DSIJ Mindshare

Gati: Operating Margins Expand In March 2014 Quarter

Gati which is India’s leader in express distribution and supply chain solutions, declared its quarterly and annual financial results for the year ended 31st March, 2014. In Q3FY’14 (Gati has changed its financial cycle which now stands between April and March, from earlier July to June) the company’s consolidated net profit stood at Rs 13.8 crore as against Rs 7.5 crore in the corresponding quarter previous year. The total consolidated turnover stood at Rs 386.5 crore for Q3FY’14 compared to Rs 321.7 crore in the same period of last fiscal. In FY’14, the consolidated turnover of the company (9 months) stood at Rs 1127.1 crore and net profit was Rs 28.3 crore.

If we take a look at the segment wise performance, in Gati Kintetsu Express (which is a express distribution and supply chain solutions), for the quarter ended March 31st 2014, GATI-KWE revenues were up 23% at Rs 272.2 crore from Rs 220.6 crore in the corresponding quarter of last year. The EBIDTA rose to Rs 31.4 crore in Q3FY’14 from Rs 18.9 crore in Q3FY’13, up by 67%. The EBIDTA margins stood at 12% in Q3FY’14 compared to 9% in Q3FY’13. Here, the JV synergy has contributed revenue of Rs 11 crore during the quarter. The synergy has also helped acquire six new clients in the apparel, imaging, IT and pharmaceutical space.

In the Gati Kausar (Cold Chain Solutions), it clocked a turnover of Rs 11.2 crore compared to Rs 11.6 crore in the same period last year.  In Gati e-commerce, the segment has witnessed remarkable growth with the advent of e-commerce companies in retail and increase in internet penetration in Tier II and Tier III cities. Here the company launched ‘e-Pack’, a product focused on packaging solution for the e-commerce industry along with e-fulfilment centres in Delhi, Hyderabad and Chennai.

The performance of the company has been good for the quarter ended March 2014. The EBITDA Margins have improved by 200 basis points to 6.64% in March 2014.

While all other parameters are good, pledging of shares has been a major worry for the company. The data shows that 63.22% of promoters holding and 24.10% of total share holding is being pledged. However, the best part is that the pledging is consistently declining.  Like in June 2013 the pledging was 96.82% of promoters holding and 42.47% of total equity capital.

DSIJ MINDSHARE

Mkt Commentary28-Mar, 2024

Mindshare29-Mar, 2024

Multibaggers28-Mar, 2024

Interviews28-Mar, 2024

Multibaggers28-Mar, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR