Allcargo Logistics Q1 profit at Rs 119 crore

Allcargo Logistics Ltd on Friday reported 54 per cent fall in consolidated Profit After Tax (PAT) at Rs 119 crore for June quarter 2023-24.In the year-ago period, the PAT was at Rs 260 crore, the company said in a statement.

Revenue during the quarter under review fell a steep 40 per cent at Rs 3,271 crore as against Rs 5,474 crore in Q1FY23, it said.

Weak macroeconomic outlook reflected in subdued global trade activity for the industry, the company said.

“Our strategy is to focus on market share and volume growth amidst higher competitive intensity. Most leading international forwarders have reported 6- 9 per cent YoY drop in volumes in Q1FY24. Our less-than-a container (LCL) volumes are up 6 per cent QoQ and over H1CY23 we have outperformed the industry thereby gaining market share,” Allcargo Logistics said.

LCL volume for July is expected to show positive sequential momentum demonstrating the market share gain, it said.It also said that International Supply Chain (ISC) business' EBITDA margin of 4 per cent in Q1FY24 compares with 6.5 per cent in FY23 and 4.7 per cent in FY19, reflecting normalization of trade.

The company intends to revive profitability in the ISC business by increasing volumes to offset gross profit impact once trade environment normalizes, among others, it said.

Balance sheet remains healthy with current net debt of Rs 12 crore after accounting for Rs 406 crore paid towards acquisition of 30 per cent stake in GESCPL (earlier Gati KWE), the company said.

Express business volumes are showing a strong momentum while contract logistics business will fully reflect in financials from next quarter onward, the company said.