The Board of Directors of Allcargo Logistics Ltd, at its meeting held today, approved the financial results for the quarter ended September 30th, 2022.
Summary of Consolidated results Q2FY23 compared to Q2FY22
(₹ in Crs)
|Particulars||Quarter endedSep 30, 2022||Quarter endedSep 30, 2021||% Increase /(Decrease)|
|Revenue from operations||5,300||4,978||6.5%|
Allcargo Logistics reported consolidated revenue of ₹ 5,300 Crores for the quarter and EBITDA stood at ₹ 450 Crores. Profit before tax excluding exceptional income stood at ₹ 352 Crores, including share of profit from associates and JVs. This robust performance and growth comes against a backdrop of economic slowdown across the world limiting opportunities for growth.
In the largest business segment of International Supply Chain (ISC), Ocean Freight rates continued the downward trend which started earlier in the year, with sharp correction in spot freight rates during the quarter. As a result, the revenue witnessed QoQ decline; however, a large part of ocean freight being a pass-through cost, profits remained strong. On the back of digital initiatives and increased focus on door-to-door shipments, the company reported highest ever EBITDA margin.
Express logistics business under Gati continued its strong performance leading to 3x growth in EBITDA for first half of FY23 as compared to FY22. Contract Logistics business remains strong with renewed focus on creating capacity and bandwidth for growth. Businesses being demerged including CFS proposed to go under Allcargo Terminals also performed well. CFS business continued its market dominance across key ports of JNPT, Mundra and Chennai. The equipment business of the company has been rationalized by reducing capital employed and utilization is currently near 90% levels.
Commenting on the business performance, Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati Ltd. said, “Our commitment to our values, puts customers first and entrepreneurship as a way of life at Allcargo. In a true showcase of our capabilities and transformational growth, we have posted highest ever Q2 revenue and EBITDA and also the highest margin ever for any quarter, this time.” Further commenting on the additional investments in Gati, he remarked, “I am extremely delighted to see the final steps in our journey of Gati acquisition. This is our vote of confidence on the management team as we make significant additional investments. This is also based on our belief in India’s rapid growth and emergence as major manufacturing hub for the world. This will lead to consistent economic progress, keeping in mind our young aspiring fellow Indians”. “We share an extremely close relationship with KWE group built on mutual respect and that shall continue across businesses. With this acquisition, we shall be able to expedite our restructuring plans to take Gati forward”, he further added.