Allcargo Logistics (ALLCARGO) Q4 2007 earnings summary

Executive summary

• FY2007 growth reflected ECU Line’s full-year contribution, international expansion and the Transindia Project and Equipment Division, consolidated from an appointed date of Jan. 1, 2007; prior-year comparatives cover only nine months.

• Strategic focus: integrate and improve margins, expand CFS/ICD and equipment capacity, and develop warehousing, 3PL and port-related businesses.

Financial highlights

• Consolidated total income was Rs. 16,134.63m, up 80% vs. the prior nine-month period; EBITDA was Rs. 1,421.52m, up 78%, and PAT before minority interest was Rs. 864.01m, up 48%.

• Consolidated profit after minority interest was Rs. 765.59m; EPS was Rs. 34.67 basic and Rs. 34.58 diluted after exceptional items.

• Standalone total income was Rs. 3,600.47m, up 60%; EBITDA was Rs. 780.36m, up 68%, and PAT was Rs. 597.85m, up 38%, against the prior year.

• Standalone exceptional items included Rs. 33.37m depreciation written back and Rs. 7.46m profit on sale of subsidiary shares; excluding the depreciation policy change, PAT would have been Rs. 579.59m.

Outlook and guidance

• MTO volumes were expected to grow 8–10% over the next two years, supported by EXIM and containerized traffic; emphasis was on higher-realization routes and deeper US and China penetration.

• Planned investments: ~Rs. 2,000m in logistics infrastructure and Rs. 900m in equipment and container trailers; ~200 acres of land were identified for commercial development.

• CFS/ICD expansion aimed for 10 Indian locations and capacity of 301,000 TEUs by end-2008; the Dadri ICD was expected to begin operations in 2009.

• 2008 was described as a potential business inflection point; expansion into West Asia and development of warehousing and distribution centres were planned.