MAHLOGNSE3 February 2025

Mahindra Logistics Limited

18,195words

23turns

3analyst exchanges

0executives

Key numbers — 40 extracted

rs,

emains muted but demonstrated some green shoots at specific categories. In both PVs and two-wheelers, we demonstrated some green shoots at specific categories. In both PVs and two-wheelers, we contin

Rs. 250 crore

ke remains positive. Our pending order board’s execution, 3PL Contract Logistics business is over Rs. 250 crores in Our pending order board's execution, 3PL Contract Logistics business is over Rs. 250 crores in

Rs. 100 crore

orward to some momentum there in the coming quarters. During the quarter, we won new orders worth Rs. 100 crores of there in the coming quarters. During the quarter, we won new orders worth Rs. 100 crores of

14%

gh of that in the coming 4 months. Warehousing volume, warehousing, and solutions volumes grew by 14% year-on-year with Warehousing volume, warehousing, and solutions volumes grew by 14% year-on-year

d solutions volumes grew by 14% year-on-year with stable and improving yields. Our white space at 7% are closed on 1.5 million square feet, stable and improving yields. Our white space at 7% are clos

1.5 million

es grew by 14% year-on-year with stable and improving yields. Our white space at 7% are closed on 1.5 million square feet, stable and improving yields. Our white space at 7% are closed on 1.5 million square f

75%

w expansions of the East and West are going well and cumulatively those two expansions, more than 75% of the capacity and West are going well and cumulatively those two expansions, more than 75% of th

14.1%

I will begin the consolidated financial performance: performance: Revenue for Q3 increased by 14.1% year-on-year to Rs. 1,594.2 crores. Revenue from the Revenue for Q3 increased by 14.1% year-on-yea

Rs. 1,594.2 crore

olidated financial performance: performance: Revenue for Q3 increased by 14.1% year-on-year to Rs. 1,594.2 crores. Revenue from the Revenue for Q3 increased by 14.1% year-on-year to Rs. 1,594.2 crores. Revenue f

Rs. 300 crore

year-on-year to Rs. 1,594.2 crores. Revenue from the warehousing segments stood at approximately Rs. 300 crores, exactly Rs. 299.6 crores in Q3 warehousing segments stood at approximately Rs. 300 crores, exact

Rs. 299.6 crore

94.2 crores. Revenue from the warehousing segments stood at approximately Rs. 300 crores, exactly Rs. 299.6 crores in Q3 warehousing segments stood at approximately Rs. 300 crores, exactly Rs. 299.6 crores in Q3

Rs. 261.9 crore

egments stood at approximately Rs. 300 crores, exactly Rs. 299.6 crores in Q3 FY25 as compared to Rs. 261.9 crores for the same period last year, a jump of nearly 15% year- FY25 as compared to Rs. 261.9 crores for

Guidance — 20 items

Moving on to consumer durables

opening

“The room air conditioner industry posted robust growth during the first half of FY25 continuing The room air conditioner industry posted robust growth during the first half of FY25 continuing the momentum from the previous year.”

Moving on to consumer durables

opening

“The total contract signed of nearly 3500 metric tons on a monthly basis, and we do expect the rollout of contract signed of nearly 3500 metric tons on a monthly basis, and we do expect the rollout of the flow through of that in the coming 4 months.”

Moving on to consumer durables

opening

“Our white space at 7% are closed on 1.5 million square feet, remains obviously above our long-term targets and we are working on driving utilization up by remains obviously above our long-term targets and we are working on driving utilization up by Q1 of next year basis some of the orders which have been won.”

Moving on to consumer durables

opening

“New expansions of the East Q1 of next year basis some of the orders which have been won.”

Moving on to consumer durables

opening

“From a technology perspective, we continue to upgrade our LOGIONE suite of technology From a technology perspective, we continue to upgrade our LOGIONE suite of technology products with new additions leveraging Gen Al and we expect a full release of the suite by the products with new additions leveraging Gen AI and we expect a full release of the suite by the end of this financial year.”

Moving on to consumer durables

opening

“299.6 crores in Q3 FY25 as compared to Rs.”

Moving on to consumer durables

opening

“261.9 crores for the same period last year, a jump of nearly 15% year- FY25 as compared to Rs.”

Moving on to consumer durables

opening

“The supply chain management businesses including our 3PL and network businesses contributed 95% of our overall revenue and the mobility business has contributed 5% of our contributed 95% of our overall revenue and the mobility business has contributed 5% of our overall revenue for Q3 FY25.”

Moving on to consumer durables

opening

“Overall losses for the quarter, Q3 FY25 areas, especially in the Express business order we go.”

Moving on to consumer durables

opening

“Overall losses for the quarter, Q3 FY25 stood at Rs.”

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Risks & concerns — 15 flagged

Since this is the beginning of the sector, I think the logistics sector is going through a mixed Since this is the beginning of the sector, I think the logistics sector is going through a mixed period but has demonstrated continued resilience despite the challenge in the macroeconomic period but has demonstrated continued resilience despite the challenge in the macroeconomic environment.

— Mandar Chavan

mahindra LOGISTICS I Mahindra Logistics Limited January 28, 2025 From a farm sector perspective, Q3 is a seasonally weaker quarter for the farm sector with From a farm sector perspective, Q3 is a seasonally weaker quarter for the farm sector with typically upcoming year changes and a kind of post-festive slowdown.

— Mandar Chavan

This quarter remained typically upcoming year changes and a kind of post-festive slowdown.

— Mandar Chavan

What has not gone well in the quarter and kind of areas of focus for us, firstly, overall, we saw mixed impact of the festive season in the peak.

— Moving on to consumer durables

The first part of the us, firstly, overall, we saw mixed impact of the festive season in the peak.

— Moving on to consumer durables

This has been the second quarter where we have seen the trend now with same site volumes being lower, the second quarter where we have seen the trend now with same site volumes being lower, largely reflecting the lower broad consumption slowdown, which we are seeing.

— Moving on to consumer durables

This has largely reflecting the lower broad consumption slowdown, which we are seeing.

— Moving on to consumer durables

On a positive note, while volume on the sites has been lesser than what we thought it would be, because of the way we structured our sites has been lesser than what we thought it would be, because of the way we structured our contracts in terms of minimum guaranteed volumes in all our operations, we have not seen a contracts in terms of minimum guaranteed volumes in all our operations, we have not seen a significant downside impact of it.

— Moving on to consumer durables

Gross margin without the impact of the investments compared to the same quarter of last year.

— Moving on to consumer durables

Gross margin without the impact of the investments in the Express business stood at 10.1%.

— Moving on to consumer durables

I mentioned last year, I think if you remember in Q4 last year, you may remember I said that we have not put a pause, kind of slowdown in some of the new site constructions given that we have not put a pause, kind of slowdown in some of the new site constructions given the volatility we see in the market.

— Krupashankar

I just wanted to get a sense of the delaying slowdown in the industry, what is the timeframe you are expecting that these delaying slowdown in the industry, what is the timeframe you are expecting that these measures would start resulting in positive for tonnage addition to your overall operations and measures would start resulting in positive for tonnage addition to your overall operations and how do you see the profitability shaping up over the next 4-6 quarters?

— Krupashankar

And our challenge is the utilization of the network.

— Krupashankar

And our challenge is the utilization of the network.

— Krupashankar

However, the challenge for us was that partially because of operational contract we signed.

— Krupashankar

Q&A — 3 exchanges

Hi Ram, Good Afternoon, I think on the 3PL business, I just had a couple of questions given that Hi Ram, Good Afternoon, I think on the 3PL business, I just had a couple of questions given that the order book what you had mentioned of Rs. 250 crores, which is pending on Rs. 100 crores the order book what you had mentioned of Rs. 250 crores, which is pending on Rs. 100 crores worth which you have one, these are annual worth of these contracts or is it? worth which you have one, these are annual worth of these contracts or is it? Rampraveen Swaminathan: These are annual contract volumes. So, obv

Krupashankar

And there was one clarification and on the white space of 1.5 million square feet, what is the And there was one clarification and on the white space of 1.5 million square feet, what is the thought process over there Ram? How do you see the reduction coming in? Or what would be thought process over there Ram? How do you see the reduction coming in? Or what would be the average level of white spaces that would continue to remain given the churn or if at all the average level of white spaces that would continue to remain given the churn or if at all there are any churn customer base? What was yo

Hi Sir, Good Evening.Thanks for the elaborated discussion on the Express business. My question Hi Sir, Good Evening.Thanks for the elaborated discussion on the Express business. My question is just related to that only. So, what we also understand is that even January has been pretty is just related to that only. So, what we also understand is that even January has been pretty soft and players have been queuing up to gather volumes and even the price hikes, which are soft and players have been queuing up to gather volumes and even the price hikes, which are proposed by some players like GATI e

Alok Deora

Just whatever the orders which you have lost, I understand there is a new order inflow also, Just whatever the orders which you have lost, I understand there is a new order inflow also, but you have lost some orders, that is why it is kind of a flattish Q-o-Q so whatever you have but you have lost some orders, that is why it is kind of a flattish Q-o-Q, so whatever you have lost is not really a onetime thing, right? It is like the industry is competitive, so we kind of lost lost is not really a onetime thing, right? It is like the industry is competitive, so we kind of lost the volume side, ri

Hi Sir, thanks for the opportunity, Sir, I just wanted to check that we are having around Rs. 90 Hi Sir, thanks for the opportunity, Sir, I just wanted to check that we are having around Rs. 90 Cr of revenue from the Express segment. Let us assume that we reach to or we grow this Cr of revenue from the Express segment. Let us assume that we reach to or we grow this revenue by Rs. 30-Rs. 40 Cr, what kind of additional margin, be it gross margin or EBITDA margin revenue by Rs. 30-Rs. 40 Cr, what kind of additional margin, be it gross margin or EBITDA margin that we can make from the additional R

Jainam Shah

Sir, just wanted to check, we were doing like Rs. 30 or Rs. 40 Cr kind of a run rate on our Express Sir, just wanted to check, we were doing like Rs. 30 or Rs. 40 Cr kind of a run rate on our Express segment before the acquisition of Rivigo, this number is right? segment before the acquisition of Rivigo, this number is right? Rampraveen Swaminathan: No, it is not. I think it depends on quarter to quarter, but at that time I think we probably Rampraveen Swaminathan: No, it is not. I think it depends on quarter to quarter, but at that time I think we probably peaked it on Rs. 26-Rs. 27 crores on

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Speaking time

Moderator

Jainam Shah

Krupashankar

Alok Deora

Mandar Chavan

Moving on to consumer durables

Opening remarks

Mandar Chavan

Thank you. Good evening everyone. Thank you for joining us on Mahindra Logistics Limited Q3 Thank you. Good evening everyone. Thank you for joining us on Mahindra Logistics Limited Q3 & 9MF25 Earnings Conference Call. & 9M F25 Earnings Conference Call. We have with us, Mr. Rampraveen Swaminathan — Managing Director and CEO; Mr. Saurabh We have with us, Mr. Rampraveen Swaminathan – Managing Director and CEO; Mr. Saurabh Taneja - CFO and the Senior Management Team. Taneja - CFO and the Senior Management Team. I hope everyone had a chance to view our “Financial Results and Investor Presentation”, which I hope everyone had a chance to view our "Financial Results and Investor Presentation", which were recently posted on the Company’s Website and Stock Exchanges. We will begin the call were recently posted on the Company's Website and Stock Exchanges. We will begin the call with the opening remarks from Management followed by an open forum for questions and with the opening remarks from Mana

Moving on to consumer durables

The fan industry has stabilized post-implementation of the BEE Norms and experienced The fan industry has stabilized post-implementation of the BEE Norms and experienced increasing premiumization in both urban and Tier-1 towns, driven by the growing adoption of increasing premiumization in both urban and Tier-1 towns, driven by the growing adoption of BLDC fans. BLDC fans. The room air conditioner industry posted robust growth during the first half of FY25 continuing The room air conditioner industry posted robust growth during the first half of FY25 continuing the momentum from the previous year. Uninterrupted seasonal demand and soaring the momentum from the previous year. Uninterrupted seasonal demand and soaring temperature led to record demand for cooling products. With the summer season approaching, temperature led to record demand for cooling products. With the summer season approaching, inventory buildup is expected to commence soon to meet the anticipated demand. inventory bui

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Mahindra Logistics Limited

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