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Allcargo Logistics Limited Q2 FY17 Results

  • Good volume growth in Mto, Despite Muted Global Trade                                         

  • Total Revenue from Operations at Rs 1,410 Crore

  • Gross Profit Margin up 50 Bps At 32%, Mainly on account of higher operating efficiencies

  • PAT at Rs 64 Crore, Increase of 7% Y-O-Y

  • Return on capital employed at 16%

 

 

 

 

 

 

Allcargo Logistics Ltd. today announced its unaudited financial results for the quarter ended September 30, 2016.

 

The performance highlights are

Consolidated Results – Q2 FY17

  • Consolidated Profit and Loss statement of Q2 FY17 does not include the financials of Hindustan Cargo (HCL), Air Freight / Freight Forwarding and Contract Logistics (CL), as these businesses have been transferred to our new JV – ACCI; while Q2 FY16 and Q1 FY17 include the same

  • Total revenue from operations at Rs. 1,410 crore for the quarter ended September 30, 2016, as compared to Rs. 1,456 crore for the corresponding previous period, a decrease of 3%, mainly on account of lowering freight rates and exclusion of HCL’s and CL’s turnover due to JV accounting

  • 85% of revenues are from the global MTO business

 

 

  • The Gross Profit for the quarter ended September 30, 2016 was Rs 452 crore, as against Rs. 459 crore for the corresponding previous period, year on year decrease of 2%, due to lower freight rates and ACCI JV accounting

  • Gross Profit margin for the quarter improved by 50 bps to 32%, mainly on account of higher operating efficiencies

 

  • EBITDA for the quarter ended September 30, 2016 was Rs. 127 crore as against Rs. 135 crore during the corresponding previous period, a decrease of 6%, mainly on account of a conscious decision to move away from lower ROCE business viz. trailers, leading to sale of aged assets, slowdown in project logistics business and transfer of HCL and CL business from Allcargo to ACCI

  • PAT at Rs. 64 crore for the quarter ended September 30, 2016, as against Rs 60 crore for the corresponding previous period, a increase of 7%, on account of lower interest costs and depreciation

  • EPS for the quarter ended September 30, 2016 was Rs 2.56, for a face value of Rs. 2 per share

 

Resources and Liquidity

As on September 30, 2016, the Networth was Rs. 1,868 crore and the Net Debt was Rs. 263 crore.

The capital structure of the Company remains conservative with net debt to equity ratio of 0.14 as on September 30, 2016.

The Return on Capital (ROCE) stands at 16%.

 

Business Performance

Allcargo operates primarily in three segments, viz., Multimodal Transport Operations, Container Freight Stations Operations and Project & Engineering Solutions. These are consolidated business segments.

 

Multimodal Transport Operations (MTO)

  • MTO segment involves NVOCC (Non Vessel Owning Common Carrier) operations related to LCL (Less than container load) consolidation and FCL (Full container load) forwarding activities in India and across the world through its wholly owned subsidiary ECU Worldwide

  • Allcargo is the leading player in global LCL consolidation market with a strong network across 164 countries and 300 plus offices covering over 4,000 port pairs across the world

  • The business clocked total volumes of 1,27,463 TEUs for the quarter ended September 30, 2016 as against 1,17,574 TEUs for the corresponding previous period, an increase of 8%, despite muted global trade growth and falling freight rates. India, China and South East Asia contributed to the increase in volumes

  • The total revenue for the quarter ended September 30, 2016 was Rs 1,209 crore as against Rs 1,223 crore for the corresponding previous period, a decrease of 1%, mainly on account of lowering freight rates

  • EBIT was Rs. 50 crore for the quarter ended September 30, 2016, as against Rs. 48 crore for the corresponding previous period, a increase of 4%, on account of volume growth

  • The Return on Capital (ROCE) employed for this business stands at 29%

 

Container Freight Stations (CFS)

  • This segment operations are involved in import / export cargo stuffing, de-stuffing, customs clearance and other related ancillary services to both, importers and exporters

  • The CFS facilities are located near JNPT, Chennai and Mundra ports

  • The business maintained total volumes at 69,260 TEUs for the quarter ended September 30, 2016 as against 69,296 TEUs for the corresponding previous period

  • The total revenue for the quarter ended September 30, 2016 was Rs 111 crore as against Rs 106 crore for the corresponding previous period, an increase of 5%, mainly on account of realizations from long standing container and ODC bond cargo

  • EBIT was Rs. 40 crore for the quarter ended September 30, 2016, as against Rs. 34 crore the corresponding previous period, a increase of 18%, mainly on account of higher operating efficiencies

  • The Return on Capital (ROCE) employed for this business stands at 35%

 

Project & Engineering Solutions (P&E)

  • Project & Engineering Solutions segment provides integrated end-to-end project, engineering and logistic services through a diverse fleet of owned / rented special equipment like hydraulic axles, cranes, barges, reach-stackers and ships to carry ODC / OWC cargos as well as project engineering solutions across various sectors

  • The total revenue for the quarter ended September 30, 2016, was Rs. 99 crore as against Rs. 139 crore for the corresponding previous period, a decline of 29%, mainly on account of a conscious decision to move away from lower ROCE business viz. trailers, leading to sale of aged assets, slowdown in project logistics business and transfer of similar business from P&E to ACCI

  • EBIT was at Rs. 11 crore for the quarter ended September 30, 2016, as against Rs. 14 crore for the corresponding previous period, a decline of 21%

  • The Return on Capital (ROCE) employed for this business stands at 9%, steps are underway to improve ROCE and continue with moving away from lower margin business

 

Recent Developments – Q2 FY17

 

Bagged contract to manage and operate Central Warehousing Corporation’s CFS in Mundra, Gujarat

  • This CFS facility is located adjacent to existing CFS of Allcargo

  • With 40 acres of sprawling space, poised to transform the way operations are conducted in Mundra. With the expertise in CFS operations, will bring in new level of supply chain capabilities and will serve as a benchmark in the realm of CFS

 

Announced Buyback of Shares – To Reward Shareholders

  • The Company announced a buyback in the month of November 2016. The Buyback is priced @ INR 195 per share

  • The total size of the buyback, by “Tender Route”, will be upto 64,00,000 shares (that translates to ~2.5% of total number of outstanding shares). Total amount to be spent will be approximately Rs. 124.8 crore

 

Awards and Recognitions – Q2 FY17

 

Lloyd’s List Asia Awards, 2016

  • Lloyd’s List Asia Awards, 2016, one of the most coveted awards in the Asian shipping and logistics industry felicitated Allcargo Logistics with the ‘Logistics Award’ in Singapore

  • North East Agra project, a first of its kind and prestigious power project undertaken by Projects and Engineering Solutions Team

 

Maritime and Logistics Awards, 2016

  • Jt. Managing Director Mr. Adarsh Hegde was felicitated as ‘Dynamic Logistics Professional of the Year’, for his contribution towards the industry at Maritime And Logistics Awards, 2016

  • Allcargo was conferred with two more awards for outstanding business performance

  • Logistics Super-brand of the year

  • Heavy Lift/Project Mover of the Year

 

Stock Market Highlights – General Information and Shareholding Pattern as on September 30, 2016:

 Particulars

 

 Exchange Code

 BSE: ALLCARGO / NSE: ALLCARGO

 No. of Shares Outstanding

 25,20,95,524

 Closing Market Price (Rs.)1

 156.5             

 Market Capitalization (Rs. Crore)1

 3,945

 

1BSE stock exchange as on November 22, 2016

 Particulars

 No of shares

 % Holding

 Promoters

 176,068,640

 69.8%

 Foreign Investors – FIIs, FCs, NRIs and others

 64,657,638

 25.6%

 Domestic institutions/ Banks/ Mutual Funds

 230,486

 0.1%

 Indian Public

 11,138,760

 4.4%

 Total  – 24,975 shareholders

 252,095,524

 100.0%

               

About Allcargo Logistics Limited

Allcargo Logistics Ltd., part of The Avvashya Group, is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments.

 

The Company currently operates out of 300 plus offices in 164 countries and gets supported by an even larger network of franchisee offices across the world. Allcargo is today one of India’s largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

 

Caution Concerning Forward-Looking Statements: This document includes certain forward-looking statements. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors.  Allcargo Logistics Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

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