Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Investor Presentation (November 2018)
40 slides from Allcargo Logistics's investor presentation, Nov 22, 2018
Slide 1: Allcargo Logistics Investor Presentation cover letter
al Icarm J Ingenuity In Motion logistics ltd. ~THE AVVASHYA GROUP Listing Compliance and Legal Listing and Compliance Regulatory National Stock Exchange of India Limited SSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumba
Slide 2: H1 / Q2-FY19
al | Carp ) logistics Itd. Ingenuity In Moti
Slide 3: Management Introduction
Management Introduction
Slide 4: Mr. Shashi Kiran Shetty
3 Mr. Shashi Kiran Shetty Chairman Mr. Shetty has been a pioneer in the Indian logistics sector for more than three decades. He has founded and steered Allcargo through several milestones, making it the global leader in LCL consolidation and the largest Indian company in this space to provide end to
Slide 5: Mr. Adarsh Hegde
4 Mr. Adarsh Hegde Joint Managing Director Mr. Hegde has been associated with Allcargo Logistics since its inception. Under his leadership, Allcargo Logistics established multiple CFS & ICD facilities PAN India along with the Projects and Engineering division. He has helped the group foster strong r
Slide 6: Mr. Claudio Scandella
5 Mr. Claudio Scandella CEO, ECU Worldwide Mr. Scandella is a veteran in the logistics industry with over 35 years of experience in international freight forwarding business. He comes with the experience of scaling up and transforming businesses.
Slide 7: Mr. Suryanarayanan S (Suri)
6 Mr. Suryanarayanan S (Suri) Group Chief Strategy and Financial officer A Chartered Accountant, Suri has close to 35 years of work experience in diversified businesses like engineering, petrochemical, shipping and logistics. He has led company through a series of project implementation and M&As. He
Slide 8: Mr. Prakash Tulsiani
7 Mr. Prakash Tulsiani Executive Director and CEO, CFS-ICD Mr. Tulsiani has over two decades of experience in the business of shipping and ports, both in India and overseas. He is a qualified Chartered Accountant and Company Secretary with expertise in scaling businesses and turning them around.
Slide 9: Company Overview
Company Overview
Slide 10: Company Overview
9 Company Overview FY18 Geographical Revenue Mix • Allcargo Logistics Limited (Allcargo) was incorporated in 1993 by the Chairman, Mr. Shashi Kiran Shetty. • Headquartered in Mumbai, Allcargo is the largest private sector India integrated multinational logistics company in India. 22% Rest of • Well
Slide 11: Logistics Sector Overview
LOGISTICS SECTOR OVERVIEW
Slide 12: Global Shipping Industry – Current Trends
11 Global Shipping Industry – Current Trends Economic growth in US, China, India & other emerging markets has helped world trade to grow. World seaborne trade is projected to expand at a CAGR of ~4%. Trade volume growth outpacing fleet growth in 2018, however existing capacity exceeds current demand
Slide 13: Indian Logistics Sector – Current Trends
12 Indian Logistics Sector – Current Trends As per ICRA, India logistics sector is poised to grow from USD 160 Billion in FY17 to USD 215 Billion in FY20 (~10% CAGR). India aims to reduce logistics cost to less than 10% of GDP By 2022 – demand for enhancing operational efficiency through technology,
Slide 14: Indian Logistics Sector – Current Trends
13 Indian Logistics Sector – Current Trends GST - One India, One Market and One tax. Consumption led growth in E-Commerce is driving the demand for specialized logistics services. Our company is taking strides o participate in that. Demand for Grade A warehouses is growing due to consolidation of th
Slide 15: CFS - ICD
CFS - ICD
Slide 16: CFS – ICD
15 CFS – ICD • One of the largest CFS operators with state of the art facilities at JNPT, Chennai, Mundra and Kolkata (which drives 80% of India’s container traffic) • Total installed capacity of ~ DADRI C: 75,000 TEU 500,000 TEUs. KOLKATA • Achieved our targets inspite of the MUNDRA C: 80,000 TEU C
Slide 17: CFS – ICD: Key Financial Highlights
16 CFS – ICD: Key Financial Highlights Quarterly Volumes (in 00s TEUs) Quarterly Revenues (INR Mn) Return on Capital Employed 1,195 886 40% 34% 1,102 35% 822 1,063 28% 30% 27% 27% 25% 763 998 25% 727 718 945 20% 15% 10% 5% 0% Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q2
Slide 18: CFS – ICD: Insights
17 CFS – ICD: Insights • Expected changes in DPD policy, shall bring in stability to the business. • With port related CFSs well covered, possible foray into rail-linked inland depots. • Developing opportunity to handle high value cargo and ancillary services to provide integrated logistics solution
Slide 19: Project & Engineering Solutions
Project & Engineering Solutions
Slide 20: Project & Engineering Solutions (P&E)
19 Project & Engineering Solutions (P&E) Logistics solutions for complex and critical loads. Multi-sectors serviced: Power (thermal, solar, wind and transmission lines), Oil & Gas, Refineries, Cement, Steel, Ports and Infrastructure. With the markets turning around and with increased momentum in inf
Slide 21: P&E: Key Financial Highlights
20 P&E: Key Financial Highlights Segmental Revenue FY18 Quarterly Revenues (INR Mn) Engineering & 940 Infra Others 2% 1% 700 713 743 722 Cement & Metals 9% Oil & Gas 13% Power 46% Logistics, Ports, CFS 29% Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Capacity Utilization Level Number of Cranes 94% 90% To
Slide 22: P&E: Insights
21 P&E: Insights • Growth in the infrastructure sector especially in power, oil & gas, cement and steel is expected to increase demand for specialized transport solutions. • A strong order book in project transportation of over INR 175 Cr executable over a period of 10-15 months. • Our asset utiliza
Slide 23: Supply Chain Management
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Slide 24: Supply Chain Management
23 Supply Chain Management • Allcargo is one of the Warehouse Locations across India predominant players in the Avvashya CCI Logistics Private Limited supply chain management segment through its majority equity shareholding in Avvashya CCI. DELHI • Includes designing and GURGAON planning supply chai
Slide 25: Supply Chain Management: Insights
24 Supply Chain Management: Insights • CRISIL Report has estimated that the supply chain management (3PL) is expected to grow at a CAGR of 19-21% to reach ~INR 57,000 Cr by FY2020, Allcargo in a great position to take advantage of the same. • Plans to scale-up the business with a top-line target of
Slide 26: Multimodal Transport Operations
Multimodal Transport Operations
Slide 27: Multimodal Transport Operations (MTO)
26 Multimodal Transport Operations (MTO) MTO services includes Non Vessel Owning Common Carrier (NVOCC) operations related to Less than Container Load (LCL) consolidation and Full Container Load (FCL) forwarding activities in India and across the world. Diversified customer base with an asset-light
Slide 28: MTO: Key Financial Highlights
27 MTO: Key Financial Highlights Quarterly Volumes (in 000s TEUs) Quarterly Revenues (INR Mn) Return on Capital Employed 15,412 31% 30% 174 174 14,554 30% 160 13,879 13,703 29% 13,271 28% 143 145 28% 27% 27% 27% 26% 26% 25% 24% Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19
Slide 29: MTO: Insights
28 MTO: Insights • Allcargo sees the fragmented LCL industry as an opportunity to expand its global network further and consolidate the LCL industry. • Aims to scale up the business substantially, through expansion of FCL business (both by way of organic & inorganic opportunities). • Committed to bu
Slide 30: Financial Overview
Financial Overview
Slide 31: Quarterly Financial Highlights (Consolidated)
30 Quarterly Financial Highlights (Consolidated) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 17,373 1,300 1,249 8.0% 6.77% 1,200 6.30% 6.28% 7.0% 16,250 7.19% 15,472 15,363 1,100 1,047 6.0% 14,799 4.81% 1,021 1,000 933 5.0% 900 4.0% 800 739 3.0% 700 2.0% 600 1.0% 500 0.
Slide 32: Five Year Financial Highlights (Consolidated)
32 Five Year Financial Highlights (Consolidated) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 70,000 60,469 6,500 8.93% 60,000 56,288 56,405 55,833 6,000 8.07% 8.45% 8.33% 48,512 5,500 5,039 50,000 4,754 4,649 6.75% 5,000 6.20% 40,000 33,623 4,500 3,913 4,000 3,749 30,00
Slide 33: Five Year Financial Highlights (Consolidated)
33 Five Year Financial Highlights (Consolidated) Return on Capital Employed 15% 15% 14% 13% 12% 9% FY14 FY15 FY16 FY17 FY18 H1-FY19 * Net Debt (INR Mn) Net Debt to Equity (x) 0.45 8,000 6,932 0.40 0.39 7,000 0.35 6,000 0.30 0.28 5,000 4,244 0.25 4,000 3,353 0.18 2,640 0.20 3,000 2,607 0.14 0.13 0.15
Slide 34: Way Forward
Way Forward
Slide 35: Logistics Park
Logistics Park
Slide 36: Opportunity
36 Opportunity Our Strategy in acquiring majority stake in ACCI has proven beneficial. Factors like GST, growth across major industries and emergence of organized retail is supporting the growth in demand for reliable logistics partners. Within logistics park, need for Grade A warehouses is expected
Slide 37: Logistics Parks
37 Logistics Parks • Developing existing land bank mapped to the current demand foreseen in Grade A warehouse. Allcargo is in a great spot to get economies of a scale. • Consumption drive and infrastructure development would boost multi modal JHAJJAR logistics parks with capability of serving TA: 18
Slide 38: Future Growth Strategy
38 Future Growth Strategy • Aim to become the biggest value creator in the logistics space with highest governance standards. • Technology-driven company - A lot of efforts are being put to make the company ready for the next-gen business model. • An under leveraged company with healthy cash flow an
Slide 39: Allcargo Greens
33 39 Allcargo Greens New initiative to conserve the environment by reducing waste and adopting renewable sources of energy wherever possible. By saving paper, limiting use of plastics, switching lights off whenever possible, working with communities around our facilities and offices on environmenta
Slide 40: Thank You
THANK YOU
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