Allcargo Terminals Limited (ATL) has reported robust financial results for the second quarter, showcasing significant growth across key metrics and outlining ambitious expansion plans for the future.

Strong Financial Performance

ATL demonstrated impressive growth in Q2:

The company's EBITDA per TEU has shown a notable improvement, reaching ₹2,390.00 in Q2, up from approximately ₹1,800.00 about 12 quarters ago. Management expects this metric to stabilize in the range of ₹2,200.00 to ₹2,300.00 going forward.

Capacity Expansion and Future Projects

ATL has embarked on an ambitious expansion plan to increase its handling capacity from 830,000 TEUs to over 1.3 million TEUs within the next 2-3 years. The company has already expanded its capacity to 1.05 million TEUs and is focusing on four key projects:

1. JNPT yard expansion: Nearly complete, with an 80% increase in yard capacity and proportionate warehousing capacity addition.
2. New CFS in Mundra: A 60-acre facility outside the Adani Special Economic Zone, expected to be operational by the end of 2026.
3. Chennai facility near Ennore/Kattupalli ports: In the final stages of planning, aimed at serving the emerging port cluster.
4. Greenfield ICD in Farukhnagar: In the final stages of land leasing, with rail connectivity approvals secured. Target completion date is April 2027.

Market Position and Outlook

ATL estimates its market share in the CFS space to be around 12.5% to 13% in the markets where it operates, which contribute to about 80% of India's EXIM trade. The company is optimistic about maintaining a capacity utilization rate of 80-85% in its facilities.

Funding and Capital Raise

To support its expansion plans, ATL has:

• Raised ₹38.28 crores through convertible warrants issued to promoters and promoter groups.
• Plans for a rights issue of up to ₹80.00 crores.
• Prepaid loans worth ₹40.00 crores in Q2 and an additional ₹30.00 crores in October.

Industry Trends and ATL's Strategy

The company is well-positioned to benefit from the growing EXIM trade in India, which has been showing consistent growth of 4-6% in port volumes. ATL's focus on expanding capacity in key markets and its strong customer and shipping line relationships are expected to drive future growth.

As global trade dynamics evolve, ATL remains committed to enhancing its operational efficiency through technology adoption, cost optimization, and strategic capacity expansion. The company's move towards sustainable practices, such as increasing solar power usage in its facilities, aligns with its ESG commitments and contributes to cost efficiencies.

With its strong financial performance, strategic expansion plans, and focus on operational excellence, Allcargo Terminals Limited appears well-positioned to capitalize on the growing opportunities in India's logistics and container freight station sector.

Allcargo Terminals Limited has announced a significant capital raising initiative through a rights issue, as approved by its Board of Directors. The company plans to issue 3,97,98,999 partly paid-up equity shares, aiming to raise up to ₹80.00 crores. This move is set to provide existing shareholders with an opportunity to increase their stake in the company.

Rights Issue Details

Key Dates

Payment Terms

The company has proposed a structured payment plan for the rights issue:

• Initial subscription: 25% of the issue size (₹5.00 per Right Equity Share)
  • Face Value: ₹0.50
  • Premium: ₹4.50
• Balance payment: To be made within 12 months from the date of allotment, as per SEBI ICDR Regulations

Additional Information

• The fractional entitlements in the rights issue will be ignored, as per SEBI Rights Issue Circular.
• The Board retains the right to extend the issue period, with a maximum duration of 30 days from the opening date.
• No withdrawal of applications will be permitted after the issue closing date.

This rights issue represents a strategic move by Allcargo Terminals to strengthen its capital base. Eligible shareholders should note the key dates and terms to make informed decisions regarding their participation in this corporate action.

Investors are advised to review the Letter of Offer and other issue-related materials, which will be dispatched to eligible equity shareholders in due course, for comprehensive details about the rights issue.