Allcargo Logistics (ALLCARGO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 marked a turnaround with improved global trade, volume growth, and strategic expansion, especially in Latin America and e-commerce contract logistics.

• Consolidated Q2FY25 revenue rose 30% year-over-year to ₹4,301 Cr, with EBITDA up 14% to ₹135 Cr and net profit at ₹44 Cr, reflecting strong operational performance and volume growth across key segments.

• LCL volumes grew 4% YoY and 5% sequentially, FCL volumes up 7% YoY and 5% QoQ, and air volumes increased 14% YoY.

• Restructuring is underway to demerge international and domestic businesses, expected to complete by April 2025.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board on November 12, 2024.

Financial highlights

• Consolidated Q2 FY25 revenue was ₹4,31,808 lakhs (₹4,301 Cr), up 30% YoY and 13% QoQ; Q1 FY25 revenue was ₹3,82,557 lakhs.

• Operating EBITDA for Q2 FY25 was ₹135 Cr, up 14% YoY; profit after tax was ₹44 Cr, up 133% YoY.

• Net debt at September 2024 was ₹553 Cr, mainly due to working capital needs; gross debt at ₹1,362 Cr.

• Cash and cash equivalents increased to ₹587 Cr from ₹411 Cr at the start of the period.

• Earnings per share (consolidated, basic and diluted) for Q2 FY25 stood at ₹0.34, compared to ₹0.22 in Q2 FY24.

Outlook and guidance

• Management expects continued strong demand in select countries, with Europe likely to recover in over two quarters.

• Sequential improvement in profitability is anticipated, with operating leverage expected as gross profit growth flows to the bottom line.

• Net debt is projected to decrease by about 20% by year-end, aided by cash generation and non-core asset disposals.

• Restructuring scheme expected to conclude by April 2025, aiming to streamline corporate structure and enhance focus on core business segments.

• Continued focus on digital transformation, operational efficiency, and expansion in chemical, auto, e-commerce, and retail logistics.