Mahindra Logistics - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 355, MCap: Rs. 2545 crore)

Mahindra Logistics reported strong set of Q2FY21 numbers, which were above I-direct estimates on all fronts.

Q2FY21 Earnings Summary

- Revenues remained flat YoY to Rs. 833 crore (I-direct estimate: Rs. 707 crore), as growth in the SCM segment (grew 6% to Rs. 804 crore) was negated by the continued weakness in the PTS segment (de-grew 71% to Rs. 29 crore)

- EBITDA margins too remained largely flat at 4.5% (I-direct estimate: 2.5%) as marginally higher freight expense to sales ratio (84.6% vs 84.5% in Q2FY20) was negated by lower employee expense. Subsequently, EBITDA remained flat at Rs. 37 crore and came above I-direct estimate of Rs. 18 crore

- However, the reported PAT grew 31% YoY to Rs. 15 crore, mainly due to higher other income (Rs. 8 crore vs Rs. 2 crore) and came above I-direct estimate of a loss of Rs. 5 crore

We will be coming out with a result update post discussion with the management.

Shares of Mahindra Logistics Ltd was last trading in BSE at Rs.356.55 as compared to the previous close of Rs. 352.2. The total number of shares traded during the day was 499 in over 141 trades.

The stock hit an intraday high of Rs. 358 and intraday low of 355. The net turnover during the day was Rs. 177694.

Source : Equity Bulls

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