GATI picks up speed

Logistics company, Gati is up in the green today, reacting positively to its Q2FY15 numbers. Yesterday, the stock had hit a new high at Rs.212.50 and today it almost went to the same levels and came down, currently up 4% at Rs.206.20.

For Q2FY15, the company posted a huge 117% (YoY) jump in consolidated net profit at Rs.12 crore on a 13% rise in revenue at Rs.415 crore. EBITDA was up 34% at Rs.29 crore.

The company now delivers over 6 million packages per month across 667 districts in India. The key highlight for the company this quarter is Gati Kausar India Ltd., the cold chain arm, raising Rs.150 crore from funds managed by Mandala Capital. Out of the 150 crore, Rs.30 crore has been invested in the form of Equity shares and Compulsory Convertible Preferential shares (CCPS) and the remaining INR 120 crore shall be invested in the form of Non-Convertible Bonds (NCB).The funds raised by Gati Kausar will be utilised primarily for building a network of cold warehouses across the country over the next three years thus enabling the company to offer integrated cold chain