Mahindra Logistics stock tanks 10% after Q3 PAT drops 72% yoy to Rs5cr

28 Jan 2022 , 09:28 AM

Mahindra Logistics Ltd. (MLL), one of India’s large 3PL solutions providers, on Thursday announced its consolidated financial results for the quarter that ended on December 31, 2021. The company’s Profit After Tax (PAT) declined 72% yoy to Rs5cr in Q3FY22 compared to Rs18cr in Q3FY21. Profit Before Tax (PBT) was Rs7cr as compared to Rs25cr in Q3 last year.

The company’s revenue however increased 7% yoy to Rs1118cr as compared to Rs.047cr in Q3 last year. EBITDA stood at Rs50cr as compared to Rs55cr in Q3 last year. EPS (Diluted) at Rs0.79 as compared to Rs2.53 last year.

During 9MFY22, PAT increased 44% yoy to Rs23cr compared to Rs16cr in 9M last year. Revenue rose to Rs3010cr as compared to Rs2290cr in 9M last year.  EBITDA Rs149cr as compared to Rs101cr in 9M last year. PBT Rs32cr as compared to Rs23cr in 9M last year. EPS (Diluted) Rs3.44 as compared to Rs2.42 last year.

At around 9.32 am, Mahindra Logistics Ltd was trading at Rs594 per piece down by Rs65.5 or 9.93% from its previous closing of Rs659.50 per piece on the BSE. The scrip opened at Rs641.70 and has touched a high and low of Rs642.05 and Rs589.40 respectively.

Key Highlights

• Revenue from Warehousing services & Solutions in the quarter grew 35% over the same period last year underlining the focus on solutions-led approach to customer’s requirements.
• Growth in Supply Chain segment during the quarter at 6% YoY, contributed by increased business volumes across all key end markets except Auto.
• “EDel”: Electric last mile delivery solution completed a year and has covered 4Mn KMs during this period, driving the sustainability agenda for us and our customers equally. We continue to see a strong demand environment with an opportunity for continuing electric fleet deployment.
• Enterprise Mobility segment delivered 16% year on year growth despite the continuing softness in volumes due to extended work from home situation.

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, “The quarter gone by was a challenging one. Demand from the auto sector continued to be impacted due to semi-conductor supplies; and the festive season too saw moderate growth. We continued to deliver strong revenue performance, especially across Consumer, Pharma and International freight forwarding. Our margins saw pressure due to seasonal manpower costs, lower than expected demand and start up costs for new projects. The focus continues to be on optimizing operating costs. We remain focused on delivering technology driven, integrated solutions for enterprise customers.”