Looking at the financial performance of AllCargo, it would be difficult to imagine that the world is going through a slowdown. A company which moves goods is the first to feel the pinch but there seems to be no stopping this company.
Defying all logic, the company, for the third quarter ended 30th September 2008, on a YoY posted a 56% rise in consolidated net sales. Though operating expenses went up by 51%, its EBIDTA was up a whopping 153%. Net profit for the period was up by an unbelievable 145% at Rs.42.05 crore. The consolidated results includes financial results of the direct / indirect subsidiaries, viz: Allcargo Belgium N.V., Hindustan Cargo Ltd and Contech Transport Services Pvt. Ltd. The performance of the company also includes that of Project and equipment division of Transindia Freight Services, which was merged with company in this fiscal. The merger of this company to a large extent has been responsible for the phenomenal performance.
Multimodal Transport Operation (MTO) segment registered significant growth of 60% and this was mainly on account of the Project division. The Container Freight Station (CFS)& Inland Container Depots (ICD) revenue has increased by 90%. The equipment hiring unit was a new contributor and it added Rs.10.31 crore to the topline.
Allcargo now has a fleet of 333 trailers, 51 forklifts, 53 cranes and 18 Reach stackers. The company has stated that it is adequately funded and does not expect to feel any impact of the slowdown. Being diversified, with operations globally and in India, the company is better equipped to sail through this global meltdown. Infact it is taking this opportunity of the slowdown to scout around for acquisitons overseas and plans to finalise them if the pricing is good.
Currently at Rs.404 levels, it has bounced back sharply from the low of Rs.272. Buy if it goes below Rs.300 for long term.
Defying all logic, the company, for the third quarter ended 30th September 2008, on a YoY posted a 56% rise in consolidated net sales. Though operating expenses went up by 51%, its EBIDTA was up a whopping 153%. Net profit for the period was up by an unbelievable 145% at Rs.42.05 crore. The consolidated results includes financial results of the direct / indirect subsidiaries, viz: Allcargo Belgium N.V., Hindustan Cargo Ltd and Contech Transport Services Pvt. Ltd. The performance of the company also includes that of Project and equipment division of Transindia Freight Services, which was merged with company in this fiscal. The merger of this company to a large extent has been responsible for the phenomenal performance.
Multimodal Transport Operation (MTO) segment registered significant growth of 60% and this was mainly on account of the Project division. The Container Freight Station (CFS)& Inland Container Depots (ICD) revenue has increased by 90%. The equipment hiring unit was a new contributor and it added Rs.10.31 crore to the topline.
Allcargo now has a fleet of 333 trailers, 51 forklifts, 53 cranes and 18 Reach stackers. The company has stated that it is adequately funded and does not expect to feel any impact of the slowdown. Being diversified, with operations globally and in India, the company is better equipped to sail through this global meltdown. Infact it is taking this opportunity of the slowdown to scout around for acquisitons overseas and plans to finalise them if the pricing is good.
Currently at Rs.404 levels, it has bounced back sharply from the low of Rs.272. Buy if it goes below Rs.300 for long term.
Source: sptulsian.com
