Gati's bottomline decreased in Q3FY16: stock touched 52 week low

Gati recently declared its Q3FY16 results. The company's revenue declined by 1.46 per cent to Rs 418 crore in Q3FY16 as compared to same period in previous fiscal year. Its total expenditure decreased by 1.96 per cent to Rs 384 crore in Q3FY16 on a yearly basis.

Gati's EBITDA increased by 4.6 per cent to Rs 33.87 crore in Q3FY16 as compared to same period in previous financial year. The company's EBITDA margin expanded by 47 basis points to 8.11 per cent in Q3FY16 on yearly basis. However, its PBT declined by 4.37 per cent to Rs 15.77 core in Q3FY16 on a yearly basis, due to 4.76 per cent increment in interest expense and 33.08 per cent reduction in other income during the quarter. Gati's net profit too decreased by 33.95 per cent to Rs 7.67 crore in Q3FY16 as compared to same period in previous fiscal year. The company's net profit contracted by 86 basis points to 1.84 per cent in Q3FY16 on a yearly basis.

Considering segment wise revenue front, Gati earned 87.01 per cent from Express Distribution & Supply Chain segment; 10.8 per cent from Fuel segment; and remaining 2.19 per cent from others during Q3FY16.

On nine month financials, Gati's revenue increased by 0.45 per cent to Rs 1239 crore in 9MFY16 as compared to same period in previous financial year. The company's total expenditure increased by 1.62 per cent to Rs 1146 crore in 9MFY16 on a yearly basis. Its EBITDA decreased by 12.1 per cent to Rs 93 crore in 9MFY16 on a yearly basis. Gati's net profit reduced by 35.15 per cent to Rs 21.29 crore in 9MFY16 as compared to same period in previous fiscal year.

The share price of Gati declined by 7.18 per cent on bourses in early trades and is trading at Rs 111.8 on an intraday basis. The stock touched 52-week low quoting Rs 110.55 on an intraday basis on bourses.

Gati is engaged in express distribution and supply chain solutions. The company's operating segments include Express Distribution and Supply Chain, which covers integrated cargo services, such as roads, rail and air transportation; Shipping, which covers sea transportation; and Fuel Stations, which covers Fuel Stations dealing in petrol, diesel and lubricants. Gati's supply chain solution offers an integrated supply chain service to businesses across industry verticals. The company offers warehousing; international freight forwarding; express distribution services; supply chain solutions; cold chain transportation solutions; custom clearance; and e-commerce solutions. Gati serves in healthcare; engineering; automotive; and consumer durable verticals. The company operates a fleet of approximately 5000 vehicles on road; and over 3100 business partners across India.