Allcargo Logistics (ALLCARGO) Q4 11/12 earnings summary

Executive summary

• 15-month FY ended Mar. 31, 2012; consolidated revenue ₹4,324.52 crore, EBITDA ₹573.53 crore and PAT after minority interest ₹284.53 crore, with annualized growth of 20%, 54% and 37%, respectively.

• Global network spanned 142 owned offices, 62 countries and 4,000+ port pairs; operations covered multimodal transport, CFS/ICD and project and engineering solutions.

• Management remained focused on profitable growth and stated the FY14 ambition to become a global $1 billion enterprise was on track.

Financial highlights

• Consolidated EPS was ₹21.80 versus ₹12.89 for 12M 2010; annualized increase 36%.

• Consolidated EBITDA margin improved 294 bps to 13%; standalone revenue was ₹1,130.49 crore and PAT ₹184.07 crore, annualized growth of 24% and 22%.

• Consolidated operating expenses rose 14% annualized; staff costs rose 23% and other expenses 21%.

• Depreciation rose 95% annualized to ₹133.70 crore and interest rose 181% to ₹68.32 crore, reflecting higher fixed assets and borrowings for capex.

Outlook and guidance

• FY14 ambition remained a global $1 billion enterprise; plans centered on scaling existing businesses profitably, pursuing synergies and consolidating leadership in logistics.

• New JNPT CFS capacity of 100,000 TEUs was expected to begin operations by end-Q2 FY13; the planned facility would add to existing CFS capacity of 341,000 TEUs per year.

• India GDP growth was expected to exceed 6% in FY13; infrastructure investment, EXIM traffic and project activity were identified as medium-term demand drivers.