Allcargo Logistics held an earnings conference call on May 26, 2025, to discuss Q4 and FY25 results.
Consolidated revenue for Q4 FY25 increased by 18% year-on-year to ₹3,952 crore, with an EBITDA of ₹115 crore.
Net income improved by approximately ₹9 crore but still reported a marginal loss, primarily due to ₹33 crore of forex loss.
For the full financial year, consolidated revenues grew by 24%, and EBITDA grew by 12%. Profit after tax for FY25 was ₹49 crore, lower than the previous year.
International Supply Chain business saw a 1% growth in LCL volumes and a 7% growth in FCL volumes. Air volumes grew by 30% year-on-year.
The International Supply Chain segment revenue grew by 25%, with a 4% improvement in EBITDA.
Express business recorded a 2% revenue growth and 34% EBITDA growth in FY25, driven by cost optimization and yield enhancements.
Contract Logistics business saw a 48% increase in revenue growth, driven by the quick commerce wave, but EBITDA only grew by 2%, impacted by white spaces.
The company reduced its gross debt by ₹66 crore in the second half of FY25, with cash and cash equivalents increasing by ₹76 crore, leading to a debt deduction of almost ₹142 crore. Gross debt stands at ₹1,167 crore, and net debt at ₹472 crore.
The company has seen robust growth in profitability in Latin America.
Jan Kleine-Lasthues, Global COO of ECU Worldwide, mentioned initiatives to implement business process management, aiming for productivity gains and cost reduction through shared service centers. He also discussed building up product management to diversify the product portfolio, focusing on FCL, Air Freight, and CFS businesses.
Stephen Dunn, Finance Director of ECU Worldwide, is leading a finance transformation to optimize the finance function, improve working capital management, reduce operating costs through outsourcing and automation, and drive a culture of high performance.
The company expects the NCLT hearing for the relisting of newly formed entities in the first week of July, with an estimated 2 to 4 months for the process to complete thereafter.
The gross debt on the international supply chain business is approximately ₹500 crore.
The company invested in CFS in Korea, aligning with the business where they need space for consolidation and deconsolidation. The International Supply Chain capex should be approximately about less than ₹50 crore to ₹60 crore with all investments put together.
Ravi Jakhar mentioned that the company is upgrading from their Topaz operating system into iTopaz.