India's Mahindra Logistics posts sixth straight quarterly loss on higher costs

Mahindra Logistics

22/07/2024 10:20

BENGALURU, July 22 - India's Mahindra Logistics  MALO.NS  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.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JE18G
    
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  BLDT.NS .  urn:newsml:reuters.com:*:nL4N3J90ME 
    
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   MALO.NS    57.58      12.12    14.87       NULL     HOLD           10    1.17        0.49
 Delhivery Ltd            DELH.NS   343.01      42.61    17.27       NULL     BUY            21    0.73           -
 Blue Dart Express Ltd    BLDT.NS    46.31      20.56    11.01       30.83    BUY             5    1.09        0.30
 VRL Logistics Ltd        VRLL.NS    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

    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MALO Q1    https://tmsnrt.rs/3SiKrEv
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))