Gati Launches Electric Vehicle for its Last Mile Deliveries
FY18 Income Crosses ? 18,000 Mn
Milestone
GATI Ltd. (NSE:
GATI) (BSE: 532345) India's leader in Express Distribution and Supply Chain
Solutions, declared its financial results for the fourth quarter and fiscal
year ended 31st March 2018.
Gati flagged off
its first environment-friendly electric vehicle for last mile delivery
operations. A pilot project is being progressed in Hyderabad
Gati registered a
FY18 revenue of ? 18,136 mn, up 6.6% over last year. The consolidated net
profit increased to ? 391 mn in FY18 up by 128% over last year.
The core business
under Gati Kintetsu Express Private Ltd (GKEPL) registered a revenue of ? 3,110
mn in Q4 FY18, up 17.2% compared to ? 2,654 in Q4 FY17. For full year FY18,
GKEPL revenue stood at ? 11,695 mn, up 5.1% from ? 11,131 in FY17. Core Surface
Express business delivered healthy double digit volume growth in the second
half of FY18 post GST stabilization, driven by strong focus on Key Enterprise
Accounts (KEAs), operational performance and customer service. Buoyed by such
growth acceleration, GKEPL is undertaking significant expansions across eight
critical logistics nodes adding close to 1 mn sqft. This will result in a
two-fold plus increase in the distribution and warehousing capacities at these
vital supply chain demand points.
The Gati balance
sheet has been significantly deleveraged, with net debt reducing from ? 4,301
mn as on March 2017 to ? 3,101 mn as on March 2018. Additionally, the company
has adopted Indian Accounting Standards (IND AS) and the transition has been
done in compliance with the same.
Overall Gati
enters FY19 with a good growth momentum and strong market economic tailwinds,
additionally supported by an enhanced product portfolio. Furthermore, E-way
bill adoption across the states in the first quarter of FY19 holds tremendous
promise for organized logistics players like Gati.
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