Allcargo Logistics Limited — Q2 FY26

Allcargo Logistics Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LTdMFqDXSPU Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the All Cargo Logistics Limited Q2 and H1 FY26 earnings 0:08 8 seconds conference call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. 0:31 31 seconds I now hand the conference over to Mr. 0:33 33 seconds Suy Sam from Stellar IR Advisers. Thank you and over to you sir. 0:39 39 seconds Thank you. Good afternoon everyone and thank you for joining us today. We have with us the senior management team of 0:46 46 seconds Allargo Logistics Limited. Mr. Ketan Kulkarni, managing director and chief executive officer, Mr. Mr. Ravi Jhakar, director of strategy and group CFO, Mr. 0:57 57 seconds Deepak Parik, Chief Financial Officer and Mr. Sanjay Punjabi from investor relations. The management will be sharing operating and financial 1:06 1 minute, 6 seconds highlight for the quarter and half year ended September 30, 2025 followed by a question and answer session. Please note 1:14 1 minute, 14 seconds this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions and expectations as of 1:22 1 minute, 22 seconds today. These statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertainties. The company also 1:30 1 minute, 30 seconds undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made. I now hand over the 1:39 1 minute, 39 seconds conference to Mr. Ravil Hakad. Thank you and over to you sir. Hi, thanks. 1:47 1 minute, 47 seconds Good afternoon everyone and uh welcome to this call which is the first one after our composer scheme for restructuring got concluded. 1:57 1 minute, 57 seconds I would therefore like to first briefly talk about the highlights of the scheme and provide information about the event that just occurred. 2:07 2 minutes, 7 seconds The international business of all cargo logistics got de merged into all cargo global effective 1st of November. And 2:15 2 minutes, 15 seconds with 12th November being the record date, the stock for all cargo logistics started trading excluding the international supply chain business. 2:25 2 minutes, 25 seconds Effective 1st of November, the businesses of express and contract logistics also got merged into all cargo 2:34 2 minutes, 34 seconds logistics thereby eliminating the entire holding structure and going forward it would be reported under one single 2:43 2 minutes, 43 seconds operating listed entity with no step- down structure for this combined integrated business. However, the 2:51 2 minutes, 51 seconds quarter ended 30th September would still show the performance in the console and for the quarter ending 31st December, 3:00 3 minutes the first month of October would still be only showing up in the console. And therefore our recommendation would be to 3:08 3 minutes, 8 seconds look at the consolidated numbers for all cargo logistics which uh materially reflect the business performance and 3:15 3 minutes, 15 seconds effective 1st of January the entire quarter would have the business captured in the salary numbers since the uh 3:25 3 minutes, 25 seconds operating subsidiaries merged effective 1st of November. 3:29 3 minutes, 29 seconds From a shareholder perspective, the shareholders of all cargo gati which was um the other listed entity and the 3:38 3 minutes, 38 seconds company stopped trading as of the record date. The shareholders of that company would receive the shares of all cargo 3:45 3 minutes, 45 seconds logistics as per the ratio of 63 shares for every 10 shares held and we expect the same to be concluded very shortly. 3:58 3 minutes, 58 seconds The shareholders of All Cargo Logistics now continue to own the shares and they would also get based on the record date 4:07 4 minutes, 7 seconds in all cargo global. At this point in time since the uh the process requires a 4:15 4 minutes, 15 seconds comprehensive um audit and information memorandum to be submitted. We expect that to happen within next week or week 4:24 4 minutes, 24 seconds and a half subsequent to which subject to approvals from the exchanges. It may take a few more weeks for the all cargo 4:32 4 minutes, 32 seconds global stock uh to get listed and uh start trading. 4:38 4 minutes, 38 seconds Now considering the differences between this quarter and the corresponding quarter last year, the 4:46 4 minutes, 46 seconds comparisons could therefore be a bit uh flawed when we try to compare the year-on-year performance. And therefore, 4:53 4 minutes, 53 seconds it is important to understand the operating business performance with its nuances. And on today's call, we would 5:01 5 minutes, 1 second try to provide a more clear view of the operating business performance. 5:08 5 minutes, 8 seconds If we take out these exceptional um items, uh we could see that the operating business performance has improved in the 5:17 5 minutes, 17 seconds quarter gone by with revenue witnessing an increase of 10%. gross profits expanding and operating leverage 5:26 5 minutes, 26 seconds playing out to drive a much higher percentage of EITA growth and leading to a change in PBT from negative number for 5:35 5 minutes, 35 seconds the last quarter to a positive number this quarter. 5:40 5 minutes, 40 seconds We'll be happy to uh take your questions on both the scheme as well as on the business side. And uh before we go 5:49 5 minutes, 49 seconds there, I would now um hand over uh the line to my colleague Ketan uh who has been running the domestic business for 5:57 5 minutes, 57 seconds us. Previously as the MD and CEO for all Kabug Gati and now in his new Austar uh he is the MD and CEO for all cargo 6:04 6 minutes, 4 seconds logistics which is now the domestic supply chain business for us. So over to you Ketan to take us through the business highlights. 6:15 6 minutes, 15 seconds Thank you. Thank you Ravi very much for the detailed explanation on the de merger and merger and also its impact on uh stakeholders. 6:26 6 minutes, 26 seconds Good afternoon everybody and a very warm welcome to our Q2 and H1 FY26 earning conference call. Let me thank all of you 6:34 6 minutes, 34 seconds for joining us today. Our financial results and earning presentation for the 6:41 6 minutes, 41 seconds quarter ended September 2025 have already been uploaded on the stock exchanges. I do hope you have had an opportunity to review the same. 6:53 6 minutes, 53 seconds We at all cargo logistics are delighted to present the company as Ravi mentioned in its new aar with our strategic 7:02 7 minutes, 2 seconds restructuring now complete. We are well positioned to unlock synergies, strengthen operational efficiencies and 7:09 7 minutes, 9 seconds enhance long-term value for all stakeholders, shareholders, customers and our employees. 7:17 7 minutes, 17 seconds Before I begin, I would like to share an exceptional achievement for both our express as well as consultative 7:24 7 minutes, 24 seconds logistics business. Our express business has delivered the highest ever quarter in the company's history both in terms 7:32 7 minutes, 32 seconds of revenue and volume and is also the only express company in the top five to 7:38 7 minutes, 38 seconds grow market share in Q2 over Q1. Our consultative logistics business has also 7:46 7 minutes, 46 seconds delivered its highest ever quarter and monthly revenue. 7:50 7 minutes, 50 seconds On the back of these two achievements, we're very positive about the quarters ahead. On the macroeconomic front, India 7:59 7 minutes, 59 seconds remains one of the fastest growing economies and the GDP growth forecast is about 6.6%. 8:07 8 minutes, 7 seconds The country's strong momentum is being driven by robust domestic demand, sustained infrastructure investments and 8:14 8 minutes, 14 seconds ongoing policy reforms that continue to enhance manufacturing competitiveness and also the ease of doing business. 8:23 8 minutes, 23 seconds Inflation has also eased within the RBI's target band and fiscal def uh discipline is on track. 8:31 8 minutes, 31 seconds All reflecting a stable and resilient macroeconomic environment all working as a tailwind to 8:40 8 minutes, 40 seconds the express and consultative logistics space in the country. 8:46 8 minutes, 46 seconds Logistics with this backdrop stands out as a vital enabler of growth. 8:51 8 minutes, 51 seconds Efficiency gains in logistics will positively impact India's GDP annually. 8:58 8 minutes, 58 seconds All this underscores the sector's pivotal role in driving competitiveness and long-term growth for the nation and the businesses that operate within it. 9:09 9 minutes, 9 seconds EV generation under GST has touched a record high of 132 million in September 2025, reflecting a very strong momentum in goods movement across the country. 9:22 9 minutes, 22 seconds This is a robust 21% year-on-year increase and a 2.2 sequential rise over August indicating good economic traction. 9:32 9 minutes, 32 seconds GST collections for October which captured transactions from September stood at 1.95 lakh cr up 4.6% yearonear. 9:46 9 minutes, 46 seconds The steady rise in both eway bill volumes and tax collections underscore continued strength in domestic trade 9:53 9 minutes, 53 seconds formalization of the economy and healthy demand across key sectors. 9:58 9 minutes, 58 seconds Our performance for Q2FY 2026 reflects steady progress both sequentially and 10:05 10 minutes, 5 seconds yearon year. As Rabi spoke earlier and I highlighted the performance of the two businesses, 10:13 10 minutes, 13 seconds volume growth supported by festive season demand was efficiently managed through our focused and agile execution. 10:21 10 minutes, 21 seconds The ongoing cost optimization initi initiatives have contributed positively to our results. Our focus on digital 10:29 10 minutes, 29 seconds transformation, agile operations, green logistics is integral to our growth strategy. 10:36 10 minutes, 36 seconds As we move forward, I'm steadfast in our commitment to deliver sustainable value and strengthening all cargo 10:43 10 minutes, 43 seconds logistics position as the preferred logistics partner for our customers evolving needs. 10:52 10 minutes, 52 seconds With this, let me hand over to our CFO Deepakparik to give you a review over 10:59 10 minutes, 59 seconds the financial numbers. Thank you once again for your participation on the call and your attention. Over to you Deepak. 11:10 11 minutes, 10 seconds Thank you Kithan and thank you Ravi uh for the uh introduction earlier before 11:17 11 minutes, 17 seconds Kithan. Good afternoon everyone and a warm welcome to all of you on our Q2 and H1 FY26 earnings call. 11:27 11 minutes, 27 seconds I would like you to go through the financial results for the quarter end date 30th September 2025. 11:36 11 minutes, 36 seconds But before I start, I will highlight uh few insights into the profitability of this company 11:43 11 minutes, 43 seconds which uh which has helped to achieve a profit positive during the current uh quarter and half year. If you see the 11:52 11 minutes, 52 seconds profits during the quarter have been impacted mainly by one amotization of acquired intangibles arising from the 12:01 12 minutes, 1 second acquisition of guti limited by all cargo logistics which no longer be required to be amotized as gerti limited is now 12:09 12 minutes, 9 seconds become part of all cargo logistics with that the amotization will not happen in future that is a major impact which we 12:17 12 minutes, 17 seconds have disclosed in regulation 33 notes Another impact is one-time exceptional expenses pertaining to composite scheme 12:25 12 minutes, 25 seconds of arrangement which are are disclosed separately which are not going to uh be 12:32 12 minutes, 32 seconds impacting the PPT as we move ahead. So excluding that if we see PBD from 12:39 12 minutes, 39 seconds operating activities have shown a marked improvement in this quarter and also this half year. 12:48 12 minutes, 48 seconds So if we adjust the company has reported a reporting uh uh profit before tax of 12:55 12 minutes, 55 seconds rupees 9 cr during Q2 FY26 as compared to a loss reported during 13:02 13 minutes, 2 seconds last quarter and same quarter last year I would like to touch upon the consolidated financial highlights. Now 13:10 13 minutes, 10 seconds during Q2 FI26 All Cargo Logistics handled a total volume of 3 lakh 26 13:19 13 minutes, 19 seconds metric tons of volume which is up 6% on year-on-year basis and 11% on quarteron 13:28 13 minutes, 28 seconds quarter basis. The realization per ton came in at rupees 11,564 13:36 13 minutes, 36 seconds rupees which is similar to same uh quarter last year and last quarter. The 13:43 13 minutes, 43 seconds net cash stands at rupees 22 cr. 13:49 13 minutes, 49 seconds Moving to the consolidated revenue for the quarter, we stood at rupees 537 cr 13:55 13 minutes, 55 seconds which is up 11% on a year-on-year basis and 9% on quarteronquarter basis. 14:03 14 minutes, 3 seconds The cost gross profit for the quarter on a consolidated basis stood at rupees 154 14:10 14 minutes, 10 seconds cr which is up 3% on yearon year and 5% on quarteron-quarter basis. The 14:17 14 minutes, 17 seconds consolidated beta for the quarter stood at rupees 62 cr up 27% on yearon-year basis and 22% on quarteron quarter. 14:31 14 minutes, 31 seconds To break down I would like to touch upon the express business financial highlights. The revenue from the expense 14:38 14 minutes, 38 seconds business for the quarter stood at rupees 377 cr as compared to rupees 355 cr during the same period last year. 14:51 14 minutes, 51 seconds The IITA from the business for the quarter stood at rupees 17 cr as compared to rupees 13 cr during the same period last year. 15:03 15 minutes, 3 seconds Moving on to our consultative logistics business financial highlights. 15:08 15 minutes, 8 seconds The business has a warehouse space under management of 8.4 million square ft as 15:17 15 minutes, 17 seconds on the uh close of September. The consolidated revenue from the business for Q2 FY26 15:26 15 minutes, 26 seconds stood at rupees 160 cr as compared to rupees 128 cr during Q2 FI25. 15:37 15 minutes, 37 seconds The EIA from this business for Q2 FI26 stood at rupees 46 cr as compared to 15:45 15 minutes, 45 seconds rupees 38 cr during Q2 FI25. 15:51 15 minutes, 51 seconds As mentioned by Ketan, we have uploaded our investor presentation which will definitely help you gain more insights into our business. 16:01 16 minutes, 1 second We request you to go through the name and get in touch with Sanjay for any from our investor relation team and for 16:10 16 minutes, 10 seconds any additional query or information as and when required. 16:15 16 minutes, 15 seconds With this, I would like to open the floor for Q&A and end my uh discussion here. Over to you, Suish. Thank you. 16:26 16 minutes, 26 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. 16:37 16 minutes, 37 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a 16:45 16 minutes, 45 seconds question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 17:12 17 minutes, 12 seconds Participants, you may press star and one if you wish to ask questions. 17:35 17 minutes, 35 seconds Participants who wish to ask questions may please press star and one on the touchstone telephones. Our 17:51 17 minutes, 51 seconds first question comes from the line of Ravi Mata from OneUp. Please go ahead. 17:57 17 minutes, 57 seconds Yeah. Hi. Uh thanks for this call. Just uh couple of questions on the de merger side. So by when should uh shareholders 18:06 18 minutes, 6 seconds expect to get the global company's uh shares and by when will it get listed? 18:15 18 minutes, 15 seconds Yeah. Hi. So like I mentioned earlier we uh expect to file the IM in the next 18:21 18 minutes, 21 seconds week and a half and subsequent to that um subject to the timeline for approval from the exchanges we expect it to be um in January. 18:34 18 minutes, 34 seconds Okay. And uh Gati shareholders doesn't seem to have uh received the swap shares or uh by when is that expected? 18:45 18 minutes, 45 seconds Uh that like I mentioned should happen much uh sooner. Uh Deepak do you have uh 18:52 18 minutes, 52 seconds any um update or response on these timelines to add? Yes sir. 18:58 18 minutes, 58 seconds Yes Ravi. So this week that will happen that entire uh trade of new shares will happen this week. Oh, okay. Yeah. Okay. 19:09 19 minutes, 9 seconds Cool. Yeah. Cool. Yeah. Thanks. Thanks. Thank you. 19:18 19 minutes, 18 seconds Participants, you may press star and one if you wish to ask questions. 19:35 19 minutes, 35 seconds Our next question comes from the line of Sundar Sarangar Rajan an individual investor. Please go ahead. 19:44 19 minutes, 44 seconds Okay. Good afternoon everyone. So uh this question is to Ravi. So I have one clarification from the uh last uh 19:51 19 minutes, 51 seconds quarter investor presentation. Uh can I go ahead? Uh uh is my voice is audible? 19:59 19 minutes, 59 seconds Yes it is. 20:01 20 minutes, 1 second Okay. Uh so uh with respect to the de merger right? So just wanted to understand all the revenues has been captured in the Alargo logistic 20:10 20 minutes, 10 seconds domestic. Uh because uh in the last uh quarter investor presentation uh the 20:16 20 minutes, 16 seconds Alargo consolidated is 3817 uh uh revenue and for ECU global it has been given as a 2956. 20:25 20 minutes, 25 seconds So there is a difference of 861 crores as a know between consolidated and ECU global. So 20:33 20 minutes, 33 seconds when I put the express logistics 357 and 135 for the consultative there is a 20:39 20 minutes, 39 seconds difference of uh uh almost four 374 even you know excluding the uh 50 crores 20:47 20 minutes, 47 seconds for the fuel business and other uh income still there are around 300 crores of difference is what I'm seeing so will 20:55 20 minutes, 55 seconds that will be uh is my my my understanding is correct or just I wanted to get the feedback uh on my clarification 21:03 21 minutes, 3 seconds Yeah, let me let me explain to you uh that to you. So what you see as the reported number for Chicago logistics 21:10 21 minutes, 10 seconds represents the domestic uh integrated supply chain business. The international supply chain business includes the business in India and outside India. 21:20 21 minutes, 20 seconds What we refer to as EQ global that is the business outside India. On top of that there is also business of international supply chain which is our 21:29 21 minutes, 29 seconds LCL consolidation SCL uh business which is in India. So going forward what you 21:36 21 minutes, 36 seconds would see as all cargo global stand would be the India business EQ will be 21:43 21 minutes, 43 seconds other than India and the combined of both would be what you would see as the all cargo global consolidated numbers. So that's the uh gap in your numbers. 21:53 21 minutes, 53 seconds The India part of business you're not faced in. 21:58 21 minutes, 58 seconds Okay. So the India part will be uh you are mentioning that it is an uh terminal business or it will be added uh to the global. 22:07 22 minutes, 7 seconds No terminal business is a separate business which got demmerged more than two years ago. Now uh the domestic supply chain business which is the express business and consultative 22:15 22 minutes, 15 seconds logistics now part of the integrated is in cargo logistics. the international supply chain which is our LCL consolidation SCL business that would be 22:23 22 minutes, 23 seconds part of all cargo global okay got it got it thanks that's all I have yeah I clarify and clarify yeah 22:33 22 minutes, 33 seconds thank you ladies and gentlemen to ask a question you may press star and one 22:51 22 minutes, 51 seconds Participants who wish to ask questions may please press star and one at this time. 23:09 23 minutes, 9 seconds Our next question comes from the line of Raj Nigam from SR Investments. Please go ahead. Hello. 23:18 23 minutes, 18 seconds Hello. Uh you are audible sir. You may proceed. 23:21 23 minutes, 21 seconds Yes. Uh thank you for taking my question. Uh so I just wanted to understand uh what is the current market 23:28 23 minutes, 28 seconds uh scenario and uh in this market situation can we can we make uh some price hike? 23:37 23 minutes, 37 seconds Yeah, I'll take the question Ken here. 23:41 23 minutes, 41 seconds So the market scenario I think I explained to you in the opening comments the macroeconomic indicators and the 23:50 23 minutes, 50 seconds micro uh economic indicators are very positive. 23:55 23 minutes, 55 seconds Our performance in the quarter gone by is also an indication of how we are positioned to take advantage of that market scenario. 24:05 24 minutes, 5 seconds uh price increase with inflation uh with the service quality that 24:13 24 minutes, 13 seconds all cargo logistics uh is giving to the customers uh the value that we bring to the customer. 24:22 24 minutes, 22 seconds Uh there is always an opportunity to increase the yield uh through a GPI 24:29 24 minutes, 29 seconds which is a general price increase that we announce every year. 24:34 24 minutes, 34 seconds Uh last year was the first uh we are not too happy with the response. 24:41 24 minutes, 41 seconds Uh and but going ahead this year we are very positive of a much better uh GPI 24:48 24 minutes, 48 seconds than the one uh employed last year. I hope that answers your question unless you have a followup. 24:55 24 minutes, 55 seconds Okay. Thank you. Sure. I will I will call back in the queue. Thank you. Thank you. 25:04 25 minutes, 4 seconds Participants you may press star and one to ask a question. 25:12 25 minutes, 12 seconds Our next question comes from the line of Watsar Paraksha from Nights Capital Management. Please go ahead. 25:19 25 minutes, 19 seconds Yeah. Hi uh good afternoon. Uh so uh can I just repeat the amotization bit which you called out earlier? I just missed that. 25:30 25 minutes, 30 seconds Uh yes I I'll repeat. So that that I was talking of a bridge which uh we have uh 25:39 25 minutes, 39 seconds wanted to show on the consolidated uh financials. If you see profit before uh 25:45 25 minutes, 45 seconds tax for the current uh quarter and for half year current half year includes certain amotizations 25:54 25 minutes, 54 seconds which are relating to related to the de merger. So let's say first November 25 26:01 26 minutes, 1 second the effective date of uh uh uh of the amalgamation is happening of the into uh 26:09 26 minutes, 9 seconds all cargo logistics and others. So the the consolidated financials have a 26:15 26 minutes, 15 seconds charge of amotization of 12 cr in Q2 and for of 25 cr for the first half half 26:23 26 minutes, 23 seconds year. This charge has been done cons uh over post since acquisition of uh gati at all cargo logistics. We want to 26:32 26 minutes, 32 seconds highlight that this charge of amotization will no longer appear will no longer be required since gati is now 26:40 26 minutes, 40 seconds part of all cargo logistics the business that was one which I uh which I had uh 26:46 26 minutes, 46 seconds mentioned. The second uh part is relating to the expenses uh pertaining 26:54 26 minutes, 54 seconds to the composite scheme which is mainly the SAM duty and others. So on which the charge has been taken in the current uh 27:03 27 minutes, 3 seconds Q2 FY26 which is 15 cr at consolidated level. So that impact also will not 27:10 27 minutes, 10 seconds going to happen uh uh going ahead. So if you see the PBT which is reported 18 cr 27:16 27 minutes, 16 seconds uh loss is in a way effectively profit of it's effectively profit of 9 cr for 27:23 27 minutes, 23 seconds the quarter once you add this 15 cr and 12 cr for the quarter back to the working and similarly for the halfearly 27:32 27 minutes, 32 seconds uh basis. So that augers well from the comparative uh if you see quarteron quarter uh there is a profit of 9 cr now 27:41 27 minutes, 41 seconds as compared to the previous quarters of 11 cr uh and 7 cr also on the half yearly basis similar impact positive 27:49 27 minutes, 49 seconds impact has has happened and that will continue in the future that's the information we wanted to share. Got it. 27:56 27 minutes, 56 seconds So uh the depreciation run rate should be around 50 crores quarterly run rate 28:04 28 minutes, 4 seconds quarterly run rate depreciation uh if you see from uh year on should be around yes uh 50 cr in that region yes. 28:16 28 minutes, 16 seconds Okay. Got it. And uh secondly whenever the GI shareholders are credited the shares what will be the total share 28:24 28 minutes, 24 seconds count post that right now we are at 24 cr share capital 28:32 28 minutes, 32 seconds it will be 149 cr 149 right yeah 28:40 28 minutes, 40 seconds okay yeah just wanted to confirm that and u can we just uh assume that the pre-ind India's margin for contract 28:49 28 minutes, 49 seconds logistics business is around 4%. Like is that understanding correct or sorry can you repeat please can you repeat your question? 28:59 28 minutes, 59 seconds So the pre-index margin for the contract logistics business so uh is it around the 4% mark right now or am I missing something? 29:12 29 minutes, 12 seconds So pre-Indius it would it's not 4% uh it 29:17 29 minutes, 17 seconds it's uh 8%. And uh if you see post India the victim margin is on upwards of 20 29:26 29 minutes, 26 seconds 29% or so. Yes to the business uh requires a bit of capex in terms of warehouse uh which are under uh 29:36 29 minutes, 36 seconds deployment by the company. So that's why there is uh this kind of anomaly and that's uh that since we are in a growth phase uh this will taper down ahead. 29:48 29 minutes, 48 seconds Okay, got it. And lastly uh is the supply chain management business which was reported uh in the presentation included in the contract logistics part? 30:01 30 minutes, 1 second Yes. So now that's part of uh uh consultative logistics and express 30:07 30 minutes, 7 seconds business is purely express uh B2B and uh retail component of express. You're right. 30:15 30 minutes, 15 seconds Okay. Got it. Thank you. That's all. Thank you. 30:20 30 minutes, 20 seconds Thank you. Participants you may press star and one to ask a question. Our next question comes from the line of Ranjay 30:27 30 minutes, 27 seconds Popi from Banyan Capital. Please go ahead. Yeah. Hi, am I audible? 30:34 30 minutes, 34 seconds Uh yes, you're audible, sir. 30:36 30 minutes, 36 seconds Yeah. So, just one question. Uh I just wanted the guidance on margins. Where does the management see the margins going forward from here? 30:48 30 minutes, 48 seconds So as as you can see our growth uh journey this uh this quarter we are we 30:54 30 minutes, 54 seconds have uh grown on on the revenue front 11 10 11% that's a combination of growth 31:00 31 minutes and uh volume impact the guidance which we gave uh earlier in our on our invest 31:07 31 minutes, 7 seconds analyst uh meet in September we stand by that guidance that's uh for fi uh 28 and 31:15 31 minutes, 15 seconds FI30 we had shared and we we are in that journey of growth on the AITA uh the 31:25 31 minutes, 25 seconds growth from here on sequentially we see a CAGR of 20% uh over up up to FI 28 and 31:33 31 minutes, 33 seconds uh the gross margin as you see uh uh GM on a H1 level we are at 29%. 31:42 31 minutes, 42 seconds we uh we will continue to stri uh increase that in a proportional manner in order to meet uh the guidance which 31:51 31 minutes, 51 seconds was uh provided by us uh to the to the investors. So 11% uh 10% uh CAGR growth 32:01 32 minutes, 1 second from year on on the on the grass gross margin is something which we can uh which we can confirm. 32:08 32 minutes, 8 seconds Got it. Just one more question. So can you shed some light on the levers that helps in the operating leverage? You 32:16 32 minutes, 16 seconds you've talked about that going forward there will be some operating leverage. Just few explanation on those levers. 32:25 32 minutes, 25 seconds So that uh levers Ravi mentioned were primarily on the uh express business integration with the consultative 32:35 32 minutes, 35 seconds logistics. So consultative logistics as we disclosed the uh the warehouse under 32:41 32 minutes, 41 seconds management is 8.4 million uh square ft uh and you know express also require has 32:49 32 minutes, 49 seconds a dependency on some uh some bit of transit uh load storage. So and plus the 32:56 32 minutes, 56 seconds customers uh across both the business uh vertical are more or less kind of 33:03 33 minutes, 3 seconds interlin. So a customer who whom we are uh doing a consultative logistics 33:10 33 minutes, 10 seconds solution he would uh be definitely keen to take our express B2B express solutions. So that is the synergy which we are seeing. It will gradually happen. 33:21 33 minutes, 21 seconds It it's not that uh day one but we are doing a integration approach and uh I would like Ketan to add more flavor I 33:31 33 minutes, 31 seconds think he would uh is more uh can give you better perspective on this if maybe yeah Deepak maybe before Kait 33:39 33 minutes, 39 seconds just to come in on the operating leverage side. So you know the operating leverage that you've been referring to primarily you know refers to the SGNA 33:49 33 minutes, 49 seconds cost base remaining largely consistent and therefore the expansion in revenue and growth creating a multiplier impact on the ABA and if you look at this 33:57 33 minutes, 57 seconds quarter numbers itself you would see that the revenue has expanded but the SGNA costs have actually shrunk instead of growing and that is the operating 34:05 34 minutes, 5 seconds leverage we've been uh referring to in our analysis presentation as well as over the call today that the revenue would expand at a much faster pace than 34:12 34 minutes, 12 seconds the HVNA cost thereby creating the operating leverage but in terms of further uh you know synergies and other growth levers which is a separate thing 34:21 34 minutes, 21 seconds I'll ask to add to that thank you Ravi I think uh you explained it very well uh essentially that growing 34:31 34 minutes, 31 seconds the revenue at a much faster rate uh than the cost that's a major element of operating leverage that we'll kind of 34:38 34 minutes, 38 seconds squeeze out apart from that Um there are areas where we will focus with uh better 34:45 34 minutes, 45 seconds management control uh better monitoring of performance identifying areas of improvement uh internally and when 34:54 34 minutes, 54 seconds engaging with customers. Uh also the two businesses uh coming together gives us a 35:01 35 minutes, 1 second very valuable go-to market approach where customers like to uh interact with 35:08 35 minutes, 8 seconds a single point of contact uh across uh uh logistics uh interventions. So we 35:15 35 minutes, 15 seconds will kind of uh work on those to boost the sale, increase the average order value from those customers and whilst 35:24 35 minutes, 24 seconds doing that also uh manage expenses uh much better, improve efficiency etc etc. 35:30 35 minutes, 30 seconds So all these kind of clubbing together and from the trend we are seeing over the last uh two quarters uh we are in the right direction and especially accelerated in uh Q2 FY26. 35:43 35 minutes, 43 seconds Thank you. Got it. Thank you. 35:48 35 minutes, 48 seconds Thank you. Our next question is from the line of Rajnigam from SR Investments. Please go ahead. 36:03 36 minutes, 3 seconds Raj Nigam, your line has been unmuted. You may proceed with your question. Hello. 36:12 36 minutes, 12 seconds Uh yes, you are audible. 36:13 36 minutes, 13 seconds Hello. Can you go ahead? Okay. So my question uh is line on uh is in the line of tech. So what are the developments we are doing in black? 36:23 36 minutes, 23 seconds Uh in what? Please come again. Tech tech. 36:28 36 minutes, 28 seconds Oh yes. That's a very very good question and uh happy to take it unless Ravi and Deepak you want to come in. No or should I go ahead? 36:37 36 minutes, 37 seconds Thank you. Thank you. So uh tech in logistics uh I believe is very important 36:44 36 minutes, 44 seconds because the shipment uh we move moves essentially on two platforms. One is the physical platform where you move a 36:53 36 minutes, 53 seconds shipment and people handle it and the second is the digital platform for which uh tech is such a great enabler. 37:02 37 minutes, 2 seconds So we are working on uh various uh tech acceleration measures uh across the 37:09 37 minutes, 9 seconds strategic pivots. The strategic pivots are essentially revenue growth uh productivity enhancement uh cost optimization. 37:20 37 minutes, 20 seconds Uh we are moving to a very cloud native uh ambiencece in terms of uh deploying the tech. uh we 37:29 37 minutes, 29 seconds are very very focused on uh being mobile first. So we're very clear that customers expect uh worldclass uh 37:38 37 minutes, 38 seconds experience. So whether it is customers, whether it is our channel partners, uh it's the mobile platform that we are 37:46 37 minutes, 46 seconds kind of going out with and on that we've been able to build a new booking app. We enhanced uh the booking app. Uh we are 37:55 37 minutes, 55 seconds working on the last mile delivery app enhancing that. So both the pickup uh and the delivery points are uh robustly 38:04 38 minutes, 4 seconds tech enabled. There is a very important middle mile in our business on the express side. Uh so we have introduced a 38:11 38 minutes, 11 seconds control tower. Uh we've introduced habai and gate scan. Habai is when trucks come 38:18 38 minutes, 18 seconds in and out uh off the hub. Uh how faster they can come in. how faster can the turnaround time happen? Uh how we can 38:26 38 minutes, 26 seconds improve unloading and loading efficiency. 38:30 38 minutes, 30 seconds Uh control tower monitors all our trucks on the road uh 24 by7 and intervenes for any exceptions. 38:39 38 minutes, 39 seconds So on the express side of the business a lot of lot of uh intervention on tech. 38:43 38 minutes, 43 seconds Uh similarly on the consultative logistics side uh we are revamping our WMS system 38:51 38 minutes, 51 seconds uh which should go live uh within the next 90 days. We currently have one uh so we are kind of adding a lot of more 38:59 38 minutes, 59 seconds features. These features will enable us to get into verticals uh that we would like to uh now target. 39:10 39 minutes, 10 seconds Uh we are very very strong in chemical logistics. We are the market leaders very strong in quick and e-commerce and auto and engineering. There are other 39:18 39 minutes, 18 seconds verticals like retail FMCG where we will get into uh on a much accelerated pace 39:26 39 minutes, 26 seconds that's happening on the consultative logistics side. Our finance uh ERP has 39:33 39 minutes, 33 seconds been transformed with Oracle uh and it recently launched. So the 39:40 39 minutes, 40 seconds financing systems, the accounting systems are also becoming uh more and more uh agile and tech interventions are 39:48 39 minutes, 48 seconds making those uh elements much much uh stronger. 39:52 39 minutes, 52 seconds So company that's uh very focused on the digital ecosystem and uh a tech leader in uh whatever it 40:01 40 minutes, 1 second deploys is the way ahead. I hope I answered your question. 40:05 40 minutes, 5 seconds Yes. Yes. Uh that was great. So uh my next question uh is uh regarding the merger. So any uh new client addition 40:15 40 minutes, 15 seconds post merger like uh with the help of cross-selling or any synergies uh any specific. 40:23 40 minutes, 23 seconds Yeah, definitely. In fact, uh I would call that uh our micro focus to growth accelerator because we saw the 40:32 40 minutes, 32 seconds macroeconomic growth enablers uh that are happening in the ecosystem uh with making India, PLI, regulatory changes 40:42 40 minutes, 42 seconds etc. But our micro focused uh growth accelerators that we have identified uh force synergy between the two divisions. 40:51 40 minutes, 51 seconds uh one uh essentially is uh quick commerce and e-commerce. Uh we already do last mile deliveries uh for a 41:00 41 minutes furniture multinational major on how that can be expanded. 41:06 41 minutes, 6 seconds Auto and engineering with uh faster deliveries on express uh for VR vehicle off-road where we can 41:15 41 minutes, 15 seconds deploy our air express service life sciences and healthcare where we can explore uh temperature control. We 41:23 41 minutes, 23 seconds already do temperature control uh storage and warehousing for pharma and life science healthcare 41:32 41 minutes, 32 seconds majors how that can further get into the last mile. So there are various uh areas 41:39 41 minutes, 39 seconds where we are confident of uh combining the synergies between the two divisions uh and uh efficiently 41:48 41 minutes, 48 seconds uh servicing a customer base of large multinational and Indian uh companies. I hope I answered your question. 41:57 41 minutes, 57 seconds Yes sir. Yes sir. So uh my last question is uh regarding the customer concentration. So uh what is the 42:06 42 minutes, 6 seconds percentage contribution of let's say top 10 customers? 42:11 42 minutes, 11 seconds Uh the percentage contribution of uh top 10 customers would vary uh in the express logistics space uh and the 42:20 42 minutes, 20 seconds consultative logistics space uh it would be much higher in consultative logistics about 50% plus uh whereas in the express it would be in the 20% range. 42:34 42 minutes, 34 seconds the top 10 customers. Okay sir. Thank you. Thank you. Thank you. 42:42 42 minutes, 42 seconds Thank you. 42:44 42 minutes, 44 seconds Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Mr. Ketan Kulkarni for closing comments. 42:52 42 minutes, 52 seconds Over to you sir. 42:55 42 minutes, 55 seconds Thank you. Thank you Suh uh so much and uh thank you everybody for joining the 43:02 43 minutes, 2 seconds call. Uh for me personally it was very informative. 43:08 43 minutes, 8 seconds There were some very good questions and I do hope uh we were able to uh satisfy 43:14 43 minutes, 14 seconds all your queries to the best of our intent. If there are any more questions, 43:21 43 minutes, 21 seconds any more detailed insights that you would like to have, uh please direct them to Sanjay Punjabi from our investor 43:29 43 minutes, 29 seconds team. He's also on the call and uh happy uh once again that you all could join 43:35 43 minutes, 35 seconds in. Uh all the best uh for the coming quarter to all of us. Thank you. 43:43 43 minutes, 43 seconds Thank you. 43:45 43 minutes, 45 seconds Thank you. On behalf of All Cargo Logistics Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.