News

Jun 01, 2023

Allcargo Logistics Ltd drops 4% post muted Q4 results

MUMBAI : Allcargo Logistics Ltd said its net profit for the Q 4 January-March

MUMBAI : Allcargo Logistics Ltd said its net profit for the Q 4 January-March quarter declined 75.06percent to Rs 61.56 crores from Rs 246.87 crores a year earlier as container shipping rates fell sharply from the pandemic era highs.

The company's revenue from operations during the fourth quarter of FY23 slid 37.86 percent to Rs3,395.10 crores from Rs5,464.17 crores a year ago, it said in a regulatory filing.

For the full year, Allcargo's net profit fell 31.98 percent to Rs 629.59 crores from Rs 925.72 crores during the corresponding period of the previous year. Revenue from operations for the full year dropped 5.3 percent to Rs 18,050.77 crore from Rs19,062.06 crores a year earlier.

Allcargo Logistics said it has split the role of its Chairman and Managing Director by naming Mr. Adarsh Hegde as the Managing Director and re-designated Mr. Shashi Kiran Shetty as the Executive Chairman.

Shetty was until recently the Chairman and Managing Director of the Company while Adarsh Hegde was the Joint Managing Director.

The reduction in revenue was largely on account of ocean freight rate decline, which is mostly a pass through in the less than container load (LCL) business and hence a similar decline in operating expenses is also visible, the company said.

The LCL yield, though, has remained almost the same from April 2022 to March 2023, despite significant reduction in ocean freight during the period.

The volumes continue to remain lower in the flagship international supply chain business due to reduced global trade, Allcargo Logistics said. Most leading international forwarders have reported 5-17 percent YoY drop in volumes in the quarter ending March 2023.

In comparison, our volumes are down 7 percent YoY in LCL and remained flat YoY in FCL for the quarter ending March, it added.

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