Allcargo Logistics' Net Profit Plummets by 97% in June Quarter, Despite Revenue Boost

Allcargo Logistics reported a significant 97% drop in net profit for the June quarter, falling to Rs 3.36 crore from Rs 198.26 crore year-on-year. Despite this, the company's income from operations increased by 46%. The logistics firm expects demand to persist through the peak season, with improvements in EBITDA and growth in contract logistics and LCL volumes.

Allcargo Logistics standalone net profit nosedived by a staggering 97%, settling at Rs 3.36 crore in the June quarter of the current fiscal year. Last year, the company's net profit was Rs 198.26 crore, according to regulatory filings.

Despite the sharp decline in net profit, income from operations for the reviewed quarter rose impressively by 46% year-on-year, reaching Rs 526.47 crore compared to Rs 360.26 crore in Q1 FY24.

Allcargo cited global events and high trade lane demand as key factors for the improved volumes and increased freight rates in the second quarter of 2024. The company anticipates this demand to sustain through the peak season until year-end.

LCL volume for the June quarter remained consistent with the same period last year at 2.25 million CBM, whereas FCL volume increased by 9% to 1,56,000 TEUs. Contract logistics revenue also saw a 22% rise year-on-year due to amplified wallet share from existing clients.

Operating costs in the Express Business are being optimized for future EBITDA growth. EBITDA for Q1 was reported at Rs 20 crore, marking an 11% increase from the previous year.

Additionally, Allcargo's international supply chain arm, ECU Worldwide, has brought in new leadership teams in Argentina, Uruguay, and Paraguay, driving growth initiatives in Latin America.

(With inputs from agencies.)