Q4 2024 Allcargo Gati Ltd Earnings Call Transcript
Key Points
- Allcargo Gati Ltd (BOM:532345) recorded its highest ever express volume during FY24, indicating strong operational performance.
- The company achieved a 100% jump in EBITDA compared to the last quarter, reflecting significant cost optimization and efficiency improvements.
- The gross margin improved to 26% in Q4 FY24 from 22% in Q3 FY24, showcasing better operational efficiency and yield improvement.
- Allcargo Gati Ltd (BOM:532345) is now debt-free on a consolidated basis with a cash surplus of INR33 crores, strengthening its financial position.
- The company has initiated several strategic initiatives, including sales team restructuring, headcount rationalization, and the establishment of an inside sales team to target MSME clients, which are expected to drive future growth.
- Total tonnage handled in Q4 FY24 decreased to 306 kilotons from 318 kilotons in Q3 FY24, indicating a decline in volume.
- Revenue from the express business fell to INR355 crores in Q4 FY24 from INR371 crores in Q3 FY24, reflecting a sequential decline.
- EBITDA for FY24 stood at INR54 crores, down from INR72 crores in FY23, indicating a year-over-year decline in profitability.
- The company faced challenges in retaining MSME customers, leading to a decrease in the MSME and retail client mix from 38% in FY23 to 30% in FY24.
- Despite improvements, the company still faces competitive pressures and macroeconomic uncertainties that could impact future performance.
Ladies and gentlemen, welcome to the Q4 and FY24 earnings conference call of Allcargo Gati Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as on date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict.
(Operator Instructions). Please note that this conference is being recorded. We are pleased to have with us the management team represented by Mr. Pirojshaw Sarkari, Phil, Managing Director and CEO of Gati Express Supply Chain Private Limited; Mr. Anish Mathew, CFO for Allcargo Gati Limited; and Sanjay Punjabi, Investor Relations. We'll have opening remarks from the management, followed by a question and answer session. Thank you, and over to you, Phil sir.
Thank you. Good morning and a warm welcome to everyone on our Q4 FY24 earnings conference call. We have uploaded our results and
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