Allcargo Logistics consolidated revenues rise 6% in Q1 FY 18

Posted by Daily Shipping Times on 14-08-2017        Tweet

MTO volumes grow by 14% YoY

MUMBAI: Allcargo Logistics Ltd. announced its unaudited financial results for the quarter ended June 30, 2017.

The performance highlights :- Consolidated Results – Q1 FY18

•             Total revenue from operations at Rs. 1,483 crore for the quarter ended June 30, 2017, as compared to Rs. 1,399 crore for the corresponding previous period, an increase of 6%, mainly on account of volume growth in MTO business

86% of revenues are from the global MTO business

•             The Gross Profit for the quarter ended June 30, 2017 was Rs 426 crore, as against Rs. 472 crore for the corresponding previous period, a decrease of 10%, mainly on account of higher operating costs in P&E (mainly on account of continual slowdown in project logistics business), notional currency impact arising from consolidation of global MTO business, operating costs of managing Mundra CWC CFS (which was not part of Q1FY17 consolidated financials) and consolidation of relatively lower margin ICD at Kheda.

•  EBITDA for the quarter ended June 30, 2017 was Rs. 103 crore as against Rs. 133 crore during the corresponding previous period, a decrease of 23%, mainly on account of reasons for decline in gross profit, a conscious decision to move away from lower ROCE business leading to strategic sale of low yielding assets in Q1FY18, increase in provision for doubtful debts in P&E business and lesser number of assets in operation

•             PAT for the quarter was maintained at Rs. 64 crore for the quarter ended June 30, 2017

•             EPS for the quarter ended June 30, 2017 was Rs 2.49 for a face value of Rs. 2 per share

Resources and Liquidity:

As on June 30, 2017, the Equity was Rs. 1,900 crore and the Net Debt was Rs. 250 crore.

The capital structure of the Company remains conservative with net debt to equity ratio of 0.13 as on June 30, 2017.

The Return on Capital (ROCE) stands at 13%.

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):

•             The business clocked total volumes of 1,38,479 TEUs for the quarter ended June 30, 2017 as against 1,20,971 TEUs for the corresponding previous period, an increase of 14%. This growth has come from key markets  across the world

•             The total revenue for the quarter ended June 30, 2017 was Rs 1,289 crore as against Rs 1,179 crore for the corresponding previous period, an increase of 9%.

•             EBIT was Rs. 53 crore for the quarter ended June 30, 2017, as against Rs. 57 crore for the corresponding previous period, a decline of 6%, mainly on account of notional currency impact

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

Container Freight Stations (CFS):

•             The total volumes increased marginally to 78,732 TEUs for the quarter ended June 30, 2017, mainly on account of growth at CFSs in Mundra and ICD in Kheda

•             The total revenue for the quarter ended June 30, 2017 was maintained at Rs 109 crore

•             EBIT was maintained at Rs. 30 crore for the quarter ended June 30, 2017,despite increase in expenses arising from managing new CFS in Mundra and consolidation of relatively lower margin business of ICD at Kheda in Q1FY18

•             The Return on Capital (ROCE) employed for this business stands at 26%

Project & Engineering Solutions (P&E):

•             The total revenue for the quarter ended June 30, 2017, was Rs. 99 crore as against Rs. 132 crore for the corresponding previous period, a decline of 25%, on account of sale of assets and transfer of similar business to ACCI

•             EBIT was breakeven for the quarter, mainly on account of provision for doubtful debts and lesser number of ships in operation in Q1FY18 as compared to Q1FY17

Contract Logistics:

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

•             In line with Ind AS guidelines, the financials of ACCI are consolidated under ‘Share of profits from associates and joint ventures’