Gati’s e-commerce division, Gati e-connect, has reported revenues of Rs 59.5 crore for the quarter ended December 31 (Q3 FY17). This was an increase of 27.8% from the same period last year. Sequentially, Gati’s e-commerce business grew 27.68% from Rs 46.6 crore. The logistics company mentioned that the volume of packages handled increased 25% year-on-year despite demonetization weighing in on cash-on-delivery shipments and a restrained peak season.
The company added that consumer-centric verticals like white goods, apparels, and electronics showed weakness during the demonetization period. Last quarter, Gati said that the government’s rules on e-commerce discounts resulted in slower growth in its e-commerce division. “The e-tailers have not been allowed to influence the prices of the product. There has been a reduction in the discount deals across e-commerce website, this has resulted in a slower growth rate in e-com shipment compared to the previous period,” Bala Agoramurthy, director and president of Gati KWE, said in a call with analysts.
Gati posted total consolidated revenues of Rs 428.1 crore for the quarter. This was an increase of 1.8 % year-on-year from Rs 417.8 crore in the same quarter last year. On a sequential basis, total revenues remained near constant from Rs 425.64 crore.
– The company posted a net profit of Rs 6.49 crore for Q3FY17, a decline of 41.37% from Rs 11.07 crore in the same quarter last year. The company attributed this to an additional amortization expense of Rs 2.94 crore due to foreign exchange loss on their foreign currency convertible bonds (FCCBs).
– The express distribution and supply chain segment reported revenues of Rs 354.4 crore, a decline of 2.5% from Rs 363.6 crore in Q3FY16. Profit before tax for the segment stood at Rs 17.84 crore, a decrease of 30.33% from Rs 25.61 crore in the same quarter last year. The segment accounted for 82.78% of the total revenues.
Browntape investment: Gati invested an undisclosed amount in online order and inventory management company Browntape. The company mentioned that it made a strategic investment in the technology company of Rs 18.50 crores. Gati said it would utilizing Browntape’s platform to develop a single window solution for customers which would integrate its logistics network.