ALLCARGO LOGISTICS LIMITED
(FORMERLY KNOWN AS ALLCARGO GLOBAL LOGISTICS LIMITED)
ANNUAL REPORT 2011-2012
CHAIRMAN`S REPORT
Dear Shareowners,
It gives me great pleasure to share with you the highlights of our
Company`s performance for the financial year ended March 31, 2012. We have
changed our accounting year from calendar to fiscal and this Annual Report
will discuss the audited financials for fifteen months ended March 31,
2012.
Our vision has been to become a global billion dollar enterprise by FY14
and I am happy to share with you that we are well on track to achieve this.
We have continued to focus on our strategy of being a leading player in the
global logistics space, evolving into an integrated logistics service
provider.
Avashya Group:
The past year has seen significant changes for our company. We introduced a
new logo changing our name from Allcargo Global Logistics to Allcargo
Logistics. We also launched a branding initiative, forming a mother brand
called the Avashya Group. We felt with our growing scale of operations
across the world, it was now necessary to build a monolithic brand across
all the markets that we operate In.
Avashya Group will consolidate all our group companies: Allcargo, ECU Line,
Hindustan Cargo Limited, Allcargo Shipping, MHTC and Conserve Infratech
Pvt. Ltd. under one umbrella brand.
Every logo has a story to tell and can be used to express an organization`s
ambition. With our businesses undergoing a transformation in size, scale
and stature we have chosen to express the `Unchanging Truth` about our
corporation. Our Thinking. In future, as we expanp and diversify our
interests, Avashya will be committed to delivering `Transformations that
Delight` for every new activity it embarks upon. The symbol chosen for
Avashya Group is a prism, an enduring symbol of transformations that
delight-an object that takes white light and transforms it magically into
a delight full rainbow of colors.
The creation of the new Allcargo logo is our endeavor to express the
philosophy of inventiveness and imagination which we have brought into the
field of logistics. Our tag line-`Ingenuity in Motion` reflects our
ambition and quest to be the `game changer of logistics` The infinity sign
integrated into She Allcargo logo represents the infinite possibilities of
ingenious thinking.
We have always prided ourselves on being `hands-on` in each one of our
business segments. Allcargo new brand promise tells our existing our
future customers that we will continue to offer versatile and superior
quality services backed by a strong commitment to creat a value for all our
stekeholders We want them to know that we are moving forward with both
these commitments at the fore Front and are poised to reliably serve our
customers` every need today and into the future, because the will always
come first.
Our company has succeeded in building a financially healthy business with
an attractive growth curve while always enhancing value to its
shareholders. Our focused efforts coupled with uniquely positioned business
strategy, has helped to deliver the desired results. The re-branding
exercise signifies not only our focus on profitable growth but also the
expansion of its businesses across sectors.
Business Performance:
The (consolidated financial performance for the 15 months ended March 31,
2012, is as follows:
* Total revenues at Rs. 4,325 crore-an annualized increase of 20%
* Earnings Before lnterest, Depreciation and Tax (EBIDTA) stood at Rs. 574
crore - an annualized increase of 54%
* EBIDTA margins improved by 294 basis points to 13%
* Profit After Tax (PAT) at Rs. 285 crore - an annualized increase of 37%
* Earnings Per Share (EPS) of Rs. 21.8 - an annualized increase of 36%
Our company has emerged as a leading and formidable player in all the
businesses that it operates in. The trust is on profitable growth across
all lines of our businesses.
The past year saw global trade flows slow dawn bcro 5s many regions and the
slowdown is expected to continue in the short term. Despite this our global
MTO business showed annualized growth of 13% in volumes, due to our
resilient business model as aa LCL consolidator and scale of operations
across 62 countries and over 4,000 port pairs.
Our CFS volumes increased by 7% annualized. In fact, we are starting a new
CFS at JNPT, adding additional capacity of 1,00,000 TEUs per annum, which
will be operational by the end of August 2012.
India`s infrastructure development has been recognized as n critical driver
for progress and economic development The government has Started to take
steps to address the issue of poor infrastructure in the country, aid has
tempted a spend of one trillion dollar in the 12th five-year plan. This has
culminated in a strong and robust order book in our project and engineering
solutions business. We have emerged as the `logistics partner of choice`
for projects of large cooglomerates. Our company has invested significantly
In this business over the past two years, boilding a large fleet size of
over 900 equipment, to support this growing demand.
Awards and Recognitions:
I am very pleased to inform you than in the past year, our company has won
many awards:
* "CEO of the Year with HR Orientation" - Asia`s Best Employer Brand
Awards.
* "Freight Forwarder of the Year" - 2nd MALA Awards
* "Outstanding Losistics Professional" - 2nd MALA Awards
* "LCL Consolidator of the Year" - 3rd South East CEO Conclave & Awards
* "Indian Freight Forwarder of the Year" - "I st Northern India Multimodal
Logistics Awards
* "Most Well Diversified Business Enterprise " - Citi Commercial Bank &
Economic; Times
Future Plans
We continue to scale up our existing businesses with focus on profitable
growth. We will explore new opportunities that would help us add value to
our existing businesses or create synergies. 2012 has brought significant
changes across the world. The uncertainty arising due to the European debt
crisis. crude oil fluctuations, social and political unrest in Eygpt,
Libya, Bahrain; US credit downgraded; currency depreciation and rising
inflation and interest rates in India, has created a `gloom and doom`
scenario. However, we see opportunity in every hdversity. We believe this
is the time to consolidate our focus and drive our ambition to become a
global and preferred integrated logistics partner for our customers,
creating value for all our stakeholders.
Through our focused efforts and with the continued support from yon, I am
confident that in the coming year we will add new dimensions to the Group`s
success, and that over the next twelve months, we will be able to further
consolidate our leadership role in the global logistics industry. l firmly
believe that having talent at all levels-which is naturally licked to
innovation, corporate governance, business ethics, commitment and
continuous learning-willenahle as to out perform our industry and meet our
obligations as an organization to our stakeholders.
I thank you all for your immense support and continued trust in the
Management of our Company I sincerely thank all our stakeholders-customers,
partners, employees, shareholders, business associates for their faith in
us. As we plan and work towards making our business digger and better, I
look forward to your continuous support and encouragement to take our
company to greater and newer heights.
Thank You,
Shashi Kiran Shetty
Chairman and Managing Director |