Latest News | Allcargo Logistics Net Jumps Zooms over 4-fold to Rs 264 Cr in Sep Qtr

Mumbai, Nov 2 (PTI) Private sector firm Allcargo Logistics on Tuesday said its September quarter net income soared over four-fold to Rs 264 crore from a low Rs 58 crore a year ago, as revenue more than doubled to around Rs 5,000 crore on strong demand and freight rates.

The city-based logistics major said its revenue from operations, mostly from its European arm ECU Worldwide, rose 113 per cent to Rs 4,978 crore against Rs 2,337 crore in the September 2020 quarter, helping it record a more than four-fold growth in net income at Rs 264 crore, said Shashi Kiran Shetty, Chairman of Allcargo Logistics Group,

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The group includes two bid subsidiaries -- ECU Worldwide in Europe and Gati in the domestic market.

The revenue increased due to robust volume growth and strong freight rates, as the global economy is on a recovery path.

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The company during the quarter handled 79,794 TEUs, up from 59,031 TEUs in the same quarter last year.

Shetty said the bottom line was boosted by a Rs 43 crore exceptional income and a Rs 24 crore share of profit from associates and joint ventures.

The exceptional income of Rs 43 crore is largely driven by gains on the sale of Gati's subsidiary Gati Kausar, he added.

The record performance has been delivered by exceptional leadership of the management team across its businesses, the company said.

Shetty said the group's international supply chain business saw sustained growth on the back of volume growth and expansion in market share in favourable markets, while the CFS-ICD business continues to deliver good performance on a month-on-month basis. As a result, the total volume handled in the quarter rose to 79,794 TEUs from 59,031 TEUs a year ago.

The express logistics business under Gati reported its highest-ever revenue and volume and continues to see positive momentum.

Contract logistics business continues to demonstrate resilience with revenue and profit showing significant growth, it said, adding Allcargo owns near 61 per cent of ACCI, which also has customs clearance business.

ACCI saw its revenue grow 156 per cent, which pushed up operating profit by 72 per cent from Rs 21.3 crore in Q2FY21 to Rs 39.1 crore in Q2FY22. The company manages nearly 5 million sqft warehousing area under its operations.

“The sharp focus on transformation and digital initiatives is reinvigorating the entire team to work with a startup mindset while benefiting from capabilities built over the decades. We shall continue to work with our asset-light approach and deliver value to our stakeholders with continued growth and profitability, Shetty said, adding he expects the tailwinds from liner business to sustain.

The industry went through the pain with low rates over several years and has now turned around post-consolidation, and we do not see freight rates going back to earlier levels in the near future, Shetty noted.

Shetty said Allcargo and its subsidiaries ECU Worldwide and Gati over the past 12 months hired nearly 20 senior resources to drive growth. It also added many hands to its data sciences, strategy and analytics teams.

Allcargo is a leader in multimodal logistics solutions. While Allcargo Belgium, which operates ECU Worldwide, is a global market leader in ocean freight consolidation in the region, Allcargo is also the domestic market leader in container freight station business and is among the leaders in express logistics through subsidiary Gati.

Allcargo, which has a presence in contract logistics and other businesses, is the largest publicly traded logistics player in the country. It is present across 180 countries and has over 300 offices.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)