Gati posts INR 6.5 cr net profit
Gati Limited has posted a lower net profit of INR 6.49 crore for the third quarter ended December 31, 2016 against a net profit of INR 11.07 crore in the corresponding quarter on a consolidated basis.
Total income from operations for the express distribution and supply chain solutions company was up at INR 424.87 crore for the December quarter against INR 417.8 crore in the same period last year.
While the revenue was up 1.8%, the net profit was down 41% due to additional amortisation expense of INR 2.94 crore due to foreign exchange loss on restatement of FCCB. The company stated that the performance reflects the challenging external environment.
Consumer-centric industry verticals like white goods, apparels and electronics showed a temporary weakness immediately following demonetisation.
For the nine months ended December 31, 2016, the consolidated revenue was INR 1,276 crore against INR 1,238.98 crore in the corresponding period last year.
Mahendra Agarwal, Founder & CEO, in a statement said, “In light of the recent subdued business environment following demonetisation, it has been a challenging quarter with modest performance.”
“Looking into the future, initiatives envisaged under the Union Budget and implementation of GST augurs well for our company,” he said.
While Gati Kintetsu Express Private Limited registered a total income of INR 276.7 crore in Q3, Gati’s E-connect division clocked a revenue of INR 59.5 crore. The E-connect package volumes grew over 25% on year-over-year despite a restrained e-commerce peak season and demonetisation impact on cash-on-delivery shipments.
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