Allcargo Logistics (ALLCARGO) Q4 2009 earnings summary

Executive summary

• Consolidated turnover fell to ₹20,609.3m from ₹23,140.8m, while net profit after minority interest rose 20.66% to ₹1,299.5m; EBITDA increased 7.22% to ₹2,470.9m.

• Cost reduction, improved operating efficiency and project execution supported performance through the global downturn; volumes began recovering late in 2009.

• New 3PL services, infrastructure expansion and broader international reach shaped the growth strategy for 2010 and beyond.

Financial highlights

• Consolidated total income was ₹20,895.1m vs ₹23,247.2m; net profit after exceptional items and minority interest was ₹1,299.5m vs ₹1,077.0m.

• Consolidated EBITDA was ₹2,470.9m vs ₹2,304.4m; PBT before exceptional items was ₹1,694.6m vs ₹1,608.7m.

• Standalone turnover was ₹5,167.6m and net profit ₹978.1m; EBITDA was ₹1,588.5m vs ₹1,407.5m, up 12.86%.

• Consolidated basic EPS was ₹11.57 before exceptional items and ₹11.33 after exceptional items; diluted EPS was ₹11.55 and ₹11.32, respectively.

• Standalone exceptional items added ₹62.7m after tax, including proceeds from subsidiary-share sales; consolidated exceptional items were a ₹27.4m net charge.

Outlook and guidance

• Management expected 2010 growth, citing improving EXIM volumes and increased activity in India’s infrastructure, organized retail and 3PL markets.

• Plans included expanding LCL operations in China and the US, increasing Chennai and Mundra CFS capacity, and starting ICDs in Dadri and Hyderabad.

• Goa warehouse volumes were expected to increase; phase II construction was underway, with further ICDs planned in Bangalore, Nagpur and Pune over 12–18 months.

• Project logistics expansion targeted rail, power and aluminum projects, with planned investment in heavy equipment and international project-cargo services.