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Allcargo Logistics announced Q3FY24 results:

Financial Summary

• Consolidated Revenue: Rs 3,212 crore
• Consolidated EBITDA: Rs 111 crore, slightly lower than the previous quarter's Rs 118 crore

Performance Highlights

• Expectation of global trade revival in the second half of 2024.
• Major cost reduction initiatives undertaken to reduce SG&A costs that will offset investments and inflationary pressures, but Q4FY24 will see one-off severance costs.
• Marginal decline in LCL volumes in the USA and APAC, while FCL volumes grew by 2% YoY.
• International Supply Chain business performance remained flat QoQ.
• Domestic express business volume grew by 11% in Q3FY24 YoY, due to sales acceleration and improved service levels, despite a decline due to change in yield.
• Significant losses in US and Germany impacted financial performance, with recovery expected in CY24.

Balance Sheet and Business Focus

• Net Debt: Rs 214 crore as of December 2023.
• Emphasis on digitalization, data security, and centralization of processes, including financial systems.

Operational and Strategic Developments

• Red Sea crisis briefly affected the market capacity, with a marginal positive impact anticipated in the April to June quarter.
• Express logistics business under Gati showed growth in volume.

Future Outlook

• The company is well-positioned to capitalize on market opportunities with a strong focus on operational excellence and customer-centricity.

Post Result Plans

• Implementation of a composite scheme of arrangement for demerging ISC business and merging Express and Contract Logistics into Allcargo Logistics Ltd., expected to be completed in 10-12 months.

Result PDF