Allcargo Logistics Ltd on Tuesday reported an 88 per cent decline in consolidated Profit After Tax (PAT) to Rs 17 crore in the December quarter.
The company had posted a consolidated PAT of Rs 146 crore in the year-ago period, Allcargo Logistics said.
Revenue from operations in the third quarter of the ongoing fiscal fell 22 per cent to Rs 3,212 crore from Rs 4,127 crore a year ago, the company said.
The company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at Rs 111 crore during the quarter under review as against Rs 253 crore, registering a 56 per cent decline, it said.
Advertisement
The company said it expects the global trade to revive in the second half of 2024.
In the near term, Red Sea crisis has taken out some capacity from the market, leading to a balance against subdued demand, which should have marginal positive impact in the June quarter, Allcargo said.
It also said the company has undertaken major cost reduction initiatives that will help significantly reduce the SG&A (Selling, General and Administrative) costs.
In the short term, the March quarter will have a one-off severance cost impact, Allcargo added.
According to the company, the international supply chain business has bottomed out and performance remained flat quarter-on-quarter while domestic express business saw a decline due to change in yield, leading to a marginally lower EBITDA sequentially.
Advertisement
The company said its financial performance is impacted by significant losses incurred in select markets in the US and Germany, and both offices are expected to perform better in 2024, leading to positive impact on consolidated EBIDTA.
Change in product mix and yield has led to negative impact on profits, the company said, adding that the balance sheet remains healthy with net debt of Rs 214 crore as of December 2023.
Just one email a week