Logistics company Gati has posted total consolidated revenues of Rs 425.64 crore for the quarter ended 30 September 2016 (Q2FY17). This was an increase of 5% year-on-year from Rs 404.94 crore in the same quarter last year. On a sequential basis, total revenues remained near constant from Rs 425.54 crore.
Gati’s revenues from its ecommerce division Gati e-connect stood at Rs 46.6 crore, a growth of 3.3% year on year. The company mentions the volume of packages handled increased 21% YoY with significantly higher contributions from the smaller weight segments. The company also said it has commissioned a fully-automated package sorting facility in the North region.
– The company posted a net profit of Rs 8.36 crore for Q2FY17, an increase of 1.2% from Rs 8.26 crore in the same quarter last year.
– The express distribution and supply chain segment reported revenues of Rs 361.64 crore, an increase of 3.2% from Rs 350.45 crore in Q2FY16. Profit before tax for the segment stood at Rs 20.30 crore, a decrease of 5.6% from Rs 21.51 crore in the same quarter last year. The segment accounted for 84.96% of the total revenues.
Browntape investment: Earlier today we reported that Gati invested an undisclosed amount in online order and inventory management company Browntape. Interestingly, the company mentions that it decided to make a “strategic investment in a technology company of Rs 18.50 crores to facilitate long term growth of business.” Gati will be utilizing Browntape’s platform to develop a single window solution for customers which will integrate its logistics network.
– 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.
– 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.
– A demand of Rs 51.13 crores was raised by the Income Tax Department on certain other disallowance/additions, which the company contested with an order being passed in favour of Gati. The company, which had paid Rs 12.60 crores, will now be refunded for the amount.