Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q4 FY2019 Earnings Presentation
32 slides from Mahindra Logistics's earnings presentation, May 7, 2019
Slide 1: Cover letter to stock exchanges
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 Our Ref: MLLSEC/89/2019 Toil Fret : 1800 238 6787 Mahindralogistics.corn Date: 7 May 2019 Regd Office Mohindr
Slide 2: Mahindra Logistics Ltd Q4 & FY19 Earnings Presentation
Mahindra Logistics Ltd Q4 & FY19 Earnings Presentation May 7, 2019
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: Q4 / FY2019 Results Overview
Q4 / FY2019 Results Overview 3
Slide 5: Key Highlights – FY2019 vs FY2018
mahindra LOGISTICS Key Highlights – FY2019 vs FY2018 3,851 I12.7% 159 26.5% Revenue from operations EBITDA 1,366 I8.8% Revenue from Non Mahindra SCM Segment r* i 133 PBT 30.7% 385 I13.2% 86 32.4% Revenue from PTS Segment PAT 90 35.7% Adjusted PAT (Pre RSU/ESOP Charge) Note: 1. Consolidated financial
Slide 6: Management Comment
Mahindra LOGISTICS 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 s
Slide 7: Consolidated Summarized P&L Statement
Mahindra LOGISTICS 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
Slide 8: FY19 Financial highlights
mahindra LOGISTICS 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 R
Slide 9: FY19 highlights
mahindra LOGISTICS 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
Slide 10: Segmental Performance – SCM
mahindra LOGISTICS Segmental Performance – SCM Revenue Gross Margin (GM) 3,466 3,076 323 274 807 Q4 FY18 917 Q4 FY19 I FY18 FY19 GM (%) 78 Q4 FY18 8.7% 8.8% 89 Q4 FY19 11 FY18 8.0% FY19 8.4% Growth 13.7% 12.7% Growth 14.6% 18.0% Mahindra Revenue Non-Mahindra Revenue 2,100 1,366 1,256 1,820 471 Q4 FY
Slide 11: Non-Mahindra SCM Revenue Analysis
mahindra LOGISTICS Non-Mahindra SCM Revenue Analysis Transportation Warehouse & other value- added segments 1,012 26% 354 983 273 Growth 264 Q4 FY18 Q4 FY19 5.5% 278 IIFY18 2.9% FY19 74% Activity-wise Breakup FY19 Growth 72 Q4 FY18 96 Q4 FY19 32.8% 1I FY18 29.5% FY19 Auto Non-Auto 25% 320 340 1,026
Slide 12: Segmental Performance – PTS
mahindra LOGISTICS Segmental Performance – PTS Revenue Gross Margin (GM) 385 41 340 32 86 Q4 FY18 97 Q4 FY19 11FY18 FY19 GM (%) 9 Q4 FY18 10.4% 10 Q4 FY19 10.4% FY18 9.4% I FY19 10.6% Growth 13.1% 13.2% Growth 13.4% 27.6% Note: 1. Consolidated financials 2. All figures in INR crore, unless stated ot
Slide 13: 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 Aay
Slide 14: MLL has successfully trained 10000+ drivers in a year
i 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 15: Anand Mahindra's letter to the PM Mr. Narendra Modi
Mr. Anand Mahindra’s Mr. Anand Mahindra’s letter to the letter to the PM PM Mr. Mr. Narendra Narendra Modi Modi 14
Slide 16: MLL spearheading the 'Zero Accident Zone' initiative
MLL spearheading the ‘Zero Accident Zone’ initiative on Mumbai-Nashik Expressway 5 15
Slide 17: Company Overview
Company Overview 16
Slide 18: 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 19: 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 20: 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 1 MLL: Ready for GST No Borders Redesign of supply chain – efficiencies instead of tax 1 1 1 i I ...1 GST ready multi- user warehousing in certain key De-Bottlenecking R
Slide 21: 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 22: Supply Chain Management (SCM)
mahindra LOGISTICS Supply Chain Management (SCM) • • INTEGRATED Supply chain Freight Transportation MLL Network – SERVICE consulting forwarding surface express PROVIDER services IMMIE MN\ IE Warehousing - `11\ A" In-factory stores VAS (e.g, Packing, inventory & order & line feed Distribution labelli
Slide 23: 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 150 domestic & multinational corporates i • i • 1 1 1 1 1 1 I. 13 Cities • 1 1 1 150+ I... Clients • •• ( 325+ I
Slide 24: 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 / • • • • ~325 nos. I Link MLL to create a wide network of Vehicles • PTS ~1,000 nos. • / business partners: 0, -.... ....-_ •
Slide 25: 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 26: 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 65% of non-Mahindra business came from top 20 customers in Fiscal 2019 – Given the nature of business, engagement originates
Slide 27: 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 28: 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 29: 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 30: Thank You
Thank You 29
Slide 31: 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 Yogesh Patel (CFO & Compliance Officer) billion private equity division of the USD 20.7 billion Mahindra Group. MLL is
Slide 32: mahindra
mahindra LOGISTICS I te:11 15: 'A s Ve10/1/ 17 erg • ?t", ACCELERATING dreAci r COMMERCE. Gm, 419:0, •44, EMPOWERING COMMUNITIES TO Rise. 31