Patel Logistics at 20% upper circuit on tie-up with Amazon

MUMBAI: Shares of Patel Integrated Logistics were locked at 20 per cent upper circuit after the company entered into an air cargo alliance with Amazon.

Patel Logistics will be responsible only for moving goods from one airport to another. Once the products reach the respective airports, Amazon's other vendors such as Gati, Blue Dart and FedEx handle last-mile delivery.

"E-commerce offers good opportunity for logistics companies. Our alliance will give Amazon a competitive advantage. We are now gearing up for the festive season," said Areef Patel, vice chairman of Patel Logistics told ET.

Demand for next-day delivery, which Amazon started in December last year, is rising rapidly in smaller cities and towns that are not necessarily well connected. Customers will have to pay Rs 99 per order for the speedier service.

Patel Logistics reported a net profit of Rs 78 lakhs during quarter ended June 2014 against a net profit of Rs 12 lakhs in the corresponding quarter last fiscal.

Revenues in June’14 increased to Rs 148.39 crore from Rs 120.80 crore in year-ago period.

At 11:40 a.m.; the stock was at Rs 54.05, up 20 per cent, on the BSE. There were 1.38 lakh pending buy orders and no sellers in the stock.