Mahindra Logistics (MAHLOG) Q4 18/19 earnings summary

Executive summary

• Consolidated revenue rose 12.74% YoY to ₹3,851.34 crore; PBT increased 30.69% to ₹133.44 crore and PAT rose 32.76% to ₹86.65 crore.

• Growth came from both SCM and PTS, with non-auto SCM revenue surpassing ₹1,000 crore and free cash flow improving to ₹39 crore positive from ₹32 crore negative in FY18.

• Strategy centers on customer and sector diversification, modern multi-user warehousing, technology and analytics, and the ₹6,000 crore revenue vision for 2021.

Financial highlights

• Consolidated EBITDA was ₹158.87 crore, up 26.48% YoY; consolidated PAT was ₹86.65 crore versus ₹65.27 crore in FY18.

• Adjusted PBT, excluding RSU/ESOP charges, was ₹139 crore; PBT/revenue ratio increased 57 bps to 3.61%.

• Consolidated revenue from operations was ₹3,851.34 crore, up 12.74%; consolidated PBT was ₹133.44 crore versus ₹102.11 crore in FY18.

• Consolidated PAT attributable to owners was ₹85.64 crore; diluted EPS was ₹11.97 versus ₹9.04 in FY18.

• Standalone revenue from operations rose 13.83% to ₹3,665.51 crore; standalone PAT increased 35.78% to ₹84.44 crore.

Outlook and guidance

• Long-term vision: ₹6,000 crore logistics service provider by 2021, built on customized, technology-driven solutions and consistent customer experience.

• Priorities include external-client growth, diversification beyond automotive, expansion of multi-user warehouses, broader services for existing clients, digitization, and margin improvement.

• Planned technology work includes ERP upgrades, enhanced TMS, a Warehouse Management System, PTS platform, business partner portal, and advanced HR system.

• Electric vehicle deployment in PTS across Bangalore, Delhi NCR and Kerala was to remain a focus in FY20.