Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q1 FY25 Earnings Presentation
48 slides from Mahindra Logistics's earnings presentation, Jul 22, 2024
Slide 1: Earnings Presentation cover letter to stock exchanges
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: Q1 FY25 Investor Presentation: Business & Earnings Update
mahindra Igniting Success LOGISTICS THANK YOU -14 RISING BEYOND: • CONNECTING INDIA Mbilt/ -7 40144•, Q1 FY25 Investor Presentation Business & Earnings Update JULY 2024 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 .. 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 Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “Despite the muted demand environment, the quarter gone by saw healthy order booking in 3PL and cross border business. The cross-border business saw good traction, driven by a growth in demand for inbound o
Slide 14: Business Highlights – Q1 FY25
Igniting Success* Business Highlights – Q1 FY25 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. 1,093 ▪ Overall revenue at Rs. 89 ▪ Overall revenue at Rs. 80 ▪ Overall revenue at Rs. 87
Slide 15: 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 16: 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 17: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights ( Space under management 19.0 + Mn. Sq. Ft. Vehicles Deployed 17,000+ Trucks Per month t- Operating locations 400+ Business Associates 1,500+ I AMP Loos 'Gs mahindra LOGISTICS Values as of Q1 FY25 .. Confidential 16
Slide 18: 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 Lakh sq. ft. Kolkata – 4.5 Lakh 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 Lakh sq.
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights "?. • Oy • f It Ocean Freight Rate Index .p Ocean Freight ~ 56% up Volume • A e vs Q1 FY24 ~3,000 TEUs per quarter Air Freight Volume ar No. of Forwarding ~900 Lanes d 60. !...1 ...wh Tons per quarter 50+ Globally 4 a- V - lie f mahindra LOG
Slide 25: 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 26: 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 27: 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 200+ Geographic Reach eD. eL eneL 4,000+ • Pin-codes Pan-India las ••,••• •*. Note - LMD includes Whizzard mahindra LOGISTICS Va
Slide 28: 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 29: Mobility - Core competency & capabilities
Igniting Success Mobility - Core competency & capabilities - 44 • UPI= O. ea , 4ar 11.11 " we_ Enterprise Mobility Services Cab on Demand Services Airport & Outstation Upkeep Services ▪ Fleet Management ▪ Semi Luxury Vehicle Options ▪ Assured Vehicles for Airport Transfers ▪ Fleet Management ▪ Adher
Slide 30: Mobility - Operating Highlights
Igniting Success Mobility - Operating Highlights No. of Trips 10,000+ Per day No. of vehicles deployed 5,000+ Per day No. of operating locations 100+ Pan India No. of supply partners Itov. '''rt• NTT— 41_ , 14' •811.111146•10 I Ka' 4- 1 300+ Pan India • - r ;' ; Nirgrir. WC.41 mahindra .. LOGISTICS
Slide 31: 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 ~33.3 Million RIO 3W and PCV Green KM with EVs \\ 5 IGBC Gold & Platinum •Ili Accreditation MENNi Certified buildings Ecovadis - Bronze BRSR 22-23 4000+ Kg Integrated Annual Report • • Waste
Slide 32: Corporate Social Responsibility
Igniting Success Corporate Social Responsibility Categories Q1 FY25 Activities Impact mahlrodra LOGISTICSma, ▪ Health clinic at Nashik ▪ 33,273 community beneficiaries Y. Building ▪ Blood Donation camps ▪ 3,306Kg+ plastic waste recycled E. Communities fl ▪ Zero Fatality Zone project ▪ ESOPs: 25,950
Slide 33: Awards and Recognition
Igniting Success Awards and Recognition No 1 Ranking by ISCM in Logistics Industry ET SCM Summit • ECM I oghitrs Top t ISCY Ranking:024 1 Logistics Champions alp.- ET ET mallindra TCI allcargo Digit? 6 1;5 Mill 'I LOGISTICS M3 4/ 01.0 mahindra LOGISTICS .. Confidential 32
Slide 34: Financial Update
Igniting Success* Financial Update mahindra LOGISTICS .. Confidential 33
Slide 35: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success* Quarterly Revenue Performance by Segment (Consolidated) Figures in Rs. Cr 1,451 1,420 1,365 1,397 1,328 1,330 79 1,293 84 80 1,273 86 81 63 65 57 89 1,200 55 60 76 79 48 63 54 60 71 57 79 44 47 97 106 77 88 96 87 42 73 51 91 109 105 85 47 1089 1100 1131 1093 1053 1035 1005 945 975
Slide 36: Financial Highlights – Q1 FY25
Igniting Success* Financial Highlights – Q1 FY25 a Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) Revenue GM Revenue GM INR 1,302 Cr. INR 1,420 Cr. INR 136 Cr. INR 135 Cr. PAT EBITDA PAT EBITDA INR 14 Cr. INR 66 Cr. INR -9 Cr. INR 76 Cr. mahinclm LOGISTICS Reven
Slide 37: Segment wise Financials
Igniting Success Segment wise Financials All figures in INR crore SCM Mobility • -2% 10% 2% 1% Revenue from Operations 1,340 80 1,372 1,214 78 79 80 1,340 Q4FY24 Q1FY25 Q1FY24 Q1FY25 Q4FY24 Q1FY25 Q1FY24 Q1FY25 SCM Mobility • 0% 0% C-8% > -10% Gross Margin 128 127 127 127 9 • 9 8 8 Q4FY24 Q1FY25 Q1F
Slide 38: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) All figures in INR crore Contract Logistics B2B Express C D- -3% 9% -11% 2% Revenue from Operations 1,131 1,093 1,093 97 85 87 1,005 87 Q4FY24 Q1FY25 Q1FY24 Q1FY25 Q4FY24 Q1FY25 Q1FY24 Q1FY25 Contract Logistics B2B Express -3% -7% 5% 54% Gross Margin 123 120 12
Slide 39: SCM Financials (2/2)
Igniting Success* SCM Financials (2/2) All figures in INR crore Freight Forwarding Last Mile Delivery 12% C -7%D 4 10% 87% Revenue from Operations 71 77 63 71 89 89 81 48 Q1FY24 Q1FY25 Q4FY24 Q1FY25 Q1FY24 Q1FY25 Q4FY24 Q1FY25 Freight Forwarding Last Mile Delivery FM 15% -9% 32% 106% Gross Margin 7
Slide 40: WH realisation remains flat, yield impacted by pre-operating cost
Igniting Success* WH realisation remains flat, yield impacted due to pre-operating cost of new launches r Warehousing Realisation (Rs. per sq. ft. per month) Warehousing Yield (Rs. per sq. ft. per month) 7.5 50.3 50.2 49.5 6.2 6.0 OE' Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Note: 1. Warehous
Slide 41: Entity wise results Q1FY25 vs Q4FY24
Igniting Success* Entity wise results Q1 FY25 Financial Performance Q1FY25 vs Q4FY24 Revenue EBITDA PAT Particulars (in INR Cr.) Q1 F25 Q4 F24 Q1 F25 Q4 F24 Q1 F25 Q4 F24 MLL Standalone 1156.7 1183.3 71.6 63.9 10.2 7.9 Lords Freight 71.1 63.4 2.2 1.0 1.8 1.2 MLL Mobility 81.3 80.7 2.1 3.2 1.7 2.3 ML
Slide 42: Entity wise results Q1FY25 vs Q1FY24
Igniting Success* Entity wise results Q1 FY25 Financial Performance Q1FY25 vs Q1FY24 Revenue EBITDA PAT Particulars (in INR Cr.) Q1 F25 Q1 F24 Q1 F25 Q1 F24 Q1 F25 Q1 F24 MLL Standalone 1156.7 1050.9 71.6 83.2 10.2 23.0 Lords Freight 71.1 76.8 2.2 1.6 1.8 1.6 MLL Mobility 81.3 81.1 2.1 -0.5 1.7 -1.8
Slide 43: Consolidated Income Statement
Igniting Success* Consolidated Income Statement Particulars Q1FY25 Q4FY24 Q-o-Q Q1FY24 Y-o-Y Revenue 1420.0 1450.8 -2% 1293.2 10% Other Income 5.7 2.9 6.2 GM 135.5 136.9 -1% 135.9 0% GM (%) 10% 9% 11% Total Overheads 69.3 80.3 69.3 EBITDA 66.3 56.6 17% 66.6 -1% EBITDA (%) 5% 4% 5% Depreciation - Fix
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 acquisitions to unlock growth Focus on margin expansion through productivity improvement • • fa • NMI - • Build on Technology & Automation to become critical differentiators mahindra LOGISTI
Slide 46: 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 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@mahindralogistics.
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) mahindre LOGISTICS Mumbai- 400 060 Maharashtra, India +lords RIVIGO C.MERU C.I.N: L63000MH2007PLC173466 Email: enquiries@mahindral