ALLCARGO GATI

Logistics company, Gati, for Q2FY15, the company posted a huge 117% (YoY) jump in consolidated net profit at Rs.12 crore on a 13% rise in revenue at Rs.415 crore. EBITDA was up 34% at Rs.29 crore. The lower base effect and operational performance with cost ratinalisation helped post these numbers.

In terms of segment-wise breakup, this is the quarter from when see numbers without contribution from Shipping, which was as such a loss making segment. After selling 40% stake to Hyderabad based private sector company and another 12% stake to Harvy Comtrade, its 48% stake is now transferred to a subsidiary. It operates only one ship, running on the west coast between Mundra and Cochin. Its mainfray remains Express Distribution and Supply Chain, contributing 83% to total income and in current Q2, its revenue rose 17% while EBIT was up 36%. Its other segment, Fuel sales contributes 13% to topline and it grew 12% in terms of revenue and EBIT growth was flat. Thus performance was led mainly by Express distribution. With e-commerce picking up steam, this one segment for Gati could turn into a mulch cow.

The company now delivers over 6 million packages per month across 667 districts in India. The key highlight for the company this quarter is Gati Kausar India Ltd., the cold chain arm, raising Rs.150 crore from funds managed by Mandala Capital. Out of the 150 crore, Rs.30 crore has been invested in the form of Equity shares and Compulsory Convertible Preferential shares (CCPS) and the remaining INR 120 crore shall be invested in the form of Non-Convertible Bonds (NCB).The funds raised by Gati Kausar will be utilised primarily for building a network of cold warehouses across the country over the next three years thus enabling the company to offer integrated cold chain.