Mahindra Logistics reports FY24 revenue of Rs 5,506cr amid expansion efforts

Mahindra Logistics Ltd. (MLL), a leading provider of integrated logistics and mobility solutions in India, has released its audited consolidated financial results for the fiscal year ending March 31, 2024. The company announced a 7% year-over-year increase in revenue, reaching Rs. 5,506 crores for FY24, up from Rs. 5,128 crores in FY23.

Mahindra Logistics Financial Highlights and Operational Achievements

The detailed financial performance for FY24 shows varied results across different metrics:

– Standalone Revenue: Mahindra Logistics reported an increase in standalone revenue to Rs. 4,530 crores, up from Rs. 4,459 crores in the previous fiscal year.

– Consolidated Profitability: Despite the revenue growth, MLL experienced a downturn in profitability, with a consolidated profit after tax (PAT) loss of Rs. 54.7 crores, a shift from a profit of Rs. 26.3 crores in FY23.

– Earnings Per Share (EPS): The diluted EPS also reflected this decline, falling to Rs. (-7.60) from Rs. 3.64.

Quarterly Performance Insight

The fourth quarter of FY24 particularly highlighted some challenges and improvements:

– Q4 Revenue: Mahindra Logistics revenue for the quarter was Rs. 1,451 crores compared to Rs. 1,273 crores in Q4 FY23.

– Q4 Profitability: The quarter saw a PAT loss of Rs. 12.9 crores, a decrease from a minor loss of Rs. 0.8 crores in the corresponding quarter of the previous year.

Strategic Developments and Market Expansion

During FY24, Mahindra Logistics focused on expanding its 3PL Supply Chain services, which grew by 14% in Q4 FY23 on a year-over-year basis, driven by sectors such as automotive, engineering, and consumer goods. The company also reported significant progress in its Freight Forwarding and Express businesses, with improvements in volume and network optimization contributing positively to the financial outcomes.

MLL’s strategic acquisition moves included completing the second tranche of share purchase in Whizzard/Zip Zap Logistics, enhancing its stake to 60%. This acquisition is aimed at bolstering MLL’s capabilities in last-mile delivery and micro-fulfillment, complementing its existing business operations and supporting broader market penetration.

Management’s Perspective

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd., reflected on the year’s performance, stating, “The quarter gone by was marked by an increasing volume recovery and growth as we saw positive momentum across our businesses, with strong growth in 3PL and Mobility segments. Our B2B express business has started seeing the benefits of cost optimization, as we continued to improve operating margins & EBITDA.”

Outlook and Future Directions

Looking ahead, Mahindra Logistics is committed to driving value in logistics solutions by integrating services across India and leveraging technology, process improvements, and human capital. The focus remains on enhancing operational efficiencies and expanding the range of services to include more comprehensive last-mile delivery options.