Allcargo Terminals posts steady revenue growth in Q2FY25, with strategic expansion plans underway

Allcargo Terminals Limited has posted a stable growth trajectory in its financial performance for the quarter ending September 30, 2024, with a notable 5% year-on-year revenue increase, reaching INR 195 crore. The company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter climbed to INR 32 crore, marking an 8% sequential growth, while profit after tax (PAT) saw a significant 19% quarter-on-quarter boost, despite a modest 5% year-over-year dip.

Suresh Kumar R, Managing Director of Allcargo Terminals, highlighted that the company’s continued momentum is supported by an efficient operational model, strong market positioning, and initiatives in capacity expansion across key markets. Kumar emphasized that Allcargo Terminals aims to “fuel further growth” through upcoming infrastructure investments, tapping into India‘s growing logistics demand.

Growth Amidst Industry Trends

Allcargo’s reported revenue growth is consistent with its ongoing strategic investments in expanding its Container Freight Stations (CFS) and Inland Container Depot (ICD) network. The company’s CFS network, strategically positioned in JNPT, Mundra, Chennai, and Kolkata, is a central pillar of its India-wide logistics solutions. The company’s robust infrastructure, combined with its state-of-the-art “myCFS” portal, allows for seamless, contactless services, meeting heightened demand for efficient and safe logistical operations.

Financial Performance Highlights

In its Q2FY25 report, Allcargo Terminals recorded a revenue of INR 195 crore, representing a 5% increase from the same period last year. The quarter’s EBITDA grew by 8% sequentially to reach INR 32 crore, reflecting efficiency in cost control and operational management. However, year-on-year PAT was down slightly by 5% to INR 11.3 crore, though it exhibited a strong quarter-on-quarter improvement of 19%, up from INR 9.6 crore in Q1FY25.

Expert Opinions on Allcargo’s Future Trajectory

Industry analysts noted Allcargo’s emphasis on efficiency and customer-centric services as instrumental to its growth. While EBITDA and PAT metrics have shown mixed year-over-year and sequential performances, experts predict continued revenue growth, especially as the company invests in infrastructure that aligns with India’s expanding logistics demand. Market observers are closely watching Allcargo’s capacity expansion projects, which are expected to solidify its competitive advantage and support sustained profitability.