Mahindra Logistics Reports Resilient Growth Amid Challenges

Mahindra Logistics Ltd. (MLL), a prominent entity in India’s integrated logistics and mobility solutions sector, has reported its unaudited consolidated financial results for the quarter ending June 30, 2024. The company exhibited remarkable resilience amidst challenging market conditions, with a consolidated revenue of INR 1,420 crores, reflecting a robust 10% increase from INR 1,293 crores during the corresponding quarter last year. Despite this commendable revenue growth, MLL faced operational hurdles, reporting an EBITDA of INR 66 crores—slightly down from INR 67 crores year-on-year. Furthermore, the company registered a loss before tax (PBT) of INR 2.5 crores compared to a modest profit of INR 0.6 crores in the previous year, indicating the ongoing challenges in the logistics sector.

On a standalone basis, MLL’s performance showcased solid revenue growth of INR 1,157 crores, up from INR 1,051 crores in Q1 FY24. However, the standalone EBITDA decreased significantly to INR 72 crores from INR 83 crores, with PBT dropping to INR 13.7 crores from INR 31.1 crores, and net profit also declined to INR 10.2 crores compared to INR 23.0 crores in the same period last year. This decline in profitability underscores the need for strategic focus in an increasingly competitive environment. MLL’s contract logistics segment demonstrated resilience with a 9% year-on-year revenue growth, while the freight forwarding business achieved a notable 12% quarter-on-quarter increase, largely attributed to rising inbound ocean cargo demand.

A noteworthy highlight during this quarter was MLL’s continued expansion in the third-party logistics (3PL) sector, now managing over 20 million square feet of warehouse space. The launch of a cutting-edge build-to-suit (BTS) warehouse in Guwahati exemplifies MLL’s commitment to enhancing logistics infrastructure across the country. Furthermore, a joint venture with Seino Holdings Ltd. aims to tap into the growing Japanese automotive market in India, leveraging Seino’s global expertise. A spokesperson for MLL acknowledged the subdued demand environment yet emphasised the strong order bookings in 3PL and cross-border operations, which position the company favourably for future growth.