India-based Logistics Gati Launches Electric Vehicle Fleet for Last Mile Deliveries
HYDERABAD, India, May 30, 2018 /PRNewswire/ —
GATI Ltd. (NSE: GATI) (BSE: 532345) India’s leader in Express Distribution and Supply Chain Solutions, declared its financial results for the fourth quarter and fiscal year ended 31st March 2018.
Gati registered a FY18 revenue of ₹ 18,136 mn, up 6.6% over last year. The consolidated net profit increased to ₹ 391 mn in FY18 up by 128% over last year.
The core business under Gati Kintetsu Express Private Ltd (GKEPL) registered a revenue of ₹ 3,110 mn in Q4 FY18, up 17.2% compared to ₹ 2,654 in Q4 FY17. For full year FY18, GKEPL revenue stood at ₹ 11,695 mn, up 5.1% from ₹ 11,131 in FY17. Core Surface Express business delivered healthy double digit volume growth in the second half of FY18 post GST stabilization, driven by strong focus on Key Enterprise Accounts (KEAs), operational performance and customer service. Buoyed by such growth acceleration, GKEPL is undertaking significant expansions across eight critical logistics nodes adding close to 1 mn sqft. This will result in a two-fold plus increase in the distribution and warehousing capacities at these vital supply chain demand points.
The Gati balance sheet has been significantly deleveraged, with net debt reducing from ₹ 4,301 mn as on March 2017 to ₹ 3,101 mn as on March 2018. Additionally, the company has adopted Indian Accounting Standards (IND AS) and the transition has been done in compliance with the same.
Overall Gati enters FY19 with a good growth momentum and strong market economic tailwinds, additionally supported by an enhanced product portfolio. Furthermore, E-way bill adoption across the states in the first quarter of FY19 holds tremendous promise for organized logistics players like Gati.
Electric Vehicles for Last Mile Delivery
Gati flagged off its first environment-friendly electric vehicle for last mile delivery operations. A pilot project is being progressed in Hyderabad and NCR region with an ultimate objective of converting one-fourth of its 1500 plus business partner fleet in ground operations. Gati remains invested in the e-Commerce sector with footprint expansion and new product introductions including reverse logistics and product exchange, that is emerging as a key business requirement for the e-tailer ecosystem.
Commenting on the developments, Gati’s Founder and CEO, Mr. Mahendra Agarwal, stated, “I am glad to announce that we have recently introduced eco-friendly Electric Vehicles (EV) for last mile deliveries. We will be piloting home-deliveries of furniture and home accessories in select metro locations. We believe that increasing cognizance of environmental sustainability and favorable regulatory environment will drive the adoption of EV cargo fleet and we want to be on forefront of setting these sustainability goals in motion for our end-customers.”
About Gati Ltd:
Gati Limited (http://www.gati.com) is a pioneer and leader in Express Distribution and Supply Chain Solutions in India and delivers over 6 million packages a month. Gati started in 1989 as a cargo management company and expanded to serving complex business solutions in Air & Surface Distribution, e-Commerce logistics, Warehousing, M-VATS, Freight Forwarding and Cold Chain. Gati has now grown into an organization with more than 5,000 business partners and a network reach of 700 plus districts covering 99% of India. Gati has a 5000 plus fleet, including refrigerated vehicles and world-class warehousing facilities across India. Gati has a strong market presence in the Asia Pacific region and South Asian countries.