Supply chain and logistics provider Gati is raising Rs 120 crore to expand its e-commerce business, Gati’s chief financial officer Sanjeev Jain told Press Trust of India. Jain also said that the money will be used to settle the company’s foreign currency convertible debentures (FCCBs).
The company had got board approval to raise this investment by issuing securities to Indian or foreign investors, qualified institutional buyers, foreign institutional investors, and venture capital funds yesterday.
E-commerce business for Q3 Fy15
Meanwhile for the quarter ended December 31, Gati ‘s e-commerce division, Gati e-connect, posted revenues of Rs 41.7 crore from Rs 14.6 crore in the same quarter last year, an increase of 185% y-o-y. In the quarter, Gati e-connect said that it has created centers for consolidation of shipments. The company also said that it has been strengthening its quality standards and increasing centers for the growing “reverse logistics” that cater to return shipments.
In a conference call in May, Gati said it plans to invest Rs 5-7 crore in IT for the ecommerce. The company says that it has started to using electronic tablets for maintaining delivery and pick up updates.
– The company posted a net profit of Rs 14 crore from Rs 8.7 crore in the same quarter last year, an prfit rise of 60% y-o-y.
– Consolidated revenue grew by 15% to Rs 428 crore in the quarter, from Rs 374 crore in the corresponding quarter last year.
– The express distribution and supply chain solutions, GATI-KWE’s revenues stood at Rs 284 crore showing year on year growth of 9%.
– Gati Kausar, the company’s cold storage division, clocked revenues at Rs 11.8 crore in Q3 FY15 and increased 25% over the preceding quarter. The division has added 20 vehicles to its fleet and is developing its cold warehouses across India.