MAHINDRA LOGISTICS 2023-24 Annual Report Analysis

Thu, 27 Jun

MAHINDRA LOGISTICS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

MAHINDRA LOGISTICS Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY24 as against 4.9% in FY23.
• Depreciation charges increased by 10.3% and finance costs increased by 32.2% YoY, respectively.
• Other income declined by 0.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.5% in FY23 to 0.9% in FY24.

MAHINDRA LOGISTICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	51,283	55,060	7.4%
Other income	Rs m	221	220	-0.1%
Total Revenues	Rs m	51,504	55,280	7.3%
Gross profit	Rs m	2,536	2,287	-9.8%
Depreciation	Rs m	1,895	2,090	10.3%
Interest	Rs m	516	682	32.2%
Profit before tax	Rs m	345	-264	NA
Tax	Rs m	71	257	260.7%
Profit after tax	Rs m	274	-521	NA
Gross profit margin	%	4.9	4.2
Effective tax rate	%	20.6	-97.3
Net profit margin	%	0.5	-0.9

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

MAHINDRA LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 14 billion as compared to Rs 14 billion in FY23, thereby witnessing an increase of 1.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 0.0%.
• Current assets fell 3% and stood at Rs 13 billion, while fixed assets fell 3% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 25 billion during FY23, thereby witnessing a fall of 3%.

MAHINDRA LOGISTICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,547	4,856	-12.5
Current Liabilities	Rs m	14,280	14,438	1.1
Long-term Debt	Rs m	2,236	2,236	0.0
Total Liabilities	Rs m	25,113	24,319	-3.2
Current assets	Rs m	13,822	13,403	-3.0
Fixed Assets	Rs m	11,292	10,916	-3.3
Total Assets	Rs m	25,113	24,319	-3.2

MAHINDRA LOGISTICS Cash Flow Statement Analysis

• MAHINDRA LOGISTICS 's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 90.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -543 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs -77 million net cash flows seen during FY23.

MAHINDRA LOGISTICS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,194	2,269	90.0%
Cash Flow from Investing Activities	Rs m	-3,100	-543	-
Cash Flow from Financing Activities	Rs m	1,829	-2,761	-
Net Cash Flow	Rs m	-77	-1,018	-

Current Valuations for MAHINDRA LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.2, an decline from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 482.5, stands at -66.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	712.5	764.3
TTM Earnings per share	Rs	3.8	-7.2
Diluted earnings per share	Rs	3.8	-7.2
Price to Cash Flow	x	11.8	18.5
TTM P/E ratio	x	93.0	-66.8
Price / Book Value ratio	x	6.0	6.0
Market Cap	Rs m	33,009	29,072
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for MAHINDRA LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.6x during FY24, from 1.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -10.7% during FY24, from 4.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 5.9% during FY24, from 11.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 0.7% during FY24, from 3.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	0.9
Debtors’ Days	Days	5	5
Interest coverage	x	1.7	0.6
Debt to equity ratio	x	0.4	0.5
Return on assets	%	3.1	0.7
Return on equity	%	4.9	-10.7
Return on capital employed	%	11.1	5.9

To see how MAHINDRA LOGISTICS has performed over the last 5 years, please visit here.

MAHINDRA LOGISTICS Share Price Performance

Over the last one year, MAHINDRA LOGISTICS share price has moved down from Rs 378.5 to Rs 0.0, registering a loss of Rs 378.5 or around 100.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

(To know more, check out historical annual results for MAHINDRA LOGISTICS and quarterly results for MAHINDRA LOGISTICS )