Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — FY2019 Earnings Presentation
31 slides from Mahindra Logistics's earnings presentation, May 7, 2019
Slide 1: Mahindra Logistics Ltd Q4 & FY19 Earnings Presentation
Mahindra Logistics Ltd Q4 & FY19 Earnings Presentation May 7, 2019
Slide 2: Disclaimer
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 prove to be correct.
Slide 3: Q4 / FY2019 Results Overview
Q4 / FY2019 Results Overview 3
Slide 4: Key Highlights – FY2019 vs FY2018
Key Highlights – FY2019 vs FY2018 3,851 12.7% 159 26.5% Revenue from operations EBITDA 1,366 8.8% 133 30.7% Revenue from Non Mahindra SCM PBT Segment 385 13.2% 86 32.4% Revenue from PTS Segment PAT 90 35.7% Adjusted PAT (Pre RSU/ESOP Charge) Note: 1. Consolidated financials 2. All figures in INR cro
Slide 5: Management Comment
Management Comment Commenting on the performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said: “Mahindra Logistics added over Rs. 400 Cr to its topline and Rs. 21 Cr to its bottom line. We have achieved margin expansion because of efficiencies driven across segments. We achieve
Slide 6: Consolidated Summarized P&L Statement
Consolidated Summarized P&L Statement YoY YoY Particular Q4 FY19 Q4 FY18 Change FY19 FY18 Change (% ) (% ) Revenue from operations 1014.7 892.7 13.7% 3851.3 3416.1 12.7% Other Income 1.9 0.8 130.8% 7.6 5.9 29.8% Total Income 1016.6 893.5 13.8% 3859.0 3422.0 12.8% Gross Margin 88.8 77.5 14.6% 323.1 2
Slide 7: FY19 Financial highlights
FY19 Financial highlights Revenue from operations grows to Rs. 3,851 crore, up 12.7% Y-o-Y • M&M revenues in SCM business increases by 15.4% • Non-M&M revenues in SCM business increases by 8.8% o Revenue from warehousing & other valued-added services increases by 29.5% EBITDA at Rs. 158.9 crore, up
Slide 8: FY19 highlights
FY19 highlights • Free cash flow for the year improved by Rs. 71 Cr to Rs. 39 Cr positive as compared to Rs. 32 Cr negative in FY 18. • Improvement in ROCE from 25.5 % to 28.1% over the same time previous year. • For the first time ever, the company crossed Rs. 1000 Cr revenues in Non-Auto segment i
Slide 9: Segmental Performance – SCM
Segmental Performance – SCM Revenue Gross Margin (GM) 3,466 3,076 282 242 807 917 69 79 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 GM (%) 8.5% 8.6% 7.9% 8.1% Growth 13.7% 12.7% Growth 14.8% 16.7% Mahindra Revenue Non-Mahindra Revenue 2,100 1,366 1,256 1,820 543 336 374 471 Q4 FY18 Q4 FY19 F
Slide 10: Non-Mahindra SCM Revenue Analysis
Non-Mahindra SCM Revenue Analysis Transportation Warehouse & other value- added segments 1,012 26% 354 983 273 74% 264 278 96 72 Activity-wise Q4 FY18 Q4 FY19 FY18 FY19 Breakup FY19 Q4 FY18 Q4 FY19 FY18 FY19 Growth 5.5% 2.9% Growth 32.8% 29.5% Auto Non-Auto 25% 320 340 1,026 936 75% 78 85 289 258 In
Slide 11: Segmental Performance – PTS
Segmental Performance – PTS Revenue Gross Margin (GM) 385 41 340 32 86 97 9 10 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 GM (%) 10.4% 10.4% 9.4% 10.6% Growth 13.1% 13.2% Growth 13.4% 27.6% Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherwise 11
Slide 12: The government continues to work towards developing the logistics sector
The government continues to work towards developing the logistics sector Draft National NITI Ayog to FAME II set new Logistics Policy introduce ITeS policy standards released ▪ The Ministry of Commerce ▪ Government think tank, Niti ▪ The Ministry issued a new releases the draft of the National Aayog
Slide 13: MLL has successfully trained 10000+ drivers in a year
MLL has successfully trained 10000+ drivers in a year! under the Pradhan Mantri Kaushal Vikas Yojana India needs skilled drivers to move the wheels of the Indian economy. MLL took up this challenge and conducted trainings at 229 locations pan India on: • Road Safety • Crisis & Conflict Management •
Slide 14: Mr. Anand Mahindra's letter to the PM Mr. Narendra Modi
Mr. Anand Mahindra’s letter to the PM Mr. Narendra Modi 14
Slide 15: MLL spearheading the 'Zero Accident Zone' initiative
MLL spearheading the ‘Zero Accident Zone’ initiative on Mumbai-Nashik Expressway 15
Slide 16: Company Overview
Company Overview 16
Slide 17: One of India's largest 3PLs
One of India’s largest 3PLs INR 38+ Bn revenue(1) 17,800+ 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. Joint Venture: Transtech Logistics Private Limi
Slide 18: 3PL: strong growth outlook
3PL (Third party logistics): strong growth outlook Growth Trajectory Total logistics 3 PL Business Huge growth INR trillion INR billion opportunity in 3PL – 9.2 570- 580 2020 expected to 3 PL 6.4 grow at Business 325-335 CAGR of 6% 19-20% FY17 FY20 FY17 FY20 3PL Growth Drivers Major Trends Large org
Slide 19: GST to act as a major driver for future growth and consolidation
GST to act as a major driver for future growth and consolidation ▪ Seamless inter-state movement of goods MLL: Ready for GST No Borders ▪ Redesign of supply chain – efficiencies instead of tax ▪ GST ready multi- user warehousing in certain key De-Bottlenecking ▪ Removal of check posts - speed up tra
Slide 20: MLL: Differentiated Play: 3PL Offerings
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 intensive Limited transportat
Slide 21: Supply Chain Management (SCM)
Supply Chain Management (SCM) INTEGRATED Supply chain Freight Transportation MLL Network – SERVICE consulting forwarding surface express PROVIDER services Warehousing - In-factory stores VAS (e.g, Packing, inventory & order & line feed Distribution labelling, kitting) management Warehousing & In-Fac
Slide 22: People Transportation Solutions (PTS)
People Transportation Solutions (PTS) One of India’s largest organized asset light player Offers technology enabled people transportation solutions and services to over 150 domestic & multinational corporates 13 Cities 150+ Clients 325+ Business Partners Primarily serve leading corporates: IT, ITeS,
Slide 23: Asset light business: formidable ecosystem of business partners
Asset light business: formidable ecosystem of business partners Business partners network Business Partners Unique strengths that have enabled ~325 nos. MLL to create a wide network of Vehicles PTS ~1,000 nos. business partners: SCM ▪ Genesis of the exceptional business model: Large anchor client wi
Slide 24: MLL's competitive advantage: 'Asset-Light' model
MLL’s competitive advantage: ‘Asset-Light’ model ▪ High Return on Equity MLL ▪ Low Capital Expenditure requirements ▪ Lower Working Capital requirements MLL Asset Light model benefits both MLL and customers ▪ Scalable solutions – both upwards and downwards Customers ▪ Flexible, customized solutions
Slide 25: Diverse industries and clients
Diverse industries and clients Diversified Logistics Company ▪ SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors ▪ 65% of non-Mahindra business came from top 20 customers in Fiscal 2019 – Given the nature of business, engagement originates at CXO level – lead
Slide 26: Diverse industries: leveraging existing skills to enter fast growing verticals
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 & pharma, e-Commerce
Slide 27: Technology and control tower is a key differentiator
Technology and control tower is a key differentiator What does it do? End to end truck track and trace ▪ Time management ▪ Minimize idle time ▪ Maximize truck utilization Dispatch planning ▪ Optimize truck planning ▪ Capacity and cost optimization Value added services ▪ SMS & Email service updates K
Slide 28: Corporate Social Responsibility
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 campaign) • Schola
Slide 29: Thank You
Thank You 29
Slide 30: About Us
About Us About Mahindra Logistics For further information please contact: Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 Yogesh Patel (CFO & Compliance Officer) billion private equity division of the USD 20.7 billion Mahindra Group. MLL is an integrated third
Slide 31: LOGISTICS
LOGISTICS ACCELERATING a RCE ra