Mahindra Logistics Q3 Loss Narrows, Revenue Jumps 14%

28 Jan 2025 , 01:27 AM

Mahindra Logistics Ltd (MLL) reported its Q3 FY25 results on Monday, January 27, showing significant improvements in performance with narrowed losses and strong revenue growth.

The company’s net loss reduced to ₹7.2 crore, compared to ₹17.4 crore in the same quarter last year, reflecting improved operational efficiency. Revenue from operations grew by 14.1% YoY to ₹1,594.2 crore, up from ₹1,397.2 crore in Q3 FY24, driven by strong demand across key business segments. EBITDA increased by 41.2% YoY to ₹73.7 crore, compared to ₹52.2 crore in the previous year, with EBITDA margins improving to 4.6%, up from 3.7%.

The company’s 3PL Supply Chain business grew by 14% YoY, supported by increased demand in the automotive, consumer, and durables sectors. Network Services revenue saw a 22.9% YoY growth, driven by higher volumes in freight forwarding and last-mile delivery.

The freight forwarding segment registered an 18.9% YoY revenue growth, benefiting from increased export volumes, even as ocean freight rates for imports and exports continued to decline.

Mahindra Logistics managed a total of 22.3 million square feet of warehouse space during the quarter, adding 0.7 million square feet. Revenue from warehousing and solutions grew by 14% YoY. Losses in the Express business were reduced by 26.5% YoY, driven by ongoing cost optimization efforts, with EBITDA losses in the segment dropping by 40.3% YoY.

The company focused on expanding its transportation and green logistics offerings and made progress in cross-border and last-mile delivery businesses, which demonstrated volume growth despite sectoral pricing challenges.

Rampraveen Swaminathan, Managing Director and CEO, stated that the company achieved robust revenue growth and made progress in new warehousing additions in western and eastern India. He emphasized their focus on cost management and achieving profitability in the Express business. Mahindra Logistics remains committed to growing its business through innovative offerings, cost control, and expanding margins while maintaining its focus on long-term growth in the logistics sector.