Allcargo Logistics , a leading player in the logistics industry, has announced impressive growth across its key business segments for July, demonstrating resilience and strength in its operations.

LCL Operations Show Significant Month-on-Month Growth

The company's Less than Container Load (LCL) operations witnessed a substantial increase of 10% month-on-month, reaching 774 cubic meters in July. This growth is particularly noteworthy as it comes despite a 5% year-on-year decline, indicating a strong recovery trend. The company noted that global trade is expected to grow for the rest of the year, albeit with variations across trade lanes.

FCL Services Continue to Expand

Full Container Load (FCL) services demonstrated robust performance with a 9% year-on-year growth. The company's FCL volume stood at 59,443 TEUs (Twenty-Foot Equivalent Units) in July, marking a 9% increase compared to both the previous month and the same period last year. Notably, FCL volumes gained traction in several key regions, including the USA, Latin America, Asia Pacific, Middle East, and China.

Air Cargo Segment Shows Exceptional Growth

The most striking growth was observed in Allcargo's air cargo segment, which reported a remarkable 46% year-on-year increase. The air volume for July reached 3,690 tonnes, representing a significant 28% growth over the previous month as well. This exceptional performance was driven by growth across all major regions, with the exception of India.

Regional Performance Highlights

• LCL Operations: Witnessed month-on-month increases across all major regions, except the Middle East.
• FCL Services: Showed growth in USA, Latin America, Asia Pacific, Middle East, and China compared to the previous month. Year-on-year increases were seen in Latin America, Asia Pacific, China, Middle East, and India, while Europe experienced a decline.
• Air Cargo: Demonstrated growth across all major regions compared to the previous month, barring North America and India. Year-on-year growth was observed across all major regions except India.

Container Utilization and 40-Foot Container Usage

The company reported that container utilization has declined compared to last year, aligning with the overall volume trends. However, the 40-foot container ratio has remained stable year-on-year, with a slight uptick observed in the last month, corresponding to the increase in volume.

Allcargo Logistics' strong performance across its diverse business segments underscores the company's resilience and adaptability in navigating the dynamic global trade environment. As the logistics industry continues to evolve, Allcargo's growth in key areas positions it well for future opportunities in the sector.

Allcargo Logistics Limited , a global leader in logistics, has announced its financial results for the first quarter, ending June 30. The company reported an EBITDA of ₹103 crore, marking a 19% decline quarter-on-quarter. However, the company's profit after tax was significantly impacted by a notional foreign exchange loss of ₹82.78 crore.

Key Financial Highlights

• Revenue from operations stood at ₹3,817.00 crore, showing a marginal increase of 1% year-on-year.
• Gross profit improved to ₹856.00 crore, up 8% compared to the same quarter last year.
• EBITDA decreased by 24% year-on-year to ₹103.00 crore.
• The company reported a loss of ₹99.00 crore for the quarter, primarily due to the forex impact.

Operational Performance

International Supply Chain

• LCL (Less than Container Load) volumes reached 2.14 million CBM, growing 3% quarter-on-quarter but declining 5% year-on-year.
• FCL (Full Container Load) volumes increased to 168,000 TEUs, up 6% from the previous quarter and 8% year-on-year.
• Air freight volumes stood at 8.4 million kilos, showing a 5% growth compared to the same period last year, but a 14% decline from the previous quarter.

Contract Logistics

The contract logistics business demonstrated robust growth:

• Revenue increased by 49% year-on-year
• EBITDA grew by 29% compared to the same period in the previous fiscal year

Express Business

Gati Express & Supply Chain Private Limited (GESCPL) reported:

• Revenue of ₹357.00 crore, a 7% decrease from the previous quarter
• Gross profit remained stable at ₹88.00 crore
• EBITDA improved by 18% quarter-on-quarter to ₹14.00 crore

Future Outlook

Allcargo Logistics anticipates a rebound in international trade from July onwards, driven by the upcoming festive season. The company expects this seasonal improvement to drive an 8-10% increase in international volumes quarter-on-quarter for the July-September period.

Management Commentary

Ravi Jakhar, CFO of Allcargo Logistics, expressed optimism about the company's long-term prospects. He stated, "We see potential for 6-8% annual volume growth in the long term, contingent on trade conditions normalizing. However, geopolitical tensions and tariff disputes remain challenges in the near term."

Corporate Updates

• The company is in the process of implementing a composite scheme of arrangement, which includes the demerger of its International Supply Chain business and merger of various subsidiaries.
• Allcargo Logistics' subsidiary, Ecu Worldwide NV, acquired a 5% stake in Allcargo ULS Terminal Co. Ltd. for ₹3.15 crore during the quarter.
• Post quarter-end, another subsidiary, Ecuhold N.V., acquired an additional 30% stake in ECU-Line Saudi Arabia LLC for ₹23.37 crore, making it a wholly-owned subsidiary.

Despite the challenges posed by subdued international trade and forex fluctuations, Allcargo Logistics continues to focus on operational efficiency and strategic growth initiatives across its diverse business segments.

Note: All figures are in Indian Rupees (₹) unless otherwise stated.