Ladies and gentlemen, good day and welcome to Mahindra Logistics Limited Q4 FY 2025 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shogun Jain from Strategic Growth Advisors. Thank you, and over to you, sir. Thank you. Good evening, everyone, and thank you for joining us on the Mahindra Logistics Limited Q4 FY 2025 Earnings Conference Call. I hope everyone has had a chance to view our financial results and investor presentation, which were posted on the company's website and stock exchanges today. We will begin the call with opening remarks from management, followed by an open forum for Q&A. Before we begin, I'd like to point out that some of the statements made during today's call may be forward-looking. A disclaimer to that effect was included in the earnings presentation. I now like to invite Ram to introduce the speakers and thereafter make some preliminary remarks. Over to you, Ram. Thank you, Shogun. Good afternoon, everyone. I hope you all have had a chance to see our earnings release some time ago and also an important organization announcement we made about leadership transitions in the company. I'm joined today by Dr. Anish Shah, the Chairman of Mahindra Logistics here at the Mahindra Group, Mr. Hemant Sikka, who currently serves as President of the farm sector at Mahindra and other members of our management team, including Saurabh Taneja, CFO, and Yogesh Patel, who is the Company Secretary for the company. Before I get to the operating commentary of the business, let me quickly hand over to Dr. Shah to start us off with some opening comments ahead. Thank you, Ram, and good evening, everyone. I wanted to share a few thoughts and therefore have joined this call for the first 10 minutes or so. You may have seen the announcement today that Ram has decided to step down from the CEO role and pursue other professional interests. The Mahindra Logistics Board has accepted his resignation, and the Mahindra Logistics Board has also appointed Hemant Sikka as the CEO of the company. Hemant is a veteran and a strong leader, currently who runs the farm business, farm equipment sector at Mahindra & Mahindra, has done exceedingly well in that role over the last five years, and you have seen the farm business gain a significant market share even from a very high base and more than double its profits over that time period while going through a fairly tough environment at multiple points in that time. Before that, Hemant was a Chief Purchase Officer for M&M and has had a very stellar career. He's one of the top leaders at M&M, and Hemant has been appointed by the MLL board. Personally, I'm very excited. The MLL board is also very excited to have him on board as CEO. We see tremendous potential in this business, and we feel that the foundation that has been built by Ram is a strong one and will help take the business forward. Hemant coming in with his experience will make a huge difference to being able to realize the potential that we see in this business. I would like to personally thank Ram for all his efforts and dedication and hard work over the years, which has helped build a strong foundation at Mahindra Logistics, and wish Hemant and the MLL team all the very best in helping us take this forward and realizing the tremendous potential that the business has. Thank you. Thank you, Anish. If I can do operating commentary, let me just first quickly welcome Hemant. Hemant has joined us today on the call, and to the Q&A, probably he might jump in. There are things which he knows far better than I would ever know, so I'm sure. That's great. I just want to echo a lot of things Anish said. I have had the chance to be a colleague of Hemant now for five years in the Mahindra Group Executive Board and the Mahindra leadership, and Hemant's, I think, a phenomenal person in addition to all his business achievements. I think he has great insights from his supply chain leadership role into the building blocks of our industry as well. Therefore, I wish him the very best. Thank you, Ram. Welcome him on board. With that, let me quickly just jump into a bit of an update about our strategy, the external environment, just operations highlights, and an update on where we are with the express business and any other important highlights for the quarter. In the interest of time, I'm going to keep my opening comments this time really short and open up for Q&A from all of you. Let's jump into the industry. I think FY2025 was a year that tested the strength and flexibility of the entire sector. All the players, from carriers to freight brokers to logistics startups, infrastructure providers, all of us felt the weight of economic headwinds, regulatory uncertainties, and of course, global disruptions. As the year has progressed, many of us forecast or expected an anticipated turning point, but that relief has really not come in, and challenges have continued through the year in terms of headwinds. The year also saw some major elections at both central and state levels, which slowed down growth for us, especially from a consumption perspective, which drives a lot of our business. In general, I think as companies are waiting more for government plans post-elections. I think the recent past we are seeing positive economic tailwinds, at least from a domestic economy perspective. The recent interest rate cuts and tax relief announced in the budget should start kind of driving an increased level of growth. I think the post-COVID restructuring of demand and consumption cycles, especially on things like appliances and durables, the introduction of the BEEE rating, some of those, I think, have all of them had some impact in terms of disruption of demand, but they all now passed us. Therefore, I think the industry is looking forward to a period of stronger growth. As this demand increases, so will the need for stronger supply chain networks, and we expect to see more investment, obviously, in warehousing, transportation, and technology-driven solutions. From an end market perspective, the automotive business remains obviously our biggest end market, and overall industry volumes have been bolstered by the early arrival of the festive season. This change also offered a slight boost to retail activity across key segments. The two-wheeler segment recorded low to mid-single-digit growth, although I think a real positive thing has been rural demand growth during the quarter. Strong discounts and new product launches have helped maintain momentum in rural areas, while urban demand has still remained relatively subdued. Passenger vehicle volumes have witnessed growth, primarily driven by robust performance of SUVs, which, as you know, lends positively to us. Commercial vehicle volumes have recorded growth, but it is on a very low base given where we were last year. The medium and heavy commercial vehicle segment continues to be constrained, though I think we are all cautiously optimistic about what the future holds. Farm support for the business which came on this ramp has been really strong. R ecently, t ractors stood out with strong double-digit growth fueled by rural revival, improved food grain production, and higher MSPs. We are expecting the segment will maintain its growth trajectory backed by kind of continued positive farm sentiments. The FMCG industry, which probably represents around a little bit of 20% of our demand and probably a larger part of our growth, continues to navigate a challenging external environment. With another quarter of muted performance. The u rban markets are experiencing a sustained slowdown, while rural demand is showing signs of gradual recovery. Inflationary pressures remain a key concern for most of our end customers, and there is a focus on keeping not just the raw material costs, but also associated things like logistics costs low. While the end industry continues to try to make price hikes across categories, there has been the negative impact of the way volume growth has moved. Urban general trade in particular continues to face headwinds despite the slight quarter-on-quarter improvement. The consumer durable industry, I think, is something we are quite positive about in the near term, near to midterm. The Indian Meteorological Department's forecast of above-normal temperatures and potential heat waves is already shaping market dynamics. Robust demand for cooling products, including racks, fans, and coolers, is expected as consumers prepare for an intense summer. One of the important things which happened in this industry, especially on fans, was the introduction of the BEEE DOM last year. As that transitions out, I think we are now seeing demand sitting down to more consistent patterns. Rack firms are actively stocking up to ensure supply keeps pace with this heightened demand, setting the stage for significant growth in the coming months. We see that happening directly from the end industry itself, as well as indirectly from e-com marketplaces, etc., who are serving the same demand. On the industrial side, the cable and wires business continues to benefit from strong B2B demand. This growth is driven by activation of new capacities and recent surge in copper prices, which has triggered kind of a proactive inventory stocking through the supply chain. Additionally, robust export activity and a healthy rebound in real estate development are driving volume growth in the wire segment, which has encountered challenges in previous quarters. Very briefly on e-commerce and quick commerce, I think this is a highly researched industry. I think from our perspective, we have started seeing green shoots in the industry with a renewed focus on some areas, especially around things like consumer appliance distribution. The grocery segment continues to grow, but the growth of quick commerce has resulted in distribution models for grocery marketplaces kind of undergoing a change, and most of them are being forced to rebuild their strategy and their way forward. In this context, I think our recent quarter continued to show continued progress. Some things which went well continued volume growth and order intake, especially in contract logistics. This has been very important. Overall, our revenues grew by 8.2% in the quarter on a year-on-year basis, and contract logistics was a positive thing. From the order intake perspective, we have completed compacting across with the 1 million sq ft of additional space. This is going to basically be again some of the white space which has challenged us in the last 12 to 18 months. Therefore, we expect these projects are under implementation, and we expect them to be 1 million sq ft to be fully occupied well before Diwali this year. Express has had a better quarter this quarter after a challenging quarter in Q3, where our order intake was soft and our deliveries were also impacted by some operational disruptions. We did see a stronger Q4 despite Q4 generally being sequentially a weaker quarter compared to Q3. Our order intake of new contracts continues to be around 5,000 tons per month, and we are continuing to focus on expansion of sales, both by expanding the sales organizations and by focusing on synergy. Overall, operations have remained stable. I think our net service levels remain north of 90% on an adjusted basis. I think the network is well tuned today, though there is obviously a big need to kind of bring in more volume into the system. Overall, order intake at a company level remained positive and consistent with prior quarters. Slight uptake in contract logistics from e-commerce and FMCG, and as I said earlier, an uptake in our express business. From a full year perspective, I think our subsidiaries have really done several of our subsidiaries have really had a very strong year. The mobility business, 2x2 and large, have performed well on a year-on-year basis. The Whizzard investment or Zipzap Logistics has had a strong profitability improvement in the year compared to the previous year. It remains an important growth lever for us, and we see a positive kind of shift towards a more stable playbook there. I think which we're really kind of focused on, our kind of watch outs really remain more of the same really as we get into this year. Obviously, the most important thing which everybody's talking about is global trade right now. Global trade remains pretty volatile with all the tariff actions across the world and by the U.S. administration. I don't think we really have a perfect answer to what exactly will happen. We are continuing to watch this space very carefully, but I think for the forwarding business, we do expect to see a period of volatility in demand and pricing, probably through the first two quarters of this year at least. New project launches have been a challenge in terms of stretched-out timelines compared to the past. In the past, compared to 90-day kind of a 120-day rollouts, which was the norm for us coming out of COVID, we are now seeing like a 150-day rollout on most projects and some even longer. That, I think, remains a challenge for us, i nflation remains. The third thing which I think is an area of focus for us, obviously, is managing inflation, especially from a manpower perspective. I think as our operations are pretty widespread, the logistics industry has a high dependence on migrant labor across I think eight or nine major states which we operate in. Given just the broader inflation, the overall economy, I think we are seeing the pressure in terms of cost control and cost management. I think the management team is focused on solving for all these three things as we look forward. Of course, the express business remains a very big priority in terms of getting volume growth in, which has been a priority for us in the last quarter, and we hope we'll sustain that momentum and accelerate it further in the coming quarters. Just moving on to consolidated financial performance for the quarter. Revenue for Q4 increased by 8.2% year-on-year to around INR 1,570 crores. Revenue from the warehousing segment stood at INR 297 crores in Q4 compared to around INR 249 crores for the same quarter last year, a growth of around 15%. As we end 2025, the warehousing business has more than quadrupled compared to what it was in 2021. We continue to be very long and bullish on expanding warehousing and warehousing-linked solutions in the company. Despite the short-term challenges we have had around white space in the last 12 months to 15 months, it's something we may believe is a very integral part of the playbook. We continue to kind of expand and put in new facilities, though with a sharper eye on short-term demand. The supply chain management business, including our 3PL and network services businesses, contributed around 95.5% of overall revenue, and the mobility business contributed the balance. Gross margin at a fully consolidated basis stood at 9.5% in Q4 2025 compared to 9.4% in Q4 of the previous year and 9.2% in the preceding quarter of the year. Our gross margin without the impact of the express business was at 10.3%. To remind you all, I think our broad target has been to be around 10.5% on the basket, and we're explaining VSPL we are at around 10.3%. EBITDA for the quarter stood at INR 78 crores approximately, up 37% from the same quarter for last year. Our consolidated losses for the quarter were around INR 6.8 crores. Pretty much all the entities were positive with the exception of MESPL, where losses have continued to decline year-on-year and sequentially quarter on quarter, but obviously something which we need to continue to focus on. With that, let me quickly talk about component performance for a couple of minutes, and then I'll open it up for questions. Let's begin with the standalone entity, MLL, which hosts, and to remind you all, MLL hosts our contract logistics business and parts of our last mile delivery business. Revenue for Q4 2025 was INR 1,293 crores compared to INR 1,183 crores in the previous year, up approximately around 8.3%. Part for the quarter was in Q4 2025 was INR 13.1 crores as compared to INR 7.9 crores for the same quarter last year. Last year, we did have some gains in terms of other income for the same quarter last year. Other income accrual earnings from other incomes were lower than this year's Q4, and adjusted for that, the improvement was slightly sharper. The straightforward business, despite the recent challenges, has had a strong year, and revenue for Q4 2025 was INR 15.4 crores, up 10% from the same quarter last year, though down sequentially. Part for the quarter was around INR 1.8 crores, down from INR 1.2 crores last year. A lot of that's just been the pressure we have continued to see from a pricing volatility perspective i n Q4, especially from an ocean perspective, where we've had a lot of challenge in terms of kind of moving prices. The express business, Q4 2025 revenue stood at INR 93.8 crores. Losses shrunk to around INR 23.7 crores for the quarter. Mobility revenues stood at around INR 80 crores for the quarter, down marginally from INR 84 crores in Q4 2024. I think you will remember, probably those of you who attended the Q3 call, we had highlighted that we had seen a couple of big accounts churning out towards the end of Q3, and we have got new orders and new customers who are ramping up slowly, and therefore it will be a couple of quarters before we actually catch up on revenue rate. PAT for the quarter, though, remained consistent at around INR 1.3 crores for the quarter. The ZipZap Logistics or express business revenue for the quarter was INR 42 crores as compared to INR 32 crores in the same quarter last year, very healthy revenue growth. PAT for the quarter was just about breakeven, right? Pretty much in line down from Q4 last year. Staying on a positive side, and Whizzard is roughly half our last mile delivery business. The other half sits inside MLL. On a positive sense, I think generally Q4 is weaker than Q3 in the last mile delivery business, given the challenges we've seen in addition because of the e-commerce kind of peak going off. They are continuing to focus on growing beyond e-commerce into other markets, I think, continues to be a real positive. Our last mile delivery business today, approximately 15% of its revenue is non-e-commerce, and as we kind of try to scale that up, I think we'll just see more leveling of this business, right? Both from segment shifts as well as from richer services such as micro fulfillment. 2x2 Logistics, which is our automotive car carrier business, has standout here, right, c ontinues to do really well. It's kind of, to you all, we've stayed with this business through a significant downturn, reinvested the business, and grown it back. I think revenue for Q4 FY2025 was INR 240 million crores, up 60% from the same quarter last year, which was around INR 150 million crores. Part for Q4 FY 2025 was INR 33 million crores as compared to INR 1.9 million crores for the same quarter last year. I think overall revenue breakup between automotive and non-automotive is auto and farm, I won't say automotive alone. Auto and farm together, auto and ag is approximately 58% of demand. Consumer and e-commerce roughly split the balance, right, i n general. I think as supply chains evolve and customer expectations continue to increase, we obviously remain focused on driving integrated logistics, right, b y expanding the network, investing in technology, and just diving on our operational strengths to maintain our competitive advantage, right? With that, I'll open the floor for questions and answers, and we'll come back once again for closing comments at the end. Thank you. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. I repeat, if a participant wishes to ask a question, you may press star and one. If you wish to withdraw yourself from the question queue, you may press star and two. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Amit Dixit from Icici Securities. Please go ahead. Yeah, hi. Good afternoon, everyone. Hi. thanks for the question. A couple of questions from my side. The first one is on contract logistics. If I look at it, if you can highlight the quantum of unobserved costs that were there in this quarter. Similarly, for the four new warehouse locations, what kind of revenue trajectory should we build in for these? In the prepared presentation, it is mentioned that three of them will start breaking in Q1 FY 2026. When do we expect these two break even on the profitability front? That is the first question. Okay. You want to ask the second question as well? I'll take them together. Yes, sure. The second question is on the Rivigo again. In the last call, you mentioned that you expect 6,000 tons to 7,000 tons of additional monthly volume to achieve EBITDA breakeven. Now, this quarter, we have achieved around 5,000 tons. What is the rate looking like in April, and how soon can we achieve this breakeven run rate? Sure. Let me just answer the first one and sort of add in some more details as well. I think the contract logistics business, we don't generally have unobserved capacity in that business, right? As a normal way of business, as you know, we build customized solutions for clients, and therefore, we don't generally have minimum guaranteed volumes. Our absorption gaps, if you may, come from two basic things: unsold white space because we do contract out facilities over a period of time, larger facilities to give us cost advantages in terms of construction, but then we have to obviously sell them out as part of our solutions to different customers. The second thing which is there, obviously, is that there are startup costs. As a project is being built out, it does take a certain amount of spend as we are kind of doing that. We largely expend that spend. We do not capitalize that spend, right? I think we have mentioned earlier on, we generally try to keep our network at around 3%. I n terms of warehousing space, w e have today around 1.3% is around 1.6 million sq ft. We have, for most of last year, had around 1.5 million sq ft to 1.7 million sq ft of unobserved space in the 7% to 8% range. The first thing which we are doing, obviously, is to try and reduce that, right? That would essentially come down over the next and that's the comment I made in my opening comments, approximately 1 million sq ft of that has been sold. It's contracts which are under implementation. Therefore, as you know, a lot of those contracts are picking up before Diwali. Therefore, by September, we should start seeing 1 million fully utilized. That 1 million, and I'm just going for some ballpark numbers, roughly comes at probably around INR 20 crores per sq ft. Your site level changes are there, but just kind of macro level, that's just the header number, right? Of course, I think I made a specific reference to the sites listed in the photographs, right? I think those are all in some level of operations already. I think, let me just talk about each of them. Kolkata, right now, is a 400,000 sq ft facility. We have commissioned half the facility already. The other half will get into commission towards August or September based on the construction schedule. The 2 lakh sq ft is commissioned, is already operating. We are running a grocery fulfillment center and an Afro LFC there. The 5-ton project, which you can see there, is basically a project which is completely sold out. That project went live in April, and we are building. Tthere's a second phase to it, but the first phase, which I've commissioned, is around 3.3 lakhs, and that's fully sold out. That's actually all to one customer, and it represents a very large national logistics facility for them. The second phase of construction will start later that year, but it has no impact. We capitalize after construction is done, and that's pretty much sold out as well because it's sold to the same customer. Agartala is approximately a 1 lakh sq ft facility. We are going to probably build out, go live with the first 1 lakh. Around half of that is essentially sold out, and we'll get commissioned through the first quarter of this year, right? Essentially, 5-ton will be completely sold out. Kolkata half is already sold out and is already operational. The other half only comes by September. Agartala will probably carry some white space, right, through the first half of the year, but it's a small amount of white space, around 50,000 sq ft. Pune is a new site which we are building. It's a brand new facility. As you know, it's 4.5 lakh sq ft and kind of a benchmark facility for us, a lighthouse facility for us in the west. That facility, around half of that, will go into full absorption into our books somewhere around July, end of Q1. At this stage, we've got around probably more than half of that sold. We are relocating some of our existing projects there as well, so it's also not all new projects. It's in consolidation. I think from a revenue perspective, therefore, you should start seeing the 5-ton one is completely scratched. It's absolutely brand new, right? From a revenue and cost perspective, right? Kolkata, revenue and cost is already there in our numbers. The second phase will come up in September. Agartala, revenue and cost will start with 50% utilization in Q1, and Pune will actually go into revenue and cost by the end of the first quarter of the year. That's just quickly on the four projects. As far as the MESQ numbers concerned, I think what we had said is that we really need to get probably 6,000 tons more per month to actually be able to get to the EBITDA breakeven level. If you look at where we finished this quarter, we overall finished around approximately 2,000 tons per month now. We booked orders of around 5,000 tons. I just want to draw that clarity for your sake, Amit. Sorry. We just did a segregation. We book orders and contracts. It takes us several months for the orders to flow in. We did in Q4, book around 5,000 tons per month of order intake, or 4,500 tons to 5,000 tons. Around 40% of that came through in the numbers in the quarter. You will see that roughly revenue was tonnage was up by around 2,000 tons to 3,000 tons per month. Obviously, that will continue to have a tailwind through the first and second quarter. The way it works is every quarter, we would add the volumes of 6,000 tons to 8,000 tons per month. Obviously, with a conversion ratio, we expect somewhere towards the end of Q2. As of now, I think we expect, or we estimate that by the end of Q2, we should be in a position to get to that 6,000 tons to 7,000 tons cap. I hope that answered your question, Amit. Great. Thanks a lot, and all the best for your future endeavors. I hope our paths cross again. Thank you so much. Thank you. We have our next question from the line of Alok Dharia from Motilal Oswal Financial Services. Please go ahead. Good evening, Alok. Good evening. Firstly, all the best for your new endeavors and also all the best to Mr. Hemant Sikka for the new position at Mahindra Logistics. I'll just quickly jump on the question side. See, just wanted to understand. If you look at the Y-o-Y numbers, the express revenues are lower in the fourth quarter, and I'm assuming the pricing would not have changed much. It's mostly the volumes which have been on the lower side. In the scenario right now, it's that the first quarter, second quarter should also be kind of similar than what it was that we would have done in the fourth quarter. How do we see this profitability moving? I mean, you have given a run rate that some 6,000 tons to 7,000 tons will get added into Q. The market scenario is very difficult in the express side. Just any change we have seen than what we had got in the last quarter? Look, I think just first, because there's a bunch of data points in place, let me address a couple of them which I think are most relevant. Obviously, revenue is down year on year. Some part of around 3%, right, compared to Q4 last year and Q4 this year. There is a little bit of that impact, which basically, and I wouldn't call it substantial, but only 1.2% this quarter has been yield. It's not prices which are down, Alok, but I think yield is down based on retail versus enterprise versus some volumetric load shifts which have happened. 1.5% to 2% is still because volume is behind where we were in Q4. We had in Q1, we had softness in the market v olume actually came down. In Q2, we had some of those operational issues. Last quarter, I had said that we have picked most of that volume back in terms of clients trading back with us, and we expect that volume to start coming back. I think around 2/3 of that is back from those clients. We have been filling the rest with new volume. I think that's broadly at least what's happened on a year-on-year basis. I think the other question you asked, Alok, I think we've had this conversation at some frequency. Obviously, markets are tough right now, especially on the express side. As I said last quarter as well, we are confidently start trading up. This quarter, on a sequential basis between Q3 and Q4, we have been up by around 8% in terms of volume. I think we feel based on the order intake, we should be able to consistently be able to move that up. What's driving that, I think, is a couple of things which I've already said again earlier as well, Alok, but I'll just repeat that. I think the first thing is sales coverage. We have historically had a sales organization which was pretty much focused on depth, just large market clusters. I think after Q2 this year, we have been focused on expanding the sales organization significantly. As we just put more feet on the ground, we just get more coverage of the market. That is one thing which will drive the order intake. The feet on the ground will take some time to mature, but I think that's an important driver for growth. The second thing, obviously, is more synergy with the rest of the MLL business. A lot of customers whom we have in the 3PL business, they generally are large enterprise accounts, and they sign annual contracts, right, i n between the year, they normally don't switch customers when they already have. Several customers will come up for rebidding this year, or contracts will come up this year. We have a view on what we think we can win there. That is the second lever which will drive some of this volume movement, Alok. The third one, obviously, is we are putting a higher focus in terms of regional distribution and some newer offerings which are tailoring our offerings more for things like quick commerce. Some segment customization of our offering should allow us to get some deeper penetration in segments we don't serve very well today. Those are the three things: reach, synergy, as we call it, and obviously improving our offerings. Those three should really be what we think will drive the volume. Never say never. Both ways. Never say never in terms of it can go bad. Never say never that it can actually turn good as well. Alok, as I said, I think we projected a 9% to 10% growth for Q4. We came in at 8%. Market conditions have been to do it up, but we are obviously working that up and moving it up. It is coming at some impact of yield as well, which is a question which you have raised in the past, saying that we have taken cognizance of some of those market issues as well. We have adjusted pricing, and that has impacted some yield for us as well, as I mentioned. I'll stop here, Alok, and see if you have anything else to add. Yeah. Yeah. Just one last question. Based on the full year tonnage which we would have done in FY2025, what kind of tonnage growth are we looking for FY 2026? The street, I mean, most of the other listed players or the larger players in this space are talking about 5% to 7% growth even in the best-case scenario. I just wanted to understand what kind of growth we have there. Coming from the base we are in right now, we're probably looking at around mid-teens, right? I think, as I said, the 6,000 tons from where we exited the year is like a mid to high-teens number. That's kind of what we are targeting right now, Alok, and that's got some runway, I think the market is. B ut I think, as I said, there are some emerging market segments as well, like quick commerce, etc., which lend into the market's growth as well. We'll see how it turns out. Sure. Okay. That's all from my side. Thank you, Alok. Thank you, Alok. Thank you. We have our next question from the line of Krupashankar from Avendus Spark. Please go ahead. Yeah. Good evening, Agartala. Thank you for the opportunity. The first question is on business. Sorry to interrupt, Mr. Krupashankar. Your audio is quite disturbed. Yeah. It's kind of breaking. Krupashankar disturbing and breaking for sure, so. Before you want to come back on the Q, why don't we just go to Vikram, and then we'll come back to Krupa when he comes back on the Q. Next participant is Vikram Suryavanshi from Phillip Capital India. Please go ahead. Sir, what was the warehousing revenue for this fourth quarter in full year? I think I said earlier s our warehousing revenue for the quarter was around INR 296 crore, right, up from around INR 29 crores last year. So INR 297 crores for the quarter, up from INR 249 crores for the same quarter last year. For the full year, I think warehousing was around INR 1,170 crores, right? I think you'll find more detail of that, Vikram, in the extracts in the investor deck which have been shared. There has been a growth of 15% in the warehousing revenue. It was INR 984 crores last financial year. It has increased to INR 1,133 crores, INR 1,133 crores this year. Between quarters, fourth quarter of last year, it was INR 249 crores. It has gone up to INR 297 crores, which is approximately 19% higher warehousing solution there. I think, Vikram, just when you are trying to, I think, you see on other slides, we list our total warehousing space. That obviously includes space which we use in our express business, etc., which is in-house. There is a separate chart which also talks about yield, etc., in the investor deck to help you frame that. Yeah. Yeah. I understood. Got it. Just to clarify that, see, whatever white space we have saved, around 1 million sq ft, and we expect it to get utilized by Diwali, which also includes the new additions which are coming up in, say, next quarter. Connected, I think. So anywhere prior to comp. Yes. Vikram, I think the new capacity facilities we said, as we said, some of it is only coming up by Diwali. Kolkata will come up. 200,000 sq ft will come up by Diwali, really. Agarthala's small white space in Agartala is included in that number which we shared. Got it. Just last question about customer side. Do you do any business with Mesho? Would it be just to give a brief, unit economics are similar to our warehousing business only? I won't make a client-specific comment, but I think what I would say, Vikram, is that we do work with pretty much all the marketplaces which are there in e-commerce. Some we do integrated solutions. Some, obviously, we do specific parts of mid-mile and first mile for them. I think Mesho would be one of those clients which we do work with, largely on the mid-mile. Understood. Okay. Thank you. Thank you. We have our next participant from the line of Krupashankar from Avendus Spark. Please go ahead. I'm not able? Yeah, Krupa. Go ahead. Yeah. Hi. Thank you for the opportunity. Just wanted to check one part on the warehousing piece. Sure. You did mention that there is a mixed demand environment relating to the overall warehousing structure. Sorry to interrupt again, Mr. Krupa. Your voice is quite breaking now. Okay. Let's let Krupa continue. Krupa, why don't you just continue? We'll answer to the best I can, and then you might just read that. Sure. Sure. Thank you, Ram. Thank you. With respect to the warehousing division, just wanted to be confident with respect to white space fulfillment. I wanted to check, given the mixed demand environment, how confident are we with respect to the expansion, do we want to take it a little bit slower on the expansion going ahead in the kind of new environment in the industry? Yeah. Krupa, this is a great question. I think, to be honest, we've already done some of that. I think since our white space, as you know, warehousing construction is a 12 month to 18 month cycle. If you go from and probably even longer based on some geographies. W e are looking at how much land reclamation, etc., we have to do. Therefore, we plan the projects on 18 months to 24 months as a kind of a bellwether in terms of planning. To the extent we contract something within 18 months to 24 months, it's hard for us to recontract it, right? What we have done is, I think since the white space challenges started surfacing out in Q4 last year, actually, Q4 FY 2024, not Q4 FY 2025, after what was a very, very tepid e-commerce peak, right? Our customers decided to take some of that space. As you know, Krupa, we've kind of really shut down a lot of expansion, right? The ones which are going down, like Faltern, is basically a back-to-back with an anchor customer for seven years, right? Apart from that, almost everything, which is some of them like Agartala's, we've actually pushed back the launch. We've kind of reworked construction schedules with partners as well. At this stage, I don't think we are actively looking at adding immediately. I think the immediate focus right now is to stay true to our strategy, which is firstly 30% multi-client, 70% bespoke. Krupa, what we are doing right now is, I think, as I mentioned last quarter, we've increased the bespoke, which is back-to-back in a percentage substantially. Since Q3 last year, Q3 of FY 2025, we've not really commissioned any new multi-client facility. All of those have really been stuff which have beenall of them have been bespoke build-outs with a back-to-back client. What you're seeing today is just customer sites which are in construction from before that. We will wait to see how volume picks up. Saurabh mentioned just now, year-on-year volume is up by 16%, quarter-on-quarter up by 15%, year-on-year up by even more. The growth in warehousing in that sense is panning itself out. It's just that, obviously, we're putting capacity ahead of that demand. At the right point, you've got to break that. We broke it in July last year, and I'm pretty sure that the management team going forward will maintain that discipline in terms of future build-outs. Yeah. Krupa. Saurabh. Just one thing to add the 1 plus million sq ft that you see in the deck. This is the last of our expansion in the BTS space. With this, we'll be at about 5 million sq ft from a BTS perspective. There are no further plans or sites that we have announced beyond these. We're taking a bit of a hiatus to get back to the market, really start shaping up a little bit to the way we like to see it. We're also reviewing design standards and so on and so forth. It's a good time for us to just halt, to kind of just recalibrate a little bit. Okay. Any other questions, Krupa? I hope that answered your question. Yeah. One more. Yeah. One more on express B2B express business. I wanted to check, Ram, if going ahead, I think you did mention in the presentation that the right custodies would be one of the areas where we'll be focusing on. Is there a large portion of the integrated solution provided already tapped in and limited scope of there to drive your growth in express business on the required financial for EBIT ratio? Yeah. I think, obviously, integrated solutions do add a lot more add to the express volume, Krupa. That's one of the reasons why we strategically have an interest in the express business. It's a balance of both regional express and national express. Typically, most changes by end markets. Obviously, as we sell more integrated solutions, we will see the flow-through of that volume. I think your question specifically is currently all our integrated solutions, wherever they use express, barring a few exceptions like PIN codes we don't serve. Wherever we do serve PIN codes, they use our own express business. As we get new sites, we'll obviously see a pull-through of it. For example, in Q4, we launched for a very large cosmetic company, global cosmetic company, we launched a distribution center and integrated warehousing and distribution in Nagpur. That's a business where the express deliveries or the part-of-load deliveries from that DC, which we run together on one platform, that business basically uses the contract logistics business, uses our express business itself to do the PTF. You will see that pull-through coming in. We think that's a very strategic capability for AWD, Krupa, as I mentioned before as well. Thank you very much, Ram, and all the very best. Sorry, Krupa. It's just very difficult to hear you. Probably you can just send some follow-up notes as well. Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. The next question is from the line of Janam Shah from Equirus Securities. Please go ahead. Yeah. Thanks for the opportunity. Hope I'm audible clearly. Yes, Janam. Yeah. Congratulations, Hemant, for joining in Mahindra Logistics. This question is mainly to him. Basically, of course, it's a very early stage to say anything. As we see that over the last two, two and a half years, the major pain for the company has been their express logistics business. Any view of him, like how he'll be going ahead with that business and how overall profitability will be coming in probably in, let's say, medium term over the next two to three years' time if we can comment on anything on that part. Thank you very much, Janam. I think it would not be appropriate for me to comment on express logistics at this stage. I would still request Rampraveen to take this question. As I slide into my new role from the next quarter, then I'll be more okay to take such questions. Yeah. Yeah. Go ahead, Rampraveen. No, I think Janam already knows my answer. I think it's kind of fact-checking with you. Janam, unless you want me to comment on it, I'll sort of give it a pass. Just one thing on that part. As you already told about the tonnage that we have been signing on a consistent basis over the last few months or quarters, are we doing too much tonnage that is eventually impacting our revenue growth? Of course, we know overall revenue for this year has not been growing for the express segment. What kind of change can we see from this lower base for the next year with the new contracts that we would have signed for over the last 12 months? I think, Janam, it's a long question, but I think just two broad data points. The first thing is that I said we exited roughly, give or take, the same tonnage at the end of the year for a full-year basis as we had in the previous year. That was a tale of two stories, two halves. The first half of the year, we got severely impacted. Volume actually declined given both market conditions and some of the issues in our network. In Q3 and Q4, Q3 also, we had operational issues which kind of challenged us to move tonnage in. What we have done at the end of Q4 is basically recover some of that volume and get some new orders in. We have just basically mitigated while our new orders continue to come in, we basically had a bunch of churn which was there in the system. We had to get that churn fixed, which is kind of what we have really done in Q4. I think that's why there's that, as you look at the math, if you're trying to figure out where the new orders have gone, it's gone into the first books, it's just that some of the old orders basically are impacted by churn, right? That's kind of why we think that there will be a positive flip. I think to the other question about how I see the year, or how we see the year, I think it's the same thing which I mentioned earlier on to Alok, that we are looking at probably mid to high-teen growth year-on-year basis, what we kind of laid out as some of the sales focus we're doing. Large part of the focus right now is strategically on driving the sales engine faster and accelerating that. I think, again, that's kind of what the big focus is. Got it. Sir, from an industry perspective, has there been anything that has changed over the last one year? Of course, we know that competition has increased. Few players are cutting down the pricing and taking over the market share and all those things. Anything that has changed from that or this kind of competitiveness is still in the industry? This question is mainly because we are already kind of a smaller player from the overall industry perspective. We have a lot of volumes to cater, but we are still at INR 90 crores a quarter revenue. Is this competition that might, you can say, put our numbers into the check for next year as well? I mean, Janam, it's hard to say yes or no to your question because it's kind of self-answering. What I would say is that our low tonnage is both an opportunity and a challenge, okay? Why we see it as an opportunity is because we have, on the 3PL side, very significant customer partnerships. As I said, many of them will come in for bidding this year. They generally do a once-in-a-year, once-in-two-year contract, right? That is something which will come in. I think the second thing which is there is that we do not measure the network so much by tonnage as much as by delivery capability and coverage. In that sense, the network, the Rivigo network, does serve around 19,000 plus PIN codes, delivers into 7,000 plus PIN codes directly. You can obviously, through boomerangs, deliver all the PIN codes. Therefore, our value proposition of better tag, better quality handling still remains. We think that's what differentiates us independent of our size in the market. Markets are tough. There's no question. I think we have seen, I think we are seeing a correction really in this express business. Business grew in the COVID period, right, very significantly. That's quite normal. Every time, express is time-defined delivery for less than part-of-load of emergency requirements. Therefore, it thrives when supply chains are inefficient. The more efficient the supply chain gets, the more you can plan your volume, the more you can consolidate it. Therefore, automatically, you see the flip. It's the same thing in cross-border. The more stable the supply chain, the more you can move to ocean. The less stable your supply chain, the more you're to air, right? I think you're just seeing that toggling happen in a reset. From a long-term perspective, the shift towards part-of-load is still due to happen. I think all of us, in the short term, are worried about industry headwinds. I think all of us are also equally optimistic about the medium term that this has been a secular growth rate, which is in the mid-teens across multiple business cycles. We expect that to kind of continue. Got it. Very answered to your question, sir. Thank you so much and all the very best. Thank you, Janam. Thank you. Ladies and gentlemen, due to time constant, we'll take the last question from the line of Mayur Parkeria from Wealth Managers India Private Limited. Please go ahead. Good evening to the entire management. Thank you for taking the last question. I hope my voice is not breaking and it's clear. Yes, yes, Mayur, please carry on. Firstly, congratulations to the new management and wishing all the best to Rampraveen in terms of that. It's been a while since I've been looking at Mahindra Logistics in the sense of earlier we were invested and we looked to, but it's been a while post whatever is happening at the company level. I just wanted to understand two, three basic things in terms of so that we can pick it up from where we left. In the discussion that followed, I still get the understanding that the warehousing revenues are around INR 300 crores for the quarter or INR 1,100 crores for the year. The balance appears to be transportation revenues. Then we have freight forwarding. We have express logistics, which are there. What I just wanted to understand is when we looked at this sector, the earlier hypothesis was that the sector is moving towards the 3PL conceptually, and it is going to be a lot more integrated services rather than looking at bits and pieces of services offerings and solutions. Is it still in bits and pieces? If so, why are we not actually moving to such an integrated? If it is integrated, what is the actual revenue share of the total integrated the way one should look at rather than bits and pieces? Is the question relevant? Yeah, it is a good question. It would be great to end this call, right? Is that the only question you have? Do you have something else? No, that is first. Secondly, I think many participants were trying to understand. The same question remains: despite whatever opportunity we have in the logistics space and overall, right from government to every corporate, we are looking at reducing the logistics cost and improving the runway for the entire sector. The sector remains in a low margin. We talk of EBITDA margin. I do not know why, but we should really be looking at EBITDA margins because it is a very different way to look at rental cost now in the post-India era. From a financial perspective, it remains a dismal profitability margin business in that sense, in the true sense of it. It means we barely are able to get even 1% net margins on a consistent basis. Some of your thoughts from a slightly longish perspective over the next two to three years rather than only a quarter. Yes. Sure. Great. Thanks. It has been a good time. I think the first part of your question, Mayur, I think what we have always mentioned is that while we go to our customers and provide end-to-end solutions or integrated solutions to them, we report by service line. We report the business by service line to the market because we think the market is better able to configure our numbers in the context of individual service lines. Contract logistics tends to be our solutions plus our full truckload distribution and warehousing business. Express tends to be part-of-load. Cross-border tends to be freight forwarding. Obviously, last mile tends to be B2C and B2K deliveries. We report these out numbers because the cost dynamics and the profiles are slightly different. When we go to customers, obviously, our attempt is to integrate them using process and technology. The purpose of reporting on the segments is because we manage the delivery process on the segment basis. It is easier for all of you to do comps of our business with others, right, and understand how the margin profiles of the business works. Now, to your specific question, I think we've got two kinds of solutions. We have solutions which are complex in terms of the way they operate, in terms of domain knowledge, and require a lot of design and solutioning capability. That total revenue is approximately 25% of our revenues. It's around 23% of our total revenues. In that 23%, approximately half, or probably around 8% to 10% of the total revenue would be what we call really integrated solutions, right, which is where we are running an integrated network. We may be billing on a cost-per-unit basis or a cost-per-shipment basis still because of how contracting works, but where we actually run an integrated network for our client, right? We might still go and charge the customer for the warehouse separately because there are hundreds of PIN codes. The customer might still say, "we want to have a transportation fee per box," which is different from the warehousing charge. We run the system, run it together, right? Purely integrated solutions, which has been is around 8% to 9% of our revenue. Total solutions, Mayur, is around 23% to 5% of our revenue, okay? The other point you made, yes, warehousing is approximately 20% of revenue today. At the overall level, it is around 17% to 18%. The remaining 80% is transportation. Today, it is a very small amount. It's a much smaller amount of full truckload transportation, right? Approximately 15% to 18%. Sorry, 20% of the 82% in Express. 25% of Express. It's global freight forwarding. It's last mile delivery. Of course, the mobility piece is also included. You break differently. You got around 20% of that transportation. You got around 60% of full truckload and distribution. You got around 20% of warehousing, okay? Does that kind of make sense, r ight? I think from a longer-term perspective, which I think was also a great question, I think when you look at profit potential, it is a toss-up between assetization. There are two-three levers. One, I think, is how much is a differential profit pool which an industry has. The second one, obviously, is what's your level of vertical integration in the industry? Logistics, to some extent, to a very large extent, is a layered industry. Any company which is asset-light basically tends to, as you point out very well yourself, tends to be a return-on-capital employed play rather than a return-on-sales play, right? That's a toggle which we are doing between balancing between risk and systemic inefficiency, which happens because of infrastructure constraints versus assetizing our business. I think what we have done is where we feel the capability is very positive or where we think that we believe that our business models can run very tightly, we have assetized as required. The 2x2 business is a great example. I think contrary to what a lot of people often asked us, we went ahead and assetized that business from a downturn. As you can see, it's kind of now had four really good quarters. We have shown conviction in that process, saying that we will assetize. We will assetize when we know we can ensure high uptime, high fleet operability, right, because of the nature of the sector, right? I think that remains a challenge for the industry. Therefore, you will see that, I think, rosters will start playing up as you start getting more scale, right, because it really requires us to maintain very strong operational cash flows, which I think we have done very tightened up in the last two years. It allows you to actually have the right margin accreditation. With that, you can actually get an 18%-ish ROE, which is pretty attractive on the business portfolio. It requires you to maintain that discipline. It also, I think, requires you to consistently differentiate yourself. I think our focus on new offerings like EDEL or electric vehicles, ProTrucking, right, which is high-end transportation solutions, our focus on integrated warehousing distribution and new solutions is all about finding where to differentiate ourselves. We are actually creating productivity-led value for the client, which can then result in better margin profiles for us, right? This is not a one or two-year play. This is a five to seven-year play, right? It just requires us to consistently work it. There will be a tipping point along the way. I do believe that some things will continue to play out in the industry. Indian demand is probably more omnichannel, which means that demand is more online. Demand is more general trade. Demand is more retail, organized trade. That means that companies will require to adopt more complicated logistics to deliver to all these multiple channels, right? That is where integration really comes in. I think as the economy starts focusing back on cost to serve, I think there is an increased focus on trying to say, "how do I manage risk downwards? And how do I actually outsource for better efficiency and productivity?" That is, I think, the other thing which will continue to drive integration. The third thing, obviously, which will continue to be a challenge for us is the rural-urban divide continues to be a challenge for logistics because the economics of rural logistics is actually a challenge, especially in the context of per capita consumption or per capita product value or per capita shipment value. These challenges will remain. I think over the next three to five years, and as I said earlier, this is not a one or two-year play. There is a risk that everybody there is obviously a challenge of maintaining short-term results and the expectation that everything will happen in six months or nine months or a year. I think we want to create a really differentiated play in a very informal industry. It's not just fragmentation. It's informal. You have to be ready to play the long ball, right? I think the Mahindra group, we have tried to always play that long ball with capital discipline, right? If you see MLL itself, we have tried to grow the business. We probably doubled the revenue in the last four years with very, very low amount of capital spent as a part of a percentage of revenue. Also, I think a very low amount of burn. While there is burn today in the express business, there's a substantial amount of our businesses which we have turned around like Mayur and other businesses we have scaled up. I think with Hemant coming in and Saurabh and the team, I'm very confident, and all our other leaders, I'm very confident that the capital discipline will continue, right, and that capital productivity focus will remain unchanged. I think that remains part of Mahindra DNA and MLL DNA. I'm pretty optimistic about that, okay? Is that, Mayur, I gave a very long answer to your question. I hope it was of some value. Yeah. That's a bookkeeping kind of question or a presentation. Sure. Sure. Sure. Absolutely. Absolutely. Our bookkeeper is here, so please do ask him. You have mentioned that in the next slide that the road to ROE would be monetization, if just taking one word out of it. Have we identified any segments or any areas where we need to which will be because, as you were just mentioning, the last point I also had in mind that Mahindra Group has moved significantly to selling out or disposing of all the non-core or whatever that is capital inefficiency built in. Have we identified any of the segments right now and any outlook on that to that road? Saurabh here. We have an annual process to review our investments and decide based on that. Right now, there's nothing that has been decided. We go through our strategy every year. If there is any update on account of that, we'll share with all of you. Okay. Thank you very much, and wish you all the best. Okay. Thank you all. I think let me just quickly wrap up the call. Firstly, I think we are well set up as we go into this year. Some of the challenges we've had over the last year and some of our component businesses are actually doing well. We do think some tailwinds are coming from a demand perspective. Obviously, there still remains a challenge in the express business. I take into account some of the concerns you all have shared as well, right? That said, I think we are pretty confident about where we are overall as a business. I think I am pretty excited about the quality of our leadership team and obviously Hemant joining the team now, right? Most of the time, when you leave a job, you're always worried about when you kind of look back at all the past. I think, and it's my, I think our group's confidence and my relationship with Hemant and my confidence in just seeing what he has done in other businesses, which makes me feel that the future is actually better than the past and will remain that way. I'm pretty excited about what the company will look forward to. I think I've always, over the last five years, maintained we have always maintained and tried to maintain a very high engagement system with investors, right? It's something which I think when before Saurabh joined, we did our best to do that and expand. I think after Saurabh and his team have come in, we've actually continued to do that a lot more. I do think that investors keep us clean, for the lack of a better word. They challenge us. You kind of look at our, you challenge our perspective. Sometimes, that's just an invaluable amount of feedback. I remember when I came to the industry, I came from outside logistics. My greatest learning actually is from meeting all of you. On that note, I do want to thank you all for all your support and contributions over the last five years. I've learned as much of logistics from you all as I've learned otherwise. Thank you for your patience and support of the company as well. It's doing what you want is freedom. Loving what you do is happiness. I've had the chance to have both over the last five years. It's been great fun. I think you all have been a great part of helping us get to the journey we have. Thank you all once again. Thank you for joining us today. I know we kind of squeezed this call and rescheduled it at short notice. I really appreciate all of you joining us today. We hope we have addressed all your questions and provided insights on our performance and strategy. I think as Hemant and I transition, I think we will work along with Saurabh and the investor relations team to put together a calendar. Obviously, Hemant will need some time to get on board with various things in the company. I am sure in the coming months, he will work along with Saurabh and our investor relations team to get in front of all of you. Please do contact our investor relations team for any questions, not only about today's results but also about getting in touch with our management team, right? With that, let me kind of wrap this call up. Thank you all for your continued support, your engagement today. As always, over the past, I hope our paths do cross again. Right till then, please remain. Thank you for your investment in Mahindra Logistics and your interest in the logistics sector. Thank you very much. Thank you, sir. On behalf of Mahindra Logistics Limited, that concludes this conference. Thank you for joining us. You may now disconnect.