflecting a dip in core earnings. The company’s quarterly loss widened to ₹12.9 crore compared to ₹0.8 crore in PCP.

FY2024 Highlights

Revenue for the year ended March 31, 2024, increased to ₹5,506 crore, compared to ₹5,128 crore in Q4 FY2023 (PCP). This indicates a meaningful growth in the topline during FY2024. In addition, the company recorded a fall in EBITDA to ₹229 crore as compared to ₹264 crore. The company witnessed a turnaround in the bottom line to a loss of ₹54.7 crore in FY2024 against a profit of ₹26.3 crore in FY 2023.

Business Performance

• During Q4 FY2024, 3PL Supply Chain services witnessed a 14% YoY growth and 7% full-year growth due to an increase in automotive and engineering consumers.
• The company’s Freight forwarding and Express business continue to show volume improvements on a sequential-quarter basis. The express business continued with a positive trend in network and cost optimisation.
• MLL recorded a strong quarter of order intake in Mobility and across the 3PL supply chain business, fueled by growth in FMCG, Engineering, and Auto.
• The 3PL business had 20 million sq. ft. of warehouse space under management. Current expansions in Chakan, Kolkata, Nasik, and Guwahati are on track.

“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 optimisation as we continue 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,” said Mr Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd.

He further added, “Completion of the 2nd tranche of investment in Zip Zap Logistics will help us further consolidate and provide an expanded range of services from 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.”

Looking Ahead

The company is focused on growing its Integrated logistics business and leveraging acquisitions to unlock growth. It is also focused on margin expansion through productivity improvement. In addition, it is targeting an ROE of 18% by FY26 by focusing on the turnaround of the Rivigo business, leveraging synergies between core business and acquisitions, and expanding margins.

On April 23, 2024, Mahindra Logistics’s shares opened at ₹437.85 and touched the day high of ₹456.00 at 11:24 AM.

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