Mahindra Logistics Reports Revenue Growth of 8% YoY, Net Loss of Rs 9 Crore
The main reason for the loss was the impact of the acquisition of the Rivigo PTL business, which resulted in higher costs and lower margins.
Mumbai- Mahindra Logistics Ltd., an Indian integrated logistics & mobility solutions provider, today announced its unaudited consolidated financial results for the quarter ended on June 30, 2023.
The company's revenue for the quarter grew by 8% year-on-year to Rs. 1,293 crores. However, its net loss for the quarter widened to Rs 9 crores from Rs 13 crores in the same quarter last year.
The main reason for the loss was the impact of the acquisition of the Rivigo PTL business, which resulted in higher costs and lower margins.
Despite the loss, MLL's management is confident of returning to profitability in the coming quarters. They said that the company is focused on integrating the Rivigo PTL business and that they expect the business to become profitable in the next few quarters.
MLL's 3PL Supply Chain services grew by 6% year-on-year, driven by growth in automotive and engineering, consumer and durables. The Freight Forwarding business revenues continued to see pressure due to pricing corrections, but the company's focus on growth with new accounts and select offerings helped drive sequential revenue growth in the business.
The Mobility business continued to see an uptick with 39% year-on-year growth, driven by client acquisition and increasing demand for last-mile delivery services.
Warehouse space under management stood at 19 Million Sq. ft. including all service lines. Current expansions in Chakan, Kolkata, Nasik and Guwahati are on track.
Overall, MLL's financial results for Q1 FY24 were mixed. The company's revenue growth was positive, but its net loss widened due to the impact of the Rivigo PTL acquisition. The management is confident of returning to profitability in the coming quarters, and they are focused on integrating the Rivigo PTL business.
Commenting on the performance, Mr. Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd. said, "In Q1 FY24, we continued focusing on customer growth and expanding margins across integrated logistics & mobility solutions. Despite the slowdown in some end markets, the 3PL, Mobility and Last Mile businesses demonstrated positive traction on order intake and account expansion. Our continued focus on margin improvement resulted in positive traction in 2x2 Logistics, MLL Mobility and ZipZap Logistics. We implemented our integration program for the PTL business acquired from Rivigo. We remain optimistic of positive demand uptick in coming quarters and remain focused on consolidating and leveraging our portfolio."
