During Tuesday’s trading session, the shares of one of the leading players in the express logistics business globally surged nearly 2 percent to Rs. 53.21 on BSE, after reporting an increase of 5% in LCL (Less than Container Load) volume in October 2024.
With a market cap of Rs. 5,205.8 crores, at 11:22 a.m., the shares of Allcargo Logistics Limited were trading in the green at Rs. 52.97, up by nearly 1.6 percent, as against its previous closing price of Rs. 52.15.
What’s the news:
According to the regulatory filings with the stock exchanges, Allcargo Logistics has reported its monthly operational updates, covering LCL operations, container utilization, 40-foot container ratio, FCL operations, and air freight performance.
LCL Volume Growth: In October 2024, the LCL volume reached 746’000 cubic meters (cbm), as against 713’000 cbm in October 2023, marking a growth of 5 percent YoY. This is the fourth consecutive month of YoY growth.
LCL (Less than Container Load) volume witnessed marginal month-on-month growth in Latin America, Europe and Asia Pacific, and experienced a decline in other regions during the month.
Container utilization had a marginal impact from the last month, which is in line with the volumes. However, it remained 3 percent higher over 12 months ago.
40-feet container usage had a marginal impact as compared to last month, in line with the overall volumes. However, it remained 8 percent higher over 12 months ago.
FCL (Full Container Load) volume for October 2024 reached a record high of 57’000 TEUs, marking a 14 percent increase from the previous year and a 7 percent increase from the prior month.
Air volume for October 2024 was 2474’000 kilos, representing a 22 percent decline compared to the last year and 7 percent decrease as compared to the last month. Air volume witnessed a decline in all major regions except Europe and Asia Pacific.
Financials:
Allcargo Logistics reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 30 percent, rising from Rs. 4,301 crores in Q2 FY24 to Rs. 3,307 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 16 crores to Rs. 38 crores, representing an impressive growth of around 137.5 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, Allcargo Logistics has a Return on Equity (RoE) of 4.94 percent and a return on capital employed (RoCE) of 3.32 percent. Additionally, the company’s debt-to-equity ratio stands at 0.86.
Stock Performance:
The stock has delivered negative returns of nearly 20.4 percent in one year, as well as around 22.7 percent returns in the last six months. So far in 2024, the shares of Allcargo Logistics have given negative returns of about 35.8 percent.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 63.37 percent stake in the company, Foreign Institutional Investors (FII) hold a 10.99 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 22.87 percent and 2.75 percent stake in Allcargo Logistics, respectively.
According to the latest shareholding data available with the BSE, the ace investor Mukul Mahavir Agrawal holds a 1.34 stake in the company.
About the company:
Incorporated in 1993, Allcargo Logistics Limited provides 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.
The company is engaged in the business of Express distribution and Supply chain solutions through Smface, Air and Rail logistics, Supply chain management (SCM) and Contract Logisitics.
Written by Shivani Singh
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