Home / Companies / Gati profit up 60% to Rs14 crore in December quarter

Hyderabad: Rising e-commerce deliveries helped boost net profit of logistics provider Gati Ltd by 60% to 14 crore during the third quarter of current fiscal.

Revenue rose 15.6% to 428 crore as sales from e-commerce deliveries almost tripled. The company’s e-commerce division, Gati E-connect garnered 41.7 crore in revenue compared with 14.6 crore in December quarter last fiscal.

“In the e-commerce segment, we continue to perform extremely well and remain confident of sustaining these high growth levels in the coming quarters as well," Mahendra Agarwal, Gati’s founder and chief executive officer said in a statement.

The company is investing in its e-commerce division by using tablet devices for maintaining delivery and pick-up schedules, and for inventory management. Gati has also created quality check centres to improve quality standards for the growing “reverse logistics" that cater to the return shipments, according to the company.

The company is also expanding its cold chain infrastructure by adding vehicles to its fleet and building cold warehouses across the country, as it prepares to position itself as an end-to-end cold chain service provider in the country. Its cold chain solutions division, Gati Kausar added 20 refrigerated vehicles to its fleet during the December quarter.

The company informed the exchanges that it received board approval to raise 120 crore by issuing securities, subject to regulatory approval.

Bulk of its revenue during the quarter came from its express distribution and supply chain solutions arm, Gati Kintetsu Express Pvt. Ltd, accounting for 284 crore.

Gati’s stock rose 0.15% to 275.20 on BSE at 1.24pm on Tuesday while the benchmark Sensex gained 0.27% to 29,356.48 points.

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