Allcargo Logistics falls 5% after Q3 net profit declines 88% on poor revenue

MUMBAI : Allcargo Logistics Limited and Allcargo Gati Limited, part of the Allcargo Group has announced plans to demerge the International Supply Chain (ISC) business into a separate entity Allcargo ECU Limited, and the Express and Contract Logistics business will be merged into Allcargo Logistics Limited (post ISC demerger).

Shares of Allcargo Logistics fell 5 percent at the open on the NSE on February 13, a day after the logistics major reported a weak Q3. At 9:20am, the stock was trading at Rs 71.75. The results were announced after the market hours.

In a regulatory filing , Allcargo Logistics reported an 88 percent year-on-year decline in consolidated profit to Rs 17.4 crore for Q3FY24, impacted by lower topline and operating numbers. Revenue from operations fell by 22.2 percent YoY to Rs 3,211.6 crore for the quarter, while EBITDA for the period fell 56 percent to Rs 111 crore.

According to the company, the Q3FY24 financials were impacted by significant losses incurred in select markets in the US and Germany. They are expected to perform better this year which will lead to positive impact on consolidated EBIDTA. On individual businesses, the company reported that its “international supply chain business has bottomed out and the performance remained flat QoQ while the domestic express business saw a decline due to change in yield leading to overall EBITDA marginally lower QoQ”.

Allcargo Logistics is a global logistics company. Recently, Allcargo Logistics Limited and Allcargo Gati Limited, part of the Allcargo Group, announced plans to demerge the international supply chain (ISC) business into a separate entity, Allcargo ECU Limited. The Express and Contract Logistics business will be merged into Allcargo Logistics Limited.