Poor Results from the company.
In the attached presentation the company states that the slowdown in the Auto sector has had an impact. Another perhaps bigger aspect to the hit in numbers is due to the decrease/loss of business from a large bulk customer.
However, growth from ecommerce, pharma & consumer stayed strong.
This highlights the risks of the business very well.
- Dependance on Auto Sector
- Client Concentration.
The good news is that the company is taking active steps to solve the above two issues. Mahindra group dependence is a good thing and a bad thing so nothing to say about that.
As time goes the other verticals will grow and the Sectorial dependence shall also decrease going forward.
Overall the 3PL industry is growing fast and Mahindra Logisitcs is among the leaders in this space with TVS Logistics (unlisted). (GST, unorg to org, infra status etc: are well known tailwinds).
Let us see how the company does over this slowdown. Perhaps it will show us a base for earnings.
https://www.mahindralogistics.com/investor/financial-information
(can navigate to the presentation)