Mahindra Logistics Ltd (NSE:MAHLOG) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...

• Revenue: INR 1,521 crores, up 11.5% year-on-year.

• Warehousing Revenue: INR 306 crores, up 19% from the previous year.

• Gross Margin: 9.17%, slightly down from 9.25% last year.

• EBITDA: INR 66 crores, up from INR 54 crores last year.

• Net Loss: INR 10.8 crores, an improvement over the same quarter last year.

• 3PL Contract Logistics Growth: 7% year-on-year.

• Freight Forwarding Revenue: INR 86.8 crores, up 16% from last year.

• Express Business Revenue: INR 91.7 crores, with a loss of INR 24.2 crores.

• Mobility Business Revenue: INR 81.1 crores, with PAT of INR 1.6 crores, up 72% from last year.

• Last Mile Delivery Revenue: INR 151 crores, up 46% from the previous year.

• Automotive Revenue Contribution: 57% of total revenue.

• Non-Automotive Revenue Contribution: 43% of total revenue.

• Warning! GuruFocus has detected 8 Warning Signs with NSE:MAHLOG.

Release Date: October 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Mahindra Logistics Ltd (NSE:MAHLOG) reported a revenue increase of 11.5% year-on-year for Q2 FY25, indicating strong growth despite challenging market conditions.

• The 3PL contract logistics business grew by 7% year-on-year, driven by new site volume growth and healthy order intake.

• The company expanded its warehousing network, with operations commencing in new locations like Guwahati and Kolkata, contributing to a total warehousing space of 21.6 million square feet.

• Freight forwarding segment showed recovery with growth in tonnage and a favorable pricing environment, particularly in ocean freight.

• The mobility business reported a 72% increase in PAT year-on-year, reflecting improved profitability.

• The express business faced a challenging quarter with a 7% to 8% decline in volumes from existing customers, impacting overall performance.

• Mahindra Logistics Ltd (NSE:MAHLOG) reported a consolidated loss of INR10.8 crores for the quarter, indicating financial challenges.

• The company experienced unabsorbed white space in its warehousing operations, leading to a pretax impact of INR7.5 crores to INR8 crores.

• Rivigo, a subsidiary, continues to experience cash burn, with reported losses of INR24.2 crores for the quarter.

• The automotive sector showed mixed trends, with commercial vehicle sales remaining subdued, impacting logistics demand.

Q: Can you explain the unabsorbed costs in the contract logistics business this quarter, and what is the cash burn at Rivigo? A: The unabsorbed white space in contract logistics is approximately 1.1 million square feet, costing around INR7.5 crores to INR8 crores per quarter. Additionally, seasonal hiring added INR3 crores to INR4 crores in costs. Rivigo's cash burn is around INR21 crores, with a reported PAT loss of INR24 crores. We have capitalized the company with an additional INR50 crores of equity and remain committed to funding it.