Gati Q2 net dips 93.57% to Rs 0.42 cr

Hit hard by losses in its air freighter business and increase in operating expenses, Hyderabad-based express distribution and supply chain management company, Gati Limited, faced a 93.57 per cent decline in its net profit to Rs 42 lakh in the second quarter ended September 30, 2008, as compared with Rs 6.54 crore in the corresponding quarter last year.

Total income, however, grew 34.83 per cent to touch Rs 158.38 crore, as against Rs 117.46 crore in the same period a year ago, while earnings per share (EPS) plummeted to Re 0.05, as compared with Re 0.89 in the corresponding period last year.

“The net profit has declined on account of losses incurred in our air freighter business and increase in operating expenses, which could not be passed on to the customers. Remedial steps are being taken,” the company stated in a press release on Thursday.