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Gati hits lower circuit after dismal Q1 numbers

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Capital Market
Last Updated : Aug 05 2019 | 3:16 PM IST

Gati was a locked in a lower circuit limit of 20% at Rs 40.9 on BSE at 14:30 IST on the BSE after consolidated net profit declined 85.8% to Rs 0.72 crore on 0.5% rise in net sales to Rs 458.06 crore in Q1 June 2019 over Q1 June 2018.

The result was announced after market hours on Friday, 2 August 2019.

Meanwhile, the S&P BSE Sensex was down by 486.39 points or 1.31% at 36,631.76.

On the BSE, 2.24 lakh shares were traded in the counter so far compared with average daily volumes of 74000 shares in the past two weeks. The stock had hit a high of Rs 49.05 so far during the day. The stock hit a low of Rs 40.9 in intraday trade, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 114.5 on 3 August 2018.

Commenting on the company's quarterly performance, Mahendra Agarwal, founder & CEO said, The Q1 GDP growth has reportedly slowed to a 5 Year low. Some of our key customer verticals namely Automobile & Ancillaries, Healthcare & Pharma, Electronics, Heavy Engineering, Ecommerce & Telecom among others demonstrated a sluggish growth and even a de-growth in Q1 FY20 resulting in a direct impact on the revenue of the Gati. Going forward we have a clear focus for gaining customer wallet share by demonstrating superior service and our strong end-to-end logistics capabilities.

Gati is engaged in the express distribution and supply chain solutions in India. The business of the company is movement of the cargo from one place to another using multimodal transport models.

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First Published: Aug 05 2019 | 2:47 PM IST

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