Allcargo Logistics announces Q3FY24 results; Consolidated revenue - 3,212 Cr, Consolidated EBITDA - 111 Cr
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Allcargo Logistics Limited has announced its financial results for the quarter ended December 31, 2023.
Key highlights:
* The company expects the global trade to revive in second half of 2024. In the near term, Red Sea crisis has taken out some capacity from market leading to balance against subdued demand, which should have marginal positive impact in April to June quarter.
* The company has undertaken major cost reduction initiatives that will help significantly reduce the SG&A costs. The same shall help dilute the impact of new investments and inflationary increases and help the company to contain costs and improve profitability. In the short term Q4FY24 would have one off severance cost impact.
* International Supply Chain business has bottomed out and performance remained flat QoQ. Domestic express business saw a decline due to change in yield leading to overall EBITDA marginally lower QoQ. Consolidated EBITDA for the quarter ending December 2023, excluding other income and exceptional income was marginally down at ?111 crores, compared to ?118 crores for the quarter ending September 2023.
* Company’s financial performance is impacted by significant losses incurred in select markets in US and Germany and both offices are expected to perform better during the CY24, leading to positive impact on consolidated EBIDTA.
* Company witnessed flat YoY with a marginal decline of 1% and FCL volumes have shown a growth of 2% YoY. There was an impact in LCL volumes in USA and APAC.
* The express logistics business under Gati has posted a 11% growth in volumes during Q3FY24 as compared to same period last year. The increase in volumes has come on the back of sales acceleration initiatives and improved service levels which have helped gain wallet share. However, change in product mix and yield has led to negative impact on profits.
* Balance sheet remains healthy with net debt of ?214 Cr as of December 2023.
* The company is focusing on digitalization, data security and centralisation of all its processes including its financial systems.
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