Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Q2 FY24 Earnings Presentation
37 slides from Allcargo Logistics's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter for Investor Presentation
November 10, 2023 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 November 2023
INVESTOR PRESENTATION November 2023
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 Q2FY24
KEY FINANCIAL HIGHLIGHTS – CONSOLIDATED Q2FY24 Revenue Reported EBITDA Debt ₹ 3,307 Crs ₹ 118 Crs ₹ 856 Crs Gross Debt -35% +1% -68% -15% -2% 1% 16% 2% ₹ 120 Crs YoY QoQ YoY QoQ Net Debt Particulars International Supply Chain Contract Logistics* Express (GESCPL) ₹ Crores Q2FY24 Q2FY23 Q2FY24 Q2FY23
Slide 5: Bonus Shares Issuance Update
BONUS SHARES ISSUANCE UPDATE The Board has approved the issuance of three bonus shares for each share held by the shareholders. The decision is aimed at improving the liquidity and allowing for broader base participation of shareholders in the company. This shall also facilitate the strategic rest
Slide 6: Key Business Highlights
KEY BUSINESS HIGHLIGHTS Our strategy is to focus on market share and volume growth amidst higher competitive intensity. Most leading international forwarders have reported a volume decline ranging from -4% to flat YoY in Q2FY24, this was accompanied by a decline in yields ranging from -25% to -38%
Slide 7: Business Segments
BUSINESS SEGMENTS Simplified business structure post demerger ALLCARGO LOGISTICS LIMITED International Supply Chain India Business 50.2% Allcargo Gati Ltd 70% Allcargo Belgium 30% & other ECU Allcargo Supply Chain GESCPL (earlier Gati KWE) Worldwide subsidiaries International Supply Chain Express &
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
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 100 International Supply Chain 95 Metric Q2FY23 Q2FY24 LCL Volume (‘000 cbm) 2,375 2,294 FCL Volume (‘000 TEU) 153 153 Container Utilization Index ISC Gross Profit (INR cr) 906 654 40 feet Container Usage Index 100 LCL yield index 100 80 93
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 4,614 2,375 2,242 2,294 2,795 2,823 1,527 1,430 1,528 FY21 FY22 FY23 Q2FY23 Q1FY24 Q2FY24 FY21 FY22 FY23 Q2FY23 Q1FY24 Q2FY24 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 1,012 283 292 333 370 367 385 FY21 FY22 FY23 Q2FY23 Q1FY24 Q2FY24 FY21 FY22 FY23 Q2FY23 Q1FY24 Q2FY24 GESCPL EBITDA (₹ Cr) GESCPL PBT (₹ Cr, Pre-exceptions) 6 72 2 38 36 -8 -5 -8 21 1
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: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM
Slide 26: 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 27: 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 28: 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 29: Management Team – Allcargo Gati
MANAGEMENT TEAM – ALLCARGO GATI PIROJSHAW (PHIL) SARKARI ANISH MATTHEW SANDEEP DIGAMBAR KULKARNI MD and Chief Executive Officer - GESCPL Chief Financial Officer Chief Operating Officer - GESCPL CA by profession with decades of leadership Strategic leader with 19+ years of experience in 22+ years of
Slide 30: Consolidated Income Statement - Quarterly
CONSOLIDATED INCOME STATEMENT - QUARTERLY Particulars (₹ Cr) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q Revenue from Operations 3,307 5,055 -35% 3,271 1% Expenses 3,189 4,681 3,132 EBITDA 118 374 -68% 139 -15% EBITDA Margin (%) 3.6% 7.4% 4.2% Other Income 29 27.41 20 Finance cost 37 19.01 24 Depreciation and
Slide 31: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (₹ Cr) Sep-23 Mar-23 Assets (₹ Cr) Sep-23 Mar-23 Equity Non Current Assets Equity share capital 49 49 Plant, Property & Equipment (net) 405 357 Other equity 2,491 2,765 Right use of assets 809 444 Equity attributable to holders of the parent 2,540 2,
Slide 32: Consolidated Cash Flow
CONSOLIDATED CASH FLOW Particulars (₹ Cr) Sep-23 Sep-22 Profit before Tax 177 631 Adjustment for Non-Operating Items 235 179 Operating Profit before Working Capital Changes 412 809 Changes in Working Capital -419 169 Cash Generated from Operations -7 978 Less: Direct Taxes paid -40 -161 Net Cash fro
Slide 33: Appendix
Ecu allcarco WORLDWIDE LOGISTICS APPENDIX |
Slide 34: Unit Economics of ISC Business
UNIT ECONOMICS OF ISC BUSINESS Key Drivers FCL LCL 1) Macroeconomic environment 1) Macroeconomic environment Volume 2) Market share 2) Market share 1) Procurement 1) Procurement capability capability 1) Container 1) utilization Container utilization 4) Value addition Yield 2) Trade lane2)mix Trade l
Slide 35: LCL Yield Drivers
LCL YIELD DRIVERS Container utilization: Higher utilization helps achieve operating leverage. Ocean freight cost forms around 35% of revenue on a normalized basis. For every 1% higher or lower utilization from normalized levels, the revenue impact is 1% while the Gross profit impact is 2% higher o
Slide 36: FCL Yield Drivers
FCL YIELD DRIVERS Procurement capability: Our procurement capabilities are linked to the volumes sourced. As the Company gathers scale in volumes, the procurement capabilities improve and so does the negotiation power. Procurement capability is also strengthened through our improved and deep vendo
Slide 37: 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 36