Mahindra Logistics

I did not understand this from the quarterly call. Can someone explain what is India’s impact mentioned here? Also for acquisition, do we consider it as intagible asset or tangible asset ? How do we depreciate them over time ?

Sure, thanks for the elaborative answer. And also, this depreciation has increased to
nearly INR55 crores at the consolidated level. So what's the normalized run rate we
can look forward to for depreciation?
Rampraveen Swaminathan: So I think depreciation has gone up. I think there are multiple components to that,
Alok. And obviously, a part of that has essentially been around INR10 crores of the
increase in depreciation because of the Meru consolidated effect on a full year basis
because of the mobility business which you acquired from Meru. So around INR8
crores of it have been the run rate impact of the MESPL business. So that's
approximately been around 20%, if you may, of the increase in the overall
depreciation, prior 22%.
The rest of it has been India's impact on it. In the remaining INR35 crores, INR36
crores, India's impact is around INR27 crores. And I can give a more specific number,
but I think it is around INR27 crores. The remaining INR10 crores is split between
electric vehicle, fleet addition, some other capital items, software depreciation and so
on.
From a run rate basis, I think MESPL and the Meru depreciation should be capped
roughly in this range. So we don't expect any significant addition there. And as far as
the MLL, the core 3PL business is concerned, I think we will see some normative
increase in terms of capital, which is in the same range as this year. This year we spent
a capital of around INR75 crores.. We expect it to be in the INR80 crores, INR85
crores range, at least for 2023-2024.
So we expect that to roughly be in that range. The warehousing will have a 116 impact,
but there's also a tail-off impact on 116 as some of the older leases come off. So net-
net we expect that we will be a little bit up, marginally up on the MLL side of the
business, probably 7% to 8% up on depreciation. The Meru and the MLL mobility and
the MESPL number should roughly be capped