India's Mahindra Logistics posts widened Q2 loss on higher expenses

VRL Logistics

21/10/2024 12:44

Oct 21 (Reuters) - India's Mahindra Logistics  MALO.NS  reported a seventh straight
quarterly loss on Monday, hurt by higher freight and warehousing costs. 
    Its consolidated net loss widened to 107.5 million rupees ($1.3 million) in the second
quarter ended Sept. 30 from a loss of 93.2 million a year ago. 
    Revenue from operations rose 11.5% to 15.21 billion rupees.
    Total expenses climbed 10.7% to 15.28 billion rupees, led by a 12.2% rise in operating
expenses.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3LX0CU
    
KEY CONTEXT 
    Mahindra Logistics, the logistics arm of the tech-to-tractor firm Mahindra Group, has been
plagued by higher expenses, stiff competition in India's $342 billion logistics market and
losses related to the acquisition of express cargo firm Rivigo.
    Analysts at Elara Capital had expected the company to start tightening its expenses to
reach its goal of breaking even in business-to-business segment by mid-fiscal 2025. 
    
PEER COMPARISON 
    
                        Valuation (next  Estimates (next 12  Analysts' sentiment          
                          12 months)          months)                                     
             RIC        PE      EV/EBIT  Revenue  Profit     Mean     No of     Stock to  Div
                                DA       growth   growth     rating*  analysts  price     yield
                                                                                target**  (%)
 Mahindra     MALO.NS    44.37    10.92   14.75     NULL     Sell           11    1.08     0.51
 Logistics                                                                                
 Delhivery    DELH.NS    96.98    39.87   16.94     NULL     Buy            20    0.78    NULL
 Blue Dart    BLDT.NS    44.90    18.38   11.83     34.27    Hold            4    1.06     0.30
 Express                                                                                  
 VRL          VRLL.NS    30.86    11.64   13.53     51.35    Buy             9    0.89     0.87
 Logistics                                                                                
 
* 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
    
JULY-SEPTEMBER STOCK PERFORMANCE 
    
        
-- All data from LSEG IBES

-- $1 = 84.0490 Indian rupees



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Mahindra Logistics Sept Qtr 2024 vs Peers    https://tmsnrt.rs/4f9qA3N
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 (Reporting by Hritam Mukherjee and Ashish Chandra in Bengaluru; Editing by Janane Venkatraman)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))