Mahindra Logistics Ltd. · NSE:MAHLOG
Mahindra Logistics — Q2 & H1 FY19 Earnings Presentation
41 slides from Mahindra Logistics's earnings presentation, Nov 1, 2018
Slide 1: Exchange filing cover letter
Maltindra Logistics Limited Mahindra Unit No. 3 Az 4, 71, Floor, Techniplex 2, Tecluriiplex Comple%c„ 'Veer 5avarkar Marg. LOGISTICS Goregaon (West). Murnbai = 400 062 Tel : + 91 22 23715300 Date: 1 November 2018 Toil Fret : 1800 238 6787 Mahindralogistics.corn To, Regd Office BSE Limited (Security
Slide 2: Mahindra Logistics Ltd Q2 & H1 FY19 Earnings Presentation
Mahindra Logistics Ltd Q2 & H1 FY19 Earnings Presentation November 2018
Slide 3: Disclaimer
mahindra LOGISTICS Disclaimer Certain statements and opinions with respect to the anticipated future performance of Mahindra Logistics in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not pr
Slide 4: H1 FY2019 Results Overview
H1 FY2019 Results Overview 3
Slide 5: Key Highlights – H1 FY2019 vs H1 FY2018
Mahindra LOGISTICS Key Highlights – H1 FY2019 vs H1 FY2018 1856 9.9% 79 40.0% Revenue from operations EBITDA 627 3.8% 67 47.9% Revenue from Non Mahindra SCM PBT Segment 188 I 8.7% 43 50.1% Revenue from PTS Segment PAT Note: 1. Consolidated financials 2. All figures in INR crore, unless stated otherw
Slide 6: Management Comment
Mahindra LOGISTICS Management Comment Commenting on the H1 FY2019 performance, Mr. Pirojshaw Sarkari (Phil), CEO at Mahindra Logistics Ltd. said: ▪ “In the first half of the financial year, our profitability has improved by 50% due to our focus on optimization of operations leading to expansion of g
Slide 7: Consolidated Summarized P&L Statement
mahindra LOGISTICS Consolidated Summarized P&L Statement Change Change Particular Q2 FY19 Q2 FY18 H1 FY 2019 H1 FY 2018 (% ) (% ) Revenue from operations 927.4 835.9 10.9% 1,855.5 1,688.4 9.9% Other Income 1.3 1.6 -20.4% 4.2 3.6 15.6% Total Income 928.6 837.5 10.9% 1,859.7 1,692.0 9.9% Gross Margin
Slide 8: Consolidated Balance Sheet Statement
Mahindra Consolidated Balance Sheet Statement LOGISTICS 30th Sept. 2018 31st Mar. 2018 30th Sept. 2017 Particular Una udited Audited Una udited Non Current Assets a) Property, Plant and Equipment / Intangible Assets & CWIP incl of 66.4 66.4 71.5 Goodwill b) Other Assets 133.6 135.5 101.3 SUB-TOTAL 2
Slide 9: H1 FY19 Financial highlights
mahindra LOGISTICS H1 FY19 Financial highlights Revenue from operations grows to Rs. 1856 crore, up 9.9% Y-o-Y • M&M revenues in SCM business increases by 14.13% • Non-M&M revenues in SCM business increases by 3.84% o Revenue from warehousing & other valued-added services increases by 26% EBITDA at
Slide 10: Segmental Performance – SCM
mahindra LOGISTICS Segmental Performance – SCM Revenue Gross Margin GM (%) 7.50% 7.81% 7.40% Mb. 8.16% 1,667 136 1,515 112 749 829 65 56 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q2 FY19 1 H1 FY18 H1 FY19 Growth 10.7% 10.0% Growth 15.31% 21.29% Mahindra Revenue Non-Mahindra Revenue 603 627 1,040 912 1
Slide 11: Non-Mahindra SCM Revenue Analysis
mahindra LOGISTICS Non-Mahindra SCM Revenue Analysis Transportation Warehouse & other value- added segments 162 473 465 26% 130 85 237 225 68 74% Activity-wise Breakup H1 FY19 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Growth -4.87% -2.08% Growth 24.00% 25.70% Auto Non-Auto 165
Slide 12: Segmental Performance – PTS
mahindra LOGISTICS Segmental Performance – PTS Revenue Gross Margin (GM) 173 188 GM (%) 8.20% r10.98% 9.12% 10.81% 20 16 I 98 87 11 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 7 Q2 FY18 Q2 FY19 H1 FY18 1 H1 FY19 Growth 13.06% 8.73% Growth 51.38% • 28.84% Note: 1. Consolidated financials 2. All figures in INR cr
Slide 13: Logistics industry continues as a focus area for the government
Industry Update Logistics industry continues as a focus area for the government Govt emphasis on logistics Trial run completed on DFC Eastern and Western Dedicated Freight Corridor (Km) Western Corridor 1499 (Krn) Vadodra -Rem ri 93D 1̀4 Eastern Corridor 1839 Vadodra -1NPT 426 E iana Ludhiana-6 hurj
Slide 14: MLL is leading standardisation efforts through CII and the Department of Logistics
Industry Update MLL is leading standardisation efforts through CII and the Department of Logistics i CII is driving 3 initiatives for improving the logistics sector Research on Logistics Standardization in Logistics Image of Logistics Cost Sector Sector The standardization sub-group is headed by MLL
Slide 15: Multiproduct, Multiuser warehouses
Operational Highlights Multiproduct, Multiuser warehouses i Tauru Road, MIDC Chakan, National Capital Region Pune Region 14
Slide 16: Investments made for future growth – ShipX and Lords
Operational Highlights Investments made for future growth – ShipX and Lords Transtech Logistics for Lords Freight - building Transport Management Solution international freight forwarding - ShipX eras a subsidiary of TmhincIrm LOGISTICS MLL has made an acquisition of a strategic Approval for increas
Slide 17: Logiquest - white paper contest
Operational Highlights i Logiquest - white paper contest, got good response from campuses Season 3 of Logiquest includes 4 cities and 7 campuses : NMIMS, TISS,SIBM Pune, NITIE,JBIMS, IIM – Raipur and Udaipur. 170 white papers submitted by students. Evaluation process is underway, with a grand finale
Slide 18: MLL enhanced its presence in the media as a thought leader
Operational Highlights MLL enhanced its presence in the media as a thought leader in the industry Mahindra Logistics' 41 net up 61% Mahindra Logistics to invest up to Rs 7 crore I.T1 I Pug Ca, 2G1.8, 0E.24 Ph11ST in ShipX THE HINDU Pll Aug 30, 2111E1, 01.52 PM IST mir 0 Mahindra Introduces eVerito E
Slide 19: Driver welfare and trainings being conducted at various locations
Operational Highlights i Driver welfare and trainings being conducted at various locations Driver Training under the Pradhan Mantri Kaushal Vikas Yojana (3200+ till Sept 30th) Other Driver Welfare activities 18
Slide 20: Driver's Day celebration with scholarship distribution
Operational Highlights i Driver’s Day celebration with scholarship distribution to drivers children Drivers’ Day celebrations 19
Slide 21: Road Safety campaign - #BuckleUp
Operational Highlights Road Safety campaign - #BuckleUp. Making safety a way of life for employees and customers 20
Slide 22: Village adoption and community development
Operational Highlights MLL living out its purpose through village adoption and community development 16 ...r. 1114% 4 7 illis .. . t .. 'Vg! . 40lit i • k., • .I. ▪ Inauguration of Safe Drinking Water supply project, benefiting around 200 villages residents ▪ Tree plantations & Seed distribution ▪ B
Slide 23: MLL received appreciation by customers
Operational Highlights i MLL received appreciation by customers Our customer JSW has felicitated MLL for long association of valued partnership 22
Slide 24: Awards received by Nagpur team for safety and quality
Operational Highlights i Awards received by Nagpur team for prioritizing safety and quality Nagpur team won the Gold award for ‘Best Safety Practices’ at the Glow Care Awards, New Delhi Nagpur team also won a Gold medal at the Chapter Convention on Quality Concepts - Bhailai Chapter 23
Slide 25: MLL received the ESOPs award for village adoption and welfare programs
Operational Highlights i MLL received the ESOPs award for village adoption and welfare programs MLL won two awards for Village Adoption & Driver Welfare at the Mahindra ESOPs Awards 2018 24
Slide 26: Company Overview
Company Overview 25
Slide 27: One of India's largest 3PLs
One of India’s largest 3PLs INR 34+ Bn revenue(1) 15,800+ work force across India(2) 475+ client and operating locations Divisions: Supply Chain Management People Transport Solutions Subsidiaries: Lords Freight (India) Pvt. Ltd. 2x2 Logistics Pvt. Ltd. (1). Revenue for FY18 MLL Bhiwandi warehouse 26
Slide 28: 3PL: strong growth outlook
mahindra LOGISTICS 3PL (Third party logistics): strong growth outlook ....... I. ••• 1110 .iir 411., I.'. .... ..• Growth Trajectory Ep Total logistics INR trillion 'I F 3 PL Business INR billion Huge growth opportunity GpGik-"*I°9.2 in 3PL – 570- 580 2020 expected to 3 PL GPGikYr ° 6.4 grow at Busi
Slide 29: GST to act as a major driver for future growth and consolidation
mahindra LOGISTICS GST to act as a major driver for future growth and consolidation ▪ Seamless inter-state movement of goods MLL: Ready for GST No Borders i ▪ Redesign of supply chain – efficiencies instead of tax ▪ GST ready multi- user warehousing in certain key De-Bottlenecking ▪ Removal of check
Slide 30: MLL: Differentiated Play: 3PL Offerings
mahindra LOGISTICS MLL: Differentiated Play: 3PL Offerings -, One stop shop for logistics end-users: MLL pursues a unique ‘asset-light’ business model to provide customized logistics solutions across a diverse set of industries • 3 PL 2 PL • Asset-light / Low capital outlay Asset-heavy / Capital int
Slide 31: Supply Chain Management (SCM)
mahindra LOGISTICS Supply Chain Management (SCM) • • INTEGRATED Supply chain Freight Transportation MLL Network – SERVICE consulting forwarding surface express PROVIDER services IMMIE MN\ IE Warehousing - `11\ A" In-factory stores VAS (e.g, Packing, inventory & order & line feed Distribution labelli
Slide 32: People Transportation Solutions (PTS)
mahindra LOGISTICS People Transportation Solutions (PTS) One of India’s largest organized asset light player Offers technology enabled people transportation solutions and services to over 120 domestic & multinational corporates i • i • 1 1 1 1 1 1 I. 12 Cities • 1 1 1 120+ I... Clients • •• ( 500+ I
Slide 33: Asset light business: formidable ecosystem of business partners
mahindra LOGISTICS Asset light business: formidable ecosystem of business partners Business partners network Business Partners Unique strengths that have enabled ~500 nos. MLL to create a wide network of Vehicles PTS ~1,000 nos. business partners: SCM ▪ Genesis of the exceptional business model: Lar
Slide 34: MLL's competitive advantage: 'Asset-Light' model
mahindra LOGISTICS MLL’s competitive advantage: ‘Asset-Light’ model • / ▪ High Return on Equity MLL Mahindra LOGISTICS ▪ Low Capital Expenditure requirements ▪ Lower Working Capital requirements I •, / ... MLL Asset Light model benefits both MLL and customers / ▪ Scalable solutions – both upwards an
Slide 35: Diverse industries and clients
mahindra LOGISTICS Diverse industries and clients Diversified Logistics Company ▪ SCM business spans Automotive, Engineering, Consumer, Bulk, E-commerce, and Pharma sectors ▪ 66% of non-Mahindra business came from top 20 customers in Fiscal 2018 – Given the nature of business, engagement originates
Slide 36: Diverse industries: track record of leveraging existing skills
mahindra LOGISTICS Diverse industries: track record of leveraging existing skills to enter fast growing verticals Strong focus to equally diversify across industry verticals Strategy of cross-deployment of skills – entry and expansion into existing and new areas such as Auto engineering, consumer &
Slide 37: Technology and control tower is a key differentiator
mahindra LOGISTICS Technology and control tower is a key differentiator What does it do? ConNgurable Geo Fencing Oep-ragOng for mita' pcids tr-03 !al.& ki Location Clustering ysirs waitL 9 h`..F.sitkiarr9r1 Ce areaArsa Hae Hig.hag LE.ad End to end truck track and D.:melons trace ▪ Time management Tr
Slide 38: Corporate Social Responsibility
mahindra LOGISTICS Corporate Social Responsibility Driver Welfare Driver welfare is a major focus area for us. Activities include: • Developing restrooms and other infrastructure facilities for drivers along highways and at major loading or unloading points • Training on safe driving (e.g. seat belt
Slide 39: Thank You
Thank You 38
Slide 40: About Us
Mahindra LOGISTICS About Us About Mahindra Logistics For further information please contact: Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 Yogesh Patel (CFO & Compliance Officer) billion private equity division of the USD 20.7 billion Mahindra Group. MLL is
Slide 41: Mahindra Logistics
Mahindra LOGISTICS THE CORE OF YOUR BUSINESS 40
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