Gati (GATI), a prominent Express Distribution and Supply Chain Management company in India, announced its unaudited financial results for the quarter ending June 2023. The Express Business, operating under Gati Express and Supply Chain (GESCPL), formerly known as Gati KWE (GKEPL), showcased positive momentum despite a strong base quarter.
Financial Highlights for Express Business:
Q1FY24 Revenue: Rs. 367 Crs (1 percent YoY growth)
Q1FY24 EBITDA: Rs. 18 Crs (8 percent YoY decline)
Q1FY24 Profit Before Tax (PBT)*: – Rs.5 Crs (*pre-exceptions, NM)
For Q1FY24, consolidated revenue declined 1 percent YoY and the EBITDA declined 3 percent YoY.
Commenting on the results Pirojshaw (Phil) Sarkari, MD and CEO of GESCPL said, “Our express business continues to deliver a resilient performance driven by positive momentum in volumes. Q1FY24 volumes were up 5 percent YoY despite a strong base quarter. The base quarter (Q1FY23) benefitted from exceptional volumes driven by industry consolidation that benefitted few players. We expect the positive sales momentum to continue in the coming months and to augment our infrastructure build-up efforts, Gati will launch its Bangalore hub in the week of August 15th.
On the technology front as well, Gati continues to take large strides. We recently signed a Lol with a large domestic IT Company to build best-in-class Gati Enterprise management System (GEMS 2.0) on a micro services platform. Continuing our sales acceleration efforts, we appointed Rajesh Gowrinath as Vice President Sales. Rajesh comes with 20+ years of experience across large logistics companies like DHL and BlueDart.
We also started a nation-wide GA training program to create an image of our Gati Associates as brand ambassador of the Company.With this background, we are happy to report a rebound in our profitability sequentially, clocking an EBITDA of Rs. 18 crores for our express business. The volume outlook appears supportive of our growth plans as we saw pickup in orders from large customers as preparations for upcoming festive season gather pace.”