MAHINDRA LOGISTICS 2021-22 Annual Report Analysis

Sat, 20 Aug

MAHINDRA LOGISTICS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MAHINDRA LOGISTICS Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.8% in FY22 as against 4.0% in FY21.
• Depreciation charges increased by 50.0% and finance costs increased by 46.9% YoY, respectively.
• Other income declined by 30.2% YoY.
• Net profit for the year grew by 18.5% YoY.
• Net profit margins during the year declined from 0.9% in FY21 to 0.8% in FY22.

MAHINDRA LOGISTICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	32,637	40,830	25.1%
Other income	Rs m	175	122	-30.2%
Total Revenues	Rs m	32,812	40,952	24.8%
Gross profit	Rs m	1,315	1,977	50.3%
Depreciation	Rs m	897	1,345	50.0%
Interest	Rs m	201	295	46.9%
Profit before tax	Rs m	392	458	16.9%
Tax	Rs m	100	113	12.3%
Profit after tax	Rs m	292	346	18.5%
Gross profit margin	%	4.0	4.8
Effective tax rate	%	25.6	24.6
Net profit margin	%	0.9	0.8

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MAHINDRA LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 9 billion in FY21, thereby witnessing an increase of 14.9%.
• Long-term debt down at Rs 0 million as compared to Rs 9 million during FY21, a fall of 98.9%.
• Current assets rose 2% and stood at Rs 12 billion, while fixed assets rose 46% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 19 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 14%.

MAHINDRA LOGISTICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,680	5,903	3.9
Current Liabilities	Rs m	9,198	10,566	14.9
Long-term Debt	Rs m	9	0	-98.9
Total Liabilities	Rs m	16,649	19,041	14.4
Current assets	Rs m	12,043	12,321	2.3
Fixed Assets	Rs m	4,606	6,720	45.9
Total Assets	Rs m	16,649	19,041	14.4

MAHINDRA LOGISTICS Cash Flow Statement Analysis

• MAHINDRA LOGISTICS 's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 38.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -656 million from the Rs 982 million net cash flows seen during FY21.

MAHINDRA LOGISTICS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,937	2,006	-31.7%
Cash Flow from Investing Activities	Rs m	-1,080	-1,498	-
Cash Flow from Financing Activities	Rs m	-875	-1,165	-
Net Cash Flow	Rs m	982	-656	-

Current Valuations for MAHINDRA LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 497.8, stands at 91.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	455.4	568.1
TTM Earnings per share	Rs	4.1	4.8
Diluted earnings per share	Rs	4.1	4.8
Price to Cash Flow	x	35.1	25.8
TTM P/E ratio	x	142.9	91.6
Price / Book Value ratio	x	5.2	7.4
Market Cap	Rs m	29,616	43,655
Dividends per share (Unadj.)	Rs	2.5	2.0

Ratio Analysis for MAHINDRA LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.6x during FY22, from 3.0x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 5.9% during FY22, from 5.1% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 12.8% during FY22, from 10.4% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 3.4% during FY22, from 3.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.2
Debtors’ Days	Days	5	4
Interest coverage	x	3.0	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.0	3.4
Return on equity	%	5.1	5.9
Return on capital employed	%	10.4	12.8

To see how MAHINDRA LOGISTICS has performed over the last 5 years, please visit here.

MAHINDRA LOGISTICS Share Price Performance

Over the last one year, MAHINDRA LOGISTICS share price has moved down from Rs 718.2 to Rs 497.8, registering a loss of Rs 220.4 or around 30.7%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for MAHINDRA LOGISTICS and quarterly results for MAHINDRA LOGISTICS )

Read: Latest Annual Report Analysis of MAHINDRA LOGISTICS