The market was very disappointed with Gati’s Q2FY16 performance wherein the logistics service provider posted a 16% (YoY) drop in consolidated net profit at Rs.6 crore. Lower topline – down 2% at Rs.405 crore, higher costs and interest outgo pushed down profits. EBITDA was down 17% at Rs.29 crore and margin dropped from 8.49% to 7.16%.

The performance was muted across all segments, with Express Distribution division revenue remaining sluggish at Rs. 350 crores (down by 2.5% QoQ), and Retail division revenue witnessing de-growth of 7% on sequential basis. The only immediate trigger for the company could be the passing of the GST Bill.