Tanishk_Ojha CONCALL - AUG-2022 The mobility business continue to register recovery path. Volume of airport business at MERUs up significantly and close to around 50% on a year-on-year and the eTMS business on a trip count basis is also up 20% to 30% across the cities, which we operate in. During the quarter, we announced to incorporated two subsidiaries one each in India and United Kingdom in order to undertake supply chain management, find Middle East freight forwarding and air charter businesses across geographies outside India. The new operations will enable our company to further address growth opportunities in cross-border logistics and other market spaces and will also help expand and build an international presence. Whizzard - our investment objective in Whizzard has been to strengthen the company’s footprint and capabilities in last-mile delivery and micro fulfillment services for our customers. Our synergy programs are well underway and we estimate that the long-term potential of Whizzard remain extremely strong and will be accretive to our overall portfolio. The big delta you have to adjust there is that we are reducing our stockyard capacities. We are driving more automation and technology across our stockyards to actually drive more volume throughput with lesser space and that is a long-term trend, which you will see will continue but will actually help us improve our margins in stockyards. It generally has been a very low-margin business for us. Most of our assets right now are operating I would say at peak levels, I do not see that anymore as an issue. From a market perspective, markets are tight really because obviously pricing is competitive and we are in an inflationary mode right now and so that is always a difficult place to be when we are seeing in an inflationary environment with a lot of pressure from customers and competition on pricing. Over the last two years, we are trying to investing in building that through a combination of doing distribution as a service and not just delivery as a service. We just do not do plain bikers going in rock and stock we actually try to run the hubs, the delivery station and do integrate that with delivery. Broadly from a margin profile perspective, we have said that the FTL transportation business has a lower margin profile than our warehousing business. The pure warehousing business has a lower margin profile than our solution business, so it is kind of a margin ladder however the one thing I would point out is that it will be inappropriate in our view to say that the Mahindra Transportation Business has lower margin than Non-Mahindra Transportation Business. If we have two customers probably from Mahindra movement from Haridwar and somebody else has movement from Haridwar, will be roughly the same. The pricing we have actually get will not be the same. It is driven by service line and volume density, so it is not an overall thing that Mahindra is lesser than non-Mahindra. August peaks and demands are fairly indicative of how the industry will move and therefore we will have to see how the peak will happen. We see warehousing as a means to an end. The end is providing more value-added solutions for clients and building networks and not just doing transportation, plain vanilla transportation of warehousing.
Tanishk_Ojha CONCALL - NOV-2022 V-link Freight Services will engage in cross-border logistics, supply chain management, freight forwarding, and air charter businesses, for our customers in India and across and outside. Typically in the Express business, we are investing in the network. We're investing in network ahead of the demand because customers come up after you have an operating offering. Express Business - And we are looking at a fairly strong growth there. But the immediate and the short-term focus is to drive very strong service quality, ensure that we protect yield and optimise cost. Because I think if you look at this is -- I mean, there a integration cost, we can actually lose customers in this industry as well. Gross Margins in Transportation - 7-9%. Warehousing - 13-15%. The main reason, I mean, if this is the period of time, usually middle of the year, working capital kind of balloons up a bit given the customers usually, I mean, during the festival season, the payouts towards bonuses, etcetera, are higher. And we expect that secularly across segments, we should be able to continue to grow profit. It'll be to pre-COVID levels. Our pre-COVID level margins have been on 2% at a PAT level. And we aspire to be better than that as the portfolio matures over the next two years, three years. And most of the network services businesses should look like the freight-forward in business, right, at maturity and scale. The 3PL business is a business which is more core to us. It's a more established business model. And there we expect to continue driven to drive improvement based margin, and accreditation. The network businesses are where we are building scale. The growth will also be faster there. So there will be two factors, revenue growth will be faster and the higher revenue growth will also be driven, will also drive better margin performance. I think the goal is to grow the non-Mahindra businesses, especially the 3PL part of it by 15% to 20% every year, and to grow the overall non- Mahindra business, including network services, by north of 25%. CONCALL - FEB-2023 I think the long-term opportunity on express and part truckload remains fairly significant. And the Amazon segment is growing at medium to double digits, right. So we do expect it to have medium to mid-teens. We do expect it to grow a mid-teen or high-teen gross margin level as a business and therefore, we expect that it will be fairly significant at a segment level alone for the business. Whizzard business has similar gross margins as the last-mile, the rest of our last-mile business., the service offerings are more driven towards micro-fulfillment and nonlarge or small pack delivery compared to our existing last-mile delivery business, which has a balance more towards grocery and larger products. From a long-term perspective, we think the gross margin potential of the business is around 6% to 8%, which we think at the right scale actually will be accretive to the business. So, as far as the warehousing piece is concerned, Revenue was down marginally with continued capacity additions. A fair amount of the capacity addition came at the end of the period and I think if you look at our notes to the slides, I think you will find there that the total space which is reflected here includes facilities which have been finished construction, have been given to us but have not been leased yet to customers because they are in a, what we call a fit-out phase. We'll add 2.5 million, 3 million square feet a year. I think if you look, our exit of F '22, which was on 13.4 million, we are up at around 15.4 million, which is roughly 2 million square feet, in that range. We expect the forwarding business to grow at 20% a year on a mid-cycle basis. On a medium to long-term basis, we expect that we will continue to improve gross margins by 25 to 50 basis points every year, and that's something remains our focus. I think we have a large part of our customers in the 3PL, in freight-forwarding, et cetera, where these customers are buying multiple services. But we often have not been able to serve them because we've not had a comprehensive-enough offering. RIVIGO - I think F '24, we are going to be focused on breakeven into the business. As I mentioned earlier, we expect to be EBITDA positive in H1, by the end of H1. And we will try and end the year at a breakeven level overall. And F '25 onwards is where we will see the earnings acceleration. I think we acquired the company at 0.6 revenue, which is a substantial discount to most comps because we plan to do the work of turning it around and fixing up some margin issues.
Tanishk_Ojha CONCALL - APR-2023 A longer-term direction to build an Express business that is among the top three or four companies in the industry with revenues of north of INR1,000 crores remains intact. We will launch charter operations from Dubai Hub later in Q1 of FY23-24 and that should help us strengthen recovery in the air and sea segment. The performance of our eDel electric vehicle business, EV-based business is consistently improving. Today, we operate in more than 19 cities and have a fleet of nearly 1,300 vehicles. Earlier this month, we launched our four-wheeler offering right in eDel, and we hope to supplement that with a two-wheeler offering shortly. We have announced the development of a new 1 million square feet warehouse park in the Chakan-Talegaon region. This is a collaboration Ascendas-Firstspace and which will be spread over 3 phases, the first phase, which is roughly 0.5 million square feet will be operational by the end of this financial year. DEBT - So I think on the debt side, we do have around INR400 crores of debt on the books. It's spread across multiple parts of the business. The largest part of it, of course, has been debt taken by MESPL for the acquisition of the Rivigo business, which is a little bit around, roughly around INR220 crores. That's long-term in nature and has a structured repayment plan around it. Apart from that, we have around INR150 crores, which is spread across within the MLL side of the business, which has largely been investments we made, borrowings we made to support acquisition of the Meru business from M&M in FY '21-FY '22 and for the investment in Whizzard. From a broad guidance perspective or a broad indication perspective, our aspiration there has been to grow the business at that 18% to 20% level, which would then in FY '26-FY '27 mean revenue probably of around INR900 crores to INR1,000 crores on an annualized run rate basis. And we believe the business will be at 2% to 3%, roughly at the 3% PAT level. We have been there before, not just in the good quarters. The great quarters, we have been above that. But normalized, we expect the 3% PAT will be very sustainable for us. Once we breach around INR450 crores to INR500 crores of annualized revenue, we should be in the envelope of around 3% PAT. And there on, it is a volume growth play. I mean, we run through returns profiles for all the acquisitions, as we have done for Rivigo as well, as a matter of governance with the board, and those return, long-term return profiles are essentially what the Rivigo acquisition will also deliver for us, on a fully consolidated express business profile. The longer-term target which we have set or the medium-term target we have set for the overall business is to get north of 18% return on equity or around 24% return on capital employed. CONCALL - JULY-2023 Gross margin, on a fully consolidated basis, for Q1 of '24 was 10.5%, up 20 basis points on the same quarter last year. This was despite the impact of the MESPL acquisition. Excluding the impact of the MESPL acquisition, our gross margins for the quarter were at 11.5%. And EBITDA for the quarter stood at INR72.8 crores, up from INR68.8 crores in Q1 F '23, in some part, impacted due to the consolidation benefits or effects of the Rivigo acquisition.
Tanishk_Ojha Bajaj Electric ConCall - Feb-2022 Bajaj Electric ConCall - Feb-2023 Bajaj Electric ConCall - May-2023
Tanishk_Ojha CONCALL - OCT-2023 Most of the logos that we are working with have now started working on expanding their network again. And we knew that they were becoming more omni-channel in their approach. And this is allowing a faster transition to 3PL providers with stronger technology and integrated distribution capabilities. During the quarter, we had some key wins, including a large program of Cummins India to establish their India logistics centre in Maharashtra. We have started working with J&J for their Western India integrated warehousing and largest distribution solutions. Some of you might notice we launched a program with Flipkart for providing network line haul service across their IWIT network and we also have been selected as a single partner for Ashok Leyland's in-plant logistics services across the nine plants in India. We have continued to grow our distribution and service business with focus on niches such as grocery and EV-based delivery services, and that has helped us kind of tighten improved margins during the quarter on a year-on-year basis. Getting service levels back in our business is a big function of reducing TAT or turnaround times for our customers. And to reduce our turnaround times, we have to run the vehicles more consistently and more regularly, even if the load was not there, right? Because the customers who do give us loads, we have big commitments on TAT. And so even if we don't get loads, we still have to run the vehicles up substantially. And therefore, that's kind of what is the story of Q2, while we did get the service level up. We had to invest more in that period to run those vehicles, which resulted in carrying costs with transportation of us going up substantially. And unfortunately, the volume we envisaged in the quarter did not happen, which was the problem. And we're hoping that we will get a point of EBITDA breakeven by the end of this year. That requires us to recover volume around 20-25% over the next 5 months or 6 months, which is roughly 4% to 5% month-on-month growth. And a large part is getting customers who have dropped their share of business with us, back in the fold. In India, the challenges in 3PL penetration has really been the high level of fragmentation in the industry and the lack of regulation. And because of that, delivery quality and capability has always been a problem. And therefore, the Indian industry has always depended on asset owners and aggregators rather than third-party logistics companies. I think, as we've said, what I do feel very good about is we had laid out a vision of around INR6,500 crores for the 3PL contract logistics business. We feel we're in good place to get that over the next 3.5 years, right, on a run-rate basis.
Tanishk_Ojha JAN 2024 Conference Call Our network transportation program with Flipkart has made positive strides and we are now at peak utilization of the fleet. From a demand perspective, order intake was especially strong across all segments with an annual contract value of over INR 150 crores, which is roughly a 15% increase compared with the previous quarter of this year.
Tanishk_Ojha APRIL 2024 Conference Call I think at summary level, the broad direction for end market has remained consistent with prior quarters. We do continue to see strength in the overall automotive segment, driven by growth primarily in passenger cars. Commercial vehicles remain muted and during the quarter, we did see some impact of higher NPD’s or no production days and lower volumes as some of our CV customers cut production to balance supply and demand. The farm segment, consumer segment, CDR, FMCG, pharma, etc., have seen muted volumes and demand weakness through the last three to four quarters. Growth largely came from a higher share of wallet in existing customers such as Hindustan Unilever, Cummins, Meesho, Marico and a few others, as well as new logo additions such as Mars during the quarter. Across all the businesses, our operational focus has been strongest on the Express business. The focus on cost optimization and productivity has held the costs in that business come down, enhancing our profitability. The launch of our LOGIONE technology platform continues to make progress. During the quarter, we upgraded several of our sites to LogiPick, our new WMS system or warehouse management system which is integrated with LogiFreight and other elements of the LOGIONE infrastructure. Gross margin on a fully consolidated basis stood at 9.4% in Q4 FY’24 compared to 10.2% in Q4 FY’23. Gross margin without the impact of the MESPL business was 10.6%, which was an improvement year-on-year. My own sense is we do look at warehousing margins on a full year basis because the business is going to be reported on a quarter-on-quarter basis for your convenience. But ultimately, there are quarters for example, last year in Q4 we had a peak in Q3 and we had some run off of benefits flowing through in Q4. MLL - I think this year we are expecting F’24-25 to be a year of strong growth. When I say strong growth, I think as you know our broad expectation is a mid-teen growth across our entire business. I think we are around 5% today. We want to take gross margins up to 8%. That’s going to come from two, three things -- increased purchasing power, as you know, we are combining this business in terms of buying ice and ice fleets and so on from partners. So, that’s one big lever. The second one is co-locating operations more consistently. We have multiple sites across these businesses which are within a few kilometers of each other and we are looking at saying how do we get some network and infrastructure leverage. I think we will start seeing that kind of higher growth level starting from the second half of this year itself. What we must understand is, as I said, even though we have signed up new logos, we have been selective or adding lane wise volumes because we have been trying to optimize it for the right volume.
