Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — H1 FY2018 Earnings Presentation
28 slides from Mahindra Logistics's earnings presentation, Dec 1, 2017
Slide 1: Mahindra Logistics Limited filing cover letter to stock exchanges
BR m =) h | n cl re) Mahindra Logistics Limited LOGISTICS ees Veer Savarkar Flyover, Goregaon (West), Mumbai - 400 062. Tel.: +91 22 28716800 Toll Free: 1800 258 6787 Date: 1st December 2017 milconnect@mahindra.com mahindralogistics.com Zo, Regd. Office: BSE Limited, Mahindra Towers, P. K. Kurne Cho
Slide 2: Mahindra Logistics Ltd H1 FY18 Earnings Presentation
Mahindra Logistics Ltd H1 FY18 Earnings Presentation December 01, 2017
Slide 3: 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 4: Contents
Contents 1 2 3 H1 FY2018 Company Results Annexure Overview Overview 3
Slide 5: Company Overview
Company Overview 4
Slide 6: One of India's largest 3PLs
One of India’s largest 3PLs INR 26+ Bn revenue(1) 13,900+ work force across India(2) 470+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. (1). Revenue for FY17 MLL Bhiwandi warehouse 5
Slide 7: 3PL (Third party logistics): 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 8: 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 9: 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 10: 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 11: 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 120 domestic & multinational corporates 12 Cities 120+ Clients 500+ Business Partners Primarily serve leading corporates: IT, ITeS,
Slide 12: 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 ~500 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 13: 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 14: Diverse industries and clients
Diverse industries and clients Diversified Logistics Company SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors 70% of non-Mahindra business came from top 20 customers in Fiscal 2017 (68% in H1 F-18) – Given the nature of business, engagement originates at
Slide 15: 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 16: 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 17: 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 18: H1 FY2018 Results Overview
H1 FY2018 Results Overview 17
Slide 19: Key Highlights – H1 FY2018 vs H1 FY2017
Key Highlights – H1 FY2018 vs H1 FY2017 168,840 +37% 5,616 +35% Revenue from operations EBITDA 60,434 +49% 4,521 +34% Revenue from Non Mahindra SCM PBT Segment 17,299 +25% 2,892 +30% Revenue from PTS Segment PAT Note: 1. Consolidated financials 2. All figures in INR lakhs, unless stated otherwise 18
Slide 20: Management Comment
Management Comment Commenting on the performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said: “I am delighted to present the first financial results following our successful public listing. I extend a warm welcome to all our public shareholders and look forward to their partic
Slide 21: Consolidated Summarized P&L Statement
Consolidated Summarized P&L Statement Y-o-Y Particulars H1 FY18 H1 FY17 change (%) Total Income increases by 37% to Rs. 169,201 lakhs Revenue from operations 168,840 122,849 37% Other Income 361 591 -39% • Y-o-Y growth of 39% in SCM and 25% in PTS Total Income 169,201 123,440 37% • Non-Mahindra grou
Slide 22: Segmental Performance – SCM
Segmental Performance – SCM SCM Revenue SCM Gross Margin 151,541 11,218 109,016 8,257 Growth Growth 39% 36% H1 FY17 H1 FY18 H1 FY17 H1 FY18 Non-Mahindra SCM Revenue growth SCM Gross Margin % Revenue 7.57 7.40 60,434 40,679 Growth 49% H1 FY17 H1 FY18 H1 FY17 H1 FY18 Note: 1. Consolidated financials 2
Slide 23: Segmental Performance – PTS
Segmental Performance – PTS PTS Revenue PTS Gross Margin Revenue 1,578 17,299 13,833 1,431 Growth Growth 25% 11% H1 FY17 H1 FY18 H1 FY17 H1 FY18 PTS Gross Margin % 10.35 9.12 H1 FY17 H1 FY18 Note: 1. Consolidated financials 2. All figures in INR lakhs, unless stated otherwise 22
Slide 24: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement 30th Sep 2017 31st Mar 2017 30th Sep 2017 31st Mar 2017 Particulars Particulars Unaudited Audited Unaudited Audited Equity Assets (i) Equity attributable to owners 38,336 34,768 Non Current Assets (ii) Equity attributable to non a) Property, Plant and Equipment /
Slide 25: Annexure
Annexure 24
Slide 26: 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 Mr. Nikhil Nayak (CFO & Compliance Officer) billion private equity division of the USD 19 billion Mahindra Group. MLL is an integrated thi
Slide 27: Thank You
Thank You 26
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