The board of Gati Ltd., a leader in Express Distribution and Supply Chain Solutions, today announced the annual financial results for the year ended 30th June 2011.
FY-2010-11 Consolidated Results
The company posted a total income of Rs 1,209.4 crore for the financial year 2010-11 as compared to total income of Rs 933.5 crore of the previous year, thereby registering a growth of 30% in revenue. EBITDA grew by 13% at Rs 98.9 crore as compared to Rs 87.5 crore of the previous year. The Profit After Tax rose by 49% at Rs 14 crore as compared to Rs 9.5 crore of the previous year.
Consolidated Financial Highlights
· Consolidated FY-2010-11 Revenue up by 30%
· Consolidated FY-2010-11 EBITA up by 13%
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· Consolidated FY-2010-11 PAT up by 49%
Operational Highlights
Gati Express Distribution
During the year ended 30th June 2011, Gati Express Distribution division has registered an impressive growth of 24% in its income at Rs 814.2 crore as against Rs 658 crore in the previous year which is higher than the industry growth in the verticals it operates. The EBITDA rose by 14% at Rs 81 crore as against Rs 71.2 crore registered for the previous year.
The Express Distribution has surpassed its previous record of handling 43 million packages to 55 million packages in the year 2010-11. The division has continued to provide an extensive road, air and rail network services to its clients. Gati operates 51 parcel trains per months. Railway utilisation has been increased by 39% over the previous year by increasing the number of leased Parcel trains. In the year 2010-11 the rail movement share was increased from 13% to 19%.
Always ahead in meeting with the market demands Gati has expanded its service offering in the areas of ecommerce, teleshopping and providing 3PL solutions for multi brand retail. Gati has embarked on another major milestone that will set a benchmark in the industry – Launch of the Go-To-Market strategic initiative. The new Express Distribution Service launched under Go To Market strategy will offer multiple service options based on time or price sensitivity and customised logistics solutions to meet the varying logistic needs of the customer.
Gati RedSun – Supply Chain Solutions
Gati RedSun has majorly focused on providing integrated Supply Chain Solutions to clients across verticals. The major focus has been on building upon its managed services in the automotive spares, speciality retail and ecommerce. In the automotive segment the focus is on providing Solution to enhance customer service elements of OEMs by reducing “Vehicle Off Road (VOR)” time for customers. Gati RedSun has entered into the speciality retail segment for providing efficient piece picking and scan operations to single brand retail outlets. The focus is also on providing solutions to the domestic ecommerce market.
Gati RedSun has also launched the first of its kind Temperature Sensitive solution for Bio-Pharma companies. The service will in turn help enhance the transit time and reduce operational cost thereby ensuring the entire product life cycle management.
Gati International
Gati International the international freight forwarding and shipping services division showed a remarkable growth of 45% in revenues over the previous year. During the year, Gati International has strengthened its presence in APAC by adding two more offices in Malaysia and Guangzhou. The division is also exploring opportunities of strategic alliances in Vietnam and Indonesia.
Gati International has signed a trucking contract with the GMR Group and has set up a Terminal at the Delhi Airport for import, export and distribution services in India.
Recently, Gati International has associated itself with Lognet global – A leading global network of freight forwarding and shipping professionals across the global. This association has strengthened the network and reach of Gati International across the world. Lognet membership is a privileged membership that gives Gati International the recognition of being the best in business.
Gati Ships
The Shipping division continued to underperform during FY11, registering a de-growth of 2% on revenues at Rs 92.3 crore as against Rs 94 crore in the previous year. The division reported losses of Rs 16.3 crore for the FY11. This has adversely impacted the overall profitability of the company.