Mahindra Logistics FY23 revenue up 24%
Rivigo acquisition expands Mahindra Logistics presence to over ~19,000 pin-codes across India
Mahindra Logistics, one of India’s leading integrated logistics & mobility solutions providers, reported a 24 percent increase in consolidated revenue at Rs 5,128 crore ($625 million) for the financial year ended March 31, 2023 on 15 percent YoY growth in 3PL supply chain services.
While EBITDA increased to Rs 276 crore ($34 million), net profit was up at Rs 25 crore ($3 million), says an official release.
"Freight forwarding business revenues were impacted by downward correction in freight rates. Despite the impact of the pricing, underlying volume growth was positive in ocean exports and air imports. The mobility business continues to see a strong uptick on airport-based services driven by higher travel and moderate pick up in employee transportation management.
"During the last quarter, our wholly-owned subsidiary MLL Express Services completed the acquisition of Rivigo's B2B express business, along with the associated brand and technology platforms. The acquisition expands our presence to over ~19,000 pin-codes across India. The integration is underway and expect to start realising cost reduction benefits from Q1FY24.
"Warehouse space under management stood at 19 million sq. ft. including all service lines. The company announced development of a new one million sq. ft. park at Chakan."
Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics
Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics says: “In Q4FY23, we continued to invest in our vision of becoming a customer-led provider of integrated logistics & mobility solutions. Despite slowdown in some end markets, our core 3PL business demonstrated positive traction on order intake and margin expansion, driven by our diversified market segments.
"Our freight forwarding business was impacted by freight price corrections but demonstrated volume growth across all offerings. The integration programme of Rivigo’s B2B express business acquired last quarter remains on track to yield cost and operating synergies in the coming quarters.
"Continued investments in operational excellence and technology aided in operational efficiencies. During the quarter, we were certified as Great Place to Work, reaffirming our commitment to building an equal opportunity, inclusive workplace. We remain optimistic of positive demand uptick in coming quarters and remain focused on consolidating and leveraging our portfolio.”
