
AVG Logistics Ltd Q3 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 1
Fundraise
N/A
Order
N/A
Capex
Yes
2 of 3 growth signals are positive.
Full analysisRevenue guidance
Category 2- Target to grow revenue from ₹500 crore in FY24 to ₹700 crore by March 2025, indicating a 40% increase.
- Expected 20% year-on-year business growth, driven by both organic expansion and new contracts.
- Rail logistics business projected to grow from ₹120 crore to ₹500 crore in the next 3 to 4 years.
- Cold chain business targeted to expand by 30% by March 2025.
- Packers and Movers segment anticipated to contribute around ₹35 crore by March 2025 with 25%-30% EBITDA margin.
- Increasing the number of key clients by adding 10 clients contributing ₹10 crore/month each to increase ₹100 crore revenue.
- Incremental business expected to maintain or improve EBITDA margins around 18%-25%.
- Focus on asset-light leasing model to support fleet expansion without large capital expenditure.
- Overall volume growth supported by multimodal logistics, including rail, road, warehousing, and cold chain services.
See what AVG Logistics Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
See what AVG Logistics Ltd management said on order book — free account, 30 seconds.
Capex plans
Yes- AVG Logistics is planning to take land from the government to build cold storage warehouses.
- Estimated land cost is around ₹1.50 to 2 crore per acre.
- Construction cost for cold chain warehouse is around ₹4,000 per sq ft, but with government subsidy of 35%, effective cost is ₹2,500 to ₹2,800 per sq ft.
- The cold warehousing size targeted is about 10,000 sq ft or 2,000 pallets per warehouse.
- Plan to develop 3-4 cold warehouses immediately to capitalize on government subsidy before it is withdrawn.
- Focus on expanding cold chain business—currently 15%-16% of revenue—with a target to increase revenue by 30% by March 2025.
- The company is also investing in expanding its reefer fleet, targeting 400 vehicles by December 2024.
- Long-term lease contracts in rail logistics considered strategic investments, with plans to increase rail business from ₹120 crore to ₹500 crore in next 3-4 years.
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What AVG Logistics Ltd's management said in earlier quarters
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