Allcargo Terminals gains over 3% on signing MOU with Kences Container Terminal for capacity expansion

The company, in a stock exchange filing, said that it has signed a Memorandum of Understanding (MOU) with Kences Container Terminal Limited (KCTL) for operating a container freight station of the firm located in Chennai. The MoU is aimed at business and capacity expansion, Allcargo Terminals informed the stock exchanges.

The company also mentioned in the release that the capacity addition is in-line with the company’s asset light philosophy. The port service firm currently has a yard throughput capacity of 0.96 million twenty-foot equivalent unit (TEU) per Annum and has currently utilised 87% of its capacity as of May.

After the signing of the MOU the company’s capacity is expected to approximately increase by 0.06 million per annum TEUs throughput capacity which can be increased to 0.12 million per annum TEUs, according to Allcargo Terminals.

The company’s consolidated revenue from operations for the March quarter fell 1.07% to ₹181.76 crore compared to ₹183.73 crore in the corresponding quarter of the preceding fiscal. Its revenue from operations in Q4FY24 declined nearly 2% from ₹185.14 crore in the quarter ended December 2023.

Allcargo Terminals reported a 27% year-on-year drop in net profit in Q4FY24 at ₹9.22 crore compared to ₹12.59 crore in the year-ago period. Sequentially, the PAT dropped 37% from ₹14.56 crore in the quarter ended December 2023.

Shares of Allcargo Terminals closed 1.1% higher at ₹51.60 apiece on the NSE.