Allcargo Logistics Ltd has posted impressive financial results for the quarter and nine months ended December 31, 2019.
Summary of the nine months
Total revenue stood at Rs 5,475 crore for the nine months ending December 31, 2019 as against Rs 5,168 crore for the corresponding previous period, an increase of 5.9 per cent.
The Profit after Tax was at Rs 180 crore for the nine months compared to Rs 168 crore for the corresponding previous period, up by 7.1 per cent.
Allcargo’s Earnings Before Interest, Taxes and Amortisation (EBIDTA) was at Rs 397 crore for the nine months ending December 31, 2019 versus Rs 341 crore for the corresponding previous period, a 16.4 per cent rise.
Performance highlights Consolidated Results – Q3 FY20
Total revenue from operations remained steady at Rs 1,787 crore for the quarter ended December 31, 2019 as against Rs 1,804 crore for the corresponding quarter in the previous year.
EBITDA for the quarter ended December 31, 2019 was at Rs 126 crore as against Rs 113 crore during the corresponding quarter of the previous year, an increase of 11.5 per cent.
PAT remained stable at Rs 49 crore for the quarter ended December 31, 2019 as against Rs 50 crore for the corresponding quarter in the previous year.
EPS for the quarter ended December 31, 2019 was Rs 1.79 per share for a face value of Rs 2 per share.
Consolidated Results – 9M FY20
Total revenue from operations stood at Rs 5,475 crore for the nine months ended December 31, 2019 as compared to Rs 5,168 crore for the corresponding previous period, an increase of 5.9 per cent.
EBITDA for the nine months ended December 31, 2019 was at Rs 397 crore as against Rs 341 crore during the corresponding previous period, an increase of 16.4 per cent.
PAT was at Rs 180 crore for the nine months ended December 31, 2019 as against Rs 168 crore during the corresponding previous period, an increase of 7.1 per cent.
EPS for the nine months ended December 31, 2019 was Rs 6.96 per share for a face value of Rs 2 per share.
Business Performance
The multimodal transport business clocked total volumes of 185,408 TEUs for the quarter ended December 31, 2019 as against 167,978 TEUs for the corresponding previous period, an increase of 10.4 per cent. This segment continued gaining global market share and volumes from allied and FCL services continued to grow.
The Return on Capital Employed (RoCE) for this business stands at 26 per cent on an annualised basis.
In the CFS segment, the total volumes were 75,965 TEUs for the quarter ended December 31, 2019. Allcargo continues to maintain its market share despite the reduction in the CFS market. YoY quarterly volumes surged by 14 per cent in Mundra and 27 per cent in Kolkata. The RoCE for this business stands at 28.39 per cent on an annualised basis.
The company entered into a definitive transaction with the Blackstone Group on January 13, 2020 wherein Blackstone would acquire Allcargo’s warehousing subsidiaries in Telangana, Tamil Nadu, Karnataka, Gujarat, Maharashtra and South Goa for Rs 380 crore through a combination of debt and equity. Allcargo would remain a minority stakeholder in these warehousing subsidiaries at 10 per cent post the transfer. The timeline of the deal would be around 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones as prescribed in the transaction documents. Post the completion of the deal, the company endeavours to reduce the debt on consolidated books considerably by the end of FY21.
Since the announcement of the Gati transaction on December 5, 2019, Allcargo has acquired around 20.83 per cent stake through a combination of promoter stake purchase, preferential allotment and open market purchases in Gati Ltd, thus making Allcargo the largest shareholder in the company. Furthermore, in the last board meeting of Gati, Allcargo’s Chairman Mr Shashi Kiran Shetty and Mr Kaiwan D. Kalyaniwalla were nominated from Allcargo and appointed as Additional, Non-Executive Director and Non-Independent Director, respectively, in Gati with effect from February 4, 2020.
