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i-maritime News Service

Gati's Q3 profit zooms 124%, despite drag in shipping biz - 2012-05-14


Despite the continuing drag in its shipping business, supply chain solutions provider Gati Ltd has clocked a 124 per cent rise in its net profit for the quarter ended March 31, 2012. Its net profit touched Rs 8.05 crore, as against Rs 3.6 crore in the year ago period. Its income during this period was Rs 210.65 (Rs 228.69).

The increase in profit was largely contributed by a profit on sale of land of Rs 7.26 crore during the quarter. It has a more positive outlook for 2012-13, as its new joint venture with Japan's Kintetsu World Express (KWE) is expected to contribute to its bottomline.

“The slowdown in the economy has become a major challenge.

“While our revenues show a modest growth, we believe that the express distribution business will grow significantly above the industry average (after the KWE partnership),” Mr Mahendra Agarwal, Chief Executive Officer of the company, said.

The shipping division continued to incur losses, dampening the overall financials of the company. This division registered a de-growth and the losses (excluding the exceptional item) stood at Rs 27 crore year-on-year for the nine months ended March 31, as against a Rs 10.5-crore loss in the year-ago period. The new joint venture, Gati-Kintetsu Express Pvt Ltd, which is expected to get the FIPB nod, expects to emerge as a major player in the domestic express distribution business.

“We had a team from Kintetsu visiting India last week.

“We discussed the roadmap for the joint venture, the branding strategy and the joint marketing approach.

“We will benefit by getting access to a large base of potential KWE customers who have operations in India,” the new President of Gati-Kintetsu, Ms Chitra Shinde, told Business Line.

Source : Hindu Business Line