Mahindra Logistics

Net up 29% on good operating show

May 03, 2021 11:05 IST capital market

Consolidated net sales (including other operating income) of Mahindra Logistics has increased 20% to Rs 974 crore.  Sales of Supply Chain Management segment has gone up 28% to Rs 938.31 crore (accounting for 96.34% of total sales).  Sales of Enterprise Mobility Service segment fell 56% to Rs 35.69 crore (accounting for 3.66% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 11.02% to Rs 71.44 crore.  PBIT of Supply Chain Management segment rose 22% to Rs 69.51 crore (accounting for 97.30% of total PBIT).  PBIT of Enterprise Mobility Service segment fell 73% to Rs 1.93 crore (accounting for 2.70% of total PBIT).  

PBIT margin of Supply Chain Management segment fell from 7.8% to 7.4%.  PBIT margin of Enterprise Mobility Service segment fell from 8.9% to 5.4%.  Overall PBIT margin fell from 7.9% to 7.3%.  

Operating profit margin (OPM) was unchanged/flat at 4.7%, leading to 21% rise in operating profit to Rs 46.16 crore.  Employee cost decreased from 9.31% to 7.28%.   Other expenses rose from 86.01% to 87.98%.   Other income rose 50% to Rs 4.65 crore.  Provision for interest fell 1% to Rs 5.6 crore.  Provision for depreciation rose 18% to Rs 26.08 crore.  Profit before tax grew 42% to Rs 19.13 crore. 

EO expense was Rs 2.75 crore compared to nil in the corresponding previous period. Thus the PBT after EO was up 22% to Rs 16.38 crore.  Provision for tax was expense of Rs 3.97 crore, a rise of 9%.   Thus the PAT was up 27% to Rs 12.41 crore. The share of profit from associate was Rs 0.05 crore compared to a loss of Rs 0.17 crore in the corresponding previous period. Minority interest decreased 20% to Rs -0.12 crore.  Net profit attributable to owners of the company increased 29% to Rs 12.58 crore.  

Yearly performance

Net sales (including other operating income) has declined 6% to Rs 3263.72 crore.  Sales of Supply Chain Management segment has gone up 1% to Rs 3,144.64 crore (accounting for 96.35% of total sales).  Sales of Enterprise Mobility Service segment fell 68% to Rs 119.08 crore (accounting for 3.65% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 16% to Rs 240.22 crore.  PBIT of Supply Chain Management segment fell 6% to Rs 237.15 crore (accounting for 98.72% of total PBIT).  PBIT of Enterprise Mobility Service segment fell 91% to Rs 3.07 crore (accounting for 1.28% of total PBIT).  

PBIT margin of Supply Chain Management segment fell from 8.1% to 7.5%.  PBIT margin of Enterprise Mobility Service segment fell from 9.2% to 2.6%.  Overall PBIT margin fell from 8.26% to 7.36%.  

Operating profit margin has slumped from 4.6% to 4.1%, leading to 15% decline in operating profit to Rs 134.22 crore.  Employee cost increased from 8.83% to 9.08%.   Other expenses rose from 86.61% to 86.80%.   

Other income rose 25% to Rs 17.47 crore.  Provision for interest rose 14% to Rs 20.09 crore. Provision for depreciation rose 22.09% to Rs 89.65 crore.  Thus the PBT before EO was down by 48% to Rs 41.95 crore. EO Expense was RS 2.75 crore compared to nil in the corresponding previous period. Thus the PBT after EO was down by 52% to Rs 39.20 crore.

Provision for tax was expense of Rs 10.02 crore, a fall of 61% from Rs 25.74 crore in corresponding previous period.  Effective tax rate was 23.9% compared to 31.7%. Thus the PAT was down 47% to Rs 29.18 crore. Share of profit/loss was 36% higher at Rs -0.39 crore.Minority interest decreased 332.14% to Rs -1.21 crore.  Net profit attributable to owners of the company decreased 45.57% to Rs 30.00 crore.  

Equity capital increased from Rs 71.54 crore as of 31 March 2020 to Rs 71.67 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 58.34% as of 31 March 2021 ,compared to 58.45% as of 31 March 2020 .  

Other developments

During the year ended March 31, 2021, the group has recognised an aggregate impairment loss of Rs. 2.75 crore (March 31, 2020: Rs. Nil), in statement of profit and loss, on investment in joint venture considering the performance of the company and its future projections after considering the groups share of loss in joint venture.

During the quarter ended 31st March, 2021 the Company has allotted 10,153 equity shares of Rs. 10/- each fully paid-up, on exercise of Restricted Stock Units (RSUs) by eligible employees/ex-employee under the Mahindra Logistics Employee Restricted Stock Unit Plan 2018.

Management comment

RampraveenSwaminathan - Managing Director and CEO of Mahindra Logistics said, We delivered continuing growth in Q4, FY20-21, driven by market recovery and execution of our strategy of providing customized, integrated solutions to our customers. Our revenue growth was driven by E-commerce, Automotive, Consumer and Freight Forwarding businesses. Strong momentum in Supply Chain has offset the continuing softness in the Enterprise Mobility segment, which remains impacted by the Covid-19 pandemic. We continue to expand and grow our service lines. During the quarter, Edel, our 100% electric powered vehicle solutions, commenced operations in last mile delivery services. We are again witnessing a significant growth in the spread of the Covid-19 pandemic. In this challenging environment, we are focused on safety & health of our employees and partners. We are also partnering with local authorities and supporting Covid-19 relief activities across multiple regions. I am happy to share that the Board of Directors have recommended an increased dividend of 25% (Rs. 2.50 per share) for FY21.

Mahindra Logistics : Consolidated Results

2103 (3) 2003 (3) Var. (%) 2103 (12) 2003 (12) Var. (%)
Sales 974.00 811.76 20 3263.72 3471.14 -6
OPM (%) 4.7 4.7 4.1 4.6
OP 46.16 38.01 21 134.22 158.27 -15
Other inc. 4.65 3.11 50 17.47 13.98 25
PBIDT 50.81 41.12 24 151.69 172.25 -12
Interest 5.60 5.66 -1 20.09 17.63 14
PBDT 45.21 35.46 27 131.60 154.62 -15
Dep. 26.08 22.03 18 89.65 73.43 22
PBT before EO 19.13 13.43 42 41.95 81.19 -48
EO Exp 2.75 0.00 2.75 0.00
PBT after EO 16.38 13.43 22 39.20 81.19 -52
Taxation 3.97 3.63 9 10.02 25.74 -61
PAT 12.41 9.80 27 29.18 55.45 -47
Share of Profit/(Loss) from Associates 0.05 -0.17 -129 -0.39 -0.61 -36
Minority Interest -0.12 -0.10 20 -1.21 -0.28 LP
Net profit 12.58 9.73 29 30.00 55.12 -46
EPS (Rs)* # # 4.5 7.7
* EPS is on current equity of Rs 71.67 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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