India's Mahindra Logistics reports eighth straight quarterly loss, albeit narrower in Q3

Mahindra Logistics

27/01/2025 15:49

Jan 27 (Reuters) - India's Mahindra Logistics  MALO.NS  reported a smaller quarterly
loss on Monday, helped by steady demand in its third-party logistics business and narrower
losses in its express commerce segment.
    The logistics services provider reported a consolidated net loss - its eighth consecutive
quarter - of 90.3 million rupees ($1.05 million) for the three months ended Dec. 31, compared
with a loss of 174.1 million rupees a year ago.
    Revenue from operations in the third quarter rose 14% to 15.94 billion rupees. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3ON0PY
     
    KEY CONTEXT
    Mahindra Logistics has been battling stiff competition in India's $342 billion logistics
market, and dealing with losses from the 2022 acquisition of express cargo firm Rivigo and
higher spends - which grew 13% on-year in the quarter. 
    The company said that third-party logistics business, its core contract, grew 14% on-year
on the back of automotive and consumer goods demand, while losses for the express business
narrowed 26.5%.
    Analysts had expected the company to report strong growth in its core contract business,
driven by demand during India's festival season, which coincided with the quarter.
    The analysts said that while Rivigo would remain loss-making, these would narrow in the
coming quarters as volumes pick up.
     
    PEER COMPARISON
                               Valuation    Estimates (next 12       Analysts' sentiment
                               (next 12          months)        
                                months)                         
                  RIC        PE     EV/EBI  Revenue    Profit   Mean     # of      Stock to
                                    TDA     growth     growth   rating*  analysts  price
                                            (%)        (%)                         target**
 Mahindra          MALO.NS   38.50    7.81    15.22    797.57   Sell           11     0.86
 Logistics Ltd                                                                     
 Blue Dart         BLDT.NS   35.25   16.65    12.51     43.53   Hold            6     0.87
 Express Ltd                                                                       
 Delhivery Ltd     DELH.NS   66.79   32.31    15.82    228.33   Buy            22     0.71
 VRL Logistics     VRLL.NS   22.63    8.94    12.46     46.85   Buy             9     0.73
 Ltd                                                                               
 * The mean of analysts' 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
        
   OCTOBER-DECEMBER STOCK PERFORMANCE 
    

-- All data from LSEG
-- $1 = 86.3310 Indian rupees
    

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Mahindra Logistics vs Peers    https://tmsnrt.rs/3WvQOqo
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 (Reporting by Nandan Mandayam and Hritam Mukherjee in Bengaluru; Editing by Varun H K and
Vijay Kishore)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))