Mahindra Logistics reverts back to 5%+ margin levels

News: MLL Q4FY22 revenues grew 10% YoY to Rs 1073 crore, led by 7% growth in the SCM segment to Rs 1045 crore. The Enterprise Mobility Services de-grew 23% to Rs 27 crore. EBITDA margins at 5.1% was 38 bps higher, led by lower employee and lower operating expenses. Subsequently, absolute EBITDA grew 19% to Rs 55 crore. 

Views: The numbers were higher than I-Direct estimates on all fronts, driven by higher growth in the E-commerce, Consumer, Automotive and Freight Forwarding businesses. Non-Auto segment (up 25%) now comprises 42% of the SCM revenues, while warehousing (up 47% YoY) contributed 25% to the SCM revenues.

Impact: Positive