Mahindra Logistics announced Q2FY24 & H1FY24 results:
- Revenue for Q2 FY24 stood at Rs. 1,136 crores, compared to Rs. 1,195 crores in Q2 FY23.
- EBITDA for Q2 FY24 was Rs. 74 crores, compared to Rs. 64 crores in Q2 FY23.
- Profit before tax (PBT) for Q2 FY24 was Rs. 26 crores, compared to Rs. 15 crores in Q2 FY23.
- Profit after tax (PAT) for Q2 FY24 was Rs. 19 crores, compared to Rs. 11 crores in Q2 FY23.
- Revenue for H1 FY24 increased to Rs. 2,187 crores, compared to Rs. 2,264 crores in H1 FY23.
- EBITDA for H1 FY24 was Rs. 157 crores, compared to Rs. 128 crores in H1 FY23.
- PAT for H1 FY24 was Rs. 42 crores, compared to Rs. 25 crores in H1 FY23.
- 3PL Supply Chain services grew 4% YoY, driven by growth in automotive, engineering, consumer, and durables sectors.
- The Global Freight Forwarding industry experienced lower-than-expected performance due to softness in freight prices and global uncertainty.
- MLL Express business saw a 4% increase in volumes, with customer additions driving momentum.
- The Mobility business showed growth in existing customers and acquisition of new clients, resulting in positive PAT.
Margin Improvement and Cost Reduction:
- The company focused on margin improvement, which resulted in earnings growth across all businesses except MLL Express.
- The MLL Express business faced challenges with lower volumes and higher transport costs, impacting the improvement plan.
- Cost reduction and product mix improvements in 3PL, Last Mile Delivery, and Mobility businesses contributed to margin improvements.
Network Expansion and Service Enhancements:
- Warehouse space under management in the 3PL business reached 19 million sq. ft.
- Expansion projects in Chakan, Kolkata, Nasik, and Guwahati are on track.
- A new multi-client warehouse was launched in Bhiwandi, Mumbai to manage fulfilment and distribution for automotive, e-commerce, and FMCG industries.
Mr. Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd., commented, "The overall logistics industry is well poised driven by long-term focus on infrastructure, manufacturing, consumption growth, and positive regulatory trajectory. Overall new order intake remained robust across our business segments...With the upcoming festive season, we hope to see a positive demand uptick and we remain focused on accelerating margins driven by synergies in the network business and other cost reduction programs."