Allcargo Logistics (ALLCARGO) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue rose 23% to ₹489,593 lakh, while net profit attributable to minority interest fell 12% to ₹14,933 lakh, reflecting higher finance costs and a one-time goodwill write-off.

• Two acquisitions expanded global MTO capabilities: 100% of Econocaribe and 75% of FCL Marine; MTO contributed 84% of revenue.

• Operations closed the year at a billion-dollar turnover run rate; the stated priority remained profitable growth, efficiency, cash generation and improved asset utilization.

Financial highlights

• Consolidated revenue from operations ₹489,593 lakh, up 23% YoY; EBITDA ₹42,781 lakh, up 1%; reported PAT ₹15,444 lakh versus ₹18,233 lakh.

• Adjusted EBIT ₹28,645 lakh, up 17% YoY before FY14 goodwill amortization and after excluding prior-year exceptional income; EPS ₹11.8 versus ₹13.3.

• Standalone income ₹102,204 lakh, down 6%; EBITDA ₹23,371 lakh, down 14%; PAT ₹5,612 lakh, down 51%, with merger-related goodwill amortization and higher finance costs cited.

• Consolidated operating expenses rose 26% to ₹340,387 lakh; staff costs increased 29% to ₹72,762 lakh, in line with expanded revenues and operations.

• Recommended dividend ₹1.50 per equity share; total payout including dividend tax ₹2,212 lakh, subject to shareholder approval.

Outlook and guidance

• The stated ambition was to reach the billion-dollar revenue milestone in the coming financial year; the year ended at a billion-dollar turnover run rate.

• Priorities include profitable growth, cost management, stronger ROCE and asset utilization, and using future cash flows to reduce existing debt.

• Global focus markets include the US, China, Brazil and Germany; Indian priorities are CFS, ICD and P&E share gains, plus expansion of 3PL, warehousing and shipping.

• Maintenance capex was the only non-acquisition capex in FY14; management planned to maintain a slow capex pace in the current year.