Detailed Narrative
Q3 & Nine Months FY25 Financial Performance
Allcargo Terminals reported a 1% YoY increase in Q3 FY25 revenue to ₹187 crores, though it was down from ₹195 crores in Q2 FY25 due to lower volumes. EBITDA (excluding other income) for Q3 FY25 stood at ₹32 crores, an 11% YoY increase and flat QoQ. The company achieved an EBITDA per TEU of ₹2,179, marking a 16% YoY increase and the highest since Q4 FY23. For the nine months ended December 31, 2024, revenue grew 4% YoY to ₹572 crores, and EBITDA increased 5% YoY to ₹95 crores. Net profit for Q3 FY25 declined 19% YoY to ₹12 crores, primarily attributed to accelerated amortization and the absence of exceptional income recorded in the prior year.
Strategic Capacity Expansion and Investments
The company is actively expanding its capacity and infrastructure. It has signed a lease for 22 acres adjacent to its existing JNPT facility, which is expected to become operational in Q1 FY26 and add 120,000 to 150,000 TEUs without substantial CAPEX. The Speedy Mundra facility's contract has been extended for an additional six years. Furthermore, the Farukhnagar project, a CAPEX-intensive initiative, is anticipated to involve an investment of ₹150 crores with an estimated IRR of 25% to 30%, and is expected to be operational by December 2026/January 2027.
Acquisition of Speedy Multimodes
Allcargo Terminals' board has approved the acquisition of the remaining 15% stake in its subsidiary, Speedy Multimodes, through a share swap deal. This transaction will result in Speedy Multimodes becoming a wholly-owned subsidiary of Allcargo Terminals Limited. This move is aimed at consolidating operations and streamlining the corporate structure.
Global Economic and Trade Outlook
Management noted that the global economy is expected to remain stable, with the IMF predicting 3.3% growth for calendar years 2025 and 2026. India's growth outlook remains strong, with the IMF projecting 6.5% growth for FY25 and FY26, driven by government initiatives. However, global ocean trade continues to face challenges from ongoing disruptions in the Red Sea, the Panama Canal, geopolitical issues, and potential US tariffs, though global trade is expected to expand at a moderate pace.
Income Tax Search Update
The company confirmed that income tax authorities conducted a search operation at its facilities and offices on February 10, 2025. Allcargo Terminals fully cooperated with the investigating officers. As of the call date, the company had not received any written communication regarding the outcome of the search. Management stated that company operations are running smoothly, and they are awaiting further details from the Income Tax Department.