BENGALURU – India’s Mahindra Logistics reported a sixth straight quarterly loss on Monday, hurt by higher spending on freight and warehousing.
The company’s consolidated net loss widened to 93.2 million rupees ($1.1 million) in the quarter ended June 30, from a loss of 85.5 million rupees a year ago.
Revenue of the logistics arm of the tech-to-tractor Mahindra Group rose 9.8% to 14.20 billion rupees during the quarter.
Total expenses grew about 10% to 14.28 billion rupees, led by an 11.5% jump in operating costs that include freight and warehousing spends.
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KEY CONTEXT
Rising expenses, stiff competition in India’s $342 billion logistics market and losses related to acquisition of express cargo firm Rivigo in 2022 have weighed on Mahindra Logistics’ bottomline for several quarters.
Higher spending also dragged the June-quarter profit of rival Blue Dart Express.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBITDA Revenue Profit Mean # of Stock to Div
growth % growth % rating* analysts price yield
target** (%)
Mahindra Logistics Ltd 57.58 12.12 14.87 NULL HOLD 10 1.17 0.49
Delhivery Ltd 343.01 42.61 17.27 NULL BUY 21 0.73 –
Blue Dart Express Ltd 46.31 20.56 11.01 30.83 BUY 5 1.09 0.30
VRL Logistics Ltd 29.75 11.67 13.41 54.43 BUY 9 0.82 0.88
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 83.6400 Indian rupees
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
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