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Logistics company Gati has posted total consolidated revenues of Rs 425.54 crore for the quarter ended 30 June 2016 (Q1FY17). This was an increase of 2.2% year-on-year from Rs 416.24 crore in the same quarter last year. On a sequential basis, total revenues decreased 0.5% from Rs 428.04 crore.

Note for the current quarter, Gati has not disclosed revenues from its ecommerce division, Gati e-connect. The company’s ecommerce business had posted revenues of Rs 63 crore in the preceding quarter. At the time Dhruv Agarwal, EVP of Gati-Kintetsu said that “over the last couple of quarters we also shifted our focus to look at the lower weight categories. Beginning of this year we were doing 60% above 2 kg, 40% less than two kg and now at the end of this year we have kind of change that and doing 60% in less than 2 kg category and 40% in above 2 kg.”

Financials:

– The company posted a net profit of Rs 11.81 crore for Q1FY17, an increase of 19.5% from Rs 9.88 crore in the same quarter last year.

– The express distribution and supply chain segment reported revenues of Rs 363.19 crore, an increase of 1% from Rs 358.8 crore in Q1FY16. Profit before tax for the segment stood at Rs 24.7 crore, a minor increase of 2.5% from Rs 24.1 crore in the same quarter last year. The segment accounted for 85.34% of the total revenues.

Other developments:

– The company is awaiting clarification from the Reserve Bank of India on  matters pertaining to foreign currency convertible bonds (FCCBs) issued by the company. In the meanwhile, the trustee of the bond holders has filed a civil suit in the Secunderabad Court for specific performance, which the company is contesting. In the third quarter of FY15, the company said that it was looking to raise Rs 120 crore to expand its e-commerce business via FCCBs.

– Note that the Delhi High Court had last year pronounced an order in favour of the company in a case against Air India and upheld the award of Arbitral Tribunal. Under this award, Gati is entitled to receive around Rs 26 crore from Air India. As of now, the company mentions that Air India has paid an amount of Rs 22 crore to the company.

– A demand of Rs 51.13 crores has been raised by the Income Tax Department on certain other disallowance/additions, all of which are being contested in appeal before the Commissioner (Appeals). The company has paid Rs 12.60 crores under protest and treated the amount as recoverable, pending disposal of the said appeal

Annual report:

Gati’s ecommerce revenues for the year ended March 2016 stood at Rs 207.8 crore, growing 63.1% from the previous year’s Rs 127.4 crore. The company mentioned in its annual report that this is currently their fastest growing segment and the number of packages handled has grown in excess of 70% compared with last year.

Download: Results

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