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Almost 67% of Gati’s ecommerce business orders are Cash On Delivery

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(By Archana Sharma and Shashidhar KJ)

Close to 67% of Gati’s ecommerce orders are paid with cash on delivery, Gati’s director of finance Sanjeev Jain said during a call with analysts. The Hyderabad-based logistics company also said that its e-fulfillment business, i.e. shipping and packaging orders for ecommerce firms, saw about 16,000 orders per day in between January and March 2016 (Q4 FY16).

“Actually in the volumes of the e-fulfillment centres (EFC), there was a slight dip over last quarter because last quarter was what you call the festival season where we were doing kind of 3x of our capacity during that period so, this quarter we did about 16,000 packages a day,” Dhruv Agarwal, EVP of Gati-Kintetsu said.

He added that during Flipkart’s Big Billion sale, the company was processing close to 45,000 to 50,000 orders per day across the country.

Gati’s e-fulfillment centres have a capacity to process 72,000 orders per day.

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Gati’s Numbers:

  • 67% of the orders were cash on delivery in Q4-FY16
  • Ecommerce revenues in Q4-FY16 were Rs 63 crore
  • 16000 packages per day shipped
  • During Flipkart’s big billion sale: 45,000-50,000 per day
  • Ecommerce business was Rs 232 crore for the year, of which E-fulfillment centres business was Rs 25 crore

Change in shipping weight mix contributed to ecommerce business

During the quarter ended March 2016, Gati’s revenue from ecommerce logistics grew 52% year-on-year  to Rs 63 crore. The company partially attributed the high growth to the change in weight mix of the packages processed.

“Actually 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,” Agrawal explained.

Other factors which contributed to the revenue growth were value added services, focus on deals with sellers directly and fleet optimization.

**

Financials

Gati announced a 52% Year-on-Year growth of the e-commerce logistics division, Gati e-connect, with revenue more than Rs 60 crore in the quarter ended 31st March, 2016 (Q4 FY16)

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  • The company posted consolidated net profit of Rs 15.54 crore for Q4 FY16, in comparison to Rs 11.34 crore from the previous Q4 FY15.
  • Consolidated Revenue of Rs 433.3 crore in Q4 FY16, up by 3.1 % over Q4 FY15
  • EBITDA at Rs 43.1 crore in Q4 FY16, up by 11.8% over Q4 FY15
  • EBITDA margin improved 140 bps (base points) or 1.4% over Q3 FY16
  • Net Profit after tax at Rs 15.5 crore in Q4 FY16, up 37.1% over Q4 FY15

Other Highlights

For the year revenue in e-commerce (ECOM) crossed Rs 200 crore and e-fulfillment centres (EFC) business grew from Rs 6 crore to Rs 25 crore Year-on- Year. Overall EFC and ECOM revenue over Rs 232 crore compared to Rs 130 crore in FY14-15

In the matter of Air India case, an interim amount of Rs 22.5 Crores has been made over to the company as per Delhi High Court Order.

Download: Financials | Presentation | Transcript 

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