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.
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 expand 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 delightful
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 the 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's new
brand promise tells our existing and future customers that we will continue to offer versatile and
superior quality services backed by a strong commitment to create value for all our stakeholders. We want
them to know that we are moving forward with both these commitments at the forefront and are poised to
reliably serve our customers' every need today and into the future, because they will always come first!2 3
2Our 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.
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 Interest, Depreciation and Tax (EBIDTA) stood at Rs. 574 crore - an annualized increase
* 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
thrust is on profitable growth across all lines of our businesses.
The past year saw global trade flows slow down across 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 an 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 a critical driver for progress and economic
development. The government has started to take steps to address the issue of poor infrastructure in the
country, and has estimated a spend of one trillion dollars 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 conglomerates. Our company has invested
significantly in this business over the past two years, building a large fleet size of over 900 equipment, to
support this growing demand.
Awards and Recognitions
I am very pleased to inform you that 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 Logistics Professional' - 2nd MALA Awards
* 'LCL Consolidator of the Year' - 3rd South East CEO Conclave & Awards
* 'Indian Freight Forwarder of the Year' - 1st Northern India Multimodal Logistics Awards
* 'Most Well Diversified Business Enterprise' - Citi Commercial Bank & Economic Times
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 adversity. 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 you, 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. I firmly believe that
having talent at all levels - which is naturally linked to innovation, corporate governance, business ethics,
commitment and continuous learning - will enable us to outperform 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 bigger and better, I look forward to
your continuous support and encouragement to take our company to greater and newer heights.
Shashi Kiran Shetty
Chairman and Managing Director