Logistics company Gati said in its earnings call that its e-commerce revenues contributed 35% of its standalone business, which stood at Rs 110.8 crore, for the quarter ended December 31, 2017 (Q3 FY18). (As per our calculation, e-commerce revenue stood at around Rs 38.8 crore, as Gati reported standalone operating revenue of Rs 110.8 crore). Our previous coverage of Gati's earnings has shown that its e-commerce revenue has been declining over the past few quarters. In the preceding quarter, Gati’s e-commerce revenues stood at Rs 37.5 crore. While Gati did not share information on e-commerce business this quarter. This is in stark contrast to the situation a couple of years ago. For context, the e-commerce division in Gati was its fastest growing segment in FY 2015-16 and it had revenues of Rs 207.8 crore for the year, growing 63.1% from the previous year’s Rs 127.4 crore. Bala Aghoramurthy, Deputy Managing Director, Gati Kintetsu Express Limited said in the analyst call that this year Q3 did not have the festival season built into it, the festival season in this 2017 year was spread between September and October and this Q3 is not directly head to head comparable with last Q3, etc. "Having said that we do not expect the business to go down any lower, but I must say our bigger interest is not about the topline on e-commerce, our bigger interest is on the bottomline, so our efforts are more directed towards what mix of the e-commerce business and gave us better bottomline. We are less worried on the…
