Allcargo Logistics announces Q4FY24 results; Reports 99 Cr EBITDA
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Allcargo Logistics Limited has announced its financial results for the quarter ended March 31, 2024.
Key highlights:
* International Supply Chain business is witnessing green shoots of growth expected in second half of 2024. Freight rates have started increasing despite an additional supply of 1 million TEUs in container shipping capacity in 2024.
* ECU Worldwide had a flat quarter compared to the previous quarter and we expect momentum to start building from April leading to the improvements in September and December quarters. LCL volumes reduced marginally QoQ from 2.16 million CBM to 2.12 million CBM, while FCL volumes witnessed a marginal increase from 152K to 156K TEUs.
* Cost reduction is offset by severance costs to an extent, but severance costs will be concluded by August and hence cost reduction will help manage annual increments to control SG&A and drive bottom-line growth.
* Contract Logistics business remained near flat and the company ASCPL reported an EBITDA of 32 Cr in Q4FY24.
* Express business has seen significant improvement on the back of cost reduction, which has
improved every month until March, providing healthy exit rates on operating costs. Gati’s
consolidated EBITDA increased from 11 Cr in Q3 to 14 Cr in Q4FY24 representing 21% increase.
* The focus remains strong on technology projects and GEMS 2.0 is progressing as per schedule in Gati, and various system roll outs are on schedule in ECU Worldwide including new financial ERP.
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