Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q2 FY24 Earnings Presentation
48 slides from Mahindra Logistics's earnings presentation, Oct 23, 2023
Slide 1: Exchange filing cover letter
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: Q2 FY24 Investor Presentation: Business & Earnings Update
Igniting Success • #DELIVER Ma/Vick KINDNESS LOGISTICS This festive season mahindra LOGISTICS Q2 FY24 Investor Presentation Business & Earnings Update October 2023 mahindra 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: Macros are stable, continue to be driven by technology enhancements 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 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 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 11: Business Updates
Igniting Success* Business Updates mahindra LOGISTICS .. Confidential 10
Slide 12: Management Commentary
Igniting Success 0 Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “ The overall logistics industry is well poised driven by long term focus on infrastructure, manufacturing, consumption growth and positive regulatory trajectory. Overall new order intake remained robust
Slide 13: Business Highlights – Q2FY24
Igniting Success* Business Highlights – Q2FY24 3PL Contract Logistics B2B Express Freight Forwarding Last Mile Delivery Mobility -..-,-.--- 01 02 03 04 05 il l rii IIII 111 II 11 0 \ fig Cil V 0 e 0 U U I ▪ Revenue of Rs. 1,090 crore, ▪ Revenue of Rs. 87 crore, ▪ Revenue of Rs. 53 crores, ▪ Revenue
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) 1,400 logistics serv
Slide 15: 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 16: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights LOGISTICS Space under management 11W 18.1 Operating Mn. Sq. Ft. locations 500+ Vehicles Deployed 15,000+ Trucks Business Per month Associates 1,500+ mahindra LOGISTICS .. Confidential 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 ▪ 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 18: 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 19: B2B Express - Operating Highlights
Igniting Success B2B Express - Operating Highlights Pin-code reach RIVIGO Lt, mallindra LOGISTICS 19,000+ RMGO AIM Direct + ODA Space under management 1.5 • Plikt aibb -S Mn. Sq. Ft. ;" '11° 0 .r Alf Transhipment Hubs & DCs 260+ Line Hauls & Mid- mile 1,100+ Trucks mahindra LOGISTICS .. Confidential
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 1 45,600 turnover of < Rs.100 Cr China (
Slide 21: 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 22: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights • Oy • f It Ocean Freight Rate Index .p Ocean Freight ~70%↓ Volume A, • vs Q2 FY23 ~2,520 ry TEUs in Q2 FY24 Air Freight Volume ar No. of Forwarding ~1,339 Lanes d 60. Tons in Q2 FY24 • 50+ Globally 0•4 '4'44 mahindra LOGISTICS .. Confidenti
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 • 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 25: Last Mile Delivery - Operating Highlights
Last Mile Delivery - Operating Highlights ,14 Volume handled , fir' 11 300,000+ orders per day Fleet Deployed \ e llahl 6,000+ Vehicles per day NE I / / Last Mile stations 110+ Geographic Reach eD. eL eneL 4,000+ • Pin-codes Pan- India las ••,••• •*. Note - LMD includes Whizzard mahindra LOGISTICS .
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 • 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 28: Mobility - Operating Highlights
Igniting Success* Mobility - Operating Highlights Revenue (Rs. Crore) • No. of Trips 80 85 76 63 15,000+ Per day No. of vehicles deployed 5,000+ Per day Q2FY23 Q4FY23 Q1FY24 Q2FY24 No. of operating Gross Margin (Rs. Crore) locations 200+ Pan India I No. of supply partners 10.0% 8.9% 11.4% 10.9% • 35
Slide 29: Drive to Net Zero
Igniting Success 0 Drive to Net Zero Carbon Neutral by 3.2 Mn Sq Feet 2040 Solar Powered Warehouses 1,600+ EV ~25.5 Million RIO 3W and PCV Green KM with EVs \\ 5 IGBC Gold & Platinum •Ili Accreditation MENNi Certified buildings Ecovadis - Bronze 5% reduction TCO2/E 900+ Kg Scope 1+ 2 per SBTI Waste
Slide 30: CSR Updates
Igniting Success CSR Updates Blood donation camps Categories Q2 FY24 Activities Impact • MI•Mmew. • 1 Community Welfare Activities: ▪ Health Check-up camps ▪ 6,266 underprivileged people were Building ▪ Blood Donation camps benefited through various Plastic collection drive Communities ▪ Plastic col
Slide 31: Awards and Recognition
Igniting Success Awards and Recognition Logistics Company of the year, ILSC Excellence in Corporate Governance, ICSI Igniting Success Ip0. mahindra Igniting Success 0+ LOGISTICS Igniting Success vvitIn Good Governance 8' Recognized for 202 2 Promoting Culture & Good Governance Logistics Company of t
Slide 32: Financial Update
Igniting Success* Financial Update mahindra LOGISTICS .. Confidential 31
Slide 33: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success* Quarterly Revenue Performance by Segment (Consolidated) Figures in Rs. Cr 1,365 1,328 1,330 1,273 1,293 85 63 65 1,200 55 60 76 80 48 1,136 48 54 57 106 79 44 1,088 42 73 77 88 1,033 61 51 91 58 43 109 85 55 39 105 35 141 113 47 101 42 41 43 1,053 1,035 1,090 975 1,003 945 799 835
Slide 34: Financial Highlights – Q2 FY24
Igniting Success* Financial Highlights – Q2 FY24 Core Business Consolidated ( MLL + Lords + Mobility) (Including Rivigo acquisition) 9% 3% -2% -4% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue GM Revenue GM INR 1,274 Cr. INR 1,365 Cr. INR 126 Cr. INR 141 Cr. -238% 12% Y-o-Y EBITDA I 62% Y-o-Y PAT -21% Y-o-Y EBITD
Slide 35: Financial Highlights – H1 FY24
Igniting Success* Financial Highlights – H1 FY24 Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) 14% 5% 4% -2% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue GM Revenue GM INR 2,482 Cr. INR 2,658 Cr. INR 262 Cr. INR 289 Cr. 55% -10% -198% 19% Y-o-Y Y-o-Y Y-o-Y PAT Y-o-Y EBITDA
Slide 36: Entity wise results
Igniting Success* Entity wise results Q2 Financial Performance H1 Financial Performance Particulars Revenue EBITDA PAT Particulars Revenue EBITDA PAT (in INR Cr.) (in INR Cr.) Q2 F24 Q2 F23 Q2 F24 Q2 F23 Q2 F24 Q2 F23 H1 F24 H1 F23 H1 F24 H1 F23 H1 F24 H1 F23 MLL MLL 1,135.6 1,195.4 74.0 64.3 18.6 1
Slide 37: Segment wise Financials
Igniting Success* Segment wise Financials All figures in INR crore SCM Mobility • C 4% D-4, 37% Revenue from 1% Operations 2,406 2,493 35% 165 120 1,263 1,280 85 63 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 SCM Mobility • • 2% 41% Gross Margin -4% 244 239 48% 18 13 122 117 9 6 Q2FY23 Q
Slide 38: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) All figures in INR crore 3PL Contract Logistics B2B Express C Di. 5% 74% 78% Revenue from C I Operations 4% 1,997 2,094 172 1,053 1,090 97 88 51 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 3PL Contract Logistics B2B Express 17% Gross Margin 12% 254
Slide 39: SCM Financials (2/2)
Igniting Success SCM Financials (2/2) All figures in INR crore Freight Forwarding Last Mile Delivery -39% Revenue from -1% Operations -49% 106 215 131 poi -11% 97 96 55 49 54 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Freight Forwarding Last Mile Delivery Gross Margin -35% Fin 11 -45% 2
Slide 40: Warehousing & solutions revenue impacted by churn, GM up by 25%
Igniting Success* Warehousing & solutions revenue impacted by churn, GM up by 25% consolidating improvements Warehousing Revenue Yield (per sq. ft.) Warehousing GM Yield (per sq. ft.) C D 1 -6% 25% 22.8 157 148 18.3 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Note: 1. Warehousing yield excluding MESPL & whitespace
Slide 41: Consolidated Income Statement
Igniting Success* Consolidated Income Statement Rs. Crore Particulars Q2 FY24 Q2 FY23 Y-o-Y H1 FY24 H1 FY23 Y-o-Y Revenue 1,364.8 1326.3 2.9% 2,658.0 2,526.2 5.2% Gross Margin 126.2 128.7 262.1 251.8 GM% 9.2% 9.7% (45 bps) 9.9% 10.0% (11 bps) Other Income 6.6 3.4 12.8 6.4 Overheads 72.6 61.1 141.9 1
Slide 42: Consolidated Balance Sheet
Igniting Success* Consolidated Balance Sheet Rs. Crore Particulars 30-Sep-23 31-Mar-23 Particulars 30-Sep-23 31-Mar-23 Non-Current Assets 1,112.1 1,169.7 Equity 519.4 560.3 Property, plant and equipment 187.5 196.8 Equity share capital 72.0 72.0 Capital work-in-progress 4.4 3.3 Share Application Mon
Slide 43: Consolidated Cashflow Statement
Igniting Success* Consolidated Cashflow Statement Rs. Crore Particulars 30-Sep-23 31-Mar-23 Operating profit before working capital changes 141.5 135.2 Changes in working capital -39.3 -88.3 Cash generated from operations 102.6 46.9 Direct taxes paid (net of refund) 7.7 -73.8 Net Cash from Operating
Slide 44: Outlook & Priorities
Igniting Success* Outlook & Priorities mahindra LOGISTICS .. Confidential 43
Slide 45: 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 46: 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* Leadership in contract 110441•4‘>, Rivigo Turnaround Monetize investments logistics 44 Leverage synergies between core business Integrated solutions Digital Platform & acquisitions Customer
Slide 47: 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@mahindra.com manda
Slide 48: 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 mahinclra LOGISTICS Maharashtra, India C.I.N: L63000MH2007PLC173466 Email: enquiries-mll@mahindra.com RIVIGO alyte