Gati Posts 32% Fall in Q1 Profit

Gati Posts 32% Fall in Q1 Profit
New Delhi: Gati Ltd on Thursday reported a 31.9 per cent drop in consolidated net profit at Rs 7.83 crore for the quarter ended June 30, 2015.

The logistics services provider had posted a net profit of Rs 11.50 crore for the corresponding period a year ago, it said in a regulatory filing.

However, total income increased to Rs 416.24 crore during the quarter under review, as against Rs 397.02 crore in the year-ago period.

Total expenditure increased to Rs 395.36 crore, as against Rs 366.23 crore in the year-ago period.

Commenting on the company's quarterly performance, founder and CEO Mahendra Agarwal said, "In the months ahead, our economy is poised for an upward momentum due to the infrastructure push by the government, and the positive signals emanating from the businesses across sectors."

"Riding on the positive trend, the logistics industry, being the backbone of our economy, will see greater acceleration in growth, as the year unfolds. Gati will continue to invest ahead in its network, people and systems to serve its large, and growing, customer franchise."

The company further said Gati e-Connect, the e-commerce logistics services for e-tailing companies, has widened its customer base by adding new e-Commerce, as well as m-commerce players.

To sustain such growth momentum, and in preparation for the upcoming festive shopping season, the company has geared itself to expand its capabilities to deliver 90,000 packages every day, up from 40,000 packages now.

Shares in Gati, on Thursday, ended 4.57 per cent higher at Rs 197.90 apiece on the BSE.
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