Gati Limited (GATI) one of India’s leading premier Express Distribution and Supply Chain Management company, has reported its unaudited financial results for the quarter ended March 31, 2023.
Financial Highlights for Express Business – Q4FY23 & FY23
|Particulars (in ₹ Crs)||Q4FY23||Q4FY22||Y-o-Y||FY23||FY22||Y-o-Y|
|Profit Before Tax (PBT)*||-10||-6||NM||2||-8||NM|
For Q4FY23, Fuel stations revenue grew by 8.7% Y-o-Y, for FY23 the growth stood at 11.5% Y-o-Y.
Commenting on the results Mr. Pirojshaw (Phil) Sarkari, Chief Executive Officer of Gati Limited said:
“The company has recorded a revenue of ₹1,469 Crores in FY23 for the express business, witnessing a growth of 18% as compared to the last year. This performance reflects company’s focus on volume growth and operational efficiency. The year saw Gati launching its mega surface transhipment hub at Bhiwandi (Mumbai), in addition to hubs at Nagpur and Guwahati. The Mumbai hub is spread over 1.15 lac square feet with 61 bays and dock leveler. We also saw 100% implementation of digital e-dockets for retail clients and have started a pilot for MSMEs. The gross margin expansion remains on track, witnessing an improvement of 133bps over last year. In the next phase of infrastructure development, we’ll be setting up four surface transhipment hubs in Bengaluru, Hyderabad, Indore and Kolkata.”
The quarter gone by saw weakness in initial months followed by a very strong March. However, overall weakness in consumer durables and automobile sector, notwithstanding the unseasonal rains dampened the sentiment a bit. Despite tough economic scenario, the company has been able to maintain its performance. Our strategy for delivering such performance remains consistent and relies on our pillars of digitalization, sales acceleration, infrastructure, and operational excellence. We mandated GPS in all Linehaul & Feeder vehicles, to enhance visibility, improve performance & optimized productivity via continuous monitoring. The Company also improvised on dashboard designs to enable real time data visibility and KPI monitoring. Gati aims to enhance customer experience and operational excellence on front-end digitalization that include CRM system for managing customer relationships, sales acceleration with cluster-based approach, data science and digital payments.
We anticipate improvement in our performance in the coming quarters as we continue our journey of customer acquisition and infrastructure amplification. The management aims to launch five more hubs in the coming years that will help improve volumes through enhanced automation, better load factor and productivity per head. We also remain committed to our ESG journey and aim to convert entire delivery fleet to electric vehicles/alternate fuel by 2025. During the year, we achieved the milestone of plying 100+ electric vehicles (EVs) across India. We also signed an MOU with Gentari Mobility (Petronas Group) for 500 EVs under VaaS (Vehicle as a Service) model.