Allcargo Logistics (ALLCARGO) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue rose 16% to ₹5,688 crore; EBITDA increased 23% to ₹528 crore, while EBIT rose 47% to ₹371 crore. [FY14 EBIT included a one-time goodwill write-off.]

• Consolidated net profit after minority interest increased 61% to ₹240 crore; EPS was ₹19.0 per ₹2 share, versus ₹11.8 in FY14.

• Management prioritized profitable growth, higher ROCE, asset utilization and cash flow; FY16 was designated the “Year of Sales.”

Financial highlights

• Consolidated total income was ₹5,681 crore versus ₹4,896 crore; revenue from operations was ₹5,629 crore, up 16% YoY.

• Consolidated EBITDA was ₹528 crore versus ₹428 crore, up 23%; finance costs fell 5% to ₹53 crore and depreciation was ₹157 crore versus ₹175 crore, including prior-year goodwill amortization.

• Consolidated profit after tax was ₹247 crore versus ₹154 crore; after minority interest and associate profit, FY15 profit was ₹240 crore versus ₹149 crore.

• Standalone revenue was ₹1,179 crore, up 15%; EBITDA rose 17% to ₹274 crore and profit after tax rose 74% to ₹97 crore.

• Interim dividend of ₹0.60/share was paid; a final ₹1.40/share was recommended, for total FY15 dividend of ₹2/share, subject to member approval.

Outlook and guidance

• FY16 was set as the “Year of Sales,” targeting volume and revenue growth, new customers, greater share of existing customer spend and improved customer satisfaction.

• Prior leadership commentary expected consolidated revenue to exceed US$1 billion in FY16.

• Priorities include profitable growth, higher ROCE, asset utilization and cash flow; conservative capex was planned, while pursuing opportunities that enhance profit and shareholder value.

• Plans included growing CFS, ICD and P&E market share, scaling contract logistics and shipping, and entering e-commerce logistics and chemical warehousing.