Allcargo Logistics (ALLCARGO) Q4 15/16 earnings summary

Executive summary

• FY2015-16 results reflected modest consolidated revenue growth and stronger EBIT and attributable profit despite weak global trade and subdued investment.

• Leadership positions continued in global LCL consolidation, Indian CFS/ICD and project logistics; priorities included sales, technology, cross-selling and profitable growth.

Financial highlights

• Consolidated revenue from operations was ₹571,424 lakh, up 1% YoY; EBITDA was ₹54,832 lakh, up 4%, and EBIT was ₹39,546 lakh, up 7%.

• Net profit after minority interest rose 16% to ₹27,826 lakh; EPS was ₹11.04 versus ₹9.52, adjusted for the 1:1 bonus issue.

• Standalone revenue increased 6% to ₹124,617 lakh; EBITDA was nearly flat at ₹27,556 lakh, while PAT rose 28% to ₹12,415 lakh.

• Consolidated service costs fell 3% to ₹3,812 crore, while staff expenses rose 8% to ₹926 crore and other expenses rose 19% to ₹428 crore.

Outlook and guidance

• FY2016-17 was designated the “Year of Sales & Technology,” targeting stronger revenue and volumes, higher wallet share and new customer acquisition.

• Long-term ambition: reach US$2 billion revenue by 2020; contract logistics expansion, including e-commerce and chemical warehousing, supports growth plans.

• Plans included a Kolkata CFS by FY2016-17 end and phased development of a rail-connected Jhajjar logistics park, expected operational by 2018 subject to approvals and rail connectivity.

• Topaz was being rolled out across ECU Worldwide; the platform was intended to standardize operations and enable faster customer-facing digital applications.