Gati Limited today said its consolidated net profit for the quarter ended June 30 was up by 258 per cent to Rs 18.3 crore against Rs 5.1 crore during the same quarter last fiscal.
Gati Limited today said its consolidated net profit for the quarter ended June 30 was up by 258 per cent to Rs 18.3 crore against Rs 5.1 crore during the same quarter last fiscal. The company’s revenues from operations were almost flat at Rs 426.7 crore against Rs 425.5 crore in the first quarter of FY17, according to a statement issued by the city-based logistics provider. On the business front, the company is encouraged by the growth in core B2B volumes during the quarter, its founder and CEO Mahendra Agarwal said. “Other significant developments in the quarter were related to our preparedness for the GST transition, with the law coming into effect from July 1, 2017. We are proud of having made a zero-downtime business transition to GST across all operating subsidiaries,” Agarwal said. “Customers across industry sectors, while transitioning to GST era are exploring ways to optimise their supply chains, and we at Gati are geared to help address these needs,” he said.
The company’s core surface express business has clocked a 5.6 per cent volume growth in the B2B segment with the retail segment registering 19 per cent growth, despite an industry-wide slowdown in manufacturing and movement of goods in anticipation of GST complexity, the release said. Gati issued Foreign Currency Convertible Bonds (FCCBs) in 2011 which were convertible/ redeemable by December 2016. These FCCBs have been converted and redeemed and with this conversion, the company has reduced its foreign currency debt obligation completely resulting in the reduction of overall debt of the company to Rs 390 crore, it added.