Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q1 FY24 Earnings Presentation
45 slides from Mahindra Logistics's earnings presentation, Jul 24, 2023
Slide 1: Exchange filing cover letter for earnings presentation
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-mtt@mahindra.com www.mahindraLogistics.com CIN: L63000MH2007PLC173466
Slide 2: Investor Presentation: Business & Earnings Update July 2023
CJ pu!LIOLLJ 51151907 Investor Presentation Business & Earnings Update July 2023 it IMO OD F 1 Confidential 1
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 .. 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 • . RP. aS 4
Slide 6: Integrated supply chain logistics provider
Igniting Success Integrated supply chain logistics provider z a Contract Logistics 1' B2B Express Providing Transportation, B2B express and PTL Warehousing, Stores & Line Feed , transportation with pan Fulfillment and VAS services India coverage mallindra A LOGISTICS V /14 Ir te c4 Last Mile Deliver
Slide 7: Multi service provider for mobility solutions
Igniting Success Multi service provider for mobility solutions I I 0 0 V& Az Employee Transportation / AA Airport Services Providing end-to-end employee / 4 transportation services / 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 Cal
Slide 8: Macros are positive, continue to be driven by technology enhancements and sustainable logistics
Igniting Success Macros are positive, 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
Slide 9: 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 10: Presence in High Growth Segments (End-Markets)
Igniting Success 0 Presence in High Growth Segments (End-Markets) ▪ India is 4th largest automobile market in the world Auto & 01 ▪ ▪ Favorable ecosystem for exports & government support 25% contribution in contract logistics market CA I: Hero Auto Components ▪ 10% contribution in contract logistics
Slide 11: Business Updates
Igniting Success* Business Updates mahindra LOGISTICS .. 10
Slide 12: Management Commentary
Igniting Success 0 Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “ In Q1 FY24, we continued focusing on customer growth and expanding margins across integrated logistics & mobility solutions. Despite the slowdown in some end markets, the 3PL, Mobility and Last Mile bus
Slide 13: Business Highlights
Igniting Success* Business Highlights Contract Logistics B2B Express Freight Forwarding Last Mile Delivery Mobility -..-,-.--- 01 02 03 04 05 il l IIII 111 II 11 0 V 0 e 0 I ▪ 30% drop in Revenue ▪ Revenue up by 6% YoY & ▪ Revenue up by 82% ▪ Revenue up 13% YoY, ▪ Revenue up 39% YoY YoY, %GM up by 5
Slide 14: 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) logistics services 1
Slide 15: Contract Logistics - Core competency & capabilities
Igniting Success Contract Logistics - Core competency & capabilities End to End transport Integrated Solutions Warehousing solution solutions Manage WH with expertise in Centralized management Single point of contact design and operations of all transportation for E2E logistics Improved Dispatch Eff
Slide 16: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights LOG Space under management -farr-171-FITT1 • 19 Operating Mn. Sq. Ft. locations t- 500+ Vehicles Deployed 15,000+ Trucks Business Per month Associates 1,500+ _ • • mahindra LOGISTICS .. 15
Slide 17: B2B Express - Key Trends & Opportunities
Igniting Success B2B Express - Key Trends & Opportunities B2B Express (Surface) Industry Structure Key Trends ob, 24,000 ▪ Organized players account for ▪ Increasing demand for Direct to ~70% of volume Consumer, Omni-channel fulfillment 14,000 Market Size (Rs. Crore) ▪ Skewed load distribution, ~70%
Slide 18: B2B Express - Core competency & capabilities
Igniting Success* B2B Express - Core competency & capabilities Significant Network Coverage • • t. • • • ▪ Pan India coverage - 19,000+ Pin-codes •9. • f.:.•• • MC., • .' • •1,7-1-72 ▪ 300+ Processing Centers & Branches • 0: Ta • • • in • • * • • .9. • • • • • • • ▪ 400+ partners for first mile & la
Slide 19: B2B Express - Operating Highlights
Igniting Success B2B Express - Operating Highlights Pin-code reach RIVIGO BY mahindra LOGISTICS. 19,000+ RMGO pErtrigKup Average Volume 30,000+ 7 V 0 u Tonnes 10 Transhipment Hubs 11.1111:14lb ‘.' . & DCs Air 300+ Line Hauls & Mid- mile 1,100+ RIVIGO Trucks •~. _® mahindra LOGISTICS .. 18
Slide 20: 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 45,600 turnover of < Rs.100 Cr China (Ch
Slide 21: Freight Forwarding - Core competency & capabilities
Igniting Success* Freight Forwarding - Core competency & capabilities Expanding International Air Freight Ocean Freight Project Logistics presence A ^1 Yid NI L - ► Airport-to-Airport ► Ocean consolidation: ► ODC solutions catering ► Expand presence in USA /Europe /Asia to & to diverse industries Ch
Slide 22: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights 4, Ii Ocean Freight Rate Index .r Ocean Freight ~80%↓ Volume vs Q1FY23 ~3,000 TEUs in Q1 FY24 Air Freight Volume No. of Forwarding ~2,150 Lanes Tonnes in Q1 FY24 50+ Globally mahindra LOGISTICS .. 21
Slide 23: 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 24: Last Mile Delivery – Strengthening our leadership position in EV
Igniting Success* Last Mile Delivery – Strengthening our leadership position in EV Vehicle as a Service A • Offer a fleet of vans (with drivers) to customers who then use it as per their requirement -77 OWN Distribution as a Service tik • Manage Last mile stations that receive, process, * 6M sort, r
Slide 25: Last Mile Delivery - Operating Highlights
Igniting Success 0 Last Mile Delivery - Operating Highlights Volume handled 300,000+ orders per day Fleet Deployed 6,000+ Vehicles per day Last Mile stations 140+ Geographic Reach ersei_ atom_ 4,000+ • Pin-codes Pan- India PCS A mahindra LOGISTICS .. 24
Slide 26: 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 27: Mobility - Core competency & capabilities
Igniting Success Mobility - Core competency & capabilities 4ar • r I. • - ; ,4v.Ipmx....1 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
Slide 28: Mobility - Operating Highlights
Igniting Success* Mobility - Operating Highlights c Revenue (Rs. Crores) • No. of Trips 76 80 65 15,000+ 57 Per day No. of vehicles deployed 5,000+ Per day Q1FY23 Q3FY23 Q4FY23 Q1FY24 No. of operating Gross Margin (Rs. Crores) locations 200+ Pan India I No. of supply partners 12.3% 12.3% 9.2% 11.3%
Slide 29: Drive to Net Zero
Igniting Success Drive to Net Zero Carbon Neutral by 3.2 3.2 Mn Mn Sq Sq Feet Feet 2040 Solar Powered Solar warehouses Powered Warehouses 1,550+ EV ~2.8Million ~2.8 Million 3W and PCV GreenKM Green KMwith withEVs EVs \\ 5 IGBC Gold & Platinum •Ili Accreditation MENNi Certified buildings buildings Ec
Slide 30: CSR Updates
Igniting Success* CSR Updates Health Check-up camps Categories Q1 FY24 Activities Impact • Community Welfare Activities: ▪ Health Check-up camps ▪ 9,416 underprivileged people were Building ▪ Blood Donation camps benefited through various Plastic collection drive Communities ▪ Plastic collection dri
Slide 31: Awards and Recognition
Igniting Success Awards and Recognition Logistics Company of the year, ILSC Excellence in Corporate Governance, ICSI Igniting Success loO. mahindra Igniting Success ►► LOGISTICS Igniting Si_la s,0 with Gcbcocl Recognized for 2022 Promoting Culture & Good Governance Logistics Company of the Year at 2
Slide 32: Financial Update
Igniting Success* Financial Update mahindra LOGISTICS .. 31
Slide 33: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success Quarterly Revenue Performance by Segment (Consolidated) Rs. Crores 1,327 1,330 1,273 1,293 63 65 1,200 55 60 76 80 1,136 57 79 44 48 1,088 106 61 42 73 77 1,033 43 51 91 58 39 109 105 85 55 35 141 113 47 883 101 42 43 41 29 43 95 33 1052 1035 1,004 945 975 799 835 851 683 Q1FY22 Q2F
Slide 34: Financial Highlights – Q1 FY24
Igniting Success* Financial Highlights – Q1 FY24 Standalone Consolidated 19% 8% 10% -2% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue GM Revenue GM Rs. 1,051 Crore Rs. 1,293 Crore Rs. 136 Crore Rs. 131 Crore 63% 6% -164% 33% Y-o-Y Y-o-Y Y-o-Y PAT Y-o-Y EBITDA PAT EBITDA Rs. 23 Crore Rs. 73 Crore Rs. (9) Crore Rs.
Slide 35: Entity wise results
Igniting Success* Entity wise results Q1 Financial Performance Rs. Crores Revenue EBITDA PAT Particulars Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 MLL Standalone 1,050.9 1,068.9 86.9 65.5 23.0 14.0 Lords Freight 76.8 109.2 2.3 5.0 1.6 3.3 MLL Mobility 79.5 22.0 1.6 (0.5) (1.8) (2.2) MLL Expres
Slide 36: Segment wise Financials: SCM and Mobility
Igniting Success* Segment wise Financials Rs. Crore SCM Mobility • 6% 39% Revenue from Operations 1,214 80 57 1,143 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 SCM Mobility • • 0 9% i 34% Gross Margin 127 9 116 7 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 mahindra LOGISTICS 35
Slide 37: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) Rs. Crore Contract Logistics B2B Express 6% 82% Revenue from Operations 1,004 85 47 945 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Contract Logistics B2B Express 0 23% i Gross Margin 128 -0.4 105 -12.5 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 mahindra LOGISTICS 36
Slide 38: SCM Financials (2/2)
Igniting Success* SCM Financials (2/2) Rs. Crore Freight Forwarding Last Mile Delivery • -30% 13% Revenue from Operations 109 48 42 77 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Freight Forwarding Last Mile Delivery • • -25% 79% Gross Margin 10 3 8 2 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 mahindra LOGISTICS 37
Slide 39: Warehousing & solutions - Revenue, Yield
Igniting Success* Warehousing & solutions - Revenue, Yield Warehousing Revenue (Rs Crore) Warehousing Yield (GM per sq. ft.) C D 1 -11% 57% 266 21.7 238 13.8 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Note: Warehousing Yield excluding MESPL space mahindra LOGISTICS 38
Slide 40: Income Statement
Igniting Success* Income Statement Rs. Crore Particulars Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q Revenue 1,293.2 1,199.9 7.8% 1,272.5 1.6% Other Income 6.2 3.1 3.8 GM 135.9 123.2 10.3% 129.6 GM% 10.5% 10.3% 24 bps 10.2% 32 bps Total Overheads 69.2 57.4 65.9 EBITDA 72.8 68.8 67.6 7.8% EBITDA % 5.6% 5.7%
Slide 41: Outlook & Priorities
Igniting Success* Outlook & Priorities mahindra LOGISTICS .. 40
Slide 42: 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 .4 Focus on margin expansion through productivity improvement •1 • Build on Technology & Automation to become critical differentiators mahindra LOGISTICS .. 41
Slide 43: Path to Value Creation
44 ssappris Sup.!ugi Path to Value Creation Path to Value Path to ROE Core Growth 41lir -4111* Creation 4 -41* 110441•4‘>, Leadership in contract Rivigo Turnaround Monetize investments logistics 44 Leverage synergies between core business Integrated solutions Digital Platform & acquisitions Customer
Slide 44: Contact Us
Igniting Success* Contact Us Company : Investor Relations Advisors : mahindra sGAStrategic Growth Advisors LOGISTICS CIN: L63000MH2007PLC173466 CIN: U74140MH2010PTC204285 Mr. Rampraveen Swaminathan Mr. Shogun Jain / Mr. Mandar Chavan Chief Executive Officer shogun.jain@sgapl.net / CEO.MLL@mahindra.c
Slide 45: Thank You
Igniting Success* THANK YOU mahindra LOGISTICS Corporate Office 10 & 11 Floor, Arena Space Plot No 20, Jogeshwari-Vikhroli Link Road, Near Majas Depot, Jogeshwari (East) Mumbai- 400 060 mahindra LOGISTICS Maharashtra, India C.I.N: L63000MH2007PLC173466 Email: enquiries-mll@mahindra.com 12ttS RIVIGO