Indian road trucking and logistics company Gati saw profits drop heavily in the year ending June30, 2009, partly due to losses from its discontinued air freighter operation.
The company increased its consolidated group revenues by 8.3% to Rs 8 billion (€116 million)but operating profits declined by 34% to Rs 358 million (€5.2 million). The dominant road expressand supply chain business, accounting for about 73% of turnover, increased revenues by 9.9% to Rs5.8 billion (€84.1 million) but its operating profit slumped 71% to Rs 175 million (€2.5 million).
The air freighter business, which was abandoned earlier this year, made a Rs 183 million(€2.6 million) loss during the financial year, the company said in its financial results statement.
Gati terminated its wet-lease agreement with Air India/Indian Airlines for five B737freighters in March 2009. It had launched air express services in November 2007 at a time when theIndian express market was booming.
The company ended the year with a net loss of Rs 187 million (€2.7 million) compared to lastyear’s net profit of 198 million (€2.9 million), largely due to the freighter losses and also heavyinterest payments.
