Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q2 FY25 Earnings Presentation
52 slides from Mahindra Logistics's earnings presentation, Oct 21, 2024
Slide 1: Exchange intimation letter for Q2 FY25 earnings presentation
Mahindra Logistics Limited Arena Space, 10th & 11th Floor, 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: L63000MH2007PLC173466 Ref: MLLSEC/
Slide 2: Q2 FY25 Investor Presentation
Q2 FY25 Investor Presentation Business & Earnings Update October 2024
Slide 3: Safe Harbor
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 subscribe for any se
Slide 4: Company Overview
Igniting Success p> Company Overview mahincdra » LOGISTICS
Slide 5: Purpose and Vision
Purpose Vision RISE to be a Rs. 10,000 crore logistics service provider by FY 2026; delivering exceptional customer experience through differentiated, technology enabled solutions 4
Slide 6: India's leading logistics provider of integrated solutions
India’s leading logistics provider of integrated solutions Contract Logistics B2B Express Providing Transportation, B2B express and PTL Warehousing, Stores & Line Feed , transportation with pan Fulfillment and VAS services India coverage Last Mile Delivery Freight Forwarding Facilitates delivery to
Slide 7: Multi service provider for mobility solutions
Multi service provider for mobility solutions Employee Transportation Airport Services Providing end-to-end employee Dedicated booking counter transportation services with Kerb-side pickup On Call Services Outstation Customized hourly packages Flexible Rental packages with pan India presence 6 ..
Slide 8: Leading logistics service provider
Leading logistics service provider 21.6 Mn+ 28,000+ 1,100+ Sq. ft. space under Total workforce Locations across management across India India 19,000+ 1,660+ 50+ Pin-codes EV fleet Global trade covered (Cargo + PV) lanes 50,000+ 36 Mn+ 10,000+ Full Truck Trips Green km driven Ocean freight per month
Slide 9: Industry Trends
Macros are stable, continue to be driven by technology enhancements and sustainable logistics Industry Trends 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 China+1 Integrated S
Slide 10: MLL Strategy
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 Network Services Inn
Slide 11: Presence in High Growth Segments (End-Markets)
Presence in High Growth Segments (End-Markets) ▪ India is 4th largest automobile market in the world by production Auto ▪ Favorable ecosystem for exports & government support & 01 ▪ 25% contribution in contract logistics market Auto Components ▪ 10% contribution in contract logistics market FMCG / D
Slide 12: Business Updates
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Slide 13: Management Commentary
Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “During the quarter, we saw strong revenue performance with year-on-year growth of 11.5%.Our 3PL contract logistics, cross border and last mile delivery segments registered strong growth driven by account additions, new off
Slide 14: Business Highlights – Q2 FY25
Business Highlights – Q2 FY25 Contract Logistics B2B Express Cross border Last Mile Delivery Mobility 01 02 03 04 05 ▪ Overall revenue at Rs. 1,163 ▪ Overall revenue at Rs. 92 ▪ Overall revenue at 87 Cr, ▪ Overall revenue at Rs. 100 ▪ Overall revenue at Rs. 80 crore, growth of 7% YoY crore, growth o
Slide 15: Contract Logistics - Key Trends & Opportunities
Contract Logistics - Key Trends & Opportunities Logistics Sector Industry Structure Key Trends ▪ Higher Demand for Integrated 2,400 ▪ Highly fragmented with top 10 Solutions instead of piece-meal players having ~15% share Market Size (Rs. ‘000 Crore) 1,400 logistics services ▪ Emerging consumption c
Slide 16: Contract Logistics - Core competency & capabilities
Contract Logistics - Core competency & capabilities 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 Improved Dispatch Cost
Slide 17: Contract Logistics - Operating Highlights
Contract Logistics - Operating Highlights Space under management 21.6 + Operating Mn. Sq. Ft. locations 400+ Vehicles Deployed 17,000+ Trucks Business Per month Associates 1,500+ 16 Values as of 30th Sept 2024 ..
Slide 18: ~1 million sq. ft. BTS WH under development
~1 million sq. ft. BTS WH under development across key demand clusters Guwahati - 3,00,000 sq. ft. (Live) Kolkata - 4,50,000 sq. ft. (Q3 FY25) Phaltan (Phase-1) - 3,20,000 sq. ft. (Q4 FY25) Agartala – 1,27,000 sq. ft. (Q4 FY25) 17
Slide 19: B2B Express – Key trends and Opportunities
B2B Express – Key trends and Opportunities B2B Express (Surface) Industry Structure Key Trends 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% ▪ Push for automat
Slide 20: B2B Express - Core competency & capabilities
B2B Express – - Core competency & capabilities Significant Network Coverage ▪ Pan India coverage - 19,000+ Pin-codes ▪ 260+ Processing Centers & Branches ▪ 400+ partners for first mile & last mile connectivity Best in class technology suite ▪ ERP integrations for minimum manual interference ▪ Billi
Slide 21: B2B Express – Operating Highlights
B2B Express – Operating Highlights Pin-code reach 19,000+ Direct + ODA Space under management 1.5 Mn. Sq. Ft. Transhipment Hubs & DCs 200+ Line Hauls & Mid- mile 1,100+ Trucks 20 ODA: Other than Delivery Area Values as of 30th Sept 2024 • ..
Slide 22: Cross Border – Key Trends & Opportunities
Cross Border – Key Trends & Opportunities Freight Forwarding Industry Structure Key Trends ▪ 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 (China+1 strategy) Market Size (Rs.
Slide 23: Cross Border – Core competency & capabilities
Cross Border – Core competency & capabilities Expanding International Air Freight Ocean Freight Project Logistics presence ► Ocean consolidation: USA ► ODC solutions catering to ► Expand presence in ► Airport-to-Airport /Europe /Asia to & from diverse industries China, UK, UAE ► Door-to-Door India ►
Slide 24: Cross Border – Core competency & capabilities
Cross Border – Core competency & capabilities Ocean Freight Rate Index Ocean Freight ~ 12.4% up Volume vs Q1 FY25 ~2,700 TEUs per quarter Air Freight Volume No. of Forwarding ~930 Lanes Tons per quarter 50+ Globally 23 ..
Slide 25: Last Mile Delivery – Key Trends & Opportunities
Last Mile Delivery – Key Trends & Opportunities Last Mile Delivery, India Industry Structure Key Trends ▪ Last Mile is most expensive ▪ High growth in Micro fulfillment, 36,500 component of supply chain, ~50% sub same day delivery and dark contribution in transportation cost store management Market
Slide 26: Last Mile Delivery – Strengthening our leadership position in EV
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 • Manage Last mile stations that receive, process, sort, route, allocate and do doorstep delive
Slide 27: Last Mile Delivery – Operating Highlights
Last Mile Delivery – Operating Highlights Volume handled 350,000+ orders per day Fleet Deployed 6,000+ Vehicles per day Last Mile stations 200+ Geographic Reach 4,000+ Pin-codes Pan-India Note - LMD includes Whizzard 26 Values as of 30th Sept 2024 • ..
Slide 28: Mobility – Key Trends and Opportunities
Mobility – Key Trends and 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) ▪ Shift from vendor model to ▪ Increasing adoption of organ
Slide 29: Mobility – Core competency & capabilities
Mobility – Core competency & capabilities 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 ▪ Mobile App Enabled Booking ▪ Comf
Slide 30: Mobility – Core competency & capabilities
Mobility – Core competency & capabilities No. of Trips 10,000+ Per day No. of vehicles deployed 5,000+ Per day No. of operating locations 100+ No. of supply Pan India partners 300+ Pan India 29 Values as of 30th Sept 2024 ..
Slide 31: Drive to Net Zero
Drive to Net Zero 3.8 Mn Sq Feet Carbon Neutral by 2040 Solar Powered Warehouses 1,660+ EV ~36 Million 3W and PCV Green KM with EVs 5 IGBC Gold & Platinum Accreditation Certified buildings Ecovadis - Bronze BRSR 4000+ Kg Integrated Annual Report Waste Plastic Collected 1,68,100 Trees planted 30
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility Categories Activities Impact ▪ Health clinic at Nashik ▪ 17,185 community beneficiaries ▪ Visit to destitute homes Building Communities ▪ ESOPs: 1,455 hours ▪ Zero Fatality Zone project ▪ Volunteers: 235 ▪ Swachh Bharat Abhiyan ▪ 54 beneficiaries Skill Development and
Slide 33: ONE MLL Key Updates
Key Updates Launch of New Brand Identity Progress on LogiOne 1 Identity Positioning A symbol of leadership, collective Proposition strength, and forward momentum. Experience ONE MLL ACCELERATING PROGRESS 32
Slide 34: New Launches
New Launches As part of eDeL – our green logistics solutions, Emissions Analytics Report is our user-friendly digital platform designed for our customers, Igniting Success with real-time visualization of their carbon footprint and empowering them to transition towards green logistics Pro Trucking -
Slide 35: Financial Update
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Slide 36: Quarterly revenues by segment (FY21-25)
Quarterly revenues by segment (FY21-25) Revenue Growth (Rs. Crore) 1,521 1,364 1,326 92 87 193 1,033 131 142 832 114 61 1,195 1,236 1,136 919 772 Q2 F21 Q2 F22 Q2 F23 Q2 F24 Q2 F25 MLL Standalone Subsidiaries MESPL 35 Revenue after intercompany eliminations ..
Slide 37: Financial Highlights – Q2 FY25
Financial Highlights – Q2 FY25 Core Business Consolidated ( MLL + TTPL + Freight Forwarding + Mobility) ( Including Rivigo & Whizzard acquisition) Revenue GM Revenue GM INR 1,394 Cr. INR 1,521 Cr. INR 139 Cr. INR 142 Cr. PAT EBITDA PAT EBITDA INR 13 Cr. INR 66 Cr. INR -11 Cr. INR 78 Cr. 36 .. Note:
Slide 38: Segment wise Financials
Segment wise Financials All figures in INR crore SCM Mobility 8% 13% 0% -8% Revenue from Operations 1,441 86 1,441 80 80 80 1,340 1,278 Q1FY25 Q2FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY25 Q2FY24 Q2FY25 SCM Mobility 3% 12% 4% -8% Gross Margin 9 9 9 127 131 131 8 117 Q1FY25 Q2FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY25 Q2
Slide 39: SCM Financials (1/2)
SCM Financials (1/2) All figures in INR crore Contract Logistics B2B Express 6% 7% 5% 5% Revenue from Operations 88 92 1,163 87 92 1,093 1,163 1,088 Q1FY25 Q2FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY25 Q2FY24 Q2FY25 Contract Logistics B2B Express 1% -4% 18% 71% Gross Margin -5 120 121 125 121 -5 -6 -16 Q1FY25
Slide 40: SCM Financials (2/2)
SCM Financials (2/2) All figures in INR crore Freight Forwarding Last Mile Delivery 22% 60% 13% 107% Revenue from Operations 87 87 71 100 100 89 54 48 Q2FY24 Q2FY25 Q1FY25 Q2FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY25 Freight Forwarding Last Mile Delivery 21% 42% 2% 208% Gross Margin 7 7 7 8 8 7 6 2 Q1FY25 Q2F
Slide 41: Warehousing realisation and yield
WH realisation increased, yield impacted due to pre-operating cost of new launches Warehousing Realisation (Rs. per sq. ft. per month) Warehousing Yield Pre Ind (Rs. per sq. ft. per month) 54.9 7.3 50.2 47.6 6.2 6.2 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Note: 40 1. Warehousing realisation
Slide 42: Entity wise results Q2FY25 vs Q1FY25
Entity wise results Q2 FY25 Financial Performance Q2FY25 vs Q1 FY25 Revenue EBITDA PAT Particulars (in INR Cr.) Q2 F25 Q1 F25 Q2 F25 Q1 F25 Q2 F25 Q1 F25 MLL Standalone 1235.9 1156.7 69.1 71.6 8.5 10.2 Lords Freight 86.8 71.1 2.7 2.2 2.1 1.8 Mobility 81.1 81.3 1.9 2.1 1.6 1.7 Express 91.7 89.2 -12.4
Slide 43: Entity wise results Q2FY25 vs Q2FY24
Entity wise results Q2 FY25 Financial Performance Q2FY25 vs Q2FY24 Revenue EBITDA PAT Particulars (in INR Cr.) Q2 F25 Q2 F24 Q2 F25 Q2 F24 Q2 F25 Q2 F24 MLL Standalone 1235.9 1,135.6 69.1 74.0 8.5 18.6 Lords Freight 86.8 52.5 2.7 -0.1 2.1 0.1 Mobility 81.1 86.3 1.9 2.6 1.6 0.9 Express 91.7 87.2 -12.
Slide 44: Entity wise results H1FY25 vs H1FY24
Entity wise results H1 FY25 Financial Performance H1FY25 vs H1FY24 Revenue EBITDA PAT Particulars (in INR Cr.) H1 F25 H1 F24 H1 F25 H1 F24 H1 F25 H1 F24 MLL Standalone 2,392.6 2,186.5 140.6 157.2 18.8 41.6 Lords Freight 157.8 129.2 4.9 1.5 4.0 1.7 Mobility 162.4 165.8 4.0 2.1 3.3 -0.9 Express 180.9
Slide 45: Consolidated Income Statement
Consolidated Income Statement Particulars Q2FY25 Q1FY25 Q-o-Q Q2FY24 Y-o-Y H1FY25 H1FY24 Y-oY Revenue 1521.1 1420.0 7% 1364.8 11% 2941.1 2658.0 11% Other Income 1.7 5.7 6.6 7.4 12.8 GM 139.4 135.6 3% 126.2 10% 275.0 262.1 5% GM (%) 9% 10% 9% 9% 10% Total Overheads 73.1 69.3 72.7 142.4 141.9 EBITDA 6
Slide 46: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Sep'24 Mar'24 Particulars Sep'24 Mar'24 NON-CURRENT ASSETS 1,203.6 1,136.9 EQUITY 465.8 504.2 Property, Plant and Equipment 253.5 201.9 Equity Share Capital 72.1 72.0 Right of Use Asset 382.9 350.2 Share Application Money - 0.0 Net Investment in Lease 13.4 17.1
Slide 47: Consolidated Cashflow Statement
Consolidated Cashflow Statement Half year ended Particulars Sep-24 Sep-23 Operating Profit before working Capital changes 141.8 141.5 Changes in working Capital -46.1 -38.9 Cash generated from operations 95.7 102.6 Direct taxes paid (net of refund) 6.0 7.7 Net cash from Operating Activities (A) 101.
Slide 48: Outlook & Priorities
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Slide 49: Building blocks in place to achieve the vision
Building blocks in place to achieve the vision Grow Integrated logistics business Leverage acquisitions to unlock growth Focus on margin expansion through productivity improvement Build on Technology & Automation to become critical differentiators 48 ..
Slide 50: Path to Value Creation
Path to Value Creation Path to Value Path to ROE Core Growth Creation Leadership in contract MESPL Turnaround Monetize investments logistics Leverage synergies between core business Integrated solutions Digital Platform & acquisitions Non-M&M business Customer service Partnerships expansion excellen
Slide 51: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: L63000MH2007PLC173466 CIN: U74140MH2010PTC204285 Mr. Saurabh Taneja Mr. Shogun Jain / Mr. Mandar Chavan Chief Financial Officer shogun.jain@sgapl.net / CFO.MLL@mahindralogistics.com mandar.chavan@sgapl.net +91 77383 77756 / +91 96993 82195 www.
Slide 52: Thank You
THANK YOU Corporate Office 10 & 11 Floor, Arena Space Plot No 20, Jogeshwari-Vikhroli Link Road, Near Majas Depot, Jogeshwari (East) Mumbai- 400 060 Maharashtra, India C.I.N: L63000MH2007PLC173466 Email: enquiries@mahindralogistics.com enquiries@mahindralogistics.com Website : www.mahindralogistics.