Allcargo Logistics Q1 PAT rises over two-fold to Rs 280 cr; revenue up 65%

Allcargo Logistics has reported over two-fold growth in its consolidated profit after tax (PAT) to Rs 280 crore for the June quarter.

The company had posted a PAT of Rs 106 crore in the first quarter of the previous fiscal, Allcargo said in a release on Thursday.

Its consolidated revenue during the first quarter of FY23 rose 65 per cent to Rs 5,675 crore from Rs 3,449 crore in Q1 FY22, it said.

The firm's EBITDA (Earnings before interest, taxes, depreciation and amortisation) doubled to Rs 434 crore from Rs 217 crore in the year-ago period, Allcargo Logistics said.

There has been a sustained increase in revenues coming through the digital platform ECU360, which now accounts for over 60 per cent of export bookings across all key markets, it added.

The international supply chain business (MTO segment) operating under ECU Worldwide saw robust growth. The ocean freight rates have seen a declining trend over the last 3-4 months, Allcargo said.

The company, however, has managed to grow revenues on the back of strong volumes. The profits remain steady with a focus on digitisation and yield management, it stated.

Container volume under the CFS-ICD business stood at 1,38,300 TEUs (twenty-foot equivalent units) in the June quarter against 82,500 TEUs handled in Q1 last year.

The first-quarter performance has been good "despite macroeconomic headwinds from the Ukraine war, inflation and slowdown in demand. Against this backdrop, the company achieved sequential volume growth in international supply chain business," said Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati Ltd.

Allcargo has recently announced its intent to restructure express and contract logistics businesses and the company is in discussions with its JV partner in express business to buy out their shareholding, Allcargo Logistics said.

The company continues to focus on asset-light businesses and evaluate strategic acquisitions across the world to further strengthen its competitive positioning, it stated.

All acquisitions continue to do well despite disruptions in rail operations due to the Ukraine war, with the business significantly outperforming the market growth in several key countries such as India, the US, Canada, Thailand and various parts of Europe, it added.