Allcargo Logistics net profit increased by 7.1% and net revenues rose by 5.9%

posted on 13th February 2020 by Eddie Saunders
Allcargo Logistics net profit increased by 7.1% and net revenues rose by 5.9%

Allcargo Logistics Limited today announced its unaudited financial results for the quarter and nine months ended December 31st, 2019.

Summary of nine months:

The total revenue stood at Rs. 5475 crore for nine months ending December 31st, 2019 as against Rs. 5168 crore for the corresponding previous period, increased by 5.9%. 

The Profit after Tax was at Rs. 180 crore for nine months ending December 31st, 2019 compared to Rs. 168 crore for the corresponding previous period, witnessing an increase by 7.1%.

Allcargo’s Earnings Before Interest, Taxes, and Amortization (EBIDTA) was at Rs. 397 crore for nine months ending December 31st, 2019 versus Rs. 341 crore for the corresponding previous period, increase by 16.4%.

The performance highlights are:

Consolidated Results – Q3-FY20

·         Total revenue from operations remained steady at Rs. 1,787 crore for the quarter ended December 31st, 2019 against Rs. 1,804 crore for the corresponding quarter in the previous year.

·         EBITDA for the quarter ended December 31st, 2019 was at Rs. 126 crore as against Rs. 113 crore during the corresponding quarter of the previous year, an increase of 11.5%.

·         PAT remained stable at Rs. 49 crore for the quarter ended December 31st, 2019 against Rs. 50 crore for the corresponding quarter in the previous year.

·         EPS for the quarter ended December 31st, 2019 was Rs. 1.79 per share for a face value of Rs. 2 per share.

Consolidated Results – 9M-FY20

·         Total revenue from operations stood at Rs. 5,475 Crores for the nine months ended December 31st, 2019, as compared to Rs. 5,168 Crores for the corresponding previous period, an increase of 5.9%.

·         EBITDA for the nine months ended December 31st, 2019 was at Rs. 397 Crores as against Rs. 341 Crores during the corresponding previous period, an increase of 16.4%.

·         PAT was at Rs. 180 Crores for the nine months ended December 31st, 2019 as against Rs. 168 Crores during the corresponding previous period, an increase of 7.1%.

·         EPS for the nine months ended December 31st, 2019 was Rs. 6.96 per share for a face value of Rs. 2 per share.

Business Performance:

The Multimodal transport business clocked total volumes of 185,408 TEUs for the quarter ended December 31st, 2019 as against 1,67,978 TEUs for the corresponding previous period, an increase of 10.4%. This segment continued gaining global market share and volumes from allied and FCL services continued to grow. The Return on Capital Employed (ROCE) for this business stands at 26% on an annualised basis.

In the CFS segment, the total volumes were 75,965 TEUs for the quarter ended December 31st, 2019. Allcargo continues to maintain our market share despite the reduction in CFS market. YoY Quarterly volumes surged by 14% in Mundra and 27% in Kolkata.  The Return on Capital Employed (ROCE) for this business stands at 28.39% on an annualised basis.

The company entered into a definitive transaction with the Blackstone Group on 13th January, 2020, wherein Blackstone would acquire Allcargo’s warehousing subsidiaries at Telangana, Tamil Nadu, Karnataka, Gujarat, Maharashtra and South Goa for Rs. 380 Crores through a combination of debt and equity. Allcargo would remain a minority stake holder in these Warehousing subsidiaries at 10% post the transfer. The timeline of the deal would be around 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones as prescribed in the transaction documents. Post the completion of the deal, the company endeavours to reduce the debt on consolidated books considerably by the end of FY21.

Since the announcement of the Gati transaction on 5th December, 2019, Allcargo has acquired around 20.83% stake through a combination of promoter stake purchase, preferential allotment and open market purchases in Gati Limited thus making Allcargo the largest shareholder in the company. Furthermore, in the last board meeting of Gati, Allcargo’s Chairman Mr. Shashi Kiran Shetty and Mr. Kaiwan D Kalyaniwalla were nominated from Allcargo and appointed as Additional, Non-Executive Director and Non-Independent Director respectively, in Gati, with effect from Feb 04, 2020.