Allcargo Logistics: Huge Profit Drop Amid Strong Operational Growth

Allcargo Logistics reported a stark 97% drop in standalone net profit to Rs 3.36 crore for the June 2024 quarter, compared to Rs 198.26 crore a year ago. Despite this, income from operations rose 46% to Rs 526.47 crore. Improved volumes and freight rates are expected to sustain through the peak season.

In a startling development, Allcargo Logistics' standalone net profit witnessed a dramatic 97% plunge to Rs 3.36 crore for the June 2024 quarter, compared to Rs 198.26 crore recorded a year ago, according to a regulatory filing released on Wednesday.

Conversely, the company's income from operations soared by 46% to Rs 526.47 crore from Rs 360.26 crore in Q1 FY24, the filing indicated. The surge in income is attributed to global events and a heightened demand across trade lanes, which led to improved volumes and increased freight rates.

The company also highlighted that LCL volume for the June quarter remained stable at 2.25 million CBM, while FCL volume rose by 9% year-on-year to 156,000 TEUs. Additionally, the contract logistics business revenue grew by 22% year-on-year, and express business operational costs optimized to boost future EBITDA, which rose by 11% to 20 crore. Internationally, new leadership was introduced in Latin America to aid growth initiatives.

(With inputs from agencies.)