Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q4 FY24 Earnings Presentation
50 slides from Mahindra Logistics's earnings presentation, Apr 22, 2024
Slide 1: Exchange filing cover letter: Earnings Presentation Q4 FY24
mahindra Mahindra Logistics Limited Arena Space, 10th & 11th Floor, LOGISTICS Plot No. 20, Jogeshwari Vikhroli Link Road, Near Majas Bus Depot, Jogeshwari (East), Mumbai – 400060, Maharashtra. Tel: +91 22 6836 7900 Email: enquiries@mahindralogistics.com www.mahindralogistics.com CIN: L63000MH2007PLC
Slide 2: Q4 FY24 Investor Presentation: Business & Earnings Update
Igniting Success * • '24.1.&$.1.21i.L.4Na 1.1* -- .7• par allitt"' .114 0.• C ACFPI. t ' • I. ase • • 2 • ,at isr- elele?" •-••••••• • -• - . •• -ANIS I IN • Q4 FY24 Investor Presentation Business & Earnings Update mahindra April 2024 LOGISTICS
Slide 3: Safe Harbor
Igniting Success* Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Mahindra Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or su
Slide 4: Company Overview
Igniting Success* Company Overview mahindra LOGISTICS .. Confidential 3
Slide 5: Purpose and Vision
Igniting Success* Purpose Vision THANK YOU ACCELERATING RISE to be a Rs. 10,000 crore logistics COMMERCE service provider by FY 2026; delivering EMPOWERING exceptional customer experience through COMMUNITIES TO differentiated, technology enabled solutions RISE is4 • Confidential 4
Slide 6: Integrated supply chain logistics provider
Igniting Success Integrated supply chain logistics provider -* Contract Logistics B2B Express Providing Transportation, B2B express and PTL Warehousing, Stores & Line Feed , transportation with pan Fulfillment and VAS services India coverage mahindra A LOGISTICS V glr ‘‘ te Last Mile Delivery Freigh
Slide 7: Multi service provider for mobility solutions
Igniting Success Multi service provider for mobility solutions I I 0 0 V& Az Employee Transportation 1 AA Airport Services Providing end-to-end employee 1 4 transportation services Al 4 Dedicated booking counter with Kerb-side pickup 4 4 s mahindra v Oft LOGISTICS 6d 47 4k gsf qk dr 44 t t C ‘ On Ca
Slide 8: Leading logistics service provider
Igniting Success fl Leading logistics service provider 20 Mn+ 27,000+ 1,100+ " Sq. ft. space under Total workforce Locations across management across India India • S • 19,000+ 1,750+ 50+ Oi Pin-codes EV fleet Global trade covered (Cargo + PV) lanes 1119-91-.01.- otailiaa - a . et si „al CIO or ' • •
Slide 9: Macros are stable, driven by technology and sustainable logistics
Igniting Success Macros are stable, continue to be driven by technology enhancements and sustainable logistics Industry Trends p Changing Channel Emerging demand Government policy Shift in global trade Higher demand for landscape driven by clusters across Tier II support for logistics flows due to C
Slide 10: MLL Strategy
Igniting Success* MLL Strategy 3PL > Integrated Solutions Strategic Platforms Grow in profitable markets ▪ Increase focus on TCO vs purchased cost ▪ Create a MOAT with clients ▪ Access higher share-of-wallet 1 2 3 4 Expand Integrated Operations Digitization Offerings Solutions Excellence & Expand Ne
Slide 11: Presence in High Growth Segments (End-Markets)
Igniting Success Presence in High Growth Segments (End-Markets) Auto & 01 ▪ ▪ ▪ India is 4th largest automobile market in the world Favorable ecosystem for exports & government support 25% contribution in contract logistics market CA I: Hero Auto Components ▪ 10% contribution in contract logistics m
Slide 12: Business Updates
Igniting Success* Business Updates mahindra LOGISTICS .. Confidential 11
Slide 13: Management Commentary
Igniting Success 0 Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “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
Slide 14: Overview of Results
Igniting Success Overview of Results Core Business Express Business (MLL + Lords + Mobility) (Rivigo Acquisition) Q4 FY 24 update ▪ Revenue for Q4 FY’24 INR 97 Cr; up 26% YoY ▪ Revenue at INR 1,330 Cr; up 11% YoY ▪ Impact on PAT due to onetime Provision for doubtful ▪ Focus on service levels and cos
Slide 15: Business Highlights – Q4 FY24
Igniting Success* Business Highlights – Q4 FY24 3PL Contract Logistics B2B Express Freight Forwarding Last Mile Delivery Mobility -..-,-.--- 01 02 03 04 05 II I III 111 I 111 0 460 410 410 ▪ Overall revenue at Rs. 97 ▪ Overall revenue at Rs. 83 crore; 34% EBITDA ▪ Overall revenue at Rs. 63 crores, u
Slide 16: Contract Logistics - Key Trends & Opportunities
Igniting Success Contract Logistics - Key Trends & Opportunities 9 Logistics Sector Industry Structure Key Trends oovto°°'° 2,400 ▪ Highly fragmented with top 10 ▪ Higher Demand for Integrated Solutions instead of piece-meal players having ~15% share Market Size (Rs. ‘000 Crore) 1,400 logistics serv
Slide 17: Contract Logistics - Core competency & capabilities
Igniting Success Contract Logistics - Core competency & capabilities fv4 End to End transport Warehousing solution Integrated Solutions solutions Manage WH with expertise in Centralized management Single point of contact design and operations of all transportation for E2E logistics Efficient Space I
Slide 18: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights ( Space under management 19.6 Mn. Sq. Ft. Vehicles Deployed 17,000+ Trucks Per month t- Operating locations 400+ Business Associates 1,500+ I AMP Loos 'Gs mahindra LOGISTICS .. Confidential 17
Slide 19: 1.3 million sq.ft. BTS WH under development across key demand clusters
Igniting Success 1.3 million sq.ft. BTS WH under development across key demand clusters Guwahati - 3,00,000 sq. ft. Kolkata - 4,50,000 sq. ft. LOGISTICS mahlndra T .? /IV/ UMW 'N,l[arionlaria 1 i lAVANZric 7.5 lakh sq. ft. Diu IE. ARP to Go-Live in Q2 FY25 ;....r _IF AV*,aluppirm • Nashik - 3,00,000
Slide 20: B2B Express - Key Trends & Opportunities
Igniting Success B2B Express - Key Trends & Opportunities B2B Express (Surface) Industry Structure Key Trends ob, 24,000 ▪ Increasing demand for Direct to ▪ Organized players account for Consumer, Omni-channel 14,000 ~70% of volume fulfillment Market Size (Rs. Crore) ▪ Skewed load distribution, ~70%
Slide 21: B2B Express - Core competency & capabilities
Igniting Success* B2B Express - Core competency & capabilities • Significant Network Coverage • • t. • AMOla •• • ▪ Pan India coverage - 19,000+ Pin-codes •. . ▪ 260+ Processing Centers & Branches • • • • • • 9 .. • • • • • • • ▪ 400+ partners for first mile & last mile connectivity • • • • .9 • ••
Slide 22: B2B Express - Operating Highlights
Igniting Success B2B Express - Operating Highlights Pin-code reach RIVIGO Lt mallindra LOGISTICS 19,000+ RIVIGO AIM Direct + ODA Space under management 1.5 Mn. Sq. Ft. 0 • • • platiliS . •• Transhipment Hubs & DCs 200+ Line Hauls & Mid- mile 1,100+ • RIVIGO inahlridr%Losisna Trucks mahindra ODA: Oth
Slide 23: Freight Forwarding - Key Trends & Opportunities
Igniting Success Freight Forwarding - Key Trends & Opportunities Freight Forwarding Industry Structure Key Trends -V. GP,G1 ▪ Highly fragmented, largely ▪ Near shoring on account of regional 64,000 dominated by companies with conflicts, reducing dependence on 1 45,600 turnover of < Rs.100 Cr China (
Slide 24: Freight Forwarding - Core competency & capabilities
Igniting Success* Freight Forwarding - Core competency & capabilities Expanding International Air Freight Ocean Freight Project Logistics presence r ma sly -4t vrt mai d' ► Ocean consolidation: USA ► ODC solutions catering to ► Expand presence in ► Airport-to-Airport /Europe /Asia to & from diverse
Slide 25: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights • Oy • f It Pricing Trends .p Moderately up Ocean Freight vs Q4 FY23 Volume A, • ~2,440 ry TEUs in Q4 FY24 Air Freight Volume ar No. of Forwarding ~1,045 Lanes d 60. Tons in Q4 FY24 • 50+ Globally 0•4 '4'44 mahindra LOGISTICS .. Confidential
Slide 26: Last Mile Delivery - Key Trends & Opportunities
Igniting Success Last Mile Delivery - Key Trends & Opportunities 9 Last Mile Delivery, India Industry Structure Key Trends ▪ Last Mile is most expensive ▪ High growth in Micro fulfillment, Olo 36,500 component of supply chain, ~50% sub same day delivery and dark contribution in transportation cost s
Slide 27: Last Mile Delivery – Strengthening our leadership position in EV
Igniting Success* Last Mile Delivery – Strengthening our leadership position in EV Vehicle as a Service • Offer a fleet of vans (with drivers) to customers who then use it as per their requirement Distribution as a Service ;sr 'OM TO rr ------ 4 • Manage Last mile stations that receive, process, -$4
Slide 28: Last Mile Delivery - Operating Highlights
Last Mile Delivery - Operating Highlights ,14 Volume handled , fir' 11 350,000+ orders per day Fleet Deployed \ e llahl 6,000+ Vehicles per day NE I / / Last Mile stations 300+ Geographic Reach eD. eL eneL 4,000+ • Pin-codes Pan-India las ••,••• •*. Note - LMD includes Whizzard mahindra LOGISTICS ..
Slide 29: Mobility - Key Trends & Opportunities
Igniting Success Mobility - Key Trends & Opportunities Enterprise Mobility Industry Structure Key Trends 20,000 ▪ Highly fragmented with large ▪ Recovery in Air passenger traffic, 14,000 unorganized supply growth in Business travel Market Size (Rs. Crore) Ili ▪ Shift from vendor model to ▪ Increasin
Slide 30: Mobility - Core competency & capabilities
Igniting Success Mobility - Core competency & capabilities • UPI= O. ea , 4ar Enterprise Mobility Services Cab on Demand Services Airport & Outstation Upkeep Services ▪ Fleet Management ▪ Semi Luxury Vehicle Options ▪ Assured Vehicles for Airport Transfers ▪ Fleet Management ▪ Adherence to OTA & OTD
Slide 31: Mobility - Operating Highlights
Igniting Success* Mobility - Operating Highlights c Revenue (Rs. Crore) • No. of Trips 86 83 83 15,000+ 80 Per day 75 No. of vehicles deployed 5,000+ Per day Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 No. of operating Gross Margin (Rs. Crore) locations 100+ Pan India I No. of supply partners 8.6% 11.2% 10.6
Slide 32: Drive to Net Zero
Igniting Success 0 Drive to Net Zero Carbon Neutral by 3.6 Mn Sq Feet 2040 Solar Powered Warehouses 1,600+ EV ~30.3 Million RIO 3W and PCV Green KM with EVs \\ 5 IGBC Gold & Platinum •Ili Accreditation MENNi Certified buildings Ecovadis - Bronze BRSR 22-23 900+ Kg Integrated Annual Report • • Waste
Slide 33: CSR Updates
Igniting Success CSR Updates Categories Q4 FY24 Activities Impact ▪ Health clinic at Nashik ▪ 88,872 community beneficiaries ▪ Blood Donation camps Building ▪ 900Kg+ plastic waste recycled ▪ Zero Fatality Zone project Communities ▪ ESOPs: 11,157 hours ▪ Swachh Bharat Abhiyan ▪ Volunteers: 1763 ▪ Vis
Slide 34: Awards and Recognition
Igniting Success Awards and Recognition ESOPS award at the RISE Awards 2024 National Safety Council -Safety Award 2023 . ° a, RSE AWARDS If 2024 OIRIPONIA NSCI SAFETY AWARDS 2023 Miam i PRESENTATION CEREMONY 47 IS' March2024,Hyderabad,ielangena FOR SAFETY NATIONAL SAFETY COUNCIL, INDIA Alen Ow, mut
Slide 35: Financial Update
Igniting Success* Financial Update mahindra LOGISTICS .. Confidential 34
Slide 36: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success* Quarterly Revenue Performance by Segment (Consolidated) Figures in Rs. Cr 1,451 1,397 1,365 84 1,328 1,330 83 1,273 1,293 85 91 63 65 61 1,200 55 60 76 80 48 63 54 60 57 79 44 48 97 1,088 106 88 96 42 73 77 43 51 91 39 109 105 85 113 47 42 1090 1097 1119 1053 1035 1003 945 975 851
Slide 37: Financial Highlights – Q4 FY24
Igniting Success* Financial Highlights – Q4 FY24 Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) Revenue GM Revenue GM INR 1,330 Cr. INR 1,451 Cr. INR 137 Cr. INR 137 Cr. PAT EBITDA PAT EBITDA INR 11 Cr. INR 56 Cr. INR -13 Cr. INR 68 Cr. If mahinclm LOGISTICS ..C
Slide 38: Financial Highlights – FY24
Igniting Success* Financial Highlights – FY24 Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) Revenue GM Revenue GM INR 5,111 Cr. INR 5,506 Cr. INR 525 Cr. INR 563 Cr. PAT EBITDA PAT EBITDA INR 67 Cr. INR 229 Cr. INR -55 Cr. INR 302 Cr. If mahinclm LOGISTICS ..Co
Slide 39: Segment wise Financials
Igniting Success* Segment wise Financials All figures in INR crore SCM Mobility • 14% 6% 11% 27% Revenue from Operations 5,176 83 330 260 1,367 1,197 4,868 75 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 SCM Mobility • 4% 1% C33%D- 32% Gross Margin • 9 36 128 489 7 27 123 486 Q4FY23 Q4FY24 FY23 F
Slide 40: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) All figures in INR crore Contract Logistics B2B Express 15% 7% -8% C 24% Revenue from Operations 105 365 1,119 4,310 294 4,021 97 976 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Contract Logistics B2B Express 2% 10% Gross Margin 123 500 -6 -12 455 121 -7 -4
Slide 41: SCM Financials (2/2)
Igniting Success* SCM Financials (2/2) All figures in INR crore Freight Forwarding Last Mile Delivery -13% -31% 101% 22% Revenue from Operations 73 366 88 245 254 201 63 44 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Freight Forwarding Last Mile Delivery -13% -31% 124% 82% Gross Margin 37 5 12 7
Slide 42: Warehousing revenue and GM yield per sq. ft.
Igniting Success* Realization impacted due to higher start-up cost & white space, Forecast to stabilize in next two quarters Warehousing Revenue Yield (per sq. ft.) Warehousing GM Yield (per sq. ft.) 146 148 22 138 19 18 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Note: mahindra 1. Pre-Ind AS Gr
Slide 43: Entity wise results – Q4
Igniting Success* Entity wise results Q4 Financial Performance Revenue EBITDA PAT Particulars (in INR Cr.) Q4 F24 Q3 F24 Q4 F24 Q3 F24 Q4 F24 Q3 F24 MLL Standalone 1,183.3 1,160.1 63.8 71.0 7.9 12.5 Lords Freight 63.4 55.2 1.1 0.1 1.2 0.4 MLL Mobility 83.7 83.9 3.1 1.8 2.3 0.4 MLL Express 97.2 95.6
Slide 44: Entity wise results – FY24
Igniting Success* Entity wise results FY24 Financial Performance Revenue EBITDA PAT Particulars (in INR Cr.) F24 F23 F24 F23 F24 F23 MLL Standalone 4,529.9 4,458.9 292.0 276.6 62.0 64.5 Lords Freight 247.8 365.8 2.7 13.6 3.4 9.9 MLL Mobility 333.3 185.1 7.1 0.4 1.8 -8.6 MLL Express 364.2 121.6 -80.3
Slide 45: Income Statement
Igniting Success* Income Statement Particulars Q4FY24 Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue 1,450.8 1,272.5 14.0% 5,505.9 5,128.3 7.4% Other Income 2.9 3.8 17.9 15.9 GM 136.6 129.6 5.4% 525.0 512.9 2.4% GM (%) 9.4% 10.2% (77 bps) 9.5% 10.0% (47 bps) Total Overheads 80.3 65.4 296.6 252.7 EBITDA 56.3 6
Slide 46: Outlook & Priorities
Igniting Success* Outlook & Priorities mahindra LOGISTICS .. Confidential 45
Slide 47: Building blocks in place to achieve the vision
Igniting Success 4 Building blocks in place to achieve the vision Grow Integrated logistics business Leverage acquisition to unlock growth Focus on margin expansion through productivity improvement • • fa • NMI - • Build on Technology & Automation to become critical differentiators mahindra LOGISTIC
Slide 48: Path to Value Creation
44 ssappris Sup.!ugi Path to Value Creation Path to Value Path to ROE Core Growth 41lir Creation 4 -41* -4111* 110441•4‘>, Leadership in contract Rivigo Turnaround Monetize investments logistics 44 Leverage synergies between core business Integrated solutions Digital Platform & acquisitions Customer
Slide 49: Contact Us
Igniting Success* Contact Us Company : Investor Relations Advisors : mahindra sGAStrategic Growth Advisors LOGISTICS CIN: L63000MH2007PLC173466 CIN: U74140MH2010PTC204285 Mr. Saurabh Taneja Mr. Shogun Jain / Mr. Mandar Chavan Chief Financial Officer shogun.jain@sgapl.net / CFO.MLL@mahindralogistics.
Slide 50: THANK YOU
THANK YOU mahindra LOGISTICS Corporate Office 10 & 11 Floor, Arena Space Plot No 20, Jogeshwari-Vikhroli Link Road, Near Majas Depot, Jogeshwari (East) mahindra LOGISTICS Mumbai- 400 060 Maharashtra, India 4Hgrds RIVIGO alyte z ihIERU C.I.N: L63000MH2007PLC173466 Email: enquiries-mll@mahindra.com en