Allcargo Logistics saw a 5% increase in its Less than Container Load (LCL) volumes in August 2024, hitting 807,000 cubic meters. Despite this growth, the company's shares dipped by 2%, continuing a trend of poor performance in the share market investment sector. This LCL growth represents a year-on-year increase, although there was a slight 1% drop compared to the previous month.
Strong performance in FCL volumes
In addition to LCL growth, Allcargo reported a significant jump in Full Container Load (FCL) volumes. The company recorded its highest-ever monthly volume of 56,000 TEUs in August 2024. This marked a 10% rise compared to the previous year and a 4% increase from the previous month. Key markets like Latin America, the Middle East, and Asia Pacific have driven this expansion, highlighting Allcargo's strategic positioning in global logistics. For investors exploring share market investment opportunities, these trends indicate the potential for growth, even amidst the current share price decline.
Quarterly earnings and share market impact
Despite strong volume growth in both LCL and FCL segments, Allcargo Logistics posted disappointing quarterly earnings for June 2024. Net profit plummeted 98% year-on-year to just ₹3 crore, down from ₹198.2 crore in the same quarter of the previous year. This stark drop, coupled with a decrease in operating profit, has raised concerns among shareholders. Consequently, Allcargo's shares have struggled in the share market investment space, falling nearly 20% on a year-to-date (YTD) basis.
With ocean freight rates stabilising at higher levels and further volume growth anticipated until Q3 of 2024, Allcargo's performance could still see improvement. However, investors will need to closely watch the company's response to challenges like the upcoming Golden Week in China.
Key takeaways
For android only