Allcargo Logistics (ALLCARGO) Q4 2006 earnings summary

Executive summary

• FY06 standalone income rose 18.42% YoY to Rs 2,748.65m; PAT nearly doubled to Rs 494.32m, up 98.36%.

• Transformation into a global logistics operator accelerated with the June 2006 acquisition of ECU Hold NV, making it a wholly owned subsidiary after year-end.

• Growth priorities combined global LCL consolidation with related diversification into CFS and project cargo; management expected growth to surpass FY06 performance.

Financial highlights

• Standalone operating income was Rs 2,704.23m versus Rs 2,318.22m; total income was Rs 2,748.65m versus Rs 2,321.04m.

• Profit before interest, depreciation and taxes was Rs 626.73m versus Rs 374.58m; PBT was Rs 541.26m versus Rs 288.52m.

• PAT was Rs 494.32m versus Rs 249.20m; interest expense rose to Rs 23.17m from Rs 7.67m, while depreciation fell to Rs 62.30m from Rs 78.39m.

• Other income of Rs 44.42m included Rs 18.72m profit on asset sales and Rs 8.21m profit on investment sales.

Outlook and guidance

• Management expected performance to exceed FY06, with an ambition to establish a leading position in logistics and consolidation.

• Chennai and Mundra CFS first phases were expected to begin operations by January 2007; planned capacity additions were 104,000 TEUs annually in the first phase.

• A Delhi ICD was under development, with commissioning targeted by end-2007 and first-phase capacity of 52,000 TEUs.