The shares of Allcargo Logistics tumbled 19% to reach an intraday low of ₹ 327.10 apiece after the company reported a steep fall in its net profit for the October to December quarter of 2022. Its shares ₹ 352.55 apiece at ₹ 12:10 PM on Tuesday.
According to a recent exchange filing Allcargo Logistics reported a consolidated net profit after tax from continuing operations at ₹ 124.43 crores in the October to December quarter of 2022. This indicates a decline of 61.59% as compared to ₹ 323.95 crores reported in the corresponding quarter last year.
The company’s income from operations came in at ₹ 4099.02 crores in the latest quarter against ₹ 5599.41 crores in the same quarter last year, indicating a decrease of 26.79%.
Its operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) also fell 47.2 per cent to ₹ 229 crores as compared to the same quarter a year ago. Its EBITDA margin dropped 5.6% from 7.8% last year to 7.2% in the previous quarter (July to September quarter of 2022).
The Company said that it expects volumes to recover in the first quarter of the next financial year after the volumes for the October to December quarter of 2022 turned out to be almost flat.
Allcargo Logistics is a leading Multinational Company that is engaged in providing integrated logistics solutions and offers specialised logistics services across multimodal transport operations, inland container depot, container freight station operations, contract logistics operations and project and engineering solutions.
It is a small-cap company with a market capitalization of ₹ 9,972 crores. The company has an excellent return on equity of 34.00% and an ideal debt-to-equity ratio of 0.52. Its shares were trading at a price-to-earnings ratio of 9.43, which is significantly lower than the industry average of 34.42.
Written by Simran Bafna
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