Allcargo Logistics Q4 Results: Profit jumps to Rs 240 crore

Allcargo Logistics has reported record quarterly and annual profit on the back of robust operating performance, in a likely sign that the logistics industry is out of the woes of the Covid-19 pandemic.

The company on Friday said its quarterly net profit for the January-March quarter soared four times to Rs 240 crore compared with Rs 59 crore a year earlier.

Revenue from operations increased by 73% to Rs 5,776 crore.

For the full year, the company posted a more than tenfold growth in net profit to Rs 965 crore.

“The performance for this year is a result of sustained transformational and strategic initiatives in the last 3-4 years. At the highest levels, we worked on reorganising and prioritising our businesses: a sharper focus on core businesses and divesting non-core businesses,” said Ravi Jakhar, chief strategy officer, Allcargo. “Within core businesses, we have undertaken holistic journeys: accelerating sales, optimising operations, bringing in digital technology, and automating operations on the back end, thereby bringing efficiency.”

The logistics industry has seen a rise in demand after the second wave of the pandemic, leading to higher revenues and margins for companies.

Allcargo has been restructuring its businesses, focussing on its core assets and trying to sell the non-core ones.

Earlier this year, JM Baxi Heavy Pvt Ltd, a wholly owned unit of JM Baxi Ports & Logistics, bought the project forwarding and logistics’ business of Allcargo Logistics Ltd for ?98.64 crore.

In December, Allcargo Logistics’ board had approved the separation of its asset-heavy and asset-light businesses to unlock shareholder value and increase its valuation.

The company’s container freight station and inland container depot businesses will be demerged into Allcargo Terminals Ltd, while its equipment rental, logistics parks and other real estate assets will be demerged into TransIndia Realty & Logistics Parks Ltd (TransIndia).

The demerger has created three business entities: the main company, Allcargo Logistics, which will house subsidiaries ECU Worldwide, Gati and Avvashya CCI, apart from Allcargo Terminals and TransIndia.