Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q3 FY24 Earnings Presentation
47 slides from Mahindra Logistics's earnings presentation, Jan 29, 2024
Slide 1: Exchange filing cover letter: Earnings Presentation Q3 FY24
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: Q3 FY24 Investor Presentation: Business & Earnings Update
Igniting Success • • 0 45.4.4. 4 ,C: TB Wa lt% .S 1.0. rib a 1 Q3 FY24 Investor Presentation Business & Earnings Update mahindra January 2024 LOGISTICS
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 • . RP. Confidential aS 4
Slide 6: Integrated supply chain logistics provider
Igniting Success Integrated supply chain logistics provider z a Contract Logistics 1' B2B Express Providing Transportation, B2B express and PTL Warehousing, Stores & Line Feed , transportation with pan Fulfillment and VAS services India coverage mallindra A LOGISTICS V /14 Ir te c4 Last Mile Deliver
Slide 7: Multi service provider for mobility solutions
Igniting Success Multi service provider for mobility solutions I I 0 0 V& Az Employee Transportation / AA Airport Services Providing end-to-end employee / 4 transportation services / 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 Cal
Slide 8: Macros are stable, continue to be driven by technology enhancements 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 9: 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 10: Presence in High Growth Segments (End-Markets)
Igniting Success 0 Presence in High Growth Segments (End-Markets) ▪ India is 4th largest automobile market in the world Auto & 01 ▪ ▪ Favorable ecosystem for exports & government support 25% contribution in contract logistics market CA I: Hero Auto Components ▪ 10% contribution in contract logistics
Slide 11: Business Updates
Igniting Success* Business Updates mahindra LOGISTICS .. Confidential 10
Slide 12: Management Commentary
Igniting Success Management Commentary Mr. Rampraveen Swaminathan – Managing Director and CEO “Q3 FY 2023-24 was a period of moderate demand. Continuing growth in engineering and FMCG segments were offset by slow growth in other markets. The festive season was marked by volume growth but was offset
Slide 13: Business Highlights – Q3 FY24
Igniting Success* Business Highlights – Q3 FY24 3PL Contract Logistics B2B Express Freight Forwarding Last Mile Delivery Mobility -..-,-.--- 01 02 03 04 05 il l IIII III II III 0 V 0 e 0 I ▪ Overall revenue at Rs. 1,097 ▪ Overall revenue at Rs. 96 ▪ Overall revenue at Rs. 60 ▪ Overall revenue at Rs.
Slide 14: 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 15: Contract Logistics - Core competency & capabilities
Igniting Success Contract Logistics - Core competency & capabilities End to End transport Integrated Solutions Warehousing solution solutions Manage WH with expertise in Centralized management Single point of contact design and operations of all transportation for E2E logistics Improved Dispatch Eff
Slide 16: Contract Logistics - Operating Highlights
Igniting Success Contract Logistics - Operating Highlights LOGISTICS Space under management ungiNIP 18.7 Operating Mn. Sq. Ft. locations 400+ Vehicles Deployed 10,000+ Trucks Business Per month Associates 1,500+ mahindra Note: As on 9MFY24 LOGISTICS .. Confidential 15
Slide 17: 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 - 3,00,000 sq. ft. Kolkata - 4,50,000 sq. ft. 7.5 lakh sq. ft. ..... to Go-Live in 4 "1 I I ..... •......... _ Sa ga° oil ILI I l' I Q2 FY25 II nil ei I; Will I • 1.. .maPlig -h-r11110 A ffirmq,.. Erre v
Slide 18: 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 19: B2B Express - Core competency & capabilities
Igniting Success* B2B Express - Core competency & capabilities Significant Network Coverage • • t. • • • ▪ Pan India coverage - 19,000+ Pin-codes •9. • f.:.•• • MC., • .' • •1,7-1-72 ▪ 260+ Processing Centers & Branches • 0: Ta • • • in • • * • • .9. • • • • • • • ▪ 400+ partners for first mile & la
Slide 20: B2B Express - Operating Highlights
Igniting SuccessO B2B Express - Operating Highlights Pin-code reach RIVIGO mahindro LOGISTICS 19,000+ RIVIGO Direct + ODA Space under management 1.5 Mn. Sq. Ft. Transhipment Hubs & DCs 200+ Line Hauls & Mid- mile 1,100+ RIVIG0 Trucks mahindra Note: As on 9MFY24 LOGISTICS .. Confidential 19
Slide 21: 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 45,600 turnover of < Rs.100 Cr China (Ch
Slide 22: Freight Forwarding - Core competency & capabilities
Igniting Success* Freight Forwarding - Core competency & capabilities Expanding International Air Freight Ocean Freight Project Logistics presence A ^1 Yid NI L - ► Ocean consolidation: USA ► ODC solutions catering to ► Expand presence in ► Airport-to-Airport /Europe /Asia to & from diverse industri
Slide 23: Freight Forwarding - Operating Highlights
Igniting Success Freight Forwarding - Operating Highlights Ar Ocean Freight Rate Index Ocean Freight ~40%↓ Volume vs Q3 FY23 ~2,362 TEUs in Q3 FY24 Air Freight Volume No. of Forwarding ~1,610 Lanes Tons in Q3 FY24 50+ Globally • ---"'!"9 mahindra LOGISTICS .. Confidential 22
Slide 24: 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 25: Last Mile Delivery – Strengthening our leadership position in EV
Igniting Success* Last Mile Delivery – Strengthening our leadership position in EV Vehicle as a Service A • Offer a fleet of vans (with drivers) to customers who then use it as per their requirement -77 OWN Distribution as a Service tik • Manage Last mile stations that receive, process, * 6M sort, r
Slide 26: Last Mile Delivery - Operating Highlights
Igniting Success Last Mile Delivery - Operating Highlights e ( p Volume handled 350,000+ orders per day Fleet Deployed 6,000+ Vehicles per day Last Mile stations 300+ Geographic Reach 4,000+ • Pin-codes Pan- India ta' Note - LMD includes Whizzard mahindra LOGISTICS .. Confidential 25
Slide 27: 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 28: Mobility - Core competency & capabilities
Igniting Success Mobility - Core competency & capabilities qr. 4ar • r I. • - ; rr.prur-...0 W 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 29: Mobility - Operating Highlights
Igniting Success* Mobility - Operating Highlights c Revenue (Rs. Crore) • No. of Trips 80 86 84 66 15,000+ Per day No. of vehicles deployed 5,000+ Per day Q3FY23 Q1FY24 Q2FY24 Q3FY24 Gross Margin (Rs. Crore) u No. of operating locations • 100+ No. of supply 10.7% 11.3% 10.9% 10.3% Pan India partners
Slide 30: 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 ~26.9 Million RIO 3W and PCV Green KM with EVs \\ 5 IGBC Gold & Platinum •Ili Accreditation MENNi Certified buildings Ecovadis - Bronze BRSR 22-23 900+ Kg Integrated Annual Report • • Waste
Slide 31: CSR Updates
Igniting Success CSR Updates Categories Q3 FY24 Activities Impact • ▪ Health Check-up camps ▪ Blood Donation camps ▪ 366 employees participated, 989 Esops hours contributed. Building ▪ Zero Fatality Zone project - Communities Zaheerabad to Hyderabad Highway ▪ 3,886 underprivileged people were benefi
Slide 32: Awards and Recognition
Igniting Success Awards and Recognition Logistics Company of the year, ILSC Gold Excellence Award, CII a• Igniting Success loO. ji_'Cii Institute of Logistics cif 2022 SC Logistics Company of the Year 1 mailirldra LOGISTICS LS& A Recognition of All-round Excellence - Business Growth, Contribution to
Slide 33: Financial Update
Igniting Success* Financial Update mahindra LOGISTICS .. Confidential 32
Slide 34: Quarterly Revenue Performance by Segment (Consolidated)
Igniting Success* Quarterly Revenue Performance by Segment (Consolidated) Figures in Rs. Cr 1397 1365 1,328 1,330 83 1,273 1293 85 63 65 61 1,200 55 60 76 80 48 54 60 1,136 57 79 44 48 1,088 106 88 96 61 42 73 77 43 51 91 58 39 109 105 85 141 113 47 41 42 1053 1090 1097 1035 1003 945 975 835 851 r Q
Slide 35: Financial Highlights – Q3 FY24
Igniting Success* Financial Highlights – Q3 FY24 Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) 2% 5% -4% 1% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue GM Revenue GM INR 1,299 Cr. INR 1,397 Cr. INR 126 Cr. INR 138 Cr. 0% -17% -1631% 6% Y-o-Y Y-o-Y Y-o-Y PAT Y-o-Y EBITDA PA
Slide 36: Financial Highlights – 9M FY24
Igniting Success* Financial Highlights – 9M FY24 Core Business Consolidated ( MLL + Lords + Mobility) ( Including Rivigo acquisition) 10% 5% 1% -1% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue GM Revenue GM INR 3,781 Cr. INR 4,055 Cr. INR 388 Cr. INR 426 Cr. 29% -12% -260% 13% Y-o-Y Y-o-Y Y-o-Y PAT Y-o-Y EBITDA
Slide 37: Entity wise results
Igniting Success* Entity wise results Q3 Financial Performance 9M Financial Performance Particulars Revenue EBITDA PAT Particulars Revenue EBITDA PAT (in INR Cr.) (in INR Cr.) Q3 F24 Q3 F23 Q3 F24 Q3 F23 Q3 F24 Q3 F23 9M F24 9M F23 9M F24 9M F23 9M F24 9M F23 MLL MLL 1,160.1 1,140.0 71.0 74.0 12.5 1
Slide 38: Segment wise Financials
Igniting Success Segment wise Financials All figures in INR crore n SCM Mobility • 4% C 4% D-4, 29% 34% Revenue from Operations 3,671 3,807 248 185 1,265 1,314 83 65 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 SCM Mobility • • -5% -0% 15% 31% Gross Margin 363 361 27 21 8 9 124 118 Q3FY23
Slide 39: SCM Financials (1/2)
Igniting Success* SCM Financials (1/2) All figures in INR crore ro Contract Logistics B2B Express 6% C Di. 5% 5% 34% Revenue from Operations 3,032 3,191 248 185 1,035 1,097 91 96 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Contract Logistics B2B Express 5% 13% Gross Margin -5 -13 -5 -29
Slide 40: SCM Financials (2/2)
Igniting Success SCM Financials (2/2) All figures in INR crore Freight Forwarding Last Mile Delivery -24% -35% 1% -0% Revenue from Operations 294 157 157 191 60 61 79 60 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Freight Forwarding Last Mile Delivery -33% -35% -32% 60% Gross Margin 30 7
Slide 41: Higher seasonal labor and start-up costs impacted yields in Q3
Igniting Success* Higher seasonal labor and start-up costs impacted yields in Q3 and expected to stabilize in coming quarters Warehousing Revenue Yield (per sq. ft.) Warehousing GM Yield (per sq. ft.) 158 158 158 148 23.9 22.8 20.8 20.9 Q3 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q1 FY24 Q2 FY24 Q3 FY24
Slide 42: Income Statement
Igniting Success* Income Statement Particulars Q3FY24 Q3FY23 Y-o-Y 9MFY24 9MFY23 Y-o-Y Revenue 1,397.2 1,329.6 5.1% 4,055.2 3,855.8 5.2% Other Income 2.2 5.6 15.0 12.0 GM 126.3 131.1 -3.7% 388.4 382.9 1.4% GM (%) 9.0% 9.9% (82 bps) 9.6% 9.9% (35 bps) Total Overheads 74.3 68.4 216.2 186.9 EBITDA 52.0
Slide 43: Outlook & Priorities
Igniting Success* Outlook & Priorities mahindra LOGISTICS .. Confidential 42
Slide 44: Building blocks in place to achieve the vision
Igniting Success 4 Building blocks in place to achieve the vision Grow Integrated logistics business Leverage acquisition to unlock growth .4 Focus on margin expansion through productivity improvement •1 • Build on Technology & Automation to become critical differentiators mahindra LOGISTICS .. Conf
Slide 45: Path to Value Creation
44 ssappris Sup.!ugi Path to Value Creation Path to Value Path to ROE Core Growth 41lir -4111* Creation 4 -41* 110441•4‘>, Leadership in contract Rivigo Turnaround Monetize investments logistics 44 Leverage synergies between core business Integrated solutions Digital Platform & acquisitions Customer
Slide 46: 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 47: THANK YOU
THANK YOU mahindra LOGISTICS Corporate Office 10 & 11 Floor, Arena Space Plot No 20, Jogeshwari-Vikhroli Link Road, Near Majas Depot, Jogeshwari (East) mahindra LOGISTICS Mumbai- 400 060 Maharashtra, India 4Hgrds RIVIGO alyte z ihIERU C.I.N: L63000MH2007PLC173466 Email: enquiries-mll@mahindra.com en