Mahindra Logistics Q2 Results: Profit Declines 54%, Revenue Up by 11.5%

Mahindra Logistics Ltd. announced its Q2 results for the quarter ending September 2024 on Monday, 21 October 2024. The company reported a 54% decrease in standalone Profit After Tax (PAT), amounting to ₹8.5 crore, down from ₹18.6 crore in the same quarter last year. Despite this decline, the company's revenue during the quarter rose by 9% to ₹1,236 crore compared to ₹1,136 crore in the same quarter last year. Total revenue for Q2 FY25 showed a robust year-on-year growth of 11.5%.

Quick Insights:

• Net Profit (PAT): ₹8.5 crore, decreased by 54% compared to Q2 FY24.
• Revenue: ₹1,236 crore, up by 9% YoY. 
• Segment Performance: The freight forwarding business recorded a strong YoY revenue growth of 65%, driven by improved pricing in ocean freight.
• Management’s Take: Strong growth in 3PL contract logistics, cross border and last mile delivery segments driven by account additions, new offerings and a stable cross border pricing environment. Outlook remains positive.
• Stock Reaction: Mahindra Logistics shares opened at ₹498.10 and reached a day low of ₹468.90, representing a decline of 4.30% from the previous closing price.

Also check List of Mahindra & Mahindra Group Stocks

Management Commentary

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, stated, "During the quarter, we experienced strong revenue performance with a year-on-year growth of 11.5%. Our 3PL contract logistics, cross-border, and last-mile delivery segments registered strong growth driven by account additions, new offerings and a stable cross border pricing environment.”

He also stated that with the upcoming peak in Q3, capacity and resources in contract logistics and last mile delivery were expanded, which had a seasonal impact on operating earnings in the quarter. He added, “A soft demand environment and operating conditions impacted the express business. We believe H2 will be stronger driven by the festive peak and impact of margin improvement programs across all the businesses.”

Stock Market Reaction

Mahindra Logistics shares opened at ₹498.10 and touched the day low of ₹468.90 on 22 October 2024. This reflected a fall of 4.30% from the previous close. The quarterly results came after the market closed on 21 October 2024. This fall could be attributed to the Q2 results announcement. 

About Mahindra Logistics 

Mahindra Logistics is a third party logistics service provider. The company stated that it continues to focus on capacity expansion and investments in the eastern and northeastern regions, along with enhancing warehouses, delivery stations and express logistics. The company anticipates these investments will positively impact growth later this year.