Allcargo Logistics reports Rs. 57 cr. Net Profit in Q4 FY17

Posted by Daily Shipping Times on 24-05-2017        Tweet

MUMBAI: Allcargo Logistics Ltd. announced its audited financial results for the quarter and full year ended March 31, 2017.

The performance highlights are:

Consolidated Results – Q4 FY17

•             Total revenue from operations at Rs. 1,363 crore for the quarter, as compared to Rs. 1,390 crore for the corresponding previous period, a decrease of 2%, mainly on account of transfer of similar business to ACCI as per Ind AS guidelines, slowdown in project logistics business, sale of low yielding non strategic assets and non operation of assets due to repairs & maintenance.

•             85% of revenues are from the global MTO business.

•             EBITDA for the quarter was Rs. 106 crore as against Rs. 117 crore during the corresponding previous period, a decrease of 10%, mainly on account of transfer of similar business to ACCI as per Ind AS guidelines, slowdown in project logistics business, sale of low yielding non strategic assets, lease rentals for CFS in Kolkata, expenses of managing new CFS in Mundra and non operation of assets due to repairs & maintenance.

•             PAT was Rs. 57 crore for the quarter, as against Rs 59 crore for the corresponding previous period, a decline of 2%.

Consolidated Results – FY17

•             Total revenue from operations at Rs. 5,583 crore for the year, as compared to Rs. 5,641 crore for the corresponding previous period, a slight decrease of 1%, mainly on account of transfer of similar business to ACCI, slowdown in project logistics and sale of low yielding non strategic assets.

•             84% of revenues are from the global MTO business.

•             EBITDA for the year was Rs. 465 crore as against Rs. 504 crore during the corresponding previous period, a decrease of 8%, mainly on account of a conscious decision to move away from lower ROCE business, transfer of similar business to ACCI, slowdown in project logistics and sale of low yielding non strategic assets, lease rentals for the CFS in Kolkata, expenses of managing new CFS in Mundra in FY17 and non operation of assets due to repairs & maintenance.

•             PAT declined to Rs. 232 crore, as against Rs 240 crore for the corresponding previous period.

•             EPS for the year ended March 31, 2017 was Rs 9.2, for a face value of Rs. 2 per share.

•             The Board of Directors have recommended, subject to the shareholders’ approval, a final dividend @ 100% i.e. Rs. 2 per equity share of Rs. 2 each for the financial year ended March 31, 2017.

Resources and Liquidity:

As on March 31, 2017, the Equity was Rs. 1,813 crore and the Net Debt was Rs. 318 crore.

The capital structure of the Company remains conservative with net debt to equity ratio of 0.18 as on March 31, 2017.

The Return on Capital (ROCE) stands at 15%.

Business Performance – Q4 FY 17

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):

•             The business clocked total volumes of 1,26,833 TEUs for the quarter ended March 31, 2017 as against 1,12,593 TEUs for the corresponding previous period, an increase of 13%. This growth has come from across the world.

•             The total revenue for the quarter ended March 31, 2017 was Rs 1,161 crore as against Rs 1,181 crore for the corresponding previous period, a slight decrease of 2%, mainly on account of notional currency impact and transfer of freight forwarding business to ACCI.

•             EBIT was maintained at Rs. 50 crore for the quarter ended March 31, 2017, as against Rs. 48 crore for the corresponding previous period, an increase of 5%, mainly led by volume growth.

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

Container Freight Stations (CFS):

•             The business clocked total volumes at 77,021 TEUs for the quarter ended March 31, 2017 as against 66,729 TEUs for the corresponding previous period, an increase of 15%. This growth has been driven by the CFSs at Chennai and Mundra. The volume in Q4FY17 includes the new CFS at Mundra .

•             The total revenue for the quarter ended March 31, 2017 was Rs 99 crore as against Rs 102 crore for the corresponding previous period, a decrease of 3%, mainly on account of lower dwell time and net revenue considered for the new CFS at Mundra.

•             EBIT was maintained at Rs. 29 crore for the quarter ended March 31, 2017 as against the corresponding previous period, despite lease rentals of the CFS at Kolkata and expenses of managing new CFS in Mundra in Q4FY17.

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

Project & Engineering Solutions (P&E):

•             The total revenue for the quarter ended March 31, 2017, was Rs. 114 crore as against Rs. 128 crore for the corresponding previous period, a decline of 10%, mainly on account of a conscious decision to move away from lower ROCE business, sale of low yielding and non strategic assets, slowdown in project logistics business, transfer of similar business from P&E to ACCI and non operation of assets due to repairs & maintenance.

•             EBIT was at Rs. 6 crore for the quarter ended March 31, 2017, as against Rs. 17 crore for the corresponding previous period, a decline of 64%, mainly on account of above reasons and Ind AS adjustments .

Contract Logistics :

•             Allcargo has a strong presence in the business of contract logistics through its approximately 62% stake in joint venture -‘Avvashya CCI’ (ACCI).

•             ACCI is amongst leading contract logistics players in India and has a dominant presence in West India and in the Chemicals, Auto & Engineering, Fashion and Pharma sectors,  with over 2 million square feet of warehousing space under management.