A

REPORT

ON

“Analysis of the Performance of Mahindra logistics”

Submitted for partial fulfillment of requirement for the award of degree

Of

Bachelor’s of Business Administration

Of

Netaji Subhas University

Jamshedpur (Jharkhand)

Session 2019-22

Supervised by External Guide Supervised by Internal Guide

Akshit kurra Dr. Mritunjay Mahato

Manager Assistant Professor

Logistics Finance Department

Submitted by

Ankit Nandan

Roll No.1902074

Enrollment No. NSU1902074

BBA V SEM

2022

DEPARTMENT OF MANAGEMENT

NETAJI SUBHAS UNIVERSITY

POKHARI, JAMSHEDPUR
 DECLARATION

I the undersigned solemnly declare that the report of the Summer Training work entitled Analysis
of the Performance of Mahindra logistics, is based on my own work carried out during the course
of my study under the supervision of Dr. Mritunjay Mahato.

I assert that the statements made and conclusions drawn are an outcome of the project work. I
further declare that to the best of my knowledge and belief that the project report does not contain
any part of any work which has been submitted for the award of any other

degree/diploma/certificate in this University or other University.

________________________

Ankit Nandan

Roll No: 1902074

Enrollment No: NSU1902074

i
CERTIFICATE BY ORGANIZATION

ii
 CERTIFICATE BY INTERNAL GUIDE

This is to certify that the report of the project submitted is the outcome of the project work entitled
Analysis of the Performance of Mahindra logistics carried out by Ankit Nandan bearing Roll
No.1902074 & Enrollment No. NSU1902074 carried by under my guidance and supervision for the
award of Degree in Bachelor’s of Business Administration of Netaji Subhas University,
Jamshedpur, Jharkhand, India.

To the best of my knowledge the report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Fulfil the requirement of the ordinance relating to the BBA degree of the

university and

iv) Is up to the desired standard for the purpose of which is submitted.

_________________________

Dr. Mritunjay Mahato

Assistant Professor
Finance Department
Netaji Subhas University
Pokhari, Jamshedpur

The project work as mentioned above is hereby being recommended and forward for examination
and evaluation.

iii
 CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled

Analysis of the Performance of Mahindra logistics

Submitted by

Ankit Nandan Roll No. 1902074 Enrollment No. NSU1902074

Has been examined by the undersigned as part of the examination for the award of Bachelor’s of
Business Administration degree of Netaji Subhas University, Jamshedpur, Jharkhand, India.

_________________ ________________
_________________ ________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:

Forwaded by

Academic Head
Department of Management

iv
 ACKNOWLEDGEMENT

With great pleasure, Iwould like to thank Mrs.Vaishnavi Golatkar, CEO of TECHMIHIRNAIK,
Mumbai for giving me the opportunity to do an internship within the organization.

I also would like to thank all the people worked along with me in TECHMIHIRNAIK, Pune with
their patience and openness they created an enjoyable working environment.

It is indeed with a great sense of pleasure and immense sense of gratitude that I acknowledge the
help of these individuals. I am highly indebted to Prof. SUBHADEEP BHADRA and Dean
NAGENDAR SINGH, for the facilities provided to accomplish the internship.

I would like to thank specialization Prof. Dr. MRITUNJAY MAHATAO who helped and guided
me throughout the process of completing this report. I am also thankful to my fellow classmates
and friends for the completion of this report.

_________________

Ankit Nandan

Roll No. 1902074

5th Sem

v
 PREFACE

In this internship report I will describe my expression during my internship period. The internship
report contains an overview of the internship company and the activities, tasks and projects that I
have worked on during my internsip. Writing this report, I also will describe and reflect my
learning objects and personal goals that I have set during my internship period.

I compiling this report I have intended to provide a synthesis of theoretical approaches and methods
ofimplementing them in the world of business. I have tried to discover the relationship
betweentheoretical and practical type of knowledge. I have tried to bridge the gap between
theoreticalassumptions and practical necessities. During the entire course of our academic study we
remainengaged in theoretical learning where the primary objective is academic success. A concise
knowledgeof the modern business arena can only be attained through the pragmatic implementation
ofhypothetical ideas, which we learn from our academic activities.

With these objectives, I have made all possible efforts and the necessary investigations to submit
this paper in an enlightened form in a very short time. I have tried my level best to eliminate errors
from the paper. As I had to complete my internship within a short period of time so the study
admits its limitations. The report first shall give an overview of the tasks completed during the
period of internship with technical details. Then the results obtained shall be discussed and
analyzed. Report shall also elaborate on the the future works which can be persuaded as
anadvancement of the current work. I have tried my best to keep report simple yet technically
correct. I hope I succeed in my attempt.

Conclusion:

In review this internship has been an excellent and rewarding experience. I have been able to meet
andnetwork with so many people that I am sure will be able to help me with opportunities in the
future.

One main thing that I have learned through this internship is time management skills as well asself-
motivation.

vi
Declaration i

Certificate by Organization ii

Certificate by Internal Guide iii

Certificate by Examiners iv

Acknowledgement v

Preface vi

Table of Graphs

S.no Title Page no.

1 Current Ratio 22
2 Quick Ratio 23
3 Net Profit Ratio 24
4 Return on Shareholders investment 25
5 Operating Profit Ratio 26
6 Operating Expense Ratio 27

Table of Contents

S.no Title Page no.

1 Introduction 01-08

2 Company Profile 09-11

3 Research and Methodolgy 12-15

4 Data Analysis and Interpretation 16-27

5 Research and Discussion 28

6 Conclusion 29

7 Bibliography 30
Chapter – 1

Introduction
 1.I PERFORMANCE MEASURE OF THE COMPANY

Mahindra Logistics Lmited is a leading integrated & mobility solutions provider with over a decade
of experience. They have strong presence across the country.

They focus on technology allows them to emphasise on customised, tech-based solutions for there
customers, hereby becoming customer partners in true sense.

The market capitalization of this company is Rs 3022Cr. And the company has delivered a poor
sales growth of 9.60% over past 5years, and also has a low return on equity of 11.14% for last
3years.

The sales of the Mahindra logistics has decresed over the years, in FY19 Rs 3851 crore, in FY20 Rs
3471 crore,in FY21 Rs 3264 crore.

The expenses of the company has decreased over the years, in FY19 Rs3700 crore, in FY20 Rs
3313 crore, in FY21 Rs 3129 crore.

The net profit of the company decreased over the years, in FY19 Rs 86 crore, in FY20 Rs 55 crore,
in FY21 Rs 30 crore.

The labilities and assets of the company has incresed over the years, in FY19 Rs 1205 crore, in
FY20 Rs 1422 crore, in FY21 Rs 1679 crore.

The net cash flow of the company has increased over the years, in FY19 Rs -11 crore, in FY20 Rs
45 crore, in FY21 Rs 98 crore.

The 58.18% of the equity holded by the promoters, 21.66% of the equity holded by foreign
investor, 11.10% of the equity holded by domestic institutional investor and 9.06% of the equity is
holded by public.

Revenue Mix:

Warehousing & other related activities- 20% in FY21 vs 17% in FY20.

Transportation- 76% in FY21 vs 73% in FY20.

Enterprise Mobility Services- 4% in FY21 vs 10% in FY20

-1-
 1.2 SIGNIFICANCE OF STUDY

The results of the study will be of great benefit to the following:

1. To evaluate the profitabilitry (earning capacity) of the company or business.

2. To make comparison within the firm (intra-firm) and with other firms (inter-firm).
3. To find out the business capability of paying interest, dividends,etc.
4. To judge the performance of the management.
5. To measure the firm long term and short term solvency.
6. To detect the problems in the running business.
7. Easy to forcast and for drawing conclusion
8. To present financials and balance sheet of the company to shareholders for better decision.
9. To know the liablities and asset of the company.
10. To know the sales, revenue, expenses and net profit of the company.
11. To know the total cash flow of the company.

1.3 REVIEW OF LITERATURE

1.3a Research paper on performance of E-kart

 Author- Manoj Phadtare

 Year- 2020
 Objectives:-
 To know about logistics industries
 To compare the effectiveness of the logistics management at Ekart logistics and
to bechmark the organization with respect to the industry.
 To have a thorough understanding of how logistics and freight industries work.
 To know whether the customers are satisfied with the existing range of service
pattern.
 Finding- learned about effective work of Ekart logistics, how they work what
strategy they used for effective work done, their range of services and get to knew
about the charges used in logistics buisness.

-2-
 1.3b Research paper on the performance of Amazon logistics

 Author- Raj Patel, Trupal Parmar

 Year- 2020
 Objectives:-
 Discover the solution for issues which obstructs the growth of Amazon’s
logistics services.
 Devise strategies and solutions for the sustainability of the supply chain.
 Learn the utilization of various tools and procedures that aid supply chain
 Evaluate insufficiencies regarding diverse Amazon’s freight forwarding service.
 Develop and implement every recommended action related to supply chain
disruption.
 Finding- learned about how to know the weakness of the logistics buisness and also
learned what stratergy should use to sustain in supply chain and also learned about
various tools and procedure that aid supply chain and logistics buisness.

1.3c Reasearch paper on performance of Shadowfax

 Author- Anik banerjee, Sarika anand

 Year- 2022
 Objective
 Devise strategies and solutions for the sustainability of the supply chain.
 To have a thorough understanding of how logistics and freight industries
work.
 To know whether the customers are satisfied with the existing range of
service pattern.
 Develop and implement every recommended action related to supply chain
disruption
 Finding- learned about what actions to take if the supply chain would disrupt.
Learned how to satisfy customer with the existing service range and pattern.

-3-
 1.3d Research paper on performance of Aegis logistics

 Author- Revathi Radhakrishnan, Sreeramana Aithal, Madhushree Lm

 Year- 2018
 Objective
 To learn competitive strategy in the green business logistics industry.
 To know how logistics industry will support the environment.
 To learn about green business strategy.
 To know ecological impact of the logistics industry on the wider
environment.
 To suggest the measures to improve the green buiness logistics industry
 Finding- learned about green buisness logistics industry,and their strategy to run
the buiness in competitive and wider environment.

1.3e Research of paper on performance of DHL

 Author- Rudresh Pandey, Varsha Ganatra, Fahada Nur Binti, Mohd Fauzi
 Year- 2021
 Objective:-
 To describe a framework of macro-environmental factors used in the
environmental scanning component of strategic management,.
 To understand and meet their demands, the role of Research &
Development.
 Addedly, the social environment greatly influences what users need and
want.
 This research paper aims to examine the effect on the courier service of
global and logistics developments and find the solutions.
 This research also examines DHL customer satisfaction.
 Finding- learned how to use macro-environmental factors used in environmental
scanning component of strategic management. Also learned about how to
research and examines the customer satisfaction.

-4-
 Table 1.1 Review of Literature

Author Year Objective Finding

Manoj Phadtare 2020 To know about learned about

logistics industries effective work of
To compare the Ekart logistics,
effectiveness of the how they work
logistic managemnet what strategy
at logistics and to they used for
bechmark the effective work
organization with done, their range
respect to the of services and
industry.Thorough get to knew
understanding of about the
how logistics and charges used in
freight industries logistics
work. buisness.

Table 1.2 Review of Literature

Author Year Objective Finding

Raj Patel and 2020 Discover the solution for issues learned about how to
Trupal Parmar which obstructs the growth of know the weakness of
Amazon’s logistics services. the logistics buisness
Devise strategies and solutions for and also learned what
the sustainability of the supply stratergy should use to
chain. sustain in supply chain
Learn the utilization of various and also learned about
tools and procedures that aid supply various tools and
chain. procedure that aid
supply chain and
logistics buisness.

-5-
 Table 1.3 Review of Literature
Author Year Objective Finding

Revathi 2018 To learn competitive strategy in learned about green

Radhakrishnan, the green business logistics
Sreeramana industry.
Aithal, To know how logistics industry
Madhushree Lm will support the environment.
To learn about green business
strategy.
To know ecological impact of
the logistics industry on the
wider environment.
buisness logistics
industry,and their
strategy to run the
buiness in competitive
and wider
environment.

Rudresh 2021 To describe a framework of learned how to use

Pandey, Varsha macro-environmental factors macro-environmental
Ganatra, Fahada used in the environmental factors used in
Nur Binti, Mohd scanning component of strategic environmental
Fauzi management,. scanning component
To understand and meet their of strategic
demands, the role of Research & management. Also
Development. learned about how to
Addedly, the social environment research and examines
greatly influences what users the customer
need and want. satisfaction.
This research paper aims to
examine the effect on the courier
service of global and logistics
developments and find the
solutions.
This research also examines
DHL customer satisfaction.

-6-
 Table 1.4 Review of Literature

Author Year Objective Finding

Anik banerjee, 2022 Devise strategies and Devise strategies and

Sarika anand
solutions for the solutions for the
sustainability of the sustainability of the
supply chain. supply chain.
To have a thorough To have a thorough
understanding of how understanding of how
logistics and freight logistics and freight
industries work. industries work.
To know whether the To know whether the
customers are satisfied customers are satisfied
with the existing range with the existing range
of service pattern. of service pattern.

1.4 OBJECTIVE OF STUDY

 To comprehend and absorb financial investigation instruments in order to compute
budgetary proportions from the organization’s monetary declarations.
 Choosing right proportions for investigations, computing and translating these proportions
accurately in order to draw future projections for the same.
 To become more acquainted with diverse financial proportions of the organization.
 To measure, test and evaluate the liquidity and profitability piosition of the organization.
 To assess the degree of association between the various leverage ratios with the well
known profitability indicators.
 To know the how the logistics company work and how they manage all weakness and
threat and customer satisfaction range.

1.5 LIMITATIONS OF STUDY

 As only the secondary data is used in this report, it was difficult to determine the accuracy
of the data . The statement could be wrong due to fraud.
 Some amount of data was not updated and was not of much use.
 A considereable amount of conflicting data was there which was difficult to much.
 Because of the company’s policy of maintaing secrecy data was not made available to me
which could have helped me in completing my report better.
-7-
 1.6 SCOPE OF THE STUDY

This study has many learnings and goals which are extremely useful for general population of
business and back as it must be use in corporate world. Many researchers can use this information
for developing financial analysis of the company. It has wide application in stock market. Many
investors can use this in their investment decisions. The company’s current market stand holds
significance and it can be applied by students, economists and researchers across the globe to study
variations in its financial position.

1.7 PREFRENCE

I have taken reference from:-

 www.researchgate.com
 www.scribd.com
 www.shaalaa.com
 www.screneer.com
 www.equitymaster.com

-8-
 Chapter – 2
Company Profile
 2.1 COMPANY OVERVIEW
“Redefining business methods for better customer experience”

Mahindra Logistics Limited is a leading integrated logistics & mobility solutions provider with
over a decade of experience. We have a strong presence across the country. We offer Supply Chain
solutions to diverse industry verticals such as Automotive, Engineering, Consumer Goods,
Pharmaceuticals, Telecom, Commodities, and E-commerce and also offer integrated employee
transportation solutions to enterprise across IT, ITeS, manufacturing, Banking, Financial Services
and Insurance, and Consulting Businesses.

We have an asset-light business model with a focus on technology and emphasis on customer
centricity. We create customised, technology-enabled logistics solutions that offer flexibility and
scalability.

2.2 COMPANY PURPOSE

“Accelerating Commerce, Empowering Communities to Rise”

Logistics is an invisible thread that binds every element of a business. And we aim at bringing
different stakeholders together to form a seamless flow of activity and thus make life easy. With
every parcel we move, and in each trip we make, each of us strives to make a difference.

We accelerate the wheel of economy. And we transform the lives we touch. Be it our business
partners, drivers, their families or communities at large, we spread smiles with every mile. This in
turn brings prosperity for everyone.

2.3 COMPANY VISSION

“Rise to be a Rs 10000 crores logistics service provider by FY 2026”
Delivering exceptional customer experience through differentiated, technology-enabled solutions.
Be among the 10 most-admired global logistics companies by the year 2030.

2.4 COMPANY PRINCIPLES

 Shaping the industry

 Transforming lives
 Reimagining solutions
 Earning trust
 Sustaining our environment

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 2.5 COMPANY’S CLIENTS
The company serves over 400+ corporate customer across various industries like Automobile,
Engineering, Consumer Goods, and E-commerce.

2.6 COMPANY SUBSIDIARIES

The company has two subsidiaries – Lords and 2x2.
Lords provides international freight forwading services for exports and imports, customs
brokerage, etc. while 2x2 specialises in offering automotive outbound logistics to 4W and 2W
industries.
2.7 COMPANY ACQUISITION
The company has acquired 100% share capital of Meru Mobility Tech Pvt ltd, V-Link Automotive
Services Pvt ltd, and V-Link Fleet Solutions Pvt ltd from Meru Travel Solutions Pvt ltd, a
Subsidiary of the Company. The total consideration is 50 crores and the acquisition is done with
the aim to expand the mobility services portfolio with an expansion in airport ride-hailing and on-
call services.
2.8 SWOT ANALYSIS
STRENGHTS:
 Rising Net Cash Flow and Cash from Operating activity.
 Stocks with improving cash flow, with good durability (subscription)
 Company with Low Debt
 Increasing Revenue every quarter for the past 2 quarters
 Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
 Book Value per share Improving for last 2 years
 Company with Zero Promoter Pledge
 FII / FPI or Institutions increasing their shareholding
 MFs increased their shareholding last quarter

WEAKNESS:-
 Negative breakdown first support. (LTP < S1)
 Broker downgrades in price or recommendation in the past one month.
 Bearish stock .( medium to low momentum)
 Inefficient use of assets to generate profits.
 Inefficient use of capital to generate profits.
 Inefficient use of shareholder funds to generate profits.
 Declining net and quarterly profit by falling profit margin.

. -10-
OPPORTUNITY:-
 Buys by Superstar Investor.
 Stocks that benefit from lower crude oil prices.
 Companies with improving valuation scores after share price falls.
THREATS:-
 Stock with expensive valuations according to the trendlyne valution score.
 Increasing trend in non-core income.
 Stocks with high PE.
 Declining profitability falling ROCE.

2.9 COMPANY ACHIVEMENTS AND REWARDS

 Best 3PL and achiever Company award of the year 2013, 2016 & 2017.
 3PL award of the year – Automotive 2014 and Best warehousing practices award 2015.

 Manufacturing supply chain provider of the year 2015- Engineering award..

 CII supply chain and logistics excellence awards 2017, 2018 & 2019.
 CSR leadership and Brand excellence award 2019.
 Ministry of Jal Shakti and overall excellence award in Gold category at CII scale award
2020.
 Overall excellence award for logistics & supply chain at the CII scale awards 2021.
2.10 REFERENCE
 www.trendlyne.com
 www.screener.com
 www.mahindralogistics.com
-11-
 Chapter – 3

Research Methodology
 3.1 COLLECTION OF DATA
In this project I have used secondary data most of which was obtained from internal records of the
company.
I have collected secondary data from :-
 Company website
 Other website like screener, trendlyne, moneycontrol
 Relevants files of the company
 Journals
3.2 PERIODICITY
In this project I have studied the Balance Sheet and Income Statement of Mahindra Logistics for
the past 3years starting from FY 2019 to FY 2021.

3.3 OBJECTIVE
 To comprehend and absorb financial investigation instruments in order to compute
budgetary proportions from the organization’s monetary declarations.
 Choosing right proportions for investigations, computing and translating these proportions
accurately in order to draw future projections for the same.
 To become more acquainted with diverse financial proportions of the organization.
 To measure, test and evaluate the liquidity and profitability piosition of the organization.
 To assess the degree of association between the various leverage ratios with the well
known profitability indicators.
 To know the how the logistics company work and how they manage all weakness and
threat and customer satisfaction range.

3.4 LIMITATIONS
 As only the secondary data is used in this report, it was difficult to determine the accuracy
of the data .
 The statement could be wrong due to fraud.
 Some amount of data was not updated and was not of much use.
 A considereable amount of conflicting data was there which was difficult to much.
 Because of the company policy of maintaining secrecy data was not made available to me
which could have helped me in making my report better.

-12-
 3.5 SCOPE

This study has many learnings and goals which are extremely useful for general population of
business and back as it must be use in corporate world. Many researchers can use this information
for developing financial analysis of the company. It has wide application in stock market. Many
investors can use this in their investment decisions. The company’s current market stand holds
significance and it can be applied by students, economists and researchers across the globe to study
variations in its financial position.

3.6 TOOLS AND TECHNIQUES

 Balance Sheet
 Income Statement
 Ratio analysis
 Graphs
3.7 RELATED TERMS
CURRENT RATIO - This ratio measures the solvency of the solvency of the company in the short
term. Current assets are those assets which can be converted into cash within a year. Current
liabilities and provisions are those liabilities that are payable within a year. A current ratio of 2:1
indicates a highly solvent position.
Current Ratio = Current assets /Ccurrent liablities

QUICK RATIO - Quick ratio is used as a measure of company’s ability to meet its current
obligations. Since bank overdraft is secured by the inventories, the other current assets must be
sufficient to meet other current liabilities. A quick ratio highly of 1:1 indicates highly solvent
position. This ratio is also called Acid Test Ratio.
Quick Ratio = Quick assets / Current liablities

CASH RATIO - Cash Ratio measures the highly liquid assets of the company. A Cash Ratio
of 0.5:1 indicates highly solvent position. It is also called Absolute Liquid Ratio.
Cash Ratio = Absolute Liquid ratio / Current Liablities

DEBT-EQUITY RATIO - Capital is derived from two sources: shares and loans. It is quite
likely for only shares to be issued when the company is formed, but loans are invariably
raised at some later date. There are numerous reasons for issuing loan capital. Debt Capital
is most commonly used to measure gearing or leverage.
Debt-equity Ratio = Long Term Liablities / Shareholders Fund
-13-
SOLVENCY RATIO - It indicates the total debt owed by the firm versus the total assets held by

it. By this we get to know its current standing in market. If debt is more its not the right firm to

invest.

Solvency Ratio = Total Debt / Total Assets

PROPRIETARY RATIO - It is assumed that larger the proportion of shareholders equity, the

stronger is the financial position of the firm. In this ratio the relationship is established between the

shareholders fund and total assets.

Proprietary Ratio = Shareholders Fund / Total Assests

INVENTORY TURNOVER RATIO - A considerable amount of a company’s capital may be tied

up in the financing of raw materials, work in progress and finished goods. It is important to ensure

that the level of stocks is kept as low as possible, consistent with the need to fulfill customer’s

orders in time.

Inventory Turnover Ratio = Cost of goods sold / Average Inventory

DEBTORS TURNOVER RATIO - Debtors Turnover, which measures whether the amount of

resources tied up in debtors, is reasonable and whether the company has been sufficient in

converting debtors into cash. The higher the ratio is, the better the position.

Debtors Turnover Ratio = Net Annual Sales / Average Trade Recieveables

CREDITORS TURNOVER RATIO - A creditors turnover ratio is a measure of how often a

particular company pays off its debts to suppliers within a given accounting period.

Creditors Turnover Ratio = Net Annual Purchase / Average Trade Payable

-14-
GROSS PROFIT RATIO - It compares the gross margin of a company to its revenue. It shows how

much profit a company makes after paying off its Cost Of Goods Sold (COGS)

Gross Profit Ratio = Gross Profit / Net Sales*100

NET PROFIT RATIO - It is used to calculate the percentage of profit a company produces from

its total revenue. It measures the amount of net profit a company obtains per dollar of revenue

gained.

Net Profit Ratio = Net Profit After Interest and Tax / Sales*100

3.8 PREFERENCE

 www.slideshare.com
 www.researchgate.com
 www.formulae.com

-15-
 Chapter – 4

Data Analysis and Interpretation

INCOME STATEMENT FOR THE YEAR ENDING 31ST MARCH 2019 & 31ST MARCH 2020

(in crores)

Particulars Year ended on 31.03.2020 Year ended on 31.03.2019

Income
Revenue from Operations 3471.12 3851.34

Other Income 13.98 7.63

Total Income 3485.12 3858.97
Expenses
Employee Benefits Expenses 306.66 263.77
Operating Expenses 2934.16 3372.40

Other Expenses 72.05 63.93

Depriciation & Amortisation 73.43 21.95
Finance Cost 17.63 3.48

Total Expenses 3403.93 3725.53

Profit Before Tax 81.19 133.44

Provision For Tax 25.74 46.79

Profit After Tax 55.45 86.65

Share of Loss of Joint Venture (0.61) (0.25)

Non-Controlling Interest (0.28) 0.76

Profit After Tax, post share 55.12 85.64

of loss of joint venture and
Non-controlling interest.

INTERPRETATION:

The consolidated revenue from operations for the financial year under review was 3,471.14 crores
as compared to 3,851.34 crores in the previous year, a decrease of 9.87% year-on-year. The
consolidated EBITDA for the fi nancial year under review stood at 172.25 crores, recording an
increase of 8.42% over the previous year of 158.87 crores. The EBITDA for the fi nancial year
under review was higher since the Company adopted Ind AS 116 for accounting of leases from
April 1, 2019. The consolidated PAT decreased by 36.01%, from 86.65 crores for the previous
financial year to 55.45 crores for the fi nancial year under review.The non-Mahindra Group
consolidated supply chain revenue grew by 0.76% year-on-year to 1,374.10 crores for the financial
year under review in comparison to 1,363.69 crores for the previous year.

-16-
INCOME STATEMENT FOR THE YEAR ENDING 31ST MARCH 2020 & 31ST MARCH 2021

(in crores)

Particulars Year ended on 31.03.2021 Year ended on 31.03.2020

Income
Revenue from Operations 3263.72 3471.12
Other Income 17.47 13.98
Total Income 3281.19 3485.12
Expenses
Employee Benefits Expenses 296.46 306.66
Operating Expenses 2764.30 2934.16
Other Expenses 68.74 72.05
Depriciation & Amortisation 89.65 73.43
Finance Cost 20.09 17.63
Total Expenses 3239.24 3403.93
Profit Before Exceptionl items 41.95 81.19
and Tax
Exceptional Items 2.75 -----
Profit Before Tax 39.20 81.19
Provision For Tax 10.02 25.74
Profit After Tax 29.18 55.45
Share of Loss of Joint Venture (0.39) (0.61)
Non-Controlling Interest (1.21) (0.28)
Profit After Tax, post share 30.00 55.12
of loss of joint venture and
Non-controlling interest.

INTERPRETATION:

The consolidated revenue from operations for the financial year under review was 3,263.72 crores
as compared to 3,471.14 crores in the previous year, a de-growth of 5.97% year-on-year. The non-
Mahindra Group consolidated supply chain revenue grew by 12.62% year-on-year to 1,547.47
crores for the financial year under review in comparison to 1,374.10 crores for the previous
year.The consolidated EBITDA for the financial year under review stood at 151.69 crores over the
previous year of 172.25 crores. The consolidated PAT de-grew by 47.38% from 5.45 crores for the
previous financial year to 29.18 crores for the financial year under review.

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 BALANCE SHEET OF MAHINDRA LOGISTICS AS AT 31 ST MARCH 2019 & 31ST MARCH
2020

(in crores)

Particulars As at 31st March 2020 As at 31st March 2019

ASSETS
I. NON-CURRENT ASSETS
a) Property, plant & equipment 225.60 66.04
b) Net Investment in Lease 20.47 --
c) Capital work in progress 15.04 2.59
d) Godwill on consolidation 4.33 4.33
e) Intangible Assets 1.03 0.94
f) Financial Assets
I. Investments 3.14 3.75
II. Trade Recieveables 13.20 6.82
III. Other Financial Assets 23.17 18.44
g) Deffered Tax Assets (net) 19.97 18.73
h) Income Tax Assets (net) 84.71 77.32
i) Other Assets 24.72 22.40

SUB TOTAL 435.38 221.36

II. CURRENT ASSETS
(a) Financial Assets
i. Investments - 77.52
ii. Trade Recieveables 522.43 518.27
iii. Cash and Cash 99.53 54.95
Equivalent
iv. Bank Balances other than - 15.00
(iii)
v. Loans 15.00 15.00
vi. Other Financials Assets 247.06 240.34
(b) Other Assets 100.53 60.76
SUB TOTAL 984.55 981.84
III. Non-Current Assets Classified 1.91 1.91
as Held for Sale
TOTAL ASSETS 1421.84 1205.11

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EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 71.54 71.45
(b) Other Equity 473.11 426.77
Equity attributable to owners 544.65 498.22
Equity attributable to non- 5.43 5.71
controlling interest
SUB TOTAL 550.08 503.93
LIABILITIES
NON-CURRENT LIABILITIES
(a) Financial Liabilities
i. Borrowings 2.31 8.89
ii. Lease Liabilities 119.72 -
(b) Provisions 15.67 16.36
SUB TOTAL 137.70 25.25
CURRENT LIABILITIES
(a) Financial Liabilities
i. Borrowings 27.00 19.63
ii. Lease Liabilities 45.69 -
iii. Trade Payables - -
a. Due to Micro & Small 5.00 6.59
Enterprises
b. Other than Micro & Small 612.17 593.47
Enterprises
iv. Other Financial Liabilities 17.19 27.11
(b) Provisions 5.63 5.16
(c) Other Liabilities 21.38 23.97
SUB TOTAL 734.06 675.93
TOTAL EQUITY & LIABILITIES 1421.84 1205.11

INTERPRETATION :-

The company’s current liablities during FY20 stood at Rs 734.06 crores as compared to Rs 675.93
crores in FY19, thereby witnessing an increase of 8.6%. Current assets in FY20 stood at Rs
984.55crores as compared to Rs 981.84 crores in FY19, therby witnessing an increase of 0.27%.

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The company’s equity during FY20 increase at Rs 550.08 crores as compared to Rs 503.93 crores
in FY19 , thereby witnessing increasing of 9%. The overall assets and liablities FY20 stood at Rs
2296.6 as compared to Rs 1906.29 crores in FY19, thereby witnessing an increase of 20%.

BALANCE SHEET OF MAHINDRA LOGISTICS AS AT 31 ST MARCH 2021 & 31ST MARCH

2020
(in crores)

Particulars As at 31st March 2021 As at 31st March 2020

ASSETS
I. NON-CURRENT ASSETS
(a) Property, plant & equipment 339.20 225.60
(b) Net Investment in Lease 18.75 20.47
( c) Capital work in progress 2.07 15.04
(d) Godwill on consolidation 4.33 4.33
(e) Intangible Assets 17.19 1.03
(f) Intangible assets under development 0.99
(g) Financial Assets
(i) Investments - 3.14
(ii) Other Financial Assets 34.50 36.37
(h) Deffered Tax Assets (net) 22.05 19.97
(i) Income Tax Assets (net) 21.11 84.71
(j) Other Assets 14.18 24.72
SUB TOTAL 474.37 435.38
II. CURRENT ASSETS
(a) Financial Assets
(i) Investments 55.07 -
(ii) Trade Recieveables 485.60 535.63
(iii) Cash and Cash Equivalent 197.77 99.53
(iv) Loans - 15.00
(v) Other Financials Assets 354.17 233.86
(b) Other Assets 111.69 100.53
SUB TOTAL 1204.30 984.55
III. Non-Current Assets Classified as - 1.91
Held for Sale
TOTAL ASSETS 1678.67 1421.84
EQUITY AND LIABILITIES
EQUITY
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 (a) Equity Share Capital 71.67 71.54
(b) Share Application Money 0.04 -
(c) Other Equity 496.35 473.11
Equity attributable to owners 568.06 544.65
Equity attributable to non-controlling 2.77 5.43
interest
SUB TOTAL 570.83 550.08
LIABILITIES
NON-CURRENT LIABILITIES
(c) Financial Liabilities
iii. Borrowings 0.90 2.31
iv. Lease Liabilities 179.52 119.72
(d) Provisions 15.89 15.67
SUB TOTAL 196.31 137.70
CURRENT LIABILITIES
(c) Financial Liabilities
iv. Borrowings 25.53 27.00
v. Lease Liabilities 60.77 45.69
vi. Trade Payables - -
c. Due to Micro & Small Enterprises 14.06 5.00
d. Other than Micro & Small 752.02 612.17
Enterprises
iv. Other Financial Liabilities 17.65 17.19
(d) Provisions 6.06 5.63
(c) Other Liabilities 35.44 21.38
SUB TOTAL 911.53 734.06
TOTAL EQUITY & LIABILITIES 1678.67 1421.84

INTERPRETATION :-

The company’s current liablities during FY21 stood at Rs 911.53 crores as compared to Rs 734.06
crores in FY20, thereby witnessing an increase of 24.17%. Current assets in FY21 stood at Rs
1204.30 crores as compared to Rs 984.55 crores in FY20, thereby witnessing an increase of 22.31%

Long term loan during FY21stood at Rs 196.31 crores as compared to Rs 137.70crores in FY20 ,
thereby increase of 42.56%. Long term assets shows increase of 8.95%.

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 RATIO ANALYSIS OF MAHINDRA LOGISTICS

4.1 CURRENT RATIO = Current Assets / Current Liabilities

TABLE 4.1

CURRENT RATIO
YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO
FY19 981.84 675.93 1.45
FY20 984.55 734.06 1.34
FY21 1204.30 911.53 1.32

GRAPH 4.1

The below graph is showing Current Ratio of the Company:-

1.5

1.45

1.4
FY19
FY20
1.35
FY21

1.3

1.25
1 2 3

INTERPRETATION

The above table shows good Current Ratio of 1.45 : 1.34 : 1.32 every year. This may be due to
higher level of current assets during the period.

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4.2 QUICK RATIO = Quick Assets / Current Liabilities

TABLE 4.2

QUICK RATIO
YEAR QUICK ASSETS CURRENT LIABILITIES QUICK RATIO
FY19 665.74 675.93 0.98
FY20 635.16 734.06 0.86
FY21 738.44 911.53 0.80

GRAPH 4.2

The below Graph is showing Quick Ratio of the Company :-

1.2

0.8
FY19
0.6
FY20

0.4 FY21

0.2

0
1 2 3

INTERPRETATION :-

As we know Quick Ratio is a measure of company’s ability to meet it current obligations. We can
se that Mahindra Logistics performed very close to ideal Quick Ratio i.e. 1. It went up as high as
0.98 : 1 during the FY19 as the value of Quick Assets during that period was highest. But after that,
that there has been a declining trend in the Quick Ratio. It was lowest during FY21.

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4.3 NET PROFIT RATIO = NET Profit / Net Sales *100

TABLE 4.3

NET PROFIT RATIO

YEAR NET PROFIT NET SALES NET PROFIT RATIO
FY19 498.84 3665.51 13.60
FY20 529.97 3260.90 16.25
FY21 553.96 2959.11 18.72

GRAPH 4.3

The below graph is showing Net Profit Ratio of the company :-

20
18
16
14
12
FY19
10
FY20
8
FY21
6
4
2
0
1 2 3

INTERPRETATION:-

The value of net profit was the highest during the FY21, when it increased upto 18.72%. This was
because the net profit of the company was the highest compared to other two years. And net profit
was lowest during FY19 13.60%.

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4.4 RETURN ON SHAREHOLDERS INVESTMENT = Net Profit After Interest And Tax*100
Shareholders fun

TABLE 4.4

RETURN ON SHAREHOLDERS INVESTMENT

YEAR NET PROFIT AFTER SHAREHOLDERS RETURN ON
INTEREST AND TAX FUND SHAREHOLDERS
INVESTMENT
FY19 85.64 503.93 16.99
FY20 55.12 550.08 10.02
FY21 30.00 571.67 5.24

GRAPH 4.4

The below graph showing return on shareholders investment :-

18
16
14
12
10 FY19

8 FY20

6 FY21

4
2
0
1 2 3

INTERPRETATION :-

The ratio of return on Shareholders investment of Mahindra logiatics saw a declining trend over the
period of three years. It was as high as 16.99% in the FY 2019. However it started falling after
2019. It suddenly fell to 10.02% in the year 2020. This was as a result of sudden fall of net worth in
FY 19-20. It fell to as low as 5.24% in the year 2021.

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4.5 OPERATING PROFIT RATIO = Operating Profit / Net Sales * 100

TABLE 4.5

OPERATING PROFIT RATIO

YEAR OPERATING PROFIT NET SALES OPERATING PROFIT RATIO
FY19 229.18 3665.51 6.25
FY20 254.69 3260.90 7.81
FY21 125.47 2959.11 4.24

GRAPH 4.5

The below graph showing operating profit ratio of the company :-

9
8
7
6
5 FY19

4 FY20

3 FY21

2
1
0
1 2 3

INTERPRETATION :-

The operating profit ratio of Mahindra logistics was highest during FY 2020 is 7.81% as compared
to year during FY 2019 and FY 2021 which is 6.23% and 4.24%.

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4.6 OPERATING EXPENSE RATIO = Operating Expenses / revenues*100

TABLE 4.6

OPERATING EXPENSE RATIO

YEAR OPERATING EXPENSES REVENUES OPERATING EXPENSE
RATIO
FY19 3372.40 3851.34 87.56
FY20 2934.16 3471.14 84.53
FY21 2764.30 3263.72 84.49

GRAPH 4.6

The below graph showing operating expense ratio of the company :-

88
87.5
87
86.5
86
FY19
85.5
FY20
85
FY21
84.5
84
83.5
83
1 2 3

INTERPRETATION :-

The operating expense ratio is in declining trend. It was highest during FY19 is 87.56% and after
that it started declining and in year 2019-20 it was 84.53% and it hit its lowest during FY21 is
84.49%, also with decrease in revenues.

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 Chapter – 5

Research and Discussion

 5.1 RESEARCH AND DISCUSSION

 The above table shows good Current Ratio of 1.45 : 1.34 : 1.32 every year. This may be
due to higher level of current assets during the period.
 As we know Quick Ratio is a measure of company’s ability to meet it current obligations.
We can se that Mahindra Logistics performed very close to ideal Quick Ratio i.e. 1. It went
up as high as 0.98 : 1 during the FY19 as the value of Quick Assets during that period was
highest. But after that, that there has been a declining trend in the Quick Ratio. It was
lowest during FY21.
 The value of net profit was the highest during the FY21, when it increased upto 18.72%.
This was because the net profit of the company was the highest compared to other two
years. And net profit was lowest during FY19 13.60%.
 The ratio of return on Shareholders investment of Mahindra logiatics saw a declining trend
over the period of three years. It was as high as 16.99% in the FY 2019. However it started
falling after 2019. It suddenly fell to 10.02% in the year 2020. This was as a result of
sudden fall of net worth in FY 19-20. It fell to as low as 5.24% in the year 2021.
 The operating profit ratio of Mahindra logistics was highest during FY 2020 is 7.81% as
compared to year during FY 2019 and FY 2021 which is 6.23% and 4.24%.
 The operating expense ratio is in declining trend. It was highest during FY19 is 87.56%
and after that it started declining and in year 2019-20 it was 84.53% and it hit its lowest
during FY21 is 84.49%, also with decrease in revenues.
 The company’s current liablities during FY21 stood at Rs 911.53 crores as compared to Rs
734.06 crores in FY20, thereby witnessing an increase of 24.17%. Current assets in FY21
stood at Rs 1204.30 crores as compared to Rs 984.55 crores in FY20, thereby witnessing
an increase of 22.31%
 Long term loan during FY21stood at Rs 196.31 crores as compared to Rs 137.70crores in
FY20 , thereby increase of 42.56%. Long term assets shows increase of 8.95%.
 The consolidated revenue from operations for the financial year under review was 3,263.72
crores as compared to 3,471.14 crores in the previous year, a de-growth of 5.97% year-on-
year. The non-Mahindra Group consolidated supply chain revenue grew by 12.62% year-
on-year to 1,547.47 crores for the financial year under review in comparison to 1,374.10
crores for the previous year.The consolidated EBITDA for the financial year under review
stood at 151.69 crores over the previous year of 172.25 crores. The consolidated PAT de-
grew by 47.38% from 5.45 crores for the previous financial year to 29.18 crores for the
financial year under review.

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Chapter – 6
Conclusion
 CONCLUSION

It has been observed that Depreciation charges increased by 29.89% and finance costs increased
by 19.63%, respectively during years 2019-20. It further increased by 8.97% and by 5.09%,
respectively during year 2020-21. Net profit for the year declined by 64.36% in the year 2019-20
then by 54.42 % in the year 2020-21. Other income grew by 54.57% and then by 80.0% in the year
2020-21. So to sum up all the findings we can say that the company is growing efficiently.
However its profitability and liquidity position can be improved . The company could contact
brokers, consultants, or middleman agencies to sell their redundant assets at a lucrative gain. These
agencies could help the company to findbetter clients for a better deal. The company could a l s o
focus on contributing towards ‘Reserves’in case of any inevitable contingencies arises.

TABLE 6.2 OBJECTIVES

S.no Name Findings
1. To assess the degree of association It was found that the leverage did not
between thevarious leverage ratios with affect the companymuch.There was
the well known profitability indicators. positive impact on profitability.

2. To measure, test and evaluate the With the help of ratio analysis tools it
liquidity and profitability position of the was found that the liquidity and
Organization. profitability of the company can be
improved.

3. To become more acquainted with
diverse financial proportions of
theorganization.
4. To know how the logistics company
work and how they manage all
weakness and threat and customer
satisfaction range.
With the help of some websites analysis
of the financial statements was done.
The financial position of the company is
sound.
With the help SWOT analysis method it
was done.

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 BIBLIOGRAPHY

Websites :-
 www.mahindralogistics.com
 www.moneycontrol.com
 www.screener.com
 www.scribd.com
 www.researchgate.com
 www.goodreturns.com
 www.elearnmarkets.com
 www.upstox.com
 www.groww.com

Reference Books :-
 Accountancy - D.k goel
 Management Accounting- M.N Arora

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