Allcargo Logistics reported a net profit of ₹18 crore in the September quarter, compared to a loss last year. Revenue rose 3% to ₹555 crore as the company improved operating margins. Ketan Kulkarni said, "Our goal now is to leverage customer centric service delivery to drive volume growth."
Revenue rises 3% at ₹555 crore, improved operating margins drives profitability in the quarter
Allcargo Logistics reported a net profit of ₹18 crore in the September quarter, against a net loss of ₹4 crore, logged in the same perod last year.
Revenue was up 3 per cent at ₹555 crore (₹537 crore). EBITDA increased 24 per cent to ₹77 crore (₹62 crore).
The turnaround in profitability reflects the company's focus on strengthening operating margins across its domestic logistics businesses. In Express Distribution, consistent progress in service levels, enhanced customer engagement and improving network efficiencies have enabled revenue growth and yield improvement. In Consultative Logistics, higher throughput from existing customers on the back of efficient service, improved warehouse utilisation, and cost optimisation contributed to a sequential improvement in gross margins, the company said.
Ketan Kulkarni, Managing Director and Chief Executive Officer, Allcargo Logistics, said the improvement in profitability and margins underlies the benefits of pricing discipline, cost recovery and process optimisation.
In Express Distribution, while growth moderated during the quarter, the company adopted measures to improve customer engagement, service quality and network efficiency, he said.
"Our goal now is to leverage customer centric service delivery to drive volume growth while maintaining the pricing gains achieved over the past few quarters," he added.
The company said it has been witnessing a recovery in volumes and expects this momentum to continue. In Consultative Logistics, higher volume from existing customers, improved warehouse utilisation and tighter cost management are supporting margins, it added.