Mahindra Logistics Ltd's Q2FY19 consolidated net profit rises 38.13% yoy to Rs19.09cr : Misses Estimates

The company’s consolidated revenue stood at Rs927.35cr, up 10.94% yoy but down 0.09% qoq.

Nov 01, 2018 09:11 IST India Infoline Research Team

Mahindra Logistics Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 927.35 10.9
EBITDA 33.96 30.6
EBITDA Margin (%) 3.7 55
Net Profit (adjusted) 19.09 38.1
***EBITDA margin change is bps
Mahindra Logistics revenue in Q2FY19 grew by 10.9% yoy to Rs927.4cr. EBITDA grew by 30.6% yoy to Rs34cr in Q2FY19 vs. Rs26cr in Q2FY18. EBITDA margins in Q2FY19 stood at 3.7% vs. 4.4% in Q1FY19 and 3.1% in Q2FY18. PAT grew by 38.1% yoy to Rs19.1cr in Q2FY19. EBITDA margin during the quarter was impacted due to increase in the other expenses. Contribution of the Non Mahindra business in SCM also came down from 37.8% in Q1FY19 to 37.4% in Q2FY19.

Other highlights
  • Freight and related charges grew by 10% yoy to Rs721.2cr.
  • Employee cost and other expenses grew by 12.5% yoy and 9.3% yoy respectively in Q2FY19.
  • Supply chain management (SCM) revenue grew by 10.7% yoy to Rs829.2cr while PTS (People Transportation Solutions) revenue grew by 13.1% yoy to Rs98.1cr in Q2FY19.
  • SCM contributed 89.4% of revenue, while PTS contributed 10.6% of revenue in Q2FY19.
  • Within the SCM business, Mahindra contributed 62.6% of the revenue, rest was contributed by non Mahindra clients.
  • Mahindra business in SCM grew by 16.9% yoy to Rs519cr while non Mahindra business in SCM grew by 1.6% to Rs310cr in Q2FY19.
  • Company has signed an agreement to acquire strategic stake in technology startup Transtech Logistics (ShipX) to accelerate the digitization journey.
  • Company remains optimistic on the growth potential of the logistics sector and continues to work with the government departments, industry platforms and other logistics players.

Technical View:

Mahindra Logistics Ltd is currently trading at Rs. 538.65, down by 10.75 points or 1.96% from its previous closing of Rs. 549.40 on the BSE.
The scrip opened at Rs. 550 and has touched a high and low of Rs. 554.50 and Rs. 532.70 respectively. So far 43,697 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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