MOSL: ALLCARGO LOGISTICS (Buy)-EBITDA miss driven by higher losses in P&E segment
Allcargo Logistics: EBITDA miss driven by higher losses in P&E segment
(AGLL IN, Mkt Cap USD0.7b, CMP INR187, TP INR223, 19% Upside, Buy)
- EBITDA miss due to higher provisioning in P&E segment: 3QFY18 revenue increased 5% YoY to INR14.8b (est. of INR16.8b), led by 7% YoY growth in MTO volumes. EBITDA declined 6% YoY (-11% QoQ) to INR933m, led by an EBIT loss from the P&E segment. PAT declined 29% YoY to INR348m (est. of INR684m) due to a higher tax rate of 38.7% v/s 31% in 3QFY17.
- MTO shows healthy YoY improvement: MTO volumes grew 7% YoY to 144,646 TEUs in 3QFY18, led by growth in both LCL and FCL volumes. EBIT margin remained stable at 4.1% due to stabilization of shipping freight rates globally. Realization increased 2% YoY to INR97,093/TEU. Hence, revenue increased 10% YoY to INR13.3b.
- CFS impacted by DPD: CFS volumes stood at 71,764 TEUs (-5%YoY), primarily due to a decline in JNPT and Chennai volumes. EBIT margin contracted ~1pp QoQ due to the impact of Direct Port Delivery (DPD) at JNPT.
- P&E provisioning remains elevated: P&E revenue declined 36% YoY due to a decline in asset utilization (wind power market impacted). P&E reported an EBIT loss of INR109m due to higher provision for doubtful debts in 3QFY18, and also a decline in asset utilization, which impacted margins.
Allcargo Logistics Limited is an India-based holding Company. The Company is engaged in providing integrated logistics solutions. It offers logistics services across multimodal transport operations, inland container depot, container freight station operations, contract logistics operations, and project and engineering solutions. Its segments include Multimodal Transport Operations, which involves non-vessel owning common carrier operations related to less than container load consolidation and full container load forwarding activities; Container Freight Stations (CFS)/Inland Container Depot (ICD) Operations, which is involved in import/export cargo stuffing, de-stuffing, customs clearance and other related ancillary services, and Project & Engineering Solutions (P&E), which provides integrated end-to-end project, engineering and logistic services through a fleet of owned/rented special equipment, such as hydraulic axles, cranes, trailers, barges, reach-stackers, forklifts and ships.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.