Mahindra Logistics Ltd — Q4 FY26

Mahindra Logistics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=e004UeevyG8 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Mahindra Logistics Limited Q4 and FI26 earning conference call. As a 0:11 11 seconds reminder, all participant line will be in the listen only mode and there will be opportunity for you to ask question after the presentation conclude. Should 0:20 20 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds I now hand the conference over to Mr. 0:31 31 seconds Mandar Chavan from SGA. Thank you and over to you sir. 0:36 36 seconds Thank you Danish. Good afternoon everyone. Thank you for joining us for Mahindra Logistics Limited Q4 FY26 earnings conference call. We are pleased 0:45 45 seconds to have with us today Mr. Hman Sika our managing director and CEO Miss Ishad Daral CFO along with member of the 0:53 53 seconds senior management team. I hope everyone had a chance to view our financial results and investor presentation which 1:00 1 minute were recently posted on the company's website and stock exchanges. We will begin the call with the opening remarks from management followed by an open 1:09 1 minute, 9 seconds forum for question and answer. Before we begin, I would like to point out that some of the statements made during today's call may be forward-looking. A 1:18 1 minute, 18 seconds disclaimer to that effect was included in the funings presentation. I would like to invite Mr. Sika to share his remarks. 1:32 1 minute, 32 seconds Thank you Mandar. Good afternoon and thank you all for joining us today. 1:38 1 minute, 38 seconds F26 has been a defining year for Mahindra Logistics. After two years of losses, our return to PAT profitability 1:46 1 minute, 46 seconds marks more than a milestone. It signals the successful reset of organization's operating engine. 1:54 1 minute, 54 seconds This transformation has been driven by deliberate choices, disciplined execution and rebuilding of fundamentals that will sustain performance over the long term. 2:05 2 minutes, 5 seconds Over the past year, Sharper leadership focus has re-energized the organization, strengthen strategic clarity, and raised 2:12 2 minutes, 12 seconds the bar on operational rigor. Together, we have embedded accountability across levels and cultivated a performance 2:20 2 minutes, 20 seconds culture anchored in measurable outcomes and delivery excellence. What began as a structural shift has now translated into 2:27 2 minutes, 27 seconds visible, measurable improvement on the ground. Three defining themes capture our progress this quarter and throughout the last year. 2:37 2 minutes, 37 seconds a stronger highquality contract logistic portfolio with multiple wins across segments and steadily improving customer level economics. 2:46 2 minutes, 46 seconds Number two, clear traction in express business turnaround which is built on tighter execution discipline and an unwavery focus on margin improvement. 2:57 2 minutes, 57 seconds Number three, a sustained push on operational excellence reflected in consistently positive customer feedback on service reliability, responsiveness and operating standards. 3:08 3 minutes, 8 seconds In parallel, our e-commerce and quickcommerce business has scaled meaningfully reaching more than thousand cr in annual revenue and reinforcing our 3:17 3 minutes, 17 seconds position in a fast growing future ready segments of the logistics ecosystem. 3:22 3 minutes, 22 seconds This phase of the journey has strengthened our conviction that Mahindra logistics is now structurally better, operationally sharper and culturally more executiondriven. 3:32 3 minutes, 32 seconds The transformation underway is real, embedded and is gaining momentum, positioning us to create lasting value 3:39 3 minutes, 39 seconds for our customers, employees and shareholders alike. We take pride in the progress made, but we are not at all 3:46 3 minutes, 46 seconds slowing down. This is just the beginning of what lies ahead of us. The benefits of margin expansion initiatives and 3:55 3 minutes, 55 seconds operating leverage will continue to acrew in future as well. Let me now turn to a few specific business updates. 4:03 4 minutes, 3 seconds Starting with MPL, our B2B express logistics services. 4:09 4 minutes, 9 seconds Quarter 4 revenue grew 49% year-on-year and the business continues its turnaround journey with positive gross 4:16 4 minutes, 16 seconds margin and tangible improvements in service quality, network utilization and unit economics. 4:22 4 minutes, 22 seconds There is a meaningful uptake in both volumes and yield with disciplined cost control now firmly embedded across the organization. 4:31 4 minutes, 31 seconds Our focus continues to remain on aa improvement with pad progression to follow in a calibrated manner. 4:39 4 minutes, 39 seconds The foundation of the business today is far stronger than at one it was in the previous period and we are confident about it long-term potential. 4:48 4 minutes, 48 seconds For our contract logistic business, quarter 4 revenue grew by 12% yearonear and our gross margins grew by 19%. A 4:56 4 minutes, 56 seconds clear indication that our focus on operational efficiencies and profitable customers is working. 5:02 5 minutes, 2 seconds We continue to see new wins across business segments reflecting stronger solutioning capability, improved service delivery and deeper customer engagement. 5:11 5 minutes, 11 seconds our seamless handling of the operations at the scale of Mahindra and Mainra which by the way is the second largest automotive company in India and it is 5:20 5 minutes, 20 seconds also the world's largest tractor company in terms of tractor produced moved and sold has helped establish a clear right 5:28 5 minutes, 28 seconds to win in managing large and very complex high velocity networks which today serve as a clear competitive 5:35 5 minutes, 35 seconds advantage for us on the white house we achieved a reduction of three lakh square ft in the last quarter and 9 lakh 5:43 5 minutes, 43 seconds square ft in FY26. Vain committed to our glide path on reducing our wide space by September 26. 5:51 5 minutes, 51 seconds In our freight forwarding business, quarter 4 revenue grew by 17% YI and our gross margins grew by 50% YI driven 6:00 6 minutes primarily by improved trade flows, operating leverage and a diversified customer base. 6:06 6 minutes, 6 seconds This segment is currently facing headwinds due to evolving geopolitical conditions. We expect these challenges to persist in the near term and we are 6:14 6 minutes, 14 seconds closely monitoring the situation while maintaining operational discipline. 6:20 6 minutes, 20 seconds In our mobility business, quarter 4 revenue grew by 39% YI and a gross margins grew by 17% YI. Our focus here 6:29 6 minutes, 29 seconds is on improving the utilization level for the asset heavy part of the business which is all light pre our premium B2B offering that we offer right now in 6:37 6 minutes, 37 seconds Delhi and on the B2B side is on acquiring new customers in our last mile delivery business revenue decline due to strategic choices 6:46 6 minutes, 46 seconds that we made and at certain sites in quarter 4 in Yi however our gross margins has increased by 7% in quarter 4 6:54 6 minutes, 54 seconds YI our focus on operational excellence continues to be recognized with accolades from leading e-commerce players. 7:03 7 minutes, 3 seconds While we are encouraged by the improvement trajectory, the global environment continues to be uncertain. 7:08 7 minutes, 8 seconds In such a backdrop, we believe it is critical to remain prudent, selective and cautious in the coming year. Our focus is on building for the long term 7:17 7 minutes, 17 seconds that is improving the quality and sustainability of our earnings rather than chasing short-term outcomes. 7:23 7 minutes, 23 seconds So in conclusion I would like to emphasize that Mahindra today is a very different organization compared to where we were just a year back. We have 7:32 7 minutes, 32 seconds restored profitability improved execution discipline strengthened customer level economics built a sharper more accountable leadership and 7:41 7 minutes, 41 seconds operating structure and a growing base of highly satisfied customers who clearly see tangible value from us. 7:49 7 minutes, 49 seconds We remain committed to becoming the number one logistic services provider in India. Delivering superior customer experience through technology-led 7:56 7 minutes, 56 seconds solutions along with a very passionate team. With that, I will now hand over to Isha, our CFO to take you through the financials. 8:07 8 minutes, 7 seconds Thank you Hmon. Let me now give you all a brief on the consolidated financial performance for Q4 and F-26. Our revenue 8:15 8 minutes, 15 seconds for Q4 F26 has grown by 14% year-on-year to 1,791 8:22 8 minutes, 22 seconds crores and by 15% in the full year to 6,999 crores. Our anchor customer Eminem has 8:30 8 minutes, 30 seconds grown very well on the back of higher volumes and in addition we have seen strong growth across all our subsidiaries led by the express business. 8:40 8 minutes, 40 seconds supply chain management including our 3PL and network services business which is freight forwarding express and last 8:47 8 minutes, 47 seconds mile contributed 94% of our overall revenue and the mobility business has contributed 6% of revenue for Q4 and for 8:56 8 minutes, 56 seconds F26 this is broadly in line with historical segment mixed on the back of many initiatives that 9:03 9 minutes, 3 seconds Hmon referred to including operational discipline and financial rigor we have seen a year-on-year expansion in 9:10 9 minutes, 10 seconds consolidated gross margin to 10.5% in Q4 F26 compared to 9.5% in Q4 F25. 9:20 9 minutes, 20 seconds For the full year, the gross margin stood at 10% compared to 9.4% in financial year 25. The standalone 9:29 9 minutes, 29 seconds business has expanded gross margin by 80 bits with gross margin expansion across most verticals. In addition, the 9:37 9 minutes, 37 seconds improving tra trajectory in the MEESPL or express business has substantively contributed to gross margin expansion at a consolidated level. 9:47 9 minutes, 47 seconds Before I move on to Eida, I want to take a moment to explain how we will hence be depicting EIDA as requested by several 9:54 9 minutes, 54 seconds of you. This is detailed out in the new slide in our investor deck titled adjusted EITA where you will see our 10:01 10 minutes, 1 second reported EIDA adjusted for the rent expense of long-term leases. To explain further under NDS 1116 the cost of 10:10 10 minutes, 10 seconds long-term leases is accounted under interest and depreciation lines and therefore does not reflect under reported EITA on this page. 55 crores of 10:20 10 minutes, 20 seconds rent in Q4F26 and 218 crores in the full year which is actual rent paid out for our long-term leases has been deducted 10:29 10 minutes, 29 seconds from reported Eida to arrive at what we are calling the adjusted IIDA number in that context reported Eida for the 10:37 10 minutes, 37 seconds quarter stood at 112 crores up from 78 cr rupees in Q4 F25 10:43 10 minutes, 43 seconds adjusted Eida is at 57 crores up from 37 crores in Q4 F25 5 this is an adjusted 10:51 10 minutes, 51 seconds EIDA margin expansion from 2.3% to 3.2% 2% in Q4F26. 10:58 10 minutes, 58 seconds For the full year, reported EIDA stood at 377 crores against 284 crores. And 11:05 11 minutes, 5 seconds adjusted EIDA for the year is at 158 crores, up from 121 crores in financial year 25, which is 31% growth. 11:17 11 minutes, 17 seconds Moving on to PAT, consolidated PAT for Q4F26 is at 20.2 2 crores versus 6.7 crores of losses in Q4 F25. 11:28 11 minutes, 28 seconds The reported PAT for the full year is at 2.3 crores as against a loss of 35.8 cr rupees in financial year 25. 11:37 11 minutes, 37 seconds However, MLL has delivered consolidated operational PAT of 8.2 cr rupees. To reiterate, the operational path is 11:46 11 minutes, 46 seconds grossed up for the tax adjusted impact of the exceptional item we took in quarter 3 F26 towards the past graduity service cost under the new labor codes. 11:57 11 minutes, 57 seconds With this, at both a reported and operational level, MLL has turned profitable after two consecutive financial years. 12:05 12 minutes, 5 seconds Let me now move on to segment performance. Another change you would have noticed in our investor deck is that we are now reporting numbers at a 12:13 12 minutes, 13 seconds segment level not at an entity level to simplify the understanding of our business verticals. In this new construct contract logistics our revenue 12:22 12 minutes, 22 seconds for Q4 of 26 was 1381 crores as compared to 1,233 crores in Q4 of 2512% 12:31 12 minutes, 31 seconds and the fullear revenue is 5,490 crores which is up by 16%. 12:38 12 minutes, 38 seconds The reported EIDA in this segment is at 389 cr rupes for the year compared to 314 cr rupees last year which is up by 24%. 12:48 12 minutes, 48 seconds In our freight forwarding business the revenue for Q4 F26 is at 89 crores as 12:55 12 minutes, 55 seconds compared to 76 crores in Q4 F25 which is up by 17%. For the full year, this 13:02 13 minutes, 2 seconds business has grown at 14% driven by both volume growth and rate expansion. 13:08 13 minutes, 8 seconds The business has grown GM and EIDA both in Q4 and in the full year with the full year AIDA moving from 6.8 crores in F25 to 10.1 crores in F26. 13:21 13 minutes, 21 seconds Coming to the express business, this has been witnessed tangible improvement during F26 with 25% revenue growth and 13:29 13 minutes, 29 seconds F26 revenues of 449 crores. As you will all recall, we have seen sequential GM improvement in this business for three 13:38 13 minutes, 38 seconds consecutive quarters from 20 lak rupees in Q2F26 to 2.7 cr 2.7 crores in Q3 F26 13:47 13 minutes, 47 seconds and 6.6 6 cr rupees in Q4. At a fullear year level, MESPL is GM positive with a gross margin of 1.3%. 13:56 13 minutes, 56 seconds The business continues to be lossmaking at an EIDA level with 31 cr rupees of EITA loss. The losses however have 14:03 14 minutes, 3 seconds substantially reduced versus F25 during which period we made 51 cr rupees of EITA loss. 14:10 14 minutes, 10 seconds Coming to the mobility business, revenue for F-26 was a 386 cr rupees as compared to 316 crores in F25 up by 22%. 14:22 14 minutes, 22 seconds Significant scale up in large B2B accounts has driven this growth in the business. 14:28 14 minutes, 28 seconds In our last mile delivery business, Q4 F26 revenue stands at 72 cr rupees 14:34 14 minutes, 34 seconds compared to 89 crores in Q4 F25 which is down by 18%. 14:40 14 minutes, 40 seconds As we have alluded to in previous quarters and as Hmon also mentioned, we have consolidated our business in this segment and taken strategic decisions at 14:48 14 minutes, 48 seconds certain sites in order to improve profitability. 14:51 14 minutes, 51 seconds This is reflecting in sequential gross margin improvement and EIDA performance of the business. Gross margin has 14:59 14 minutes, 59 seconds improved from 2.7 crores in Q3 F26 to 6 and a half crores in Q4 F26 and EIDA has 15:06 15 minutes, 6 seconds moved from a 1 cr E AIDA loss to a 2.2 crore EIDA profit in Q4 F26. 15:13 15 minutes, 13 seconds Overall, we are pleased by the progress in the numbers. At the same time, we remain mindful that the near-term environment continues to be dynamic, 15:22 15 minutes, 22 seconds shaped by evolving geopolitical developments and inflationary pressures. 15:26 15 minutes, 26 seconds As Hmon mentioned, we are closely monitoring the situation with an agile approach to enable timely and well-c calibrated decisions. With this, I hand 15:35 15 minutes, 35 seconds it back to Mandar to open the floor for Q&A. 15:44 15 minutes, 44 seconds Thank you. 15:47 15 minutes, 47 seconds Ladies and gentlemen, we'll now begin with the question and answer session. 15:50 15 minutes, 50 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 15:58 15 minutes, 58 seconds may press star and two. Participants are request to use handset while asking a question. 16:05 16 minutes, 5 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 16:14 16 minutes, 14 seconds Our first question come from the line of Kupas Shankar NJ from Aventis Park. Please go ahead. 16:21 16 minutes, 21 seconds Um good afternoon and uh thank you for the opportunity and uh congrats on a great set of uh numbers uh especially 16:29 16 minutes, 29 seconds across uh express business as well as uh your 3PL business. Uh my first question uh would be on the express side of 16:36 16 minutes, 36 seconds things. Uh just wanted to get a sense around uh what would have been the volume growth for the quarter and and for the year. And uh for just an add-on 16:46 16 minutes, 46 seconds question to that is that uh given that the custoing exercise is behind us um can one expect 16:54 16 minutes, 54 seconds sort of a growth over the medium-term uh in this business? 16:59 16 minutes, 59 seconds So so let me uh KBA thank you so much uh uh for your question and for your compliments to our team. Uh let me 17:06 17 minutes, 6 seconds answer the second question uh better that a mid-tim kind of growth is possible uh in this business and that's what uh uh our team would be driving at. 17:16 17 minutes, 16 seconds Uh coming to your first question, uh not right for us to only look at volume because any volume growth will not give 17:23 17 minutes, 23 seconds you uh much insight into uh uh into the business overall because as we have previously uh stated in our uh 17:31 17 minutes, 31 seconds conference calls uh that just looking at volume um will not give us key insights. 17:36 17 minutes, 36 seconds We have to look at volume and yield together uh because sometimes you can get as much volume as you want uh but that is not a profitable uh decision for 17:44 17 minutes, 44 seconds you. So we are being very mindful of this and in fact in the last one year we have cleaned up a lot of the volume which was not yielding positive results 17:53 17 minutes, 53 seconds for us uh and we have taken that out. So all the growth that you see in our revenue uh in MSPL is irrespective of such tough calls that we have taken. Uh 18:02 18 minutes, 2 seconds so just looking at volume will not help and earlier we used to share that number but since the last quarter we have stopped sharing that number. 18:11 18 minutes, 11 seconds Appreciate that human just want to know what is a growth per se because I I I completely get your point that you have to look at it holistically and I I agree 18:19 18 minutes, 19 seconds with you that is that is the best way ahead. Uh uh but but just wanted to get a sense around given the fact that uh the underlying uh automotive piece uh 18:28 18 minutes, 28 seconds has has done quite well. So if if any broad direction also is available uh it will help us see how the yields are also shaping up in the space. 18:39 18 minutes, 39 seconds Yeah. So proper we can certainly uh share this that our volume growth you can think about this like a mid high teams kind of a volume growth. 18:48 18 minutes, 48 seconds Understood. Thank you. Thank you. U second question um on on on the recent disclosure on adjusted epida bridge 18:55 18 minutes, 55 seconds right and and appreciate uh uh this this disclosure just uh throws a good light around uh uh your your actual 19:03 19 minutes, 3 seconds profitability. Um now while I can look at the fourth quarter numbers and and uh you know we can see that the AITA 19:10 19 minutes, 10 seconds margins has definitely improved adjusted has improved over 3.2%. In FI9 FI 1819 19:17 19 minutes, 17 seconds levels we were at on a pre-ind basis we were close to about 3.6 to 3.9 sort of a 19:25 19 minutes, 25 seconds margins uh and that was a business which was fairly skewed towards supply chain and and less of warehousing and so on. 19:33 19 minutes, 33 seconds Is it is it very fair to assume that directionally as you see your 3PL business uh stabilizing further with 19:40 19 minutes, 40 seconds e-commerce u you know gaining traction and and automotive being a a core pillar as well as network-driven businesses 19:47 19 minutes, 47 seconds like um your uh express uh this number should surpass you know your FI 1819 19:55 19 minutes, 55 seconds levels uh by material sense when when business normalizes um uh by over the medium term is that is 20:03 20 minutes, 3 seconds understanding correct so ka without giving you any forward-looking uh guidance uh uh directionally I would agree with every 20:10 20 minutes, 10 seconds word that you said uh because uh this is uh I mean I I would be very disappointed if uh anybody has the view that this is 20:19 20 minutes, 19 seconds our best case analysis I mean we have just started this turnaround and I think there are a lot of work still left to be done for us so directionally I would 20:27 20 minutes, 27 seconds completely agree with you got it uh uh last question from my Right. Uh on the last mile consolidation 20:35 20 minutes, 35 seconds part um uh what is the further impact uh expected as in are we done with the pruning exercise or uh are we 20:42 20 minutes, 42 seconds anticipating uh further uh decline at least over the near term until uh business stabilizes. 20:50 20 minutes, 50 seconds So all the pruning of the last mile has been done uh in FY26. We don't expect any more pruning to be done from here. 20:57 20 minutes, 57 seconds In fact our profitm client should grow with us. So I would I would expect this to be growing business in 21:05 21 minutes, 5 seconds as Isha said in remarks that the business actually on the profit metrics has improved significantly over what it was just a couple of quarters back. 21:16 21 minutes, 16 seconds Got it. Fantastic. Uh thanks a lot for the response. All the best. Thank you. 21:23 21 minutes, 23 seconds Thank you. Our next question come from the line of Aluk Deorra from Motil Financial Service Limited. Please go ahead. 21:32 21 minutes, 32 seconds Uh good evening and congratulations on improved performance. Uh just had some 21:39 21 minutes, 39 seconds uh you know question on express business. Uh so you know going at the good run rate of improvement which we 21:46 21 minutes, 46 seconds have seen over the uh last several quarters. Now uh when do we expect uh you know the break even kicking in and 21:54 21 minutes, 54 seconds uh you know the profitability also when where it could reach uh once we kind of turn profitable uh some insights on that 22:02 22 minutes, 2 seconds and also in that business are we you know at the operational levels using significant amount of technology for like sorting belts and so on if you can just highlight that. 22:14 22 minutes, 14 seconds uh alop thank you uh uh for your u uh compliments to our team u in in MSPL u I 22:21 22 minutes, 21 seconds mean I can't uh share any forward guidance with you but I can tell you that we have stated this that becoming a bit positive is our immediate goal uh in 22:30 22 minutes, 30 seconds the last year for the full year as a whole we have become gross margin positive and I can share with you that we are very very close to uh an AITA 22:39 22 minutes, 39 seconds positive number uh I can't commit a timeline to you but I can just tell you we are very close uh to that kind of a 22:46 22 minutes, 46 seconds profitable metric reach. Uh on the tech side, we do employ uh very strong tech 22:53 22 minutes, 53 seconds uh in in this company and uh we uh will also uh do little bit of investment in 22:59 22 minutes, 59 seconds our tech uh in FI27 uh because we believe that in the last two years we have not invested into that and I think there is some requirement 23:08 23 minutes, 8 seconds now coming up which we shall do. uh whether we are doing uh a sorting belt kind of thing and all that would be too much of a granular detail to share but 23:17 23 minutes, 17 seconds all I can tell you is that uh this is a very tech focused company and we have a very strong tech backbone which supports this business. 23:27 23 minutes, 27 seconds Sure. And uh you mentioned about the volume growth being around uh uh in the mid teens or so that was you were 23:34 23 minutes, 34 seconds referring to the Q uh uh revenue growth or the volume growth. 23:41 23 minutes, 41 seconds Uh just hold. Sure. 23:48 23 minutes, 48 seconds That was the Y look. 23:53 23 minutes, 53 seconds Okay. Quarter on quarter is is much much higher. 23:59 23 minutes, 59 seconds Okay, because revenue growth in express business is showing around 24:05 24 minutes, 5 seconds uh I mean uh I mean it's a quite a big jump in the 24:12 24 minutes, 12 seconds in the Y revenue uh so that means the pricing has improved is it? Yeah, we we 24:19 24 minutes, 19 seconds did speak about that we have a very strong focus on our yield improvements and there we are finding that uh we are able to get better pricing. 24:29 24 minutes, 29 seconds Okay. Okay. So have we taken any price increase or it's it's also that uh the mix has also been little more favorable 24:37 24 minutes, 37 seconds which has led to improved realization because is the market really taking or accepting the price increases in the uh current scheme of things where you know 24:45 24 minutes, 45 seconds the other costs have actually gone up at the client's end. 24:49 24 minutes, 49 seconds Uh look I would say that mix is also helping us. our mix is favorable and I don't think we have taken any blanket 24:57 24 minutes, 57 seconds price increase but we have taken very specific price corrections uh with certain of our clients. 25:05 25 minutes, 5 seconds Got it. Got it. Just last question. Uh so now we are at around 450 cr kind of a 25:13 25 minutes, 13 seconds revenue in express. Uh so you know could at this kind of base where we are still 25:20 25 minutes, 20 seconds a kind of a smaller player in this segment uh we could we could do a 20 25% sort of a growth you might not split in 25:29 25 minutes, 29 seconds terms of volume or pricing but as a overall level in terms of revenue a 20 25% growth trajectory could be kind of 25:36 25 minutes, 36 seconds uh worked on for fi 27 and 28 uh alok I would like to think about like 25:45 25 minutes, 45 seconds we are driving towards a mid to high team kind of growth uh for this business. 25:52 25 minutes, 52 seconds Okay. That in terms of revenue. 25:55 25 minutes, 55 seconds Yeah, that's for the revenue and we will continue to uh uh improve our yields and and the mix. 26:01 26 minutes, 1 second Got it. Uh okay. Yeah, that's all from my side. Thank you sir. All the best. Thanks a lot. 26:09 26 minutes, 9 seconds Thank you. A next question comes from the line of Janice Jooshi from PL Capital. Please go ahead. 26:17 26 minutes, 17 seconds Uh yeah uh congratulations on good set of uh numbers. Uh sir just one 26:23 26 minutes, 23 seconds observation I mean uh E3 of FI26R uh warehousing space in the uh contract 26:30 26 minutes, 30 seconds logistic business uh was about 20.4 million square ft and in this quarter we are at about uh uh 19 million square ft. 26:39 26 minutes, 39 seconds Uh so just wanted to get some sense I mean uh the margin improvement that we have uh seen in the business has it got 26:46 26 minutes, 46 seconds to do with the relinquishment of area and consequent fall in the rental cost or uh has it got to do with uh some kind 26:54 26 minutes, 54 seconds of other benefits which you would want to highlight. 26:59 26 minutes, 59 seconds So Jes thank you uh for your compliments to the team. uh see these are all business decisions we have taken over 27:07 27 minutes, 7 seconds the last four quarters now uh where some of the leases we have relinquished and some of the leases also have got over uh 27:15 27 minutes, 15 seconds so while we are one lot of business uh this is always a pipe in and a pipe out kind of a situation which will keep 27:21 27 minutes, 21 seconds happening uh so uh I think broadly we are very invested into our 3PL business contract logistics business and we are 27:30 27 minutes, 30 seconds looking at growth here but just think about that in this year we did take some calls on certain nonprofitable businesses, nonprofitable customers I 27:38 27 minutes, 38 seconds would say and that may be reflective of this for that and uh in the contract logistic 27:47 27 minutes, 47 seconds business uh we have uh stated in the PPT that uh we plan to enter into some uh new segments uh so can you just talk a 27:56 27 minutes, 56 seconds bit about that and uh any specific timeline which you would want to share? 28:02 28 minutes, 2 seconds Yeah. So we are currently evaluating a couple of segments uh um which are which we believe will improve our mix and 28:09 28 minutes, 9 seconds improve our profitability. So right now we are uh doing a lot of market study in these areas and in this year we will 28:17 28 minutes, 17 seconds certainly enter into one of those segments. 28:21 28 minutes, 21 seconds Would you want to call out which that segments are? 28:25 28 minutes, 25 seconds No, we have not made that decision. We are still evaluating both those segments but one of those segments will go ahead in this case. 28:32 28 minutes, 32 seconds Got that? And sir on the on the widespread side in the initial remarks uh you mentioned that uh for FI26 uh uh 28:41 28 minutes, 41 seconds the reduction that we have achieved is roughly about uh 9 lakh square ft and I believe uh our our uh overall white 28:48 28 minutes, 48 seconds space that we had with us uh was somewhere around 1.5 million square ft. 28:52 28 minutes, 52 seconds Uh so with respect to the reduction timelines uh uh uh do we stick to that earlier guidance of uh uh September 26th uh so any any specific insights on that? 29:04 29 minutes, 4 seconds Yeah janesh so your numbers are right when we started the year we were at 1.6 million square ft to be precise uh we 29:10 29 minutes, 10 seconds ended the year at.7 million and our commitment uh in my first call was that we will reduce our wide space by 95%. So 29:19 29 minutes, 19 seconds we have still some more work to do by September of this year. So by September of this year we will achieve that glide path and we are currently at that stage 29:28 29 minutes, 28 seconds and maybe slightly better than that on a glide path. 29:32 29 minutes, 32 seconds Got that sir. Got that. Thank you so much and uh all the best. Thanks. Thanks. 29:40 29 minutes, 40 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question of press star and one on the touchstone telephone. 29:51 29 minutes, 51 seconds Our next question comes from the line of Kushi Sunni from Noama Institutional Equities. Please go ahead. 29:58 29 minutes, 58 seconds Um hello good afternoon and congratulations for the excellent show particularly the standout performance on the express business. Um I had a 30:06 30 minutes, 6 seconds question regarding certain uh items available in the cash flow. So particularly you can see a roou reversal 30:14 30 minutes, 14 seconds and a credit credit provision provision for trade receivables which seems to be a fairly large amount of 14 cr and uh 30:22 30 minutes, 22 seconds some 28 crores. So I just want to understand uh is it netted off against other expenses and uh is this a one-off 30:31 30 minutes, 31 seconds what has driven this um like for the credit provision is it a particular customer or are there more to come? if 30:38 30 minutes, 38 seconds you can just give some idea on what this uh where is this figure exactly adjusted. 30:46 30 minutes, 46 seconds Yeah, Koshi, I'll take that. Thanks for the question. I'll answer uh your question on the unrealized gain on 30:52 30 minutes, 52 seconds reversal of ROU. First, this is again uh in line with India's 116 accounting. As you know that when we get in a lease and 31:01 31 minutes, 1 second when we capitalize our lease, the way India's 116 accounting works is the curve impact ensures that there is a 31:09 31 minutes, 9 seconds higher hit to the P&L in the initial few years of the lease. Therefore, when you terminate a lease before the contracted 31:16 31 minutes, 16 seconds end period or you pre-close a property, there is a reversal that happens on that property. Uh Hmon spoke about it earlier 31:24 31 minutes, 24 seconds as well. These are business decisions as in when you open and close sites you keep getting these pluses and minuses in the P&L and this 14.38 crores that I 31:33 31 minutes, 33 seconds think you're looking at our cash flow statement refers to that number. So that's the answer to your first question. On your second question on 31:42 31 minutes, 42 seconds expected credit loss this is in line with accounting prudence. We have taken some action on age receivables based on 31:49 31 minutes, 49 seconds our assessment of recoverability or lack thereof and you see that reflected in our numbers as well. Um you know again 31:57 31 minutes, 57 seconds this is a part of the ongoing business and like I said we have provided in line the prudence and management judgment. 32:05 32 minutes, 5 seconds Um so just to clarify is there anything that you see of a similar nature in the short term at least or uh it will come as it comes. 32:15 32 minutes, 15 seconds Uh Kushi nothing that I would like to call out for the moment like I said you know this is business there are always issues under discussion under 32:23 32 minutes, 23 seconds negotiation but nothing that warrants provisioning at this moment in our assessment. So nothing that I would like to call out for now. 32:30 32 minutes, 30 seconds Okay. Uh and another question I would have is if the diesel prices go up by let's say 10 or 12 per liter um how 32:38 32 minutes, 38 seconds would that in impact you like does it reverse the good work that we've been doing or will it be able to be passed on 32:45 32 minutes, 45 seconds to the as a cost inflation to the customers. 32:49 32 minutes, 49 seconds Yeah. So an increase of this magnitude that you spoke about will be passed on 100% to our customers. uh that that 32:57 32 minutes, 57 seconds shouldn't be a problem and uh I I can but I let me express my concern that if this kind of a diesel 33:06 33 minutes, 6 seconds increase happens uh then it will certainly have an inflationary impact on the overall economy of the country and that may impact certain sectors that we 33:14 33 minutes, 14 seconds play in uh but that's anybody's call uh I mean uh you would know in fact more than me on how uh the economy will get 33:22 33 minutes, 22 seconds impacted if that kind of a price increase happens in diesel Uh however from our point of view this will be passed off. 33:32 33 minutes, 32 seconds Okay thank you so much and wish the team all the best of luck. Thank you Kisha. 33:41 33 minutes, 41 seconds Thank you. 33:42 33 minutes, 42 seconds Reminder anyone who wishes to ask a question may press star and one. 33:47 33 minutes, 47 seconds Our next question comes from the line of Chiak from keynote. Please go ahead. 33:53 33 minutes, 53 seconds Yes thank you for the opportunity. I most of my questions are answered. I just have one broad question. Uh could you just highlight how the express 34:02 34 minutes, 2 seconds industry is standing out in terms of growth? Uh there are two types of clients. One are corporate and second 34:09 34 minutes, 9 seconds one are NSN or FM set of clients which aails the service in this industry. uh just wanted to understand how the 34:17 34 minutes, 17 seconds dynamics have been uh changing that is leading to the volume growth that we are having or it is completely the company 34:25 34 minutes, 25 seconds level calls that we are taking which is leading to volume growth. 34:31 34 minutes, 31 seconds So actually uh uh chag uh this express business or the whole industry is shaping up very well. Uh and this is 34:40 34 minutes, 40 seconds following the kind of trajectory which any developed society when it progresses uh follows. Uh if you see the western 34:47 34 minutes, 47 seconds world uh lot of the cargo moves by extras logistics because people just are not in the habits of not getting their 34:54 34 minutes, 54 seconds stuff on time or getting it only in the full truckloads. So people would move the stuff even if like there one packet 35:01 35 minutes, 1 second to be moved or two packets to be moved or half a truck is to be moved they will not wait for the truck to fill. So the time element of the whole cargo chain 35:10 35 minutes, 10 seconds becomes very critical and this cycle we have seen in any developed country. So as India becomes more developed, it becomes more prosperous, people have 35:18 35 minutes, 18 seconds more discretionary income and spending grows. Uh we believe that express logistic business will continue to grow and this is what we are seeing. uh uh if 35:26 35 minutes, 26 seconds you see after every 2 3 years there is a distinct change uh in the industry trajectory that's why we are very uh bullish on this business and we believe 35:34 35 minutes, 34 seconds that this is a business for the long term to be made. MSPL is not any regular freight forwarding or any freight 35:42 35 minutes, 42 seconds movement business. This is a network business which takes years to build. Uh please consirline 35:49 35 minutes, 49 seconds business. Uh why is it that we don't have so many new airlines in India? 35:54 35 minutes, 54 seconds because these are very difficult businesses to build and the cost come up front and the revenues and profits follow a lot. Uh so this is a business 36:02 36 minutes, 2 seconds which has very high entry barriers and we believe that uh minor logistics is now very well positioned. We have done a 36:10 36 minutes, 10 seconds lot of the hard work in the last two to three years and now that we are we have become GM positive uh at the fullear 36:17 36 minutes, 17 seconds basis and I said that we are very close to an AITA break even uh I believe we are in a very good position here to build a very long-term sustainable and 36:26 36 minutes, 26 seconds profitable business in our express logistics. So we are shaping uh the indust we are seeing the industry shape up like it has shaped up in any other 36:34 36 minutes, 34 seconds western or developed economy and we believe that we are on a very good trajectory. So this is where we believe but overall if I have to give you a very 36:42 36 minutes, 42 seconds near-term answer on this clearly in the last couple of quarters we have seen retail is doing better than uh uh B2B. 36:49 36 minutes, 49 seconds uh however these things can change quarter to quarter and uh how it happens. I mean we have to play tactically also but as at a strategic 36:57 36 minutes, 57 seconds level I want to think about uh this is a very uh good business for any u logistics company but it needs years to 37:04 37 minutes, 4 seconds build and it has very high entry barriers. 37:09 37 minutes, 9 seconds Fair enough. So this uh correct if my thinking is wrong over here uh B2B business generally brings significant 37:16 37 minutes, 16 seconds volumes and uh retail business would help you to earn higher margins like uh 400 500 bit which 37:24 37 minutes, 24 seconds higher margin than what we can pass to a B2B client. uh second thing I wanted to understand within this was that are we 37:31 37 minutes, 31 seconds serving any e-commerce industry client in our express business and what quantum of our revenue is coming from that and 37:40 37 minutes, 40 seconds lastly currently as we said that we are focusing on improvising yield with volume if I take a mark that's industry 37:46 37 minutes, 46 seconds level yield are 100 rupees per kg what kind of yield we are having currently 37:53 37 minutes, 53 seconds and how are we focusing it to bridge to an industry standard Uh so Jav are right that uh the retail 38:02 38 minutes, 2 seconds segment brings in better yield. Uh so that your first point is uh absolutely right. Uh that helps us also and I mean 38:09 38 minutes, 9 seconds every company works like that with a mix of both uh retail and B2B. B2B as you know are longer term uh kind of 38:17 38 minutes, 17 seconds relationships and also they are more predictable business. Uh retail is not predictable but has higher yield. That that's true. Uh your second question was 38:26 38 minutes, 26 seconds uh related to uh sorry can you repeat your second question? 38:31 38 minutes, 31 seconds Second was related to the e-commerce client if yeah so is if my understanding is correct today expressed industry is 38:39 38 minutes, 39 seconds uh growing at a pace and e-commerce as a mix and express loyalty is going at much faster pace. So just wanted to understand if we are serving any 38:48 38 minutes, 48 seconds e-commerce client and what kind of percentage of revenue would be coming. 38:51 38 minutes, 51 seconds We we do we do serve e-commerce clients also uh at an overall ML level. I spoke about in my opening comments that we have more than a,000 cr of revenue coming from e-commerce at ML level. 39:02 39 minutes, 2 seconds However, at Express Logistics, we do serve some uh e-commerce companies 39:12 39 minutes, 12 seconds and the quantum of quantum would be around that that we will not like to share uh industry-wise break up of of our volume. 39:20 39 minutes, 20 seconds And and my third uh and the third question sir, what was the third question? 39:27 39 minutes, 27 seconds Uh it was related to understanding if the yield in express business of the industry level for example it is 100 per per time. 39:37 39 minutes, 37 seconds I get it. 39:38 39 minutes, 38 seconds Yeah. That's that's not right for us to share uh because that would give too much of information uh to our competition. 39:48 39 minutes, 48 seconds No. Thank you so much. Thank you. 39:53 39 minutes, 53 seconds Thank you. Reminder, anyone who wishes to ask a question may press star and one on their touchstone telephone. 40:01 40 minutes, 1 second Our next question comes from the line of Rhan say from three asset managers. Please go ahead. 40:08 40 minutes, 8 seconds Um hello good afternoon to the team and thanks for taking my question. 40:13 40 minutes, 13 seconds uh uh my first question around your business that you have I think you have mentioned earlier also. So like while 40:21 40 minutes, 21 seconds gross margins have improved uh very well in business. So what are the key levers that will uh drive the express segment 40:29 40 minutes, 29 seconds to direct the break even and uh sub subsequently profitability. Could you please explain a bit around this because your voice is kind of a for lag panly? 40:40 40 minutes, 40 seconds Uh Rahan, you are specifically asking for ML as a whole or only for our express business. Uh both. 40:48 40 minutes, 48 seconds Both. Okay. So, uh Rahan at the overall ML level uh let me tell you that to get 40:55 40 minutes, 55 seconds this kind of a gross margin improvement uh we have pretty well pressed all the levers. Okay. uh uh it's it's difficult 41:03 41 minutes, 3 seconds to narrate all of that but whatever you can think of business I mean we have looked at pricing a renegotiation with some of our clients uh we have looked at 41:12 41 minutes, 12 seconds all our cost elements A to Z whatever I mean even if we spend like 10,000 rupees in our business we have relooked at whether we need to spend that kind of 41:20 41 minutes, 20 seconds money or not so we have looked at every cost element that builds up our total uh cost structure and we have looked at 41:27 41 minutes, 27 seconds client-wise profitability uh for all our clients uh on an adjusted uh uh AITA 41:34 41 minutes, 34 seconds basis whether this business makes sense for us or it doesn't make sense. So we have brought in a lot of focus of a bit 41:42 41 minutes, 42 seconds level profitability for each of our clients and each of our vertical lines and our leaders are very well now aligned with this level of thinking and 41:50 41 minutes, 50 seconds this this kind of working. Uh so that's uh that's what is happening at the MSBL level. Uh we have done a very strong 41:57 41 minutes, 57 seconds focus on improving our yields. uh in the last one year the team is very focused to delivering a better customer experience and if you deliver a better 42:05 42 minutes, 5 seconds customer experience of course uh you are in a position to demand a better pricing for them. So our net network service levels that we track very closely on a 42:14 42 minutes, 14 seconds monthly basis they have been improving over the last 12 months on a consistent basis and of course with that kind of customer satisfaction we all always have 42:23 42 minutes, 23 seconds a better position to go and ask customers for some price corrections. So that has played out very well for us. Uh so these are the and there again very 42:30 42 minutes, 30 seconds strong focus by the team on our overall cost whether it is the pickup cost whether it is your line hall cost whether it is your warehousing costing 42:37 42 minutes, 37 seconds so all of that have been looked at very very closely. 42:42 42 minutes, 42 seconds Oh okay. Okay. Uh and just if you want to specify more around this express business. So uh what kind of like if I 42:50 42 minutes, 50 seconds want to ask what kind of customer like shift like theme versus enterprise versus e-commerce are you targeting express to improve economics. 43:00 43 minutes So every every customer I mean we are a full uh as I said we are an integrated logistics company. So we look at every 43:07 43 minutes, 7 seconds customer uh to target. uh there is no specific preference. Of course, uh within our customers, we can tell you that our e-commerce business is growing 43:15 43 minutes, 15 seconds more than other businesses. Uh we have very strong growth in e-commerce because that industry itself uh is doing very well and we have some very marquee 43:23 43 minutes, 23 seconds customers that we serve and we have great relationship with these customers. 43:27 43 minutes, 27 seconds Uh so that segment is growing faster than other segments but all segments are growing for us. Okay. 43:35 43 minutes, 35 seconds uh and just one last question on the mobility uh segment that you given the focus on improving utilization asset 43:42 43 minutes, 42 seconds heavy B2C mobility. So what is the current utilization level versus target that you are targeting for going forward? 43:52 43 minutes, 52 seconds That's an internal metric. Rehan we won't be able to share that. 43:57 43 minutes, 57 seconds Uh you do you want to give any range it's okay? 44:03 44 minutes, 3 seconds Range will not help because uh I'm just thinking through range will not help uh in in your getting any insight because 44:10 44 minutes, 10 seconds these metrics keep changing uh with that. So just I mean this is an internal metric. We drive it very hard. All I can tell you is and uh difficult to share. 44:21 44 minutes, 21 seconds Okay. Okay. I understand. Yeah. Thank you. Thanks. 44:27 44 minutes, 27 seconds Thank you. Our next question comes from the line of Sumuk from Corman Capital. Please go ahead. 44:34 44 minutes, 34 seconds Uh hey team am I audible? Yes sir. Please go ahead. 44:38 44 minutes, 38 seconds Yeah. So uh sir my question was uh do you see any impact uh currently from the west Asia war on domestic or 44:46 44 minutes, 46 seconds international logistic movements so far and also you also alluded to the fact that the fuel prices if the magnitude is 44:55 44 minutes, 55 seconds higher will be passed on. So uh how do you see this uh if there is a sudden uh spike in the fuel prices uh in India how 45:03 45 minutes, 3 seconds do you see this impacting the industry in the near term sir? 45:08 45 minutes, 8 seconds Uh smoke on west Asia we are clearly seeing some headwinds in a freight forwarding business. uh that's a business as you know has done very well 45:16 45 minutes, 16 seconds in quarter 4 and overall full FI26 we did very good business with that but in the last few weeks we are beginning to 45:24 45 minutes, 24 seconds see impact of the west Asia war on the global trade and obviously that would impact our freight forwarding business uh there there are a lot of issues on 45:32 45 minutes, 32 seconds the shipping lines uh there are a lot of issues in container uh getting jammed up in certain ports so they are not moving 45:40 45 minutes, 40 seconds and also our customers uh with that kind of freight premiums that are there, the insurance premiums have gone up, freight 45:47 45 minutes, 47 seconds rates have gone up, fuel search charges on ships have gone up. With that kind of cost inflation, even our customers tend 45:54 45 minutes, 54 seconds to wait uh to see how uh the geopolitical situation uh changes and you know how volatile that is and it kind of changes every day. 46:03 46 minutes, 3 seconds So people also tend to wait. Uh so that is impacting our freight forwarding business clearly. Uh on all other segments we have not seen any impact of 46:12 46 minutes, 12 seconds the West Asia war. So far uh I think most of our clients are are doing pretty well. However, we don't know what is the level of inventories they have in their 46:20 46 minutes, 20 seconds system. So if right now all the production lines and all the e-commerce pluh industry is working on consuming 46:27 46 minutes, 27 seconds inventory uh then I don't know at a customer wise level how much inventory they still have. So if the this disruption continues for a very long 46:36 46 minutes, 36 seconds time of course some some kind of inventories uh will uh get kind of 46:43 46 minutes, 43 seconds consumed and they will need to be replenished. Uh that that's my overall view on uh on the West Asia crisis. 46:51 46 minutes, 51 seconds Coming to the fuel price uh if the fuel price is uh in the range of let's say uh 10 to 15%. Uh it will immediately get 46:59 46 minutes, 59 seconds passed on. uh I don't see there will be any lag effect of it. Uh if it is a reality, customers would accept it. uh 47:06 47 minutes, 6 seconds however my bigger worry is that if this that kind of inflation happens, you know, diesel price impacts every segment 47:13 47 minutes, 13 seconds of the economy whether it is ruler or urban and how that will slow down uh is anybody's assessment. Uh I I don't have 47:22 47 minutes, 22 seconds a view on that currently. uh but maybe other economists can have a better view than than my view but broadly my uh 47:32 47 minutes, 32 seconds concern is that if that kind of diesel price high hackman it will have some impact on economy difficult for me to quantify that. 47:40 47 minutes, 40 seconds Oh okay. Yeah that's that's it from my side. Thank you. 47:44 47 minutes, 44 seconds Thank you. So thank you. 47:50 47 minutes, 50 seconds Next question come from the line of Sonel Minhaz from present. Please go ahead. 47:56 47 minutes, 56 seconds Hi sir, this is Sonal Minaz. I hope I'm audible and thank you for taking my question. 48:02 48 minutes, 2 seconds Yes sir. So my question was with regard to the express logistics business. Uh over the last 12 18 months uh one of the competitors was absorbed by delivery. 48:12 48 minutes, 12 seconds One of the competitors is not financially healthy and I think we've seen some rationality in terms of pricing realization basically uh coming in the market. 48:22 48 minutes, 22 seconds uh just wanted to take your subjective comments on do you see uh more of uh 48:28 48 minutes, 28 seconds realization improvement uh in the coming quarters or in the coming year direction speaking that's one and uh secondly uh 48:38 48 minutes, 38 seconds the market leader uh has uh a gross margin or something equivalent of their unit aid margin of around 18 19%. 48:49 48 minutes, 49 seconds uh I'm assuming obviously they're much larger than than you in a particular category but I'm just assuming directionally as you scale and as you 48:56 48 minutes, 56 seconds invest in capacity uh your margins should also be inching towards double 49:02 49 minutes, 2 seconds digits as as we grow uh from these are my questions. 49:08 49 minutes, 8 seconds Yeah. So on the pricing uh uh I would agree with your observation uh that there is some consolidation of the 49:16 49 minutes, 16 seconds industry has happened and uh as I said express business is a difficult business to build. uh it has very high uh entry 49:24 49 minutes, 24 seconds barriers. Uh and it is very good to note that the industry maturity is settling in and people are not only driving uh 49:32 49 minutes, 32 seconds volumes at any price uh but folks are kind of understanding that profitability is a very key part of running any 49:39 49 minutes, 39 seconds business. Uh so that kind of maturity even we are seeing in the market. So I would totally agree with your observation. On your second observation 49:48 49 minutes, 48 seconds of what kind of margin trajectory do we see we can't give any forward guidance uh and it's difficult for to compare us 49:56 49 minutes, 56 seconds with some very large companies which are in this business for decades older than us. Everybody has to go through their journey. Uh right now we are in the very early stage of building this business. 50:07 50 minutes, 7 seconds Uh this business takes a longer time to uh to build because this is like a network business. 50:13 50 minutes, 13 seconds uh as you expand your networks your costs come earlier and then these are followed by revenue and profit. So we have to go through our journey. All I 50:21 50 minutes, 21 seconds can tell you a very positive news is we are very close to an AITA break even. Uh without giving a concrete timeline I can I can say with lot of confidence we are very close to aa break even. 50:33 50 minutes, 33 seconds Great to hear that sir. Thank you councelor. Thanks sir. 50:40 50 minutes, 40 seconds Thank you. Our next question come from the line of CA Manish from Gopal Consultancy. Please go ahead. 50:48 50 minutes, 48 seconds Uh am I audable sir? Manish. Uh sir are you comfortable in Hindi? Actually I'm from Gujarat. 50:58 50 minutes, 58 seconds Sirual 51:15 51 minutes, 15 seconds timeline. Thank you. comments. 51:26 51 minutes, 26 seconds So maybe Yeah. So 51:35 51 minutes, 35 seconds and business logistics business.venue. 52:10 52 minutes, 10 seconds turn over thinking 52:24 52 minutes, 24 seconds Strong commitment. 52:43 52 minutes, 43 seconds Okay, sir. Good luck. 53:05 53 minutes, 5 seconds for my question. Thank you. Thank you. 53:11 53 minutes, 11 seconds Next question come from the line of Kushi Sunni from Nama Institutional Equities. Please go ahead. 53:17 53 minutes, 17 seconds Uh hello again. I just wanted to understand if to give some idea on the volume momentum in the express business 53:25 53 minutes, 25 seconds in April. uh you mentioned that you have seen some headwinds in the freight forwarding business and not in any other 53:32 53 minutes, 32 seconds segments but any specific guidance on the express business. 53:38 53 minutes, 38 seconds Um Kushi I would like to think about in this express business or any logistics business per se that we operate in that 53:45 53 minutes, 45 seconds quarter 4 is our best quarter of the year. Uh so it will not be fair to compare quarter 1 in your calculations with quarter 4. Uh that's the first 53:54 53 minutes, 54 seconds thing. Secondly, on the express side, uh we we are not getting so much impacted by the West Asia crisis. Freight 54:02 54 minutes, 2 seconds forwarding is purely related to and I want to emphasize that purely related to the West Asia crisis. Otherwise, that business is actually doing very well for 54:09 54 minutes, 9 seconds us. But because there is choking of trade lanes, there are freight premiums which have gone up. There are insurance costs which have gone up. So as a result, that business is under pressure. 54:20 54 minutes, 20 seconds However, to extrapolate that to any of our 3PL business or express business is not fair. I think other businesses currently are going as per our plan. 54:31 54 minutes, 31 seconds All right. Thank you sir. Thank you question. Thank you. 54:41 54 minutes, 41 seconds As there are no further question from the participant, I would like to hand the conference over to the management for the closing remarks. Thank you and over to you team. 54:55 54 minutes, 55 seconds Yeah, thank you all for joining and uh really want to thank each of our investors. Uh you guys have helped us uh 55:04 55 minutes, 4 seconds on uh on a rights issue. Uh I think that was a very significant milestone for Mangon Logistics. Uh so we are very 55:11 55 minutes, 11 seconds happy with all the support that you have provided. All I can assure you on behalf of my entire senior leadership team and everybody is here with me while I speak 55:19 55 minutes, 19 seconds uh we are very committed to making sure that all our stakeholders uh benefit for the turnaround that we are trying to execute in ML. Uh thank you all for 55:29 55 minutes, 29 seconds joining us today. Uh we hope we have addressed your questions and provided valuable insights into our performance and strategy. Uh if you have any further 55:37 55 minutes, 37 seconds queries or need any other information uh please feel free to reach out to our team or to our investor relations advisors at SGA. Uh with this we close this call. Thank you all very much. 55:49 55 minutes, 49 seconds Thank you so much sir. Ladies and gentlemen on behalf of Mahindra Logistics Limited that conclude this conference. Thank you for joining us and you may now disconnect your lines.