Gati, a distribution and supply chain management company reported a 90.0 per cent year-on-year (YoY) decline in its Profit Before Tax (PBT) at Rs 0.5 crore in the quarter ended on 31 December 2022, compared to the last year in the same quarter at Rs 5 crore.
However, the company’s revenue increased by 7.3 per cent YoY at Rs 379 crore, compared to the last year at Rs 353 crore.
Gati’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also increased in comparison to the previous year by 28.5 per cent YoY at Rs 20 crore.
“The company has recorded the highest ever quarterly revenue for Q3 FY23 which stands at Rs 379 Crores. This performance reflects companies’ focus on customer delight and Operational efficiency. Express business revenues for 9MFY23 stood at Rs 1,114 Crores registering a growth of 20.7 per cent as compared to last year,” said Pirojshaw (Phil) Sarkari, Chief Executive Officer of Gati.
He said that the gross margin expansion remains on track. This growth is on the backdrop of infrastructure amplification, digitisation and sales acceleration initiatives upon which the company has embarked.
“In the next phase of infrastructure development, we’ll be setting up four surface transhipment hubs in Bengaluru, Hyderabad, Indore and Kolkata,” he added.
Despite a tough economic scenario the company has been able to maintain its performance. Logistics sector is poised for exciting times ahead given its pivotal role in sustaining GDP growth. The government too, recognises this and has increased its focus capital expenditure for development of rail and road infrastructure, said the company’s regulatory filing.
The push to multi-modal connectivity and supply chain development with increased focus on technology and digital enhancement will have multifaceted impacts on the industry. The Urban Investment Development Fund will enhance connectivity and provide faster transportation in tier-2 and tier-3 cities. Government incentives along with improved consumer sentiments will lead the nation on the path of sustainable growth, it added.
Gati has launched strategically located state-of-the-art and tech-enabled surface transhipment centre (STC) in Nagpur recently, with this now we have four operational hubs in Mumbai, Farukhnagar and Guwahati. Keeping an eye on improving the cost, the company has launched over 20 EV’s for first mile and last delivery, as per the company’s regulatory filing.