Gati's Net Profit tanks by 35.34 per cent in the June 2015 quarter

Gati declared financial results of June 2015 quarter. The company's total income from operations increased by 4.68 per cent amounting to Rs 416.24 crore in Q1FY16 as compared to same period in previous financial year. Its total expenditure increased by 7.59 per cent to Rs 386.38 crore in Q1FY16 on yearly basis. Gati's total expenditure increased predominantly due to a 4.49 per cent increment in operating expenses and 37.20 per cent increment in employee cost.

Gati's EBITDA declined by 22.44 per cent to Rs 29.86 crore in Q1FY16 compared to same period in previous fiscal year. According to the projected growth plans, the company made investment in people,network and technology lead to increase higher cost. Therefore its EBITDA margin contracted by 251 basis points to 7.17 per cent in Q1FY16 on yearly basis. EBIT of Gati decreased by 33.5 per cent to Rs 20.88 crore in Q1FY16 on yearly basis as depreciation expense increased by 26.48 per cent to Rs 8.98 crore during the quarter. The company's PBT decreased by 42.36 per cent to Rs 13.65 crore in Q1FY16 as compared to same period in previous financial year though its other income increased by 67.48 per cent to Rs 4.12 crore during the quarter. Its net profit declined by 35.34 per cent to Rs 7.83 crore in Q1FY16 on a yearly basis though its tax expenses reduced by 52.99 per cent to Rs 3.77 crore.Gati's net profit margin contracted by 117 basis points to 1.88 per cent in Q1FY16 on yearly basis.

Considering the segment wise revenue Gati earned about 86.18 per cent from Express Distribution and Supply Chain segment, a 12.06 per cent from Fuel Station segment and the remaining 1.76 per cent from others segment during June 2015 quarter. Gati e-Connect and e-Commerce logistic witnessed 8th straight quarter increment and posted total income of Rs 45 crore in Q1FY16. The company is expanding its capabilities to deliver 90000 packages every day from 40000 packages now.

Gati has business of express distribution and supply chain solutions. The company's supply chain solution offers an integrated supply chain service to businesses across industry verticals. It offers warehousing, international freight forwarding, express distribution services, supply chain solutions, cold chain transportation solutions, custom clearance and e-commerce solutions. Gati serves in healthcare, engineering, automotive and consumer durable industry. The company operates a fleet of approximately 5,000 vehicles on road and over 3,100 business partners across India. It delivers 2.6 lakh packages every day across 672 of 674 districts in India. The company is market leader in India and has strong market presence in Asia Pacific region and SAARC countries with offices in India, Singapore, China, Nepal and Thailand.