Gati Shares Fall 8% After Weak Q2 Earnings

Gati Shares Fall 8% After Weak Q2 Earnings
Gati shares declined nearly 8 per cent on Tuesday after the company posted weak earnings for the July-September quarter due to lower income and higher employee cost.

The logistics services provider reported a 16 per cent decline in net profit at Rs 5.8 crore for the fiscal second quarter that ended September 30, 2015. The company had registered a net profit of Rs 6.9 crore for the corresponding period a year ago.

Total income from operations dropped 1.7 per cent to Rs 405 crore, as against Rs 412 crore a year ago.

Employee benefit expenses - up nearly 16 per cent - were at Rs 44 crore as against Rs 38 crore in the year-ago period. Meanwhile, expenses related to depreciation were at Rs 9.76 crore as compared to Rs 7.60 in the corresponding quarter last year.

As of 13:37 p.m., shares in Gati Ltd were trading 7 per cent lower at Rs 151.80 apiece on the BSE, whose benchmark Sensex index was down 0.2 per cent.

Hyderabad-based Gati offers integrated express distribution and customized supply chain solutions to customers across diverse industry verticals.
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