Allcargo Logistics reported its Q4 FY25 consolidated results with a mixed bag of numbers. The company’s total income jumped 18.40% year-on-year (YoY) to Rs 3,983.35 crore. But despite this growth, the company posted a consolidated net loss of Rs 12.59 crore for Q4 FY25, wider than the Rs 5.64 crore loss in the same quarter last year.
So, what does this mean for the average investor or customer? Simply put, Allcargo Logistics is growing its business but still has some financial hiccups to sort out.
The increase in income shows strong demand for logistics services. But rising costs and losses hint at ongoing challenges in managing profitability.
Revenue Growth Amidst Rising Costs
Digging deeper, the company’s loss before exceptional items and tax narrowed sharply to Rs 0.94 crore in Q4 FY25 from Rs 19.46 crore in Q4 FY24. That’s a big step forward. However, an exceptional item cost the company Rs 3.47 crore this quarter, which added to the loss.
Total expenses rose 17.72% YoY to Rs 3,986.02 crore. Operating expenses jumped 20.24% to Rs 3,129.05 crore, while employee costs and finance charges also increased notably. This shows that while the company is selling more, the cost of running the business is climbing as well.
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Business Segments Tell Their Own Story
Allcargo’s revenue from international supply chain services grew 17.95% YoY to Rs 3,442.93 crore, showing its strength in global logistics. Express distribution revenue was up 8.53% to Rs 385.35 crore, and contract logistics soared 61.59% to Rs 129.42 crore. The last figure suggests the company is making big moves in contract logistics, a promising growth area.
Volumes tell a slightly different story. For the full year, LCL (Less than Container Load) volume grew just 1%, and FCL (Full Container Load) volume was up 7%. But in Q4 alone, LCL volume shrank 3%, while FCL volume gained 2%.
These shifts hint at ongoing volatility in international trade, something the company flagged due to geopolitical uncertainties.
The Bigger Picture: Profit and Outlook
EBITDA for the quarter rose 17.34% to Rs 115 crore, showing improved operating efficiency. Yet, the full-year consolidated net profit dropped sharply by 76.21% to Rs 35.60 crore despite a 23.32% rise in total income. Clearly, the profit story is still lagging behind revenue growth.
The company remains cautiously optimistic. It expects the international trade environment to stay volatile, but recent diplomatic talks could boost volumes soon. Allcargo’s recent push into logistics parks adds a fresh dimension to its business.
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What’s Next for Allcargo Logistics?
Allcargo Logistics is navigating a tricky global market, with rising revenues but also rising costs and losses. For investors, it’s a story of potential and patience.
The company’s broad business segments and improving EBITDA suggest a solid foundation, but the profit margin still needs work.
In short, Allcargo Logistics is like a sprinter gaining speed but still catching its breath. The race is on, but the finish line looks a bit farther away than last year.
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