Allcargo Logistics Q4 Review - Investment Thesis Backed By ‘Gati’ Turnaround: ICICI Securities
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ICICI Securities Report
Allcargo Logistics Ltd.’s posted an impressive Q4 FY21 Ebitda of Rs 2.2 billion (our estimate: Rs 1.7 billion).
Turnaround in Gati (subsidiary of Allcargo Logistics) operations can accrue significant value to the company.
The management appears to be on the right track in Gati to-
delever through divestment of non-core assets and
bring about operational improvements to increase ‘express’ segment Ebitda to 12% in the next three to five quarters.
Multimodal transport operation business earnings continues to surprise, yet buildup in receivables has led to increase in net debt half-on-half.
Project and equipment segment has again reported Ebit loss – cashflow highlights Rs 161 million of provision for doubtful debts/advances in H2 FY21.
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