Indian logistics and delivery group Gati has reported strong growth in its fiscal first-quarterincome and net profits thanks to growth in its e-commerce and express delivery businesses.
The group achieved consolidated quarterly income of Rs 4 billion (€49 million), up 23% from thesame period last year. The company also recorded Ebitda of Rs404m, a 68% increase, year on year,increasing its margins to just over 10%.
Gati’s express and supply chain management business helped drive the increase in revenue, withthe Gati Kintetsu Express business reporting revenue growth of 17%. The group’s e-commercebusiness, E-connect, also contributed to the revenue result with a 179% year-on-year increase to Rs212m.
The improvement in Gati’s profits was helped by a combination of an increase in revenue and thedisposal of a loss-making vessel at Gati Ship, the ship-operating division, plus a reduction of thecompany’s stake in that business to 48%.
Mahendra Agarwal, founder and CEO, commented: “The boom in the E-commerce sector has brought awave of transformation in the retail space. With a wide range of services offered by Gati’sE-connect, our aim is to reach every nook and corner of the country to enhance the experience ofonline shopping.”
He continued: “The new government’s proposed investment to boost the logistics andinfrastructure sector and the re-location of Gati’s office to a new state-of-art space will act asa catalyst to uphold the quality of the processes and end results delivered by Gati.”
Gati has more than 4,500 standard road vehicles plus a fleet of refrigerated vehicles, containershipping vessels and warehousing facilities across India. The group has offices in India,Singapore, Hong Kong, China, Nepal and Thailand.
