Allcargo Logistics Q2 PAT falls 13 pc to Rs 230 cr

MUMBAI: Allcargo Logistics has reported a 13 per cent fall in consolidated Profit After Tax (PAT) at Rs 230 crore for the quarter ended September 30, 2022.

The company's consolidated PAT in the year-ago period was Rs 263 crore, as per a regulatory filing.

The income from operations rose 6.5 per cent to Rs 5,300 crore in the reporting quarter as against Rs 4,978 crore in the second quarter of FY22, as per the filing.

Earnings before income, taxes, depreciation and amortisation (EBITDA) during the quarter stood at Rs 450 crore.

''We have posted the highest-ever Q2 revenue and EBITDA and also the highest margin ever for any quarter, this time," said Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati Ltd.

On the board's approval to the company's plans to buyout the remaining stake in GKEPL, Shetty said.

''We share an extremely close relationship with KWE group built on mutual respect and that will continue across businesses. With this acquisition, we will be able to expedite our restructuring plans to take Gati forward,'' Shetty added.

Allcargo Logistics said its board has approved plans to acquire a 30 per cent stake in Gati Kintetsu Express Pvt Ltd (GKEPL) from KWE group. In the JV, Allcargo Group firm Gati owns 70 per cent stake while the remaining 30 per cent stake is with the KWE (Kintetsu World Express) group.

Noting that Q2 performance and growth comes against a backdrop of economic slowdown across the world, Allcargo said in the largest business segment of International Supply Chain (ISC), ocean freight rates continued the downward trend which started earlier in the year, with sharp correction in spot freight rates during the quarter.

As a result, the revenue witnessed QoQ decline; however, a large part of ocean freight being a pass-through cost, profits remained strong, it said, and added that on the back of digital initiatives and increased focus on door-to-door shipments, the company reported highest ever EBITDA margin.

The consolidated net debt stood at Rs 535 crore at the end of September 30 and it is expected to be reduced further by Rs 400 crore from the signing of SPA for logistics park which is expected in the next 3-4 weeks, it said.

Strong cash flows are expected to bring down net debt to 'Zero' by December 31, it added.