GATI back in black; stock rallies 7% on strong Q1 results

NEW DELHI: GATI rallied 7 per cent in morning trade on Thursday, a day after the logistics and express distribution company reported a net profit Rs 4.6 crore in the September quarter, as against a loss of Rs 7.8 crore in the year-ago period.

At 09:25 a.m.; GATI pared some of the morning gains but was trading 1 per cent higher at Rs 32.20. It has hit a low of Rs 31.90 and a high of Rs 34 in trade today.

Consolidated revenue rose 22 per cent to Rs 366.9 crore from Rs 302 crore in the same period last fiscal, a company release said today.

The Hyderabad-based company said its subsidiary Gati Kintetsu Express' revenues rose 20 per cent to Rs 250.7 crore, while revenue from e-commerce grew 155 per cent, from Rs 4.5 crore to Rs 10.5 crore, in the July-September period.

Gati Kausar, the group firm that provides cold chain solutions, is planning to enter the cold storage business, the company said in a statement.

“The company will focus on organised retail, including food chains, pharma and dairy products. It plans to have a fleet of 300 reefer vehicles by June next year, against 215 at present,” added the statement.