ALLCARGO GLOBAL No SlowDown Here

The company has a unique business model plus presence across major ports in India which places it in a better position to tide over the challenge. Also in its Container Freight Station (CFS) business, where revenue is earned for storing the goods in their premises, prior to customs clearances; due to the slowdown, it’s now being stored for longer periods of time and that in turn means more CFS revenue.
Another positive for the company is that Blackstone has a stake in the company and that means the company has direct access to PE funding when in need and that’s a big plus in today’s time.
The company has posted good results for the year ended 31st Dec 2008. Net sales was up 43% at Rs.516.54 crore and despite a surge in operating expenses, depreciation outgo, taxation and interest outgo which rose from Rs.2.09 crore in Dec 07’ to Rs.12.71 crore in Dec 08’. Net profit was up 62% at Rs.96.70 crore.
CFS income for the year ended Dec 08’ was at Rs.148.31 crore, Multimodal Transport Operation (MTO) segment revenue was at Rs.338.46 crore and revenue from equipment hiring was at Rs.44.27 crore. The company has a good leadership in domestic LCL (less-than-container load) segment and given the shift from air cargo to ship, Allcargo will stand to benefit. The company has a significant presence in iJNPT, Chennai and Mundra ports. It has already expanded its Chennai CFS capacity from 50,000 TEUs to 84,000 TEUs. thanks