Allcargo Logistics announced Q3FY24 results: Financial Summary Consolidated Revenue: Rs 3,212 crore Consolidated EBITDA: Rs 111 crore, slightly lower than the previous quarter's Rs 118 crore Performance Highlights Expectation of global trade revival in the second half of 2024. Major cost reduction initiatives undertaken to reduce SG&A; costs that will offset investments and inflationary pressures, but Q4FY24 will see one-off severance costs. Marginal decline in LCL volumes in the USA and APAC, while FCL volumes grew by 2% YoY. International Supply Chain business performance remained flat QoQ. Domestic express business volume grew by 11% in Q3FY24 YoY, due to sales acceleration and improved service levels, despite a decline due to change in yield. Significant losses in US and Germany impacted financial performance, with recovery expected in CY24. Balance Sheet and Business Focus Net Debt: Rs 214 crore as of December 2023. Emphasis on digitalization, data security, and centralization of processes, including financial systems. Operational and Strategic Developments Red Sea crisis briefly affected the market capacity, with a marginal positive impact anticipated in the April to June quarter. Express logistics business under Gati showed growth in volume. Future Outlook The company is well-positioned to capitalize on market opportunities with a strong focus on operational excellence and customer-centricity. Post Result Plans Implementation of a composite scheme of arrangement for demerging ISC business and merging Express and Contract Logistics into Allcargo Logistics Ltd., expected to be completed in 10-12 months. Result PDF
Conference Call with Allcargo Logistics Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.