Highlights of the call:

MTO segment involves NVOCC (Non Vessel Owning Common Carrier) operations related to LCL (Less than container load) consolidation and FCL (Full container load) forwarding activities in India and across the world through its wholly owned subsidiary ECU Line.

CFS business is involved in import / export cargo stuffing, de-stuffing, customs clearance and other related ancillary services to both, importers and exporters

Project & Engineering Solutions PES segment provides integrated end-to-end project, engineering and logistic services through a diverse fleet of owned / rented special equipment like hydraulic axles, cranes, barges, reach-stackers and ships to carry ODC / OWC cargos as well as project engineering solutions across various sectors

During the quarter total sales fell 7% to Rs 1339.2 crore. Gross Profit stood at Rs 467.9 crore. Gross Profit margin for the quarter at 35%, an increase of over 400 basis points

Normalized EBITDA, adjusting for onetime expenses, was maintained at Rs 131.2 crore against Rs. 132.5 crore. The growth came from CFS business.

Normalized EBITDA margin for the quarter stood at 9.8%, an increase of over 50 basis points.

PAT stood at Rs 61.5 crore, down 14%.

81% of the revenues are from the global MTO business

For the nine months revenue from operations stood at Rs 4,286.0 crore, an increase of 2%. This growth has been driven by all the businesses of MTO, CFS and P&E

Nine months PAT stood at Rs 209.2 crore, an increase of 13%.

Annualized Consolidated Return on Capital Employed (ROCE), without goodwill, was 21%, as compared to 19% in FY15, an increase of over 200 basis points

During the quarter Multimodal Transport Operations (MTO) business saw Volumes at 116,168 TEUs, up 8%. However total Income from this division fell 9% to Rs 1096.4 crore. EBIT fell 12% to Rs 53.9 crore.

Container Freight Stations (CFS) division clocked total volumes of 74,251 TEUs for the quarter ended December 2015 as against 70,587 TEUs, an increase of 5%, despite only a 0.6% container volume growth in India during the quarter.

Total revenue op CFS division for the quarter was Rs 115 crore against Rs 106 crore, an increase of 8%, due to handling of special cargo and long standing containers.

EBIT stood at Rs 38.4 crore, up 24%.

Annualized Return on Capital (ROCE) employed of CFS business increased to 40% from 30% in FY15.

Project & Engineering Solutions PES saw sales rising 5% to Rs 139.90 crore. EBIT was Rs. 9 crore, down 51%, mainly on account of two vessels under repair and impact of derivative income in Q3FY15.

Return on Capital (ROCE) employed of PES business was at 8%

As on December 2015, the Networth stood at Rs. 2,142 crore and the Net Debt was at Rs. 293 crore

Net-worth grew 12%.

Net Debt fell 41%.

Net Debt to Equity stood at 0.14x. It reduced from 0.26x as on Dec 31, 2014

Board of Directors has given in-principle approval for acquisition of controlling stake in CCI Integrated Logistics Pvt Ltd (CCI)

Contract logistics is one of the key areas of growth for Allcargo

CCI is one of the largest players in contract logistics in India and is a strong and key player in sectors of chemicals, FMCG, pharma, white goods, auto and industrials offering value added services to marquee clients

The company plans to raise funds upto Rs 300 crore through permitted securities, for proposed / future CAPEX or acquisitions for business growth.

MTO business saw Q3 Volume growth of 8% y-o-y was despite reducing of freight rates due to excess capacity of shipping lines (which is foreseen for the future) & continued decline in global trade. Growth came from China, US, Canada, India & SE Asia.

MTO business revenue decreased 9% y-o-y in Q3 mainly on account of lowering of freight rates (which is foreseen for the future) & notional currency impact.

MTO business Q3 EBIT fell of 12% y-o-y mainly on account of new offices opened in the Americas, Middle East & South East Asia

CFS and ICD (inland Container Depot) division's Q3 volume grew 5% y-o-y led by JNPT and Mundra, despite only 0.6% growth in India container volume.

CFS and ICD (inland Container Depot) division's Q3 sales grew 8% y-o-y due to handling of special cargo and long standing containers.

CFS and ICD division's Q3 EBIT growth of 24% y-o-y driven by improved productivity & efficiency

RoCE of PES division stood at 8%.

Annualized Return on Capital (ROCE) employed for MTO business (excluding goodwill) increased to 62%, as compared to 49% in FY15

The total capacity of the CFSs and ICDs at the end of December 2015 is 5,73,000 TEUs per annum.

The company has vision of 2 billion dollar sales for the year 2020. To achieve this goal the company has opened offices in new countries. But due to good accounting policies the company took debit in P&L ac. Since the benefit will come in the long run, the company has highlighted it. Make India, Sagarmala, domestic business and acquisitions will help the company achieve the target.

For the next 2 quarters the condition of freight rates will be subdued due to excess capacity.

The company was closed for 12 days due to Chennai floods. But it recovered faster than every other company.

MTO business sequential fall in margins in Euro business is not a cause of worry as first 2 quarters are solid performing for Euro business and the third and fourth quarter is not so good. So the right way to look at Euro business is to look at yearly comparison. The second quarter is the best for the company in Euro business.

Free cash flow for nine months is close to Rs 270 crore.

Capex during FY 2016 till date has not been much except 2 ships purchased by the company in July 2015 worth Rs 60 crore. Maintenance capex is of just Rs 2-3 crore

Tax rate for the year will be close to 20%.