Gati Limited (GATI), an Allcargo Group Company, one of India’s leading premier Express Distribution and Supply Chain Management company, has reported its unaudited financial results for the quarter ended September 30, 2022.
Financial Highlights for Express Business – Q2FY23 & H1FY23
Particulars (in ₹ Crs) | Q2FY23 | Q2FY22 | Y-o-Y | H1FY23 | H1FY22 | Y-o-Y |
Revenue | 370 | 334 | 10.8% | 734 | 571 | 28.7% |
EBITDA | 27 | 17 | 57.8% | 52 | 17 | 214.8% |
Profit Before Tax (PBT) | 6 | 5 | 11.9% | 11 | -7 | LP |
Commenting on the results Mr. Pirojshaw (Phil) Sarkari, Chief Executive Officer of Gati Limited said: “The performance for Q2 FY23 is as per our expectations and reflects the focus on execution across the organisation in line with our articulated strategy. Express business revenues for H1FY23 stood at ₹ 734 Crores registering a growth of 29%. The gross margin expansion remains on track. We have been able to deliver positive bottom line for the second consecutive quarter and are optimistic of increasing the margins going forward. This growth & efficiency is a result of conscious efforts taken to increase our market share, reduce costs & increasing operational efficiencies across the organisation.
Despite Economic challenges posed by higher crude prices, rise in commodity prices, overall inflation, The second quarter of the 2023 fiscal year was buoyed by robust demand, supported by expansion in the key industrial sectors and driven by an increase in consumption in both urban and rural India. With Government Initiatives such as National Logistics Policy and PM Gati Shakti we believe that the formalization of the logistics industry is under way and there is a huge opportunity for organised players as the industry will see an accelerated shift from the unorganised sector to the organised sector. Gati would want to be an enabling player to achieve $5 trillion economy. Gati is exclusively empanelled with SME chamber of India as their preferred knowledge logistics partners.
Our strategy for delivering such performance remain consistent and relies on our pillars of digitization, sales acceleration, infrastructure, operations, and expanding the talent pool. We expect to see uptake in our existing customer accounts as well as new customer addition. We anticipate that the current strong performance of all our business segments will be sustained in the coming years, allowing us to report a strong growth in short to medium term. We continue to look for new opportunities and improved focus on customer delight.