ALLCARGO GATI

This logistics company posted a very good set of numbers for its third quarter ended 31^st March 2014 ( year ending was 30^th June). The company had an exceptionally bad last year and thus the lower base effect will always play but even sequentially, the performance has been very good, which says a lot. Its consolidated net profit for the quarter came in at Rs.12 crore compared to Rs.6 crore in previous Q3 and Rs.7 crore sequentially. What has especially perked up the market is has ended the year, with a nine month period with a net profit of Rs.23 crore, which is over two times the net profit of Rs.10 crore it had posted for year ended 30^th June 2013, which was a 12 month period.

Its main bread winner remained the Express Distribution and Supply Chain Solutions segment, which during Q3, posted a 23% (YoY) rise in revenue. EBITDA rose 67% while margins came in at 12% v/s 9% in previous Q3. The newly formed JV – which is Gati Kintetsu has started adding on as it contributed Rs.11 crore to the revenue, more importantly helped bring in 6 new clients. Its other segment, Gauri Kausar or the cold chain showed a flattish performance. Fuel sales segment continues to do well though overall, shipping showed a loss at EBIT level.