Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q1 FY2019 Earnings Presentation
35 slides from Mahindra Logistics's earnings presentation, Aug 2, 2018
Slide 1: Exchange filing cover letter
Maltindra Logistics Limited Mahindra Unit No. 3 Az 4, 71, Floor, Techniplex 2, Tecluriiplex Comple%c„ 'Veer 5avarkar Marg. LOGISTICS Goregaon (West). Murnbai = 400 062 Tel : + 91 22 23715300 Date: 2 August 2018 Toil Fret : 1800 238 6787 Mahindralogistics.corn To, Regd Office BSE Limited (Security Co
Slide 2: Mahindra Logistics Ltd Q1 FY19 Earnings Presentation
Mahindra Logistics Ltd Q1 FY19 Earnings Presentation August 02, 2018
Slide 3: Disclaimer
mahindra LOGISTICS Disclaimer Certain statements and opinions with respect to the anticipated future performance of Mahindra Logistics in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not pr
Slide 4: Q1 FY2019 Results Overview
Q1 FY2019 Results Overview 3
Slide 5: Key Highlights – Q1 FY2019 vs Q1 FY2018
Mahindra LOGISTICS Key Highlights – Q1 FY2019 vs Q1 FY2018 928 8.9% 43 52.1% Revenue from operations EBITDA 317 Revenue from Non Mahindra SCM Segment 6.1% in 38 PBT 60.0% 90 4.4% 24 60.9% Revenue from PTS Segment PAT Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwi
Slide 6: Management Comment
Mahindra LOGISTICS Management Comment Commenting on the performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said: ▪ “We continue to focus on improving profitability. This quarter, the profit growth was significantly higher because of expansion in gross margins, increase in othe
Slide 7: Consolidated Summarized P&L Statement
Mahindra LOGISTICS Consolidated Summarized P&L Statement Particular Q1 FY19 Q1 FY18 Change (%) FY18 Revenue from operations 928.2 852.5 8.9% 3,416.1 Other Income 2.9 2.0 44.7% 5.9 Total Income 931.1 854.5 9.0% 3,422.0 Gross Margin 80.8 64.6 25.0% 273.8 EBITDA 43.4 28.5 52.1% 125.6 Depreciation 5.1 4
Slide 8: Q1 FY19 Financial highlights
mahindra LOGISTICS Q1 FY19 Financial highlights Revenue from operations grows to Rs. 928 crore, up 8.9% Y-o-Y • M&M revenues in SCM business increases by 11.5% • Non-M&M revenues in SCM business increases by 6.1% o Revenue from warehousing & other valued-added services increases by 27.3% o Revenue f
Slide 9: Update on Tax Refunds & TDS
Mahindra LOGISTICS Update on Tax Refunds & TDS (tax deducted at source) ▪ Tax refund: Received Rs 17.70 crore which includes interest of Rs 1.90 crore. ▪ Reduced rate of TDS ▪ MLL had filed an application with the Income Tax authorities (IT). The TDS rates applicable for the company have reduced as
Slide 10: Segmental Performance – SCM
mahindra LOGISTICS Segmental Performance – SCM Revenue Gross Margin (GM) 838 838 71 71 il I 766 766 56 56 Q1 FY18 Q1 FY19 YTD FY18 YTD FY19 GM (%) il Q1 FY18 7.31% Q1 FY19 8.50% 7.31% I YTD FY18 YTD FY19 8.50% Growth 9.4% 9.4% Growth 27.3% 27.3% Mahindra Revenue Non-Mahindra Revenue 521 521 317 317
Slide 11: Non-Mahindra SCM Revenue Analysis
mahindra LOGISTICS Non-Mahindra SCM Revenue Analysis Transportation Warehouse & other value- added segments 24% 240 240 77 77 1 I1I 238 238 61 61 Growth Q1 FY18 Q1 FY19 YTD FY18 YTD FY19 0.7% 0.7% 76% Activity-wise Breakup Q1 FY19 Growth II Q1 FY18 II Q1 FY19 YTD FY18 YTD FY19 27.3% 27.3% Auto Non-A
Slide 12: Segmental Performance – PTS
mahindra LOGISTICS Segmental Performance – PTS Revenue Gross Margin (GM) 90 90 10 10 86 86 9 9 1III Q1 FY18 Q1 FY19 YTD FY18 YTD FY19 GM (%) Q1 FY18 10.05% I Q1 FY19 10.62% 10.05% I YTD FY18 YTD FY19 10.62% Growth 4.4% 4.4% Growth 10.3% 10.3% Note: 1. Consolidated financials 2. All figures in INR cr
Slide 13: Industry Updates
Mahindra LOGISTICS Industry Updates ▪ E- Way Bill : Though initially delayed, by and large smooth implementation. However the issue on Quantum of penalty remains. ▪ Government is working on the new logistics sector policy. ▪ In order to improve the logistics infrastructure, government is also trying
Slide 14: Operational Highlights – New Clients / Services
Operational Highlights – New Clients / Services L’oreal Mobike Note: 1. Some of the new clients/services added in Q1 FY19. 13
Slide 15: Operational Highlights – Customer appreciation
Operational Highlights – Customer appreciation Operational appreciation Swaraj’s Annual Conference Swaraj’s Annual in F’18 2018 for delivering 1,13,000 tractors in Conference 2018 14
Slide 16: Operational highlights - Business Partner council
Operational highlights - Business Partner council A council has been formed between Business Partners and MLL to work on areas of mutual interest 15
Slide 17: CSR Initiatives - Driver Welfare
mahindra LOGISTICS CSR Initiatives - Driver Welfare ▪ Driver Training under the Pradhan Mantri ▪ Other Driver Welfare activities: a) Tea with drivers b) Kaushal Vikas Yojana: 1146 drivers Health check up camps c) Birthday celebrations d) covered out of target to train 10,000 Awareness sessions on Ro
Slide 18: CSR Initiatives - Community Development & Village Adoption
mahindra LOGISTICS CSR Initiatives - Community Development & Village Adoption Safe Drinking Water supply project Career guidance, farm training etc. 17
Slide 19: MLL enhanced its presence in the media as a thought leader
Mahindra LOGISTICS MLL enhanced its presence in the media as a thought leader in the industry L TRANSFOR MATION1 • SUPPLY CHAIN Steps to Digital-Enabled Logistics India's Warehouse Boom Transformation How India stores is changing; htg money sniffs fortune p. Steps to C, igi tau-Enabled Logi scics T
Slide 20: Company Overview
Company Overview 19
Slide 21: One of India's largest 3PLs
One of India’s largest 3PLs INR 34+ Bn revenue(1) 15,800+ work force across India(2) 475+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. (1). Revenue for FY18 MLL Bhiwandi warehouse 20
Slide 22: 3PL: strong growth outlook
mahindra LOGISTICS 3PL (Third party logistics): strong growth outlook ....... I. ••• 1110 .iir 411., I.'. .... ..• Growth Trajectory Ep Total logistics INR trillion 'I F 3 PL Business INR billion Huge growth opportunity GpGik-"*I°9.2 in 3PL – 570- 580 2020 expected to 3 PL GPGikYr ° 6.4 grow at Busi
Slide 23: GST to act as a major driver for future growth and consolidation
mahindra LOGISTICS GST to act as a major driver for future growth and consolidation ▪ Seamless inter-state movement of goods MLL: Ready for GST No Borders i ▪ Redesign of supply chain – efficiencies instead of tax ▪ GST ready multi- user warehousing in certain key De-Bottlenecking ▪ Removal of check
Slide 24: MLL: Differentiated Play: 3PL Offerings
mahindra LOGISTICS MLL: Differentiated Play: 3PL Offerings -, One stop shop for logistics end-users: MLL pursues a unique ‘asset-light’ business model to provide customized logistics solutions across a diverse set of industries • 3 PL 2 PL • Asset-light / Low capital outlay Asset-heavy / Capital int
Slide 25: Supply Chain Management (SCM)
mahindra LOGISTICS Supply Chain Management (SCM) • • ao ro.a • INTEGRATED Supply chain Freight Transportation MLL Network – SERVICE consulting forwarding surface express PROVIDER services IMMIE MN\ IE Warehousing - rTr!' In-factory stores VAS (e.g, Packing, inventory & order & line feed Distribution
Slide 26: People Transportation Solutions (PTS)
mahindra LOGISTICS People Transportation Solutions (PTS) One of India’s largest organized asset light player Offers technology enabled people transportation solutions and services to over 120 domestic & multinational corporates i • i • 1 1 1 1 1 1 I. 12 Cities • 1 1 1 120+ I... Clients • •• ( 500+ I
Slide 27: Asset light business: formidable ecosystem of business partners
mahindra LOGISTICS Asset light business: formidable ecosystem of business partners Business partners network Business Partners Unique strengths that have enabled ~500 nos. MLL to create a wide network of Vehicles PTS ~1,000 nos. business partners: SCM ▪ Genesis of the exceptional business model: Lar
Slide 28: MLL's competitive advantage: 'Asset-Light' model
mahindra LOGISTICS MLL’s competitive advantage: ‘Asset-Light’ model • / ▪ High Return on Equity MLL Mahindra LOGISTICS ▪ Low Capital Expenditure requirements ▪ Lower Working Capital requirements I •, / ... MLL Asset Light model benefits both MLL and customers / ▪ Scalable solutions – both upwards an
Slide 29: Diverse industries and clients
mahindra LOGISTICS Diverse industries and clients Diversified Logistics Company ▪ SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors ▪ 66% of non-Mahindra business came from top 20 customers in Fiscal 2018 – Given the nature of business, engagement originates
Slide 30: Diverse industries: leveraging existing skills to enter fast growing verticals
mahindra LOGISTICS Diverse industries: track record of leveraging existing skills to enter fast growing verticals Strong focus to equally diversify across industry verticals Strategy of cross-deployment of skills – entry and expansion into existing and new areas such as Auto engineering, consumer &
Slide 31: Technology and control tower is a key differentiator
mahindra LOGISTICS Technology and control tower is a key differentiator What does it do? ConNgurable Geo Fencing Oep-ragOng for mita' pcids tr-03 !al.& ki Location Clustering ysirs waitL 9 h`..F.sitkiarr9r1 Ce areaArsa Hae Hig.hag LE.ad End to end truck track and D.:melons trace ▪ Time management Tr
Slide 32: Corporate Social Responsibility
mahindra LOGISTICS Corporate Social Responsibility Driver Welfare Driver welfare is a major focus area for us. Activities include: • Developing restrooms and other infrastructure facilities for drivers along highways and at major loading or unloading points • Training on safe driving (e.g. seat belt
Slide 33: Thank You
Thank You 32
Slide 34: About Us
Mahindra LOGISTICS About Us About Mahindra Logistics For further information please contact: Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 Mr. Nikhil Nayak (CFO & Compliance Officer) billion private equity division of the USD 20.7 billion Mahindra Group. MLL
Slide 35: The core of your business
Mahindra LOGISTICS THE CORE OF YOUR BUSINESS 34