Allcargo Logistics Ltd — Earnings Release 2023

Feb 14, 2023

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To,Listing Compliance and Legal RegulatoryBSE LimitedPhiroze Jeejeebhoy Towers,Dalal Street, Fort,Mumbai – 400 001BSE Scrip Code: 532749	To,Listing and ComplianceNational Stock Exchange of India LimitedExchange Plaza, C-1, Block GBandra Kurla Complex,Bandra (East),Mumbai – 400 051NSE Symbol: ALLCARGO

February 14, 2023

Dear Sir/Madam,

Subject : Submission of Press Release on Un-audited Financial Results (with limited review) for quarter and nine months ended on December 31, 2022.

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the press release on un-audited financial results (with limited review) for quarter and nine months ended on December 31, 2022.

The same is also made available on the website of the Company i.e. www.allcargologistics.com.

Thanking you, Yours faithfully,

For Allcargo Logistics Limited

DEVANAND Digitally signed by DEVANAND PARSHOTTA PARSHOTTAM MOJIDRA Date: 2023.02.14 M MOJIDRA 22:28:26 +05'30' Devanand Mojidra Company Secretary & Compliance Office

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Encl: a/a

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Allcargo Logistics Limited, 6[th] Floor, Allcargo House, CST Road, Kalina, Santacruz (E), Mumbai - 400 098. India. T: +91 22 6679 8110 | www.allcargologistics.com | CIN: L63010MH2004PLC073508 | GSTN: 27AACCA2894D1ZS

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Allcargo Logistics reports combined EBITDA of ₹ 341 Cr for Q3, expands global LCL market share to 15%

Historic quarter for Allcargo Logistics with demerger orders pronounced for company and its subsidiary for contract logistics business.

Strong cashflows make company net cash positive as Blackstone Transaction has been consummated with SPA signing

Company to consolidate its shareholding in subsidiaries and market leadership position with various acquisitions announced recently.

Mumbai, February 14th, 2023: Allcargo Logistics Ltd has announced its Q3 results, recording a resilient performance against strong macroeconomic headwinds. The combined EBITDA, which includes continuing business, discontinuing business (entities being demerged) and Contract Logistics business stood at ₹ 341 Crores. This reflects the sum total of consolidated EBITDA as would be seen for three separately listed entities post consummation of demerger.

With this development, the company is now net cash positive too, courtesy the consummation of the Blackstone transaction.

Further details are as per below table.

Summary of Combined/Consolidated Financial results Q3FY23 compared to Q2FY23

Particulars	Continuing Biz	DiscontinuingBiz	ContractLogistics	Combined(Q3FY23)	Consolidated(Q2FY23)
Revenue	4,102	224	99	4,425	5,300
OperatingCost	3,179	113	57	3,349	4,176
Gross Profit	923	112	42	1,077	1,124
SG&A	694	31	11	736	675
EBIDTA	229	81	31	341	450

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Key highlights:

Allcargo Logistics demerger has been pronounced by NCLT and the company is awaiting a certified copy of the order, post which the demerger process would be consummated. The company also received a certified copy for the demerger of its Contract Logistics business, which will also get consummated shortly and would result in strong synergies with other businesses. The company has also concluded the long-pending agreements with Blackstone and therefore, has reported a consolidated net debt of approx. ₹ 130 Crores for the quarter ending 31st December. It includes the ₹295 Cr debt, which has now been alienated from the books with the transfer to Blackstone. The company has also received cash of over ₹ 135 Crores, thereby making it significantly cash positive on a consolidated net-debt basis.

The largest business segment under the International Supply Chain (ISC) witnessed a continued market share expansion across the world, leading to volumes being retained at similar levels as last year for the same quarter. The market has seen significant de-growth, driven by disruptions in China and lower inventory replenishments in the west. The situation has started to normalise post the Chinese New Year and from March onwards, the trade is estimated to improve with strong pick up in second half of 2023. The company’s gross margin improved in percentage terms this quarter as compared to previous quarter. However, that is mainly driven by reduction in ocean freight rates, which is largely a pass-through cost in LCL and has only partial impact in FCL. The company has also invested in new trade lanes, which shall help expand growth in coming quarters as trade volumes return to normal levels in the operating markets. The company has also decided to focus on growth in new markets and new products, and has invested in people and operating capabilities for future growth leading to increase in SG&A costs. The acquisitions, especially of Fair Trade in Germany, will contribute to strategic expansion in the business.

The other business segments reported growth in business volumes and revenues across terminals, contract logistics and the express business. On the operating profit, the express business will take a few more quarters to turnaround as the infrastructure development continues to strengthen the operating network.

Shashi Kiran Shetty, Founder and Chairman, Allcargo Group said, “There has been a temporary slowdown in the global trade brought about by disruptions in China, and the Russia – Ukraine impacted the global freight industry. We see this as a short-term trend and global trade flows will normalize as we are already noticing pick up in volumes. We are also confident that with various measures taken by the company, we shall maintain strong yield. We shall continue to invest in people and digital capabilities to drive future growth, while prudently watching the macroeconomic scenario as it unfolds. I am glad that we have expanded our LCL market share globally and see significant headroom for growth in future across all businesses.”

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ABOUT ALLCARGO LOGISTICS LTD.

Allcargo Logistics Limited, part of The Allcargo Group, is a global leader in multimodal logistics solutions. It’s wholly owned subsidiary Allcargo Belgium NV., Operating ECU Worldwide network, is a global market leader in ocean freight consolidation. Allcargo is the market leader in Container Freight Station business in India and is among the leaders in express logistics through subsidiary Gati Ltd., besides having strong presence in Contract Logistics and other businesses. Allcargo is recognised for digitising logistics industry, setting highest quality standards, operational excellence, and customer centricity across all businesses. The company is recognized as a great place to work.

The company currently operates out of 300 plus offices serving 180 countries. Allcargo today is one of India's largest publicly owned logistics companies, listed on the BSE Limited {Scrip Code- 532749) and The National Stock Exchange of India Limited (Scrip Code-ALLCARGO).

For further information, contact : Pooja Singh pooja.singh@allcargologistics.com