Gati records Q4 net loss of Rs 63 cr

Gati reported a consolidated net loss of Rs 62.91 crore in Q4 FY20 as compared to a net profit of Rs 8.28 crore in Q4 FY19.

Net sales during the quarter fell 19.4% year-on-year (YoY) to Rs 370.09 crore. Among segments, 'Express Distribution & Supply Chain' revenues were at Rs 280.72 crore (down 21.3% YoY) while 'Fuel Station' revenues came in at Rs 62.83 crore (down 12.4% YoY) in Q4 FY20.

Pre-tax loss stood at Rs 39.48 crore in Q4 FY20 as against as pre-tax profit of Rs 14.95 crore in Q4 FY19. Current tax expense during the quarter surged to Rs 33.18 crore from Rs 2.18 crore in the same period last year.

Consolidated net loss stood at Rs 78.29 crore in the year ended March 2020 (FY20) as compared to a net profit of Rs 18.36 crore in the year ended March 2019 (FY19). Net sales fell 8.1% to Rs 1711.67 crore in FY20 over FY19.

"The Operating loss for quarter ended March, 2020 and for the Financial year ended March, 2020 in case of the Company is mainly attributable to a drop in cross border E commerce and TV commerce business, coinciding with a shift in domestic E commerce market dynamics with increased price competitiveness due to key customers increasing investment in their own in-house logistics capacity. In case of the material subsidiary the loss for the quarter is due to certain provisioning and lower business in March, 2020 due to lockdown," Gati said in a statement.

Gati and its subsidiaries are engaged primarily in the business of running express distribution, supply chain services, e-commerce logistics, integrated freight forwarding, warehousing and running fuel stations.

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