Allcargo Logistics Ltd drops 4% post muted Q4 results

Shares of Allcargo Logistics Ltd dropped 4 percent in early trade today post muted Q4 results. At 9:55 am, the Allcargo Logistics Ltd stock was trading 2.79 percent down at Rs 266 on NSE.

Allcargo Logistics Ltd declared its Q4 results today. According to the filing with BSE, the company’s revenue for FY23 declined 5.3 percent YoY from 19,062 crore to 18,051 crore. However, gross profit over the same period increased 7.7 percent, from 3,476 crore to 3,744 crore. The net consolidated cash, whereas, soared to Rs 604 crore.

The volumes continue to remain lower in the flagship international supply chain business due to reduced global trade. During Q4FY23, the standalone revenue declined by 55 percent YoY from Rs 950 crore in Q4FY22, to Rs 428 crore in Q4FY23, while the Gross Profit over the same period declined by 2 percent YoY.

Management Commentary

Shashi Kiran Shetty, Founder and Chairman, Allcargo Group, said, “Our focus on technology continues to drive our long-term strategy. In the short term, we remain confident about our resilience in poor macroeconomic environment for international trade. We are satisfied with the business management of the company in spite of severe headwinds in the last two quarters. The volumes are likely to improve & as this happens the performance of the company should improve.”

“On the domestic front, Gati continues to improve its service levels, growth in revenue & EBIDTA numbers. Contract logistics business has had another stellar year. It is now jointly managed by GATI and ASCPL management.”

He further added, “I am happy to announce the appointment of Adarsh Hegde, who is a veteran in the logistics industry and long-time leader within the group, as Managing Director. The company is poised well for growth in years to come. Most importantly, we are looking closely at the future prospects to leverage the opportunities a market leader has.”

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