Gati Ltd shares slumped over 3 per cent intraday on Friday despite the company reporting 46.55 per cent rise in standalone net profit at Rs 4.88 crore for the June quarter as compared to Rs 3.33 crore for the same quarter in the previous year. The company reported 20.56 per cent rise in its consolidated net profit at Rs 9.44 crore for the quarter ended June 30, 2016 as compared to Rs 7.83 crore for the same quarter in the previous year. Total income of the company stood at Rs 428.92 crore, a rise of 2.04 per cent to for quarter under review from Rs 420.36 crore for the quarter ended June 30, 2015.
The share price of the company was trading 2.22 per cent down at Rs 165.15 at 11.24 am. The scrip has opened at Rs 171.50 and touched a high and low of Rs 173 and Rs 163.70, respectively in trade so far. Later, the share price of the company ended 2.49 per cent down at Rs 164.70.
Mahendra Agarwal, Founder & CEO said on first quarterly peformance said,”We have embarked on an ambitious mission of ramping up Gati’s operations towards delivering a million packages a day, while ensuring zero delays and zero damages. In the pursuit of the same, we have undertaken large-scale project to automate our pan-India network operations using Barcode Scans on each and every package. Such expansive technology automation is unprecedented in the Express Distribution industry in India.”
According to brokerage house Motilal Oswal the passing of GST Bill will be positive for the logistic sector and companies like Gati are expected to gain. It said,” Through the creation of a national market and eventually hub-and-spoke modeled warehousing chains, GST will create a larger market for GATI’s supply chain management solutions business. GST is also likely to lead to proliferation of ecommerce in India, creating immense revenue opportunities for GATI’s ecommerce solutions.”
Sharing excitement about the GST passage, Agarwal further said,” It will be a significant trigger for the Indian industry to migrate from legacy supply chain models designed to optimize current tax considerations, to more efficient supply chain models. For us, it is a tremendous opportunity for providing integrated supply chain solutions to address the end-to-end logistics needs of our vast customer base. We do hope that GST will Significantly ease the interstate movement of goods with reduced procedures and restrictions at state borders.”