Mahindra Logistics Q3 Results Review - Recovery Still Few Quarters Away: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Mahindra Logistics Ltd.’s Q3 FY23 Ebitda was slightly ahead of our estimates; however, profit after tax was lower owing to higher interest cost. Key takeaways include:mixed quarter for third-party logistics division as automotive and manufacturing contributed to growth while consumer and e-commerce lagged;freight forwarding segment faced price headwinds;Rivigo operations accounted for Rs 450 million of revenue and loss of Rs 8.5 million at Ebitda level; andadded ~1.1 million square feet of total space under management in Q3 FY23. Going ahead, Mahindra Logistics has guided for consolidated gross margin to improve by 25-50 bps per annum and express business to become positive at Ebitda level in H1 FY24. While we remain optimistic on long-term prospects of the business and endeavour of the management to achieve Rs 100 billion revenue by FY26, in near term, stock performance is expected to languish. Taking cognisance of slower-than-expected recovery in margins and flat to declining price trajectory in the near term, we slash our FY23E/FY24E Ebitda by 13%/3%, respectively..Click on the attachment to read the full report:.VRL Logistics Q3 Results Review - Turnaround Visible; Key Will Be In Sustaining It: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahindra Logistics Q3 Results Review - Recovery Still Few Quarters Away: ICICI Securities

Awaiting cost optimisation and contribution from Rivigo’s business.

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