Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q3 FY24 Earnings Presentation
39 slides from Allcargo Logistics's earnings presentation, Feb 13, 2024
Slide 1: Cover letter to stock exchanges
February 13, 2024 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Fort, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai - 400 051 BSE Scrip Code: 532749 NSE Symbol: ALLCARGO Dear Sir/Madam, Sub: Investor P
Slide 2: Investor Presentation February 2024
INVESTOR PRESENTATION February 2024
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Allcargo Logistics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 4: Key Financial Highlights – Consolidated Q3FY24
KEY FINANCIAL HIGHLIGHTS – CONSOLIDATED Q3FY24 Revenue Reported EBITDA Debt ₹ 3,212 Crs ₹ 111 Crs ₹ 856 Crs Gross Debt -22% -3% -56% -6% -2% 1% 16% 2% ₹ 214 Crs YoY QoQ YoY QoQ Net Debt Particulars International Supply Chain Contract Logistics Express (GESCPL) ₹ Crores Q3FY24 Q2FY24 Q3FY24 Q2FY24 Q3
Slide 5: Key Business Highlights
KEY BUSINESS HIGHLIGHTS ➢ We expect global trade to revive in second half of 2024. In the near term, Red Sea crisis has taken out some capacity from market leading to balance against subdued demand, which should have marginal positive impact in April to June quarter ➢ The company has undertaken majo
Slide 6: Current Corporate Structure
CURRENT CORPORATE STRUCTURE Simplified Corporate Structure ALLCARGO LOGISTICS LIMITED International Supply Chain India Business 50.2% Allcargo Gati Ltd 100% 70% Allcargo Belgium 30% & other ECU Allcargo Supply Chain GESCPL (earlier Gati KWE) Worldwide subsidiaries International Supply Chain Express
Slide 7: Corporate Structure Post Restructuring
CORPORATE STRUCTURE POST RESTRUCTURING Promoters Public Promoters Public 70% 30% 49.4% 50.6% ALLCARGO ECU LIMITED ALLCARGO LOGISTICS LIMITED Global ISC business Express Business India ISC business Contract Logistics Business Support functions International Supply Chain Domestic Supply Chain Investor
Slide 8: Key Annual Financial Highlights
KEY ANNUAL FINANCIAL HIGHLIGHTS 17,643 1,305 16,333 1,059 Revenue EBITDA (₹ Cr) (₹ Cr) 8,449 456 International Supply ALLCARGO LOGISTICS (ACL) Chain FY21 FY22 FY23 FY21 FY22 FY23 72 1,469 1,242 38 EBITDA Revenue 36 EBITDA 1,012 (₹ Cr) (₹ Cr) Express (GESCPL) FY21 FY22 FY23 FY21 FY22 FY23 344 341 136
Slide 9: Exceptional Success in Acquisitions & Turnaround
EXCEPTIONAL SUCCESS IN ACQUISITIONS & TURNAROUND ECU International (Asia), South Asia Terminals, Allcargo Belgium N.V., Administradora House Line C.A., AGL N.V., Asia Line, CELM Logistics SA de CV, China Consolidated Company, CLD Compania Logistica de Distribucion SA., Contech Transport Services, Co
Slide 10: Sustainability Initiatives – Electric Vehicles & Alternative Fuels
SUSTAINABILITY INITIATIVES – ELECTRIC VEHICLES & ALTERNATIVE FUELS Electric vehicles at Allcargo Gati for Electric Trucks at Nodicon Terminal Allcargo Gati and Schneider partner for Swedish giant IKEA eco-friendly express logistics solutions • Nordicon has been taking forward strides with EVs in Swe
Slide 11: International Supply Chain
@ecu WORLDWIDE LOGISTICS INTERNATIONAL SUPPLY CHAIN |
Slide 12: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation operating the SCALE CREATES largest global LCL network with 15% market FLYWHEEL OF SUCCESS share in operating markets 2,500 direct trade lanes, key value driver for small & large freight forwarders Distinct value prop
Slide 13: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES Conventional players have operating network Digital start-ups lack operational but lack digital capabilities footprint and scale FCL LCL Air Industry is converging …leading to stricter requirements towards an increasing for real t
Slide 14: ECU 360 Always Moving Forward
ECU 360 ALWAYS MOVING FORWARD ▪ Mature ▪ Nascent ▪ Does not exist 2020 2023 Features Trade Lanes Customer Profile Registration Process Speed of Quote Reply Booking Track and Trace – automatic Documentation Management Customized Reports & Analytics API Customs Module Knowledge Portal (newsletters etc
Slide 15: Digital Framework for Logistics
DIGITAL FRAMEWORK FOR LOGISTICS Recruitment Intelligent Analytics & Ecosystem Integration with Physical RDA end-to-end Automation Workflows Internet / IoT & RPA recommendation engines service offering Knowledge transfer / Data Aggregation Tools assessments for enhanced visibility ENABLE ENHANCE ENGE
Slide 16: How AI & Automation Are Creating a Unique Global Network
HOW AI & AUTOMATION ARE CREATING A UNIQUE GLOBAL NETWORK AND OPERATING RHYTHM Real time prescriptive yield intelligence Sales CRM 2.0 (Optimisation & Gamification) Customized dynamic Customized and Real time pricing focused sales supply visibility push ECU360 (Growth & customer Customer Centricity d
Slide 17: ISC Yield & Operational Metrics
ISC YIELD & OPERATIONAL METRICS Container Utilization Index (TTM) 100 International Supply Chain 96 Metric Q3FY23 Q3FY24 LCL Volume (‘000 cbm) 2,187 2,165 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Container Utilization Index FCL Volume (‘000 TEU) 149 153 ISC
Slide 18: International Supply Chain - Key Financial Trends
INTERNATIONAL SUPPLY CHAIN - KEY FINANCIAL TRENDS Volumes Revenue (₹ Cr) LCL (‘000 cbms) FCL (‘00 TEUs) 17,643 16,333 9,089 9,050 7,643 5,940 6,045 8,449 4,871 3,698 2,187 2,294 2,165 2,795 2,721 1,486 1,528 1,525 FY21 FY22 FY23 Q3FY23 Q2FY24 Q3FY24 FY21 FY22 FY23 Q3FY23 Q2FY24 Q3FY24 EBITDA (₹ Cr)
Slide 19: Express & Contract Logistics
EXPRESS & CONTRACT LOGISTICS
Slide 20: Network Leader in Indian Supply Chain
NETWORK LEADER IN INDIAN SUPPLY CHAIN Jammu & Kashmir Himachal Pradesh UNIQUE COMBINATION OF Uttarakhand Punjab EXPRESS + CONTRACT LOGISTICS Haryana Delhi Jharkhand Uttar Pradesh Gurgaon 99% OF PINCODES^ SERVICED Jaipur Bihar Assam Rajasthan Guwahati Ahmedabad 150+ WAREHOUSE & DISTRIBUTION CENTERS B
Slide 21: Express - Digital Backbone Aiding Decision Making
EXPRESS - DIGITAL BACKBONE AIDING DECISION MAKING Back-end Front-end Pick Up & Delivery Hub CRM system Data Science Automation Automation AI-led GEMS* 2.0 Sales Digital Network Design Acceleration Payments 20
Slide 22: Express Business - Key Financial Trends
EXPRESS BUSINESS - KEY FINANCIAL TRENDS GESCPL - Volumes (‘000 MT) GESCPL - Revenue (₹ Cr) 1,133 1,469 966 1,242 781 1,012 287 333 318 379 385 371 FY21 FY22 FY23 Q3FY23 Q2FY24 Q3FY24 FY21 FY22 FY23 Q3FY23 Q2FY24 Q3FY24 GESCPL EBITDA (₹ Cr) GESCPL PBT (₹ Cr, Pre-exceptions) 72 1 2 38 36 -8 -8 21 15 -
Slide 23: Contract Logistics - Key Trends & Updates
CONTRACT LOGISTICS - KEY TRENDS & UPDATES Pan India Presence Key Update: CORE CAPABILITIES • The Contract Logistics business got transferred to our 100% subsidiary Allcargo Supply Chain Private Limited on 17 May 2023. The Company bought this remaining 38.87% stake in the JV ACCI for a consideration
Slide 24: Contract Logistics – Key Industries Catered
CONTRACT LOGISTICS – KEY INDUSTRIES CATERED Revenue Mix (H1 FY24) Chemicals, Food & Pharma 35-40% E-commerce 35-40% Auto/Industrial 18-20% Chemical, Food & Pharma Warehousing E-commerce & Retail Solutions Automotive & Engineering Solutions ▪ State of the art warehousing space ▪ Fully and semi-automa
Slide 25: Showcase #1: Increasing Efficiency for a Chemical Manufacturer
SHOWCASE #1: INCREASING EFFICIENCY FOR ONE OF INDIA’S LARGEST CHEMICAL MANUFACTURER Key Challenges ➢ Storage capacity management and resource management ➢ Mixed batch receipts ➢ Not having space for any value-addition ➢ High cost of primary and secondary transportation ➢ Difficult to arrange vehicle
Slide 26: Showcase #2: Warehouse Management Case Study
SHOWCASE #2: WAREHOUSE MANAGEMENT CASE STUDY German Manufacturer of RollingElement Bearings Bearing & Seal Manufacturer - SOW ➢ Inbound – Pallet In & Pallet Out operations, Receiving from Plant & Suppliers (Local & Imports) ➢ Manpower Management ➢ Inventory Management ➢ Repackaging ➢ Dispatch (Local
Slide 27: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 28: Board of Directors
BOARD OF DIRECTORS SHASHI KIRAN SHETTY ADARSH HEGDE ARATHI SHETTY Founder & Executive Chairman Managing Director Non-Executive Director A pioneer in logistics industry and a visionary, first Associated with Allcargo Logistics since inception and A leader with strong focus on sustainability and highl
Slide 29: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS RAVI JAKHAR DEEPAL SHAH Group Chief Strategy Officer Group Chief Financial Officer A thought leader with a unique blend of entrepreneurial, management A proven leader with over 20 years experience in diverse fields such as and advisory experience across diverse s
Slide 30: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience Highly recognised commercial leader with rich experience An industry veteran with 20+ years He served as in shipping and logistics i
Slide 31: Management Team – Allcargo Gati
MANAGEMENT TEAM – ALLCARGO GATI Mr. Uday Sharma PIROJSHAW (PHIL) SARKARI ANISH MATTHEW Chief Commercial Officer MD and Chief Executive Officer - GESCPL Chief Financial Officer Logistics and Supply Chain expert with experience of CA by profession with decades of leadership Strategic leader with 19+ y
Slide 32: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Cr) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q Revenue from Operations 3,212 4,127 -22% 3,307 -3% Expenses 3,100 3,874 3,189 EBITDA 111 253 -56% 118 -6% EBITDA Margin (%) 3.5% 6.1% 3.6% Other Income 12 1 29 Finance cost 38 20 37 Depreciation and amortis
Slide 33: Consolidated Income Statement – Quarterly - ASCPL
CONSOLIDATED INCOME STATEMENT – QUARTERLY - ASCPL Particulars (₹ Cr) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q Revenue from Operations 78 99 -21% 76 3% Expenses 43 68 40 EBITDA 35 31 11% 36 -5% EBITDA Margin (%) 44.2% 31.5% 47.8% Other Income 1 0.6 2 Finance cost 8 6 10 Depreciation and amortisation expenses
Slide 34: Appendix
allcargo LOGISTICS @EcU APPENDIX |
Slide 35: Scheme Highlights (1/2)
SCHEME HIGHLIGHTS (1/2) • Allcargo Logistics (ACL) to demerge its ISC business and support function into a separately listed entity, Allcargo ECU Limited Proposed Transaction (AEL). (under single Composite • ASCPL (entity holding CL business) and GESCPL (operating entity of express business) will th
Slide 36: Scheme Highlights (2/2)
SCHEME HIGHLIGHTS (2/2) • 1st October 2023 : Alllcargo Logistics to demerge its ISC business and support function Appointed Date • 1st October 2023 : ASCPL and GESCPL to merge into Allcargo Gati • Effective Date* : Allcargo Gati to merge into Allcargo Logistics • SEBI and Stock Exchanges • NCLT – Mu
Slide 37: Key Milestones, Indicative Timelines & Approvals Required
KEY MILESTONES, INDICATIVE TIMELINES & APPROVALS REQUIRED ~2-3 months ~6-7 months ~2-3 months Regulatory Filings & NCLT Filings & Board Approval ROC Filing & Listing Approvals Approvals • Approval of the proposed • Stock exchanges (BSE & • Filing of Scheme • ROC Filing scheme of arrangement, NSE), S
Slide 38: Operating Business: Key Financial Trends
OPERATING BUSINESS: KEY FINANCIAL TRENDS Express Business Revenue (₹ Cr) Express Business EBITDA (₹ Cr) 1,469 71 72 1,229 1,242 1,159 1,012 48 33 36 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Contract Logistics Revenue (₹ Cr) Contract Logistics EBITDA (₹ Cr) 344 341 136 121 255 104 167 70 138
Slide 39: Thank You
Thank You Investor Relations Sanjay Punjabi +91 9821080048 sanjay.punjabi@allcargologistics.com Mr. Jigar Kavaiya +91 99206 02034 Jigar.Kavaiya@sgapl.net Mr. Sagar Shroff +91 98205 19303 Sagar.shroff@sgapl.net 38