Gati’s profitability glitters in Q4FY16

Gati declared its Q4FY16 results on April 27. The company’s consolidated revenue has increased by 2.91 per cent to Rs 428 crore in Q4FY16 as compared to same period in previous fiscal year. Its EBITDA also has risen by 10.9 per cent to Rs 37.86 crore in Q4FY16 on a yearly basis. Gati’s interest expense has declined by 20.11 per cent to Rs 8.98 crore and other income has increased by 18.68 per cent to Rs 5.21 crore in Q4FY16 on a yearly basis. The company’s net profit has increased by 37.04 per cent to Rs 15.54 crore in Q4FY16 as compared to same period in previous financial year.

On a yearly basis, Gati’s top line has increased by 6.28 per cent to Rs 9969 crore in FY16 as compared to previous fiscal year. The company’s EBITDA also has risen by 14.38 per cent to Rs 4145 crore in FY16 on a yearly basis. Its EBITDA margin has expanded by 295 basis points to 41.58 per cent in FY16 as compared to same period in previous fiscal year. Gati’s net profit has increased by 3.41 per cent to Rs 1446 crore in FY16 on a yearly basis. However, the company’s net profit margin has contracted by 39 basis points to 14 per cent in FY16 as compared to previous fiscal year.

On segmental revenue front, Gati earned 86.64 per cent from Express Distribution & Supply Chain segment; 12.23 per cent from Fuel sales segment; and remaining 2.13 per cent other segment in FY16.

The share price of Gati increased by 3.71 per cent on bourses in early trades; and is trading at Rs 121.9 on an intraday basis.

Gati is in the business of express distribution and supply chain solutions. The company offers technology-enabled services on the foundation of web-based Gati Enterprise Management Services (GEMS). It serves in healthcare, engineering, automotive and consumer durable industry. Gati operates a fleet of approximately 5000 vehicles on road and over 3100 business partners across India.