Mahindra Logistics (MAHLOG) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue fell 9.87% YoY to ₹3,471.14 crore and PAT fell 36.01% to ₹55.45 crore; EBITDA rose 8.42% to ₹172.25 crore, partly reflecting Ind AS 116.

• Growth in consumer, e-commerce, warehousing and value-added services partly offset automotive weakness and the late-year COVID-19 disruption.

Financial highlights

• Consolidated revenue from operations was ₹3,471.14 crore versus ₹3,851.34 crore; total income was ₹3,485.12 crore versus ₹3,858.97 crore.

• Consolidated EBITDA was ₹172.25 crore, up 8.42% YoY; the increase reflected Ind AS 116 lease accounting, limiting comparability.

• Consolidated PAT was ₹55.45 crore versus ₹86.65 crore; consolidated EPS was ₹7.71 versus ₹12.02.

• Standalone revenue from operations declined 11.04% to ₹3,260.90 crore; standalone PAT fell 34.70% to ₹55.14 crore.

Outlook and guidance

• India’s logistics sector was forecast to grow at 12–13% CAGR from 2020 to 2025; the 3PL market outlook was 17–18% CAGR through FY25.

• Long-term ambition: ₹10,000 crore logistics services provider by FY26; priorities include express logistics, freight forwarding, integrated fulfilment, digitisation and multi-modal solutions.

• EV plans target 30% of the total fleet over the long term, with 1,000 EVs planned by FY22; Alyte targets more on-call and subscription-based mobility services.

• Operations resumed in phases after lockdown, with demand uptick as permissions broadened; COVID-19 was expected to have a significant impact on performance.