Mahindra Logistics Eyes Profitability Boost with Rivigo Acquisition

Mahindra Logistics Limited aims to make its express business profitable by boosting volumes for cost efficiency. After acquiring Rivigo's B2B express segment in 2022, MLL focuses on cost optimization to reduce losses. The company expects the express business to drive overall profitability by the year's end.

Mahindra Group expressed optimism on Thursday regarding the profitability of its express business, with a focus on increasing volumes to achieve cost efficiency.

The acquisition of Rivigo's B2B express business in September 2022, now integrated under MLL Express Services, has shaped this strategy. MLL's consolidated profit after tax dipped 33% to Rs 10.7 crore for the September quarter, down from Rs 15.9 crore the previous year.

Despite the challenges in the express division, overall logistical profitability is expected by year-end, driven by rigorous cost-optimization and targeted volume increases.

(With inputs from agencies.)