- 07 Nov 2022
- ICICIdirect Research
REVIVAL IN AUTO SECTOR HELPS MLL BEAT ESTIMATES
MAHLOG - 381 Change: -6.50 (-1.68 %)News:
Mahindra Logistics Q2FY23 numbers were above I-direct estimates on all fronts. Revenues grew 28% YoY to Rs 1326 crore (I-direct estimate: Rs 1234 crore), led by 29% growth in the SCM segment to Rs 1263 crore (I-direct estimate: Rs 1173 crore). The Enterprise Mobility Services grew 15% to Rs 63 crore (I-direct estimate: Rs61 crore). Absolute EBITDA grew 35% to Rs 68 crore (I-direct estimate of Rs 63 crore). EBITDA margins at 5.1% were 56 bps higher YoY (I-direct estimate of 5.1%), led by lower employee expense to sales ratio (6.3% vs 7.7%). The reported PAT too grew 1.5x to Rs13 crore and higher than I-direct estimate of Rs12 crore, led by strong operational performance
View:
In Q2, along with the major 3PL segment (Rs1053 crore, up 32% YoY), Network services (NS) grew 18% to Rs211 crore. NS comprises of Freight Forwarding segment (Rs105 crore, up 5%), Express segment (Rs51 crore, up 18%) and Last mile (Rs55 crore, up 55%). From customer perspective, major growth came from the Mahindra front (Rs709 crore, up 47%), while non-Mahindra grew mere 12% (Rs555 crore). Auto and Farm segment led to higher growth in MLL, warehousing space remained at 18 million square feet
Impact:
Positive