Allcargo Logistics Limited — Q3 FY26

Allcargo Logistics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bT8WMIo4Cjw Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the All Cargo Logistics Limited Q3 and 9 month FY26 earnings 0:09 9 seconds conference call. As a reminder, all participant clients will be in the listen only mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchdown phone. Please note that this conference is being recorded conference suan from Stellar IR advisor. 0:36 36 seconds Thank you and over to you sir. Thank you. Good afternoon everyone and thank you for joining us today. We have with 0:43 43 seconds us the senior management team of all cargo logistics limited Mr. Ketan Kulkarni managing director and CEO Mr. 0:51 51 seconds Deepak Parik steel financial officer and Mr. Sanjay Punjabi from the investor relations team. Management will be 0:59 59 seconds sharing operating and financial highlights for the quarter and 9 months ended 31st December 2025 followed by a 1:07 1 minute, 7 seconds question and answer session. Please note this call may contain some of the forward-looking statements which are completely based upon the company's 1:15 1 minute, 15 seconds beliefs, opinions and expectations as of today. These statements are not a guarantee of the company's future performance and involves unforeseen risk 1:24 1 minute, 24 seconds and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the 1:32 1 minute, 32 seconds statement is made. I now hand over the conference to Mr. Ketan Kulkarni. Thank you and over to you sir. 1:40 1 minute, 40 seconds Thank you Suyash. Thank you very much. 1:44 1 minute, 44 seconds Good afternoon everybody and a warm welcome to our Q3 and 9 months FY26 1:52 1 minute, 52 seconds earnings conference call. Thank you very much again for joining us and taking time out from your busy schedules. Our 2:02 2 minutes, 2 seconds financial results and the earnings presentation for the quarter and the 9 months ended December 2025 2:11 2 minutes, 11 seconds have been duly uploaded on the stock exchanges and we trust you have had an opportunity to review them. 2:19 2 minutes, 19 seconds Starting with the macroeconomic environment, India continues to remain among the fastest growing major economies with GDP growth projected at approximately 7.3%. 2:32 2 minutes, 32 seconds This momentum is being supported by the mother of all deals with Europe and also the recent tariff announcements by the Indian and American governments. 2:44 2 minutes, 44 seconds Strong domestic consumption, resilient urban and rural demand and sustained infrastructure led expansion will 2:52 2 minutes, 52 seconds further be the tailwinds for Bhat's progress. 2:57 2 minutes, 57 seconds Even in the recent budget announcement, the government's FY27 capital expenditure outlay has been increased to 3:05 3 minutes, 5 seconds 12.2 lakh cr. This is a step up in capex focused essentially on accelerating infrastructure 3:13 3 minutes, 13 seconds creation of road railways ports logistics park multimodal connectivity 3:20 3 minutes, 20 seconds training centers etc etc which will all support manufacturing 3:27 3 minutes, 27 seconds export MSME development and robust GDP growth. 3:34 3 minutes, 34 seconds This will also democratize production, manufacturing and consumer centers in the country. 3:42 3 minutes, 42 seconds The continued emphasis on large scale infrastructure spending is hence expected to drive higher freight 3:51 3 minutes, 51 seconds movement, improve the logistics efficiencies and reduce overall supply chain costs. We've recently seen the 4:00 4 minutes announcement that the overall cost of logistics in the country has been reduced by few percentage points. 4:10 4 minutes, 10 seconds All this augers very well for the logistics industry especially the organized industry in which we operate 4:17 4 minutes, 17 seconds and business over the medium and long term is very optimistic. 4:25 4 minutes, 25 seconds The operating indicators further reinforce this. E-wable generation under GST reached 138.4 million in December 4:34 4 minutes, 34 seconds 2025 representing a robust 23.6% growth. This reflects a strong momentum 4:42 4 minutes, 42 seconds in consumption movement of goods across the country and essentially a very buoant economic environment. 4:50 4 minutes, 50 seconds GST collection for Jan 2026 stood at 1.93 lakh crores up 6.2% year on year. 4:58 4 minutes, 58 seconds Steady growth in both eable volumes and GST collection points to a sustained strength in domestic trade. 5:09 5 minutes, 9 seconds On the business front, the third quarter of financial year 2026 for us has been a transition quarter. 5:18 5 minutes, 18 seconds All cargo logistics focused on quality and profitability. 5:23 5 minutes, 23 seconds Our actions have led to visible improvements resulting in better yields and reduce costs. And my colleague 5:31 5 minutes, 31 seconds Deepakparik, chief financial officer will further dwell into this. 5:38 5 minutes, 38 seconds Express business profitability improved in comparison to the same period last year. This came on the back of yield improvement and cost control measures. 5:49 5 minutes, 49 seconds We also witnessed very strong and steady improvement in on ground activity leading to market share gain for us. The 5:58 5 minutes, 58 seconds growth in the CL contract logistics for us consultative logistics was muted as 6:07 6 minutes, 7 seconds certain e-commerce customers deferred their expansion plans. 6:13 6 minutes, 13 seconds Our underlying client relationships across e-commerce, automotive, 6:19 6 minutes, 19 seconds chemical remain very very strong as we focus on efficiency-led profitable 6:27 6 minutes, 27 seconds growth and continue to strengthen our digital capabilities through cloud platforms, data analytics, control 6:36 6 minutes, 36 seconds towers, upgraded WMS, etc. We will focus on unlock unlocking new growth levers. 6:45 6 minutes, 45 seconds Transportation and full truckload will be a focus area. With integration behind 6:52 6 minutes, 52 seconds us, we expect Abita and PBT to grow faster than revenue in the coming quarters. 7:04 7 minutes, 4 seconds With that, I would now like to hand over the call to Deepak, our CFO, who will 7:11 7 minutes, 11 seconds take you through the financial performance for the quarter and the 9-month period. Thank you once again for 7:18 7 minutes, 18 seconds your continued support and your participation. It is a pleasure as always to be on the call with all of you 7:27 7 minutes, 27 seconds all. Have a good afternoon. Over to you, Deepak. 7:33 7 minutes, 33 seconds Thank you Jason for that detailed overview and good afternoon everyone and 7:40 7 minutes, 40 seconds a warm welcome to all of you on our Q3 and 9 months FI26 earnings call. I will 7:48 7 minutes, 48 seconds go through the financial results for the quarter ended 31st December 2025. 7:56 7 minutes, 56 seconds During Q3 FI26, all cargo logistics handled a total volume of 3 lak 13,000 8:04 8 minutes, 4 seconds metric tons. The realization per ton for Q3 FI26 came in at rupees 11,610 8:15 8 minutes, 15 seconds rupees per metric t which is 2% up yearonear and 4% up from last quarter. 8:26 8 minutes, 26 seconds The net cash stands at a healthy rupees 88 crores. 8:33 8 minutes, 33 seconds Moving to the consolidated financials, revenue for the quarter stood at rupees 8:40 8 minutes, 40 seconds 516 crores versus rupees 519 crores. In the same period last year, 8:48 8 minutes, 48 seconds it was rupees 537 crores in the last quarter. 8:53 8 minutes, 53 seconds The gross profit for the quarter stood at rupees 153 crores which is in line 9:00 9 minutes with our yearon-year and quarteronquarter basis performance. 9:08 9 minutes, 8 seconds The IITA for the quarter stood at rupees 61 crores which is also in line with 9:16 9 minutes, 16 seconds yearon-year and quarteronquarter performance of the company. 9:22 9 minutes, 22 seconds On 9month basis, the revenue reached rupees 1,544 crores, a 7% growth from same period last year. 9:33 9 minutes, 33 seconds The IITA came in at rupees 174 growth representing 9% growth as compared to last year. 9:46 9 minutes, 46 seconds Coming to the express business financial highlights which we have shared in the presentation also the revenue for the 9:54 9 minutes, 54 seconds quarter stood at rupees 364 crores as compared to rupees 372 10:03 10 minutes, 3 seconds crores during the same period last year it was rupes 377 crores in the last 10:10 10 minutes, 10 seconds quarter the from the business for The quarter stood at rupees 18 crores 10:20 10 minutes, 20 seconds representing a 19% growth yearon-year basis and 6% sequentially. 10:27 10 minutes, 27 seconds This growth in profitability has come on the back of our prudent decisions to improve service quality, strengthen 10:36 10 minutes, 36 seconds profitability, managing costs and all the measures which Ketan addressed in his detailed overview. 10:45 10 minutes, 45 seconds On my 9-month basis, the revenue reached at rupees 1,081 crores. Visa rups 1,73 10:54 10 minutes, 54 seconds crores. In same period last year, the iittita came in at rupes 44 crores in line with the same period last year. 11:07 11 minutes, 7 seconds This was on the express business. Moving on to our consultative logistics business financial highlights. 11:15 11 minutes, 15 seconds The business has a warehouse space under management of 8.1 million square ft as on the close of December 2025. 11:26 11 minutes, 26 seconds The revenue from the business for Q3 FY26 stood at rupees 153 crores up 5% 11:36 11 minutes, 36 seconds yearon year. The IITA from the business for Q3 FI26 11:44 11 minutes, 44 seconds stood at rupees 46 cr which is a 2% growth on year-on-year basis. 11:52 11 minutes, 52 seconds On the 9 months uh performance the revenue reached at rupees 464 crores a 11:59 11 minutes, 59 seconds robust growth of 23% from same period last year. 12:05 12 minutes, 5 seconds The IITA came in at rupees 135 crores. A strong 16% growth from last year too. 12:17 12 minutes, 17 seconds So with this I would like to open the floor for question and answers and here 12:25 12 minutes, 25 seconds I would like to end my uh discussion and thank you uh for your participation in 12:31 12 minutes, 31 seconds our earnings call. over to you to take on the question and answer. 12:41 12 minutes, 41 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 12:48 12 minutes, 48 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question cube, you may 12:55 12 minutes, 55 seconds press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will 13:03 13 minutes, 3 seconds wait for a moment while the question queue assembles. 13:13 13 minutes, 13 seconds The first question is from the line of Rahan sayyad from three asset managers. Please go ahead. 13:20 13 minutes, 20 seconds Uh yeah, good afternoon to the team and thanks for taking my question. Uh so I have a couple of questions. First on uh 13:28 13 minutes, 28 seconds your techi implementation. uh I don't I just want to understand how it's working. You have introduced an AI 13:35 13 minutes, 35 seconds enablers and an integrated control power system. So from an operational 13:42 13 minutes, 42 seconds standpoint has the gas or hub exporter and measurable information on time for reduction during this quarter. 13:56 13 minutes, 56 seconds Hi, uh sorry to tell you but uh your question was due to bad voice quality 14:03 14 minutes, 3 seconds not received very well here. I don't know if others on the call had a similar experience. Uh if others have not had 14:11 14 minutes, 11 seconds that experience I would request somebody to sum up the question so we can take the answer. Can I repeat the question again? 14:20 14 minutes, 20 seconds I your voice quality is the same. 14:24 14 minutes, 24 seconds Uh Mr. Say I would request you to please rejoin the queue uh and check your network connectivity please. 14:31 14 minutes, 31 seconds Uh no still you are cracking a bit. Uh now hello. 14:40 14 minutes, 40 seconds Yeah please proceed. 14:41 14 minutes, 41 seconds Yeah so yeah my first question is around your tech and AI implementation. So you have introduced JN AI enablers and then 14:49 14 minutes, 49 seconds integrated control tower into your ecosystem. So from an operational standpoint, has the gate or hub tab 14:57 14 minutes, 57 seconds already resulted in measurable improvements in vehicle turnaround times or a reduction in uh spillage load during this steady quarter? This is my first question. 15:07 15 minutes, 7 seconds We could hear your first question clearly and uh thank you uh for your patience and understanding in repeating it. Uh it was on AI and control tower. 15:18 15 minutes, 18 seconds I think uh clearly through our numbers you will see the focus was on to improve service quality strengthening 15:27 15 minutes, 27 seconds profitability and managing cost. Uh the tech interventions are also a part of uh 15:35 15 minutes, 35 seconds that responsibility that they took upon themselves. So whether it is AI in generating uh docket shipment uh 15:44 15 minutes, 44 seconds directly from reading a barcode and without manual intervention uh whether it it is AI in terms of uh classifying 15:54 15 minutes, 54 seconds uh the thousands of emails that come uh and the service quality intervention 16:01 16 minutes, 1 second that we need to do and where uh whether it is uh the control tower that maps all 16:08 16 minutes, 8 seconds our vehicles on the nation's roads 24 by7. 16:14 16 minutes, 14 seconds Uh whether it is the app that tracks our gati associates uh on the nation's street that deliver 16:23 16 minutes, 23 seconds about six shipments every second. Uh all this uh the platform of tech that we 16:31 16 minutes, 31 seconds have enabled and we will continue doing so. uh a huge huge uh credit uh goes to that uh tech piece. 16:41 16 minutes, 41 seconds Um okay it's very helpful and my second question is around like if you can give just uh understanding a bit about sector 16:49 16 minutes, 49 seconds specific strategy that you are doing you are focusing on the auto and engineering and consumer fast return segment or 16:56 16 minutes, 56 seconds crosselling synergy. So are there any specific sub sectors within food and pharma which currently makes up 22% of 17:03 17 minutes, 3 seconds your revenue mix where you plan to deploy the new life science and healthcare temperature control solutions mentioned in your growth excavators. 17:13 17 minutes, 13 seconds Okay. Now let me again uh repeat your question uh so that I can answer it better. uh you want to know about the 17:20 17 minutes, 20 seconds sectors. Uh you also want to know about food and pharma and where life science 17:28 17 minutes, 28 seconds and uh sorry temperature and temperature controlled u areas. 17:37 17 minutes, 37 seconds Would you like to know about this on the express side or the CL side? 17:42 17 minutes, 42 seconds On the same side on the CL side. So yeah. 17:46 17 minutes, 46 seconds Wonderful. I'll address your question on the CL site uh on the life science and temperature control uh that is already a 17:54 17 minutes, 54 seconds subset of our food and pharma uh that you can see there and within the pie uh 18:00 18 minutes the contribution is much much low in our interaction with uh food and pharma companies and life science companies we 18:09 18 minutes, 9 seconds are seeing a huge wide spot uh we already do a dipstick of temperature controlled in 18:18 18 minutes, 18 seconds some of our facilities for uh pharma customers. Uh that is an area that we would like to further focus on. Uh the 18:26 18 minutes, 26 seconds 3% contribution uh will definitely uh improve going ahead. Uh why we have a head start is 18:35 18 minutes, 35 seconds because of our expertise in uh chemical uh where we handle hazardous 18:42 18 minutes, 42 seconds uh material uh which is a degree of difficulty more than doing uh food 18:49 18 minutes, 49 seconds farmer e-commerce auto engineering. We are seen as the experts on the table and all cargo logistics is the preferred uh 18:58 18 minutes, 58 seconds service provider for chemical and we will leverage that advantage as we uh move into the food food and pharma life science and temperature control sector. 19:09 19 minutes, 9 seconds Okay. Okay. Fair enough. And last one keeping question. 19:13 19 minutes, 13 seconds Sorry to interrupt Mr. Sad. Sorry. Uh please see John the key for more questions. 19:18 19 minutes, 18 seconds Oh, sure. Okay. 19:20 19 minutes, 20 seconds Yeah. Thank you. The next question is from the line of Adash from Legion Capital. Please go ahead. 19:27 19 minutes, 27 seconds Hi sir, am I audible? Yes, Adash. Yes. Thank you for taking my question. 19:33 19 minutes, 33 seconds Uh I have two questions. My first question is uh following the recent mass resignations of the MD, CFO and the CS 19:41 19 minutes, 41 seconds in the November of 2025, could you please provide some clarity on the new leadership's immediate priorities? 19:52 19 minutes, 52 seconds Uh so the new leadership, the new MD, uh the CFO and the CF are already in place. 20:01 20 minutes, 1 second Uh so uh we have our priorities changed or are they are they? Sorry, please repeat your question. 20:09 20 minutes, 9 seconds Uh my question is have our priorities changed with the changes in the management? Okay. Have the priorities changed? 20:18 20 minutes, 18 seconds Yes. 20:19 20 minutes, 19 seconds So I'll have this uh question answered by uh Deepak Pariki, our CFO. 20:27 20 minutes, 27 seconds Yeah. Thanks Kan. So uh I I would uh answer in two parts uh to your answer. 20:33 20 minutes, 33 seconds See we had uh the transition of management. We had uh you know the scheme of mer uh merger which was 20:42 20 minutes, 42 seconds effective on 1st October that had resulted in uh management shift or a change uh mandatory change in 20:49 20 minutes, 49 seconds management. Uh the all cargo logistics which was uh uh undertaking various 20:57 20 minutes, 57 seconds businesses mainly ISC the international rate freight management that has moved out uh to a separate company. So the 21:05 21 minutes, 5 seconds management team of that company is also uh have uh been doiciled into the other 21:12 21 minutes, 12 seconds uh new company the uh all cargo gati uh which is merged with all cargo 21:19 21 minutes, 19 seconds logistics. So the management team of all cargo gati have now uh have been given the responsibility in the name of to 21:27 21 minutes, 27 seconds have managed this business under the name of all cargo logistics. So nothing changes uh uh on a on a broader horizon 21:36 21 minutes, 36 seconds uh just that the team which was managing earlier all cargo is now managing all casual logistics. Hope that answers your 21:45 21 minutes, 45 seconds uh question uh and the priorities remain to same focus on service quality enhancing business uh further and enhance shareholder value profitably. 21:55 21 minutes, 55 seconds Okay. Thank you. And uh my second question is uh so regarding the 10.2% 2% hike that has been affected this January. 22:02 22 minutes, 2 seconds Sorry to interrupt Adash. 22:04 22 minutes, 4 seconds Uh there's a lot of background noise from your end. Uh am I audible now? 22:10 22 minutes, 10 seconds Still when you're speaking we can hear some disturbance from your side. How about now? 22:18 22 minutes, 18 seconds Can you please use your handset mode? 22:21 22 minutes, 21 seconds Yes. Yes, I'm using my handset. Uh am I audible? Yeah, please proceed now. 22:25 22 minutes, 25 seconds Yeah. My second question was with the 10 10.2% 2% uh price hike effective this January. What is your strategy to 22:33 22 minutes, 33 seconds prevent volume leakage to competitors like delivery and how much of this increase will directly flow into the AIDA margin for the coming quarters? 22:43 22 minutes, 43 seconds I'll take the first half your question and maybe Deepak can join me uh in the second half of the question. uh but uh 22:52 22 minutes, 52 seconds the price increase that uh we have announced becomes effective from 1st of Jan. Uh you have seen that there is a 23:01 23 minutes, 1 second yield improvement which is uh essentially reflecting in the uh gross margin and the epida margin improvement. 23:11 23 minutes, 11 seconds Uh we are very cognizant that the business operates on two important pillars. one is the yield pillar and the 23:20 23 minutes, 20 seconds second is the volume pillar. So going ahead we will balance both of these. Uh we have a data science team that uh 23:29 23 minutes, 29 seconds constantly uh looks at uh swings that happen uh by product uh by geography by 23:37 23 minutes, 37 seconds customer and uh whatever interventions are needed uh they are proactively taken. uh we are focused on both levers 23:46 23 minutes, 46 seconds because uh we need to deliver growth. We are very very clear on that front and we need to deliver profitable growth. Uh we 23:54 23 minutes, 54 seconds are very clear on the uh second aspect of the business. Over to you. 24:01 24 minutes, 1 second Yeah, thanks uh Kithan. So pricing is very important for our business and we use as Kithan mentioned or the data 24:09 24 minutes, 9 seconds science brand to price all our products in a very optimal manner which which has market acceptability and all. If you see 24:17 24 minutes, 17 seconds in our presentation on the express side we are given the price realization number which has gone up by 2%. 24:24 24 minutes, 24 seconds uh the growth uh would be uh in uh will be slow but definitely the focus is there on that on that number to grow and 24:33 24 minutes, 33 seconds whatever delta will straight away have a impact uh uh flow through in our uh that's on express and also on 24:41 24 minutes, 41 seconds contract logistics it's a slightly uh it's a engagement uh driven uh uh uh 24:49 24 minutes, 49 seconds business where uh you would require a lot of contracting for a longer space where uh lot of value ad needs to be 24:57 24 minutes, 57 seconds provided in the service. So we are doing that uh the ketan in the earlier question he covered on the AI bit on the 25:05 25 minutes, 5 seconds service enhancement improvement levels that will also result in the delta on that business front also in a similar 25:11 25 minutes, 11 seconds manner that's what we anticipate uh as we go to the next quarter. 25:18 25 minutes, 18 seconds Got it. That answers my question. Thank you. Thank you. 25:24 25 minutes, 24 seconds Thank you. The next question is from the line of Vikram Kotup from Crest Capital and and Investments. Please go ahead. 25:32 25 minutes, 32 seconds Hi. Thank you so much. Uh is I'm audible. You are. Yes. 25:36 25 minutes, 36 seconds Sure. Thank you. I have one question for Deepak on the very maintenance question about what is the current net worth as on December and what's the net cash level for the company? 25:48 25 minutes, 48 seconds So net cash level we have mentioned in the presentation which is 88 cr. Is that okay? Okay. And and what's the network as on uh December 25? 25:57 25 minutes, 57 seconds The network will be uh 500 cr. So 300 and balance. Okay. My second question to Kan 26:05 26 minutes, 5 seconds on the slide 17 about uh vision 2030. Uh can can you take us to you know uh what 26:12 26 minutes, 12 seconds are the drivers for getting this growth till 2030? uh what are the synergy benefit you are seeing between the 26:20 26 minutes, 20 seconds merger of uh AGL and GTI uh both qualitative and quantitative and are you 26:26 26 minutes, 26 seconds taking any um what do you say inorganic growth in this uh vision 26:33 26 minutes, 33 seconds statement so three questions on the vision side thank you no please repeat your third question I got your first 26:40 26 minutes, 40 seconds yeah okay so vision 2030 the targets which you set is that any Is that any inorganic side also? It's only organic side. Thank you. 26:50 26 minutes, 50 seconds Okay. Oh, M&A and acquisition side. Exactly. Yeah. Yeah. Absolutely. Absolutely. 26:58 26 minutes, 58 seconds Uh what we have projected here uh as of now is uh organic growth. Okay. 27:04 27 minutes, 4 seconds So yeah, we are very clearly going to drive a growth strategy that's uh based on our current platform and grow that 27:12 27 minutes, 12 seconds organically. uh drivers on the express side for that growth are going to be uh improvement in service quality based on tech. I kind of covered that earlier. 27:24 27 minutes, 24 seconds What that does is allows us to go to customers uh show value to them uh and 27:30 27 minutes, 30 seconds ask for the volume at the right yield uh giving us a better u flow through which 27:39 27 minutes, 39 seconds is invested back into the business through infrastructure tech uh etc. of profitable growth as I've said I think 27:47 27 minutes, 47 seconds twice earlier uh will be the key lever to drive this we will always be a asset light model uh that continues to be a 27:57 27 minutes, 57 seconds focus uh if you see our numbers you will see the cost reduction focus in general and admin expenses in employee expenses 28:06 28 minutes, 6 seconds so all these levers essentially resulting into what you'll see on the right hand side uh of this sheet 28:14 28 minutes, 14 seconds In terms of uh synergy uh we have already drawn up a team uh that will look at customers on the seal side of 28:23 28 minutes, 23 seconds the business and the express side of the business. Uh lot of conversations have already begun with uh large customers on 28:32 28 minutes, 32 seconds how we can play uh integrated role that is much more deeper in their uh supply chain ecosystem 28:40 28 minutes, 40 seconds and we're getting a lot of positive uh moves uh from the customer side. uh I cannot name a customer but as recently 28:48 28 minutes, 48 seconds as the month of Jan itself uh we signed a major multinational uh 28:55 28 minutes, 55 seconds third party logistics uh player that operates uh for a large uh automotive uh 29:03 29 minutes, 3 seconds MNC uh and now is consuming uh both services uh and was previously consuming such only one one aspect of our business. 29:13 29 minutes, 13 seconds Right. Right. very very uh focused on uh driving that part. 29:19 29 minutes, 19 seconds What would be what be Yeah, that that's a great answer. What would be a tech budget annual tech budget for us a technology budget? 29:27 29 minutes, 27 seconds So uh yeah uh so as Jan mentioned we are an uh not a capex le model we are working on aex model. 29:37 29 minutes, 37 seconds So post our tech initiatives are under that framework where uh so in terms of 29:44 29 minutes, 44 seconds uh putting in any new architecture we have an outlay of uh 12 29:51 29 minutes, 51 seconds cr for the next financial year or full financial year. Yeah. Okay. Super. Thank you. All the best to you. Thank you so much. 29:59 29 minutes, 59 seconds Thank you for your question. 30:02 30 minutes, 2 seconds Thank you. Before we take the next question, a reminder to all if you wish to ask a question, please press star and 30:11 30 minutes, 11 seconds one. The next question is from the line of Rishab from RBSA Investment Managers LLP. Please go ahead. 30:21 30 minutes, 21 seconds Hello. Am I audible? Yes, you are. Please go ahead. 30:26 30 minutes, 26 seconds I just want to understand on the vision that you said that you're targeting a 20% carer from FI25 base and for looking at a 9month number so far we've only 30:34 30 minutes, 34 seconds grown at 9%. So what is what is giving that confidence that you'll be able to grow? 30:44 30 minutes, 44 seconds Hello. 30:46 30 minutes, 46 seconds Yeah, we got your question. So you know this uh vision statement or strategy uh 30:53 30 minutes, 53 seconds pack which was shared in our analyst meet covers uh 3 years primarily we're looking at 2728 and eventually going to 31:03 31 minutes, 3 seconds 30. So uh this year we had uh if you see the numbers which we shared we have a 7% 31:11 31 minutes, 11 seconds growth as of December. uh and uh what we are the measures which we had taken in 31:18 31 minutes, 18 seconds in this uh quarter or the previous quarter uh which I al we also shared in the earlier pre uh earnings call the 31:26 31 minutes, 26 seconds focus on service quality improvement enhancement and on that regard certain investments had to be done in term u in 31:35 31 minutes, 35 seconds terms of operating costing uh enhancement so that has started giving us uh result now if you see quarteron 31:43 31 minutes, 43 seconds quarter Express business has uh has show shown a growth and this quarter coming in in the next quarter also the it will 31:51 31 minutes, 51 seconds continue. So uh uh you know uh business express uh business and even contract logistic business there the growth has 32:00 32 minutes to be in a uh in a steady manner which actually now the uh current year 26 we 32:07 32 minutes, 7 seconds are uh confident confident of achieving that and next year since the I think the uh the strategy or roadblock will play 32:15 32 minutes, 15 seconds us in a in a very faster manner. So 2728 is the year which we are very uh banking 32:22 32 minutes, 22 seconds on very uh positively and we are optimistic that the target set in those uh next year will be achieved 32:31 32 minutes, 31 seconds and just want to understand a volume front in this surface express side we have been hovering around the three lakh tons mark since I think many many years 32:39 32 minutes, 39 seconds so what steps are we taking to increase volumes because ultimately that will only drive our cost down I I understand that there will be a little bit of mix 32:47 32 minutes, 47 seconds change from your key accounts to your MSM accounts which will not reflect in volumes and maybe that is reflected in the realization. Is that the strategy going forward? 32:55 32 minutes, 55 seconds What is the strategy? Please come again with your second half of the question please. I heard your first half uh which said volumes are a little stagnant at uh three lakhs per quarter. 33:06 33 minutes, 6 seconds Yeah. So I'm just trying to get a sense uh yeah I'm audible. 33:13 33 minutes, 13 seconds Yeah very much very much. Please go ahead. 33:15 33 minutes, 15 seconds Yeah. So just on the strategy part like is are the volumes stagnant because the MSME part of the business is increasing and so that it doesn't reflect in the 33:22 33 minutes, 22 seconds tense per se but it reflects in higher realization is that the way the volumes are stagnant. 33:29 33 minutes, 29 seconds So uh volumes essentially uh usually dependent on uh number one uh the 33:36 33 minutes, 36 seconds pricing strategy that uh we are going to follow uh number two the changes in the 33:43 33 minutes, 43 seconds uh mix as you rightly said uh but we are very cognizant of uh the as I said earlier also in the call uh that volume 33:52 33 minutes, 52 seconds growth uh and yield growth the mix uh will be uh the one that will drive us 33:59 33 minutes, 59 seconds towards uh the goalpost of profitable growth. So uh that uh that is uh very 34:07 34 minutes, 7 seconds very uh much a focus area. Secondly, a syndicated research uh that we uh obtain 34:16 34 minutes, 16 seconds and so do most of the other uh players that operate in the segment. uh in the month of December we were the only ones 34:25 34 minutes, 25 seconds along with another to grow the market share. Uh we were one of the two three other large players lost market share 34:33 34 minutes, 33 seconds and in the July August September quarter it was a sim uh similar instance uh 34:40 34 minutes, 40 seconds where we were the ones to gain market share uh only player to gain market 34:47 34 minutes, 47 seconds share. the other player was u very very marginal uh in uh 0xx percentages and 34:56 34 minutes, 56 seconds three other players lost uh their market share. So within the organized sector the top five uh that we uh constantly 35:06 35 minutes, 6 seconds triangulate against uh we are in a much uh much stronger position uh since the 35:12 35 minutes, 12 seconds month of July ending till December whatever assumption that we've done for 35:18 35 minutes, 18 seconds FI28 AITA or the numbers what is the implied realization that your guys are targeting currently it is hovering at 11.6 config 35:27 35 minutes, 27 seconds that was shared in the DPT. So what is that number in FI28 that as per your projections? 35:34 35 minutes, 34 seconds Uh see I would uh I think I would like the numbers to uh show that but since it 35:42 35 minutes, 42 seconds is uh giving a forward indication I would not uh but the percentage which we mentioned uh are the percentage which we 35:50 35 minutes, 50 seconds are looking at uh to get to that because it's upstreaming of entire thing. If you look at look at revenue as a 10% that's 35:57 35 minutes, 57 seconds that will be a combination of both yield and volume taken together. 36:04 36 minutes, 4 seconds Is it predominantly volume or value growth? It is give an indication. 36:09 36 minutes, 9 seconds So it will be a mix of both uh if you can say 5050% can be attributed to both the delta. 36:18 36 minutes, 18 seconds Okay. And what is the you know current pricing trends in the key accounts? I think earlier there is some steep discounting happening. Have the prices uh you know stabilized or are we seeing 36:27 36 minutes, 27 seconds some price hikes even this year? What is the trend in key account pricing? 36:32 36 minutes, 32 seconds Key accounts uh strategic MSME and retail. Uh we are committed to grow the yield across all the four levers. 36:43 36 minutes, 43 seconds Uh that is the guidance uh I can give you. Of course to grow a key account yield uh by the factor compared to 36:52 36 minutes, 52 seconds strategic or MSME or retail is uh much more difficult due to the uh volumes 36:59 36 minutes, 59 seconds that key accounts give us. uh but as I said earlier in the call uh with improving uh service quality uh with the 37:08 37 minutes, 8 seconds tech platform supporting that improved quality a very very strong network with the control tower operating uh we are 37:16 37 minutes, 16 seconds seeing huge increments in the key service quality metrics uh that we have 37:23 37 minutes, 23 seconds uh in our QBRS quarterly business reviews that we have with KA customers that is being appreciated and there is a 37:30 37 minutes, 30 seconds recipro focal effect. So the management of yield uh will be driven across all all all the four uh verticals that we operate. 37:42 37 minutes, 42 seconds Directionally can we expect Q4 to be better than Q3 given that this generally in the past it has been is seasonally a better quarter for us? 37:52 37 minutes, 52 seconds Yes definitely definitely. Thank you. 38:00 38 minutes Thank you. 38:02 38 minutes, 2 seconds A reminder to all the participants that you may press star and one to ask a question. 38:22 38 minutes, 22 seconds The next question is from the line of Vant S. An individual investor. Please go ahead. Hello. Am I audible? 38:31 38 minutes, 31 seconds Yes, you are. Van, yes. Thank you. Thank you. Thank you, sir. Thank you for the opportunity. Uh my first question is on consultative 38:39 38 minutes, 39 seconds logistic business. So, as we can see the 9 month FY26 revenue and AITA is showing 38:46 38 minutes, 46 seconds a you know strong growth but as we come to Q3 uh there is a QQ dip. So is this a 38:53 38 minutes, 53 seconds seasonality factor or does it reflect a a delay in some kind of customer ramp up and and how are how confident are we of 39:02 39 minutes, 2 seconds you know sustaining these double digit uh margins going forward? 39:07 39 minutes, 7 seconds I'll take your second half of the question first and say uh we very very confident of improving the margins. uh 39:16 39 minutes, 16 seconds in my opening remarks uh I said that the consultative logistics business was a bit muted as certain e-commerce plans 39:24 39 minutes, 24 seconds deferred their expansion plans uh but our underlying client relationship across e-commerce automotive chemical uh 39:32 39 minutes, 32 seconds is very very strong and uh we are confident of uh a better quarter as I even expressed for the express side of 39:41 39 minutes, 41 seconds the business uh earlier to another for to join me on the call. 39:50 39 minutes, 50 seconds Okay. So, are we seeing a better Q4 in this uh segment? Definitely. 39:58 39 minutes, 58 seconds Okay. Uh similar to that, I would like to can you talk a little bit more on the airspace? How are things looking as of 40:06 40 minutes, 6 seconds now? Uh what is the strategy to scale this up? 40:12 40 minutes, 12 seconds Definitely. So the air express business uh uh we have grown in terms of uh 40:21 40 minutes, 21 seconds revenue uh in the 9-month period and also in the quarteron quarter uh there is a nudging 40:31 40 minutes, 31 seconds doubledigit growth uh Q on Q uh we could have I would have personally 40:39 40 minutes, 39 seconds liked it to be much higher uh the strategy Y is uh definitely a strategy to focus on the business further going ahead into FY2728. 40:51 40 minutes, 51 seconds Uh as we are exploring new opportunities, we are finding a lot of synergies uh with uh the ground express 40:58 40 minutes, 58 seconds business. uh now with consultative logistics being a part of uh the portfolio where we go to customers we 41:05 41 minutes, 5 seconds would like to be the single point of contact for a customer for all his uh express movement needs. Uh so this is a 41:14 41 minutes, 14 seconds focus area for us and uh you can see the green in fact on slide 11 of the 41:21 41 minutes, 21 seconds presentation uh for air express and a little bit of red on the surface side but definitely a focus area. 41:30 41 minutes, 30 seconds Thank you. Yeah clearly see the growth on the slide 11. Uh uh uh next uh can you express a bit on you know Q4 demand? 41:41 41 minutes, 41 seconds How is the quarter 4 demand looking as of now? And uh can you put this into numbers of volumes? How is it looking? 41:47 41 minutes, 47 seconds Any guidance for FI27? 41:51 41 minutes, 51 seconds Um as uh Jan has uh started and we enter February. Uh we very confident of uh how Q4 is going to uh shape up for us. 42:05 42 minutes, 5 seconds uh as I said earlier uh some of your other colleagues on the call also asked us about both the express and CL 42:12 42 minutes, 12 seconds business how Q4 is going to look how it's both going to be is it going to be better and the answer was definitive 42:20 42 minutes, 20 seconds definitely so I will stay with that answer uh in terms of numbers I will not be able to make a forward-looking 42:27 42 minutes, 27 seconds statement at this time uh but I will definitely download a huge huge uh 42:34 42 minutes, 34 seconds dollop of confidence uh on the table for Q4 numbers. 42:39 42 minutes, 39 seconds Okay. And no no guidance for FI27 as well. 42:47 42 minutes, 47 seconds So slide uh 17 if you look at you will uh get uh 42:56 42 minutes, 56 seconds indicative guidance on revenue margins. if you refer to slide 17. 43:03 43 minutes, 3 seconds Okay, sure. Uh so my last question would be uh as we can see we are practicing an 43:11 43 minutes, 11 seconds asset life strategy and there's a good netcap position. So how are you prioritizing capital deployment between 43:18 43 minutes, 18 seconds technology investments network expansion and potential deleveraging? So and how will our you know return ratios look going forward? 43:29 43 minutes, 29 seconds Mhm. Yes. So you summed it right actually the three blocks which are uh leveraging uh U enhancement and 43:38 43 minutes, 38 seconds technology upgradation. These are the three blocks where we have to use the entire cache in a very judicious manner. 43:46 43 minutes, 46 seconds Uh right now the allocation is uh is done uh frugally across technology uh 43:53 43 minutes, 53 seconds and we uh uh the and that giving us the relevant ROI on the AI and other uh 44:01 44 minutes, 1 second front where the investment would require. I think that also is already factored in the uh budget which which I 44:08 44 minutes, 8 seconds mentioned. Uh enhance U modernization is some piece which we are looking but we had deferred it for next year that could 44:17 44 minutes, 17 seconds be uh uh in the region of 10 to 15 cr for next financial year not in this in this year. 44:26 44 minutes, 26 seconds On the delagging front, yes, we would look at uh tearing out some of the deck, 44:33 44 minutes, 33 seconds but I think uh we are we uh that is not uh much of a concern because that's 44:40 44 minutes, 40 seconds within the uh tolerance level. So we would uh do it in in a phase manner over 44:48 44 minutes, 48 seconds next two quarters actually if you see quarter three the debt profile could be uh sorry Q1 of next year the debt 44:55 44 minutes, 55 seconds profile will be slightly lower uh as compared to what we are now uh yeah so we will use it under these three buckets 45:03 45 minutes, 3 seconds uh uh on a systematic manner that's what I would see okay thank you but uh what kind of investments are we looking in 45:11 45 minutes, 11 seconds technological advancement um you know every year or every quarter. Can you put it into number? 45:18 45 minutes, 18 seconds On a year uh we are looking at 12 cr number on a quarter quarter there will be uh around 2 to three cr which would 45:27 45 minutes, 27 seconds be spread across five to six uh key initiatives which you have a direct impact on service level uh improvements 45:36 45 minutes, 36 seconds uh and uh enhance and better customer experience. These are the two uh themes of that those investments would be. 45:45 45 minutes, 45 seconds Okay. Yeah. Thank you so much. That's it from my side. Thank you for your time and discussion moving forward. 45:52 45 minutes, 52 seconds Thank you. Thank you. 45:57 45 minutes, 57 seconds Thank you ladies and gentlemen. A reminder to all the participants to ask a question please press uh N1. 46:13 46 minutes, 13 seconds The next question is from the line of Thomas, an individual investor. Please go ahead. 46:20 46 minutes, 20 seconds Um, yes. Hi, I just wanted to understand when you say asset lights, can you explain what that means because you have your own trucks, right? Or is this leased? 46:33 46 minutes, 33 seconds We are on an assetike model, Thomas. Uh we don't own any of our trucks. Uh we 46:40 46 minutes, 40 seconds are uh these are that's the model actually available on rent. 46:47 46 minutes, 47 seconds Okay. So it's a you you've got you lease it from third parties. Is is that right? Correct. 46:55 46 minutes, 55 seconds Okay. 46:56 46 minutes, 56 seconds And I just wanted to understand uh now uh I think in the last call you had mentioned that you were taking price 47:03 47 minutes, 3 seconds hikes um and uh um I'm just trying to understand I thought I had read somewhere that some of the other players 47:11 47 minutes, 11 seconds were cutting their prices or did I misunderstand that or uh is it a universal thing where everyone is 47:18 47 minutes, 18 seconds increasing their prices when it comes to express delivery? Yeah, Thomas, I will only talk for ourselves, 47:27 47 minutes, 27 seconds not the other. Uh, we are definitely uh looking at yield enhancement measures uh 47:34 47 minutes, 34 seconds resulting in uh profitable growth is what we have uh given a clear indication on the call. 47:42 47 minutes, 42 seconds Okay. And even with these price hikes which you took in January, right? That's right. 47:49 47 minutes, 49 seconds Okay. Um and um so far the discussions that you've had with customers um you're saying that that will lead to increasing volumes. Increased volumes. 48:03 48 minutes, 3 seconds Yeah. The endeavor of the business is always to increase volume as I said earlier on the call on the uh basis of 48:12 48 minutes, 12 seconds no compromise on the yield uh resulting in profitable growth. Yeah. 48:19 48 minutes, 19 seconds Okay. And and and just one last question. I mean in the you know right now with all these free trade agreements and all that you you do 48:27 48 minutes, 27 seconds you also assist uh the the u customers um in from the port onwards or do you is the contract after that? 48:39 48 minutes, 39 seconds Uh sorry please come again. Do you assist the customers like if it's through imports in the from the port onwards you take the you assist the 48:48 48 minutes, 48 seconds client or is it from their warehouses from their plan do you do services even from ports is what 48:57 48 minutes, 57 seconds I wanted to know we have three we have three uh uh service lines uh one is the CL line 49:05 49 minutes, 5 seconds which has uh warehousing as a core component and also has full truckload load as a core component. Uh our express 49:14 49 minutes, 14 seconds business is essentially part truck load where a truck is filled with multi-client shipments. Uh the business 49:22 49 minutes, 22 seconds operates in a manner that wherever a customer or client wants us to pick up a shipment or deliver a shipment in either 49:30 49 minutes, 30 seconds a full truckload or express movement, we are willing to do that. And if there is storage needed at any time uh during the 49:39 49 minutes, 39 seconds movement of the shipment uh that is also offered uh in our warehousing uh site which is the CL site. Various value 49:47 49 minutes, 47 seconds added services are also embedded on the warehousing side where we could uh 49:53 49 minutes, 53 seconds dstaff stuff uh enhance uh the shipment by uh labeling 50:01 50 minutes, 1 second uh etc. So that's that's how we will operate. Thomas also the group has four companies 50:08 50 minutes, 8 seconds uh all cargo global uh in the merger de merger uh the company that's been formed. We 50:16 50 minutes, 16 seconds look at FCL and LCL which is the full container load and less than container load the loads that move on uh ships 50:24 50 minutes, 24 seconds coming in and out of ports uh internationally. So that's the company that's focused on that. 50:31 50 minutes, 31 seconds Okay. They will take that. Okay. Yeah, I just want to understand that. Okay. Thank you. Thank you. 50:43 50 minutes, 43 seconds Thank you. As there are no further questions from the participant, I hand the conference over to the Mr. Kani of closing comments. 50:54 50 minutes, 54 seconds Thank you. uh and it was a very very insightful knowledgeable 51:03 51 minutes, 3 seconds uh conference for all of us. The questions uh were really of a very high order and uh Deepak and I uh are 51:12 51 minutes, 12 seconds grateful once again for all of you all to join on the call and uh wishing you all a very very good evening. Thank you very much. 51:21 51 minutes, 21 seconds Thank you everyone. Thank you. 51:26 51 minutes, 26 seconds Thank you on behalf of All Cargo Logistics Limited. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines. 51:36 51 minutes, 36 seconds Thank you.