Allcargo Logistics (ALLCARGO) Q4 2008 earnings summary

Executive summary

• FY2008 consolidated revenue rose 43.42% YoY to Rs. 23,140.82 million; net profit attributable to shareholders increased 40.68% to Rs. 1,077.02 million. EBITDA reached Rs. 2,304.43 million, up 56.44%.

• Growth continued through a severe global downturn, supported by focused execution, cost reduction, resource management and expansion across logistics services.

• Strategic ambition shifted to becoming the top player in each operating segment; LCL consolidation ranked second globally and project logistics led in India.

Financial highlights

• Standalone turnover rose 43.53% YoY to Rs. 5,167.91 million; net profit grew 55.01% to Rs. 926.74 million and EBITDA increased 70.56% to Rs. 1,407.46 million.

• Consolidated EBITDA increased 56.44% YoY to Rs. 2,304.43 million; reported consolidated net profit attributable to shareholders was Rs. 1,077.02 million.

• Consolidated operating income was Rs. 23,140.82 million; total income including other income was Rs. 23,247.19 million.

• Standalone exceptional items, net of tax, added Rs. 62.69 million; consolidated exceptional items, net of tax, reduced profit by Rs. 31.40 million.

Outlook and guidance

• Management expected the global economy to bottom in 2009 and recover in 2010, with India forecast to grow 6.5% in 2010; uncertainty and weak manufacturing remained concerns.

• Priorities included ERP rollout, TQM, customer retention, cost rationalization, process redesign, new verticals and mutually beneficial joint ventures or strategic tie-ups.

• A project logistics order book was executable over the next 12–18 months; management reported initial cost-rationalization results as favorable, with fuller impact expected in Q2 2009.