Allcargo Logistics (ALLCARGO) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated revenue was ₹5,583 crore, down 1% YoY; EBITDA fell 4% to ₹510 crore, while EBIT rose 4% to ₹344 crore.

• Performance held up amid muted industry growth, global shipping disruption, demonetization and margin and volume pressure; cost optimization and digitalization supported operations.

• FY17 consolidated profit was ₹237.79 crore versus ₹247.58 crore; EPS was ₹9.25 versus ₹9.52.

Financial highlights

• Consolidated revenue from operations: ₹5,583.36 crore, down 1% YoY; total income: ₹5,628.68 crore versus ₹5,668.50 crore.

• EBITDA was ₹510.23 crore, down 4%; depreciation and amortisation fell 17% to ₹166 crore, and finance costs fell 21% to ₹32 crore.

• EBIT rose 4% to ₹344 crore from ₹331 crore; EPS was ₹9.25 per ₹2 share versus ₹9.52.

• Standalone revenue was ₹1,173.59 crore, down 3%; EBITDA fell 4% to ₹259.28 crore and PAT fell 12% to ₹106.32 crore.

Outlook and guidance

• FY17-18 priorities: profitable growth, higher ROCE, greater customer wallet share, stronger LCL leadership and continued focus on existing businesses.

• Plans include a Jhajjar logistics park, scaling contract logistics with chemical warehousing and e-commerce focus, and starting Kolkata CFS operations in FY17-18.

• Project TOPAZ was targeted to cover 90% of export/import volume-generating offices in 2017; conservative capex and cash generation were intended to support debt reduction and growth opportunities.