Gati Ltd Research ReportQ4

FY19 was a year of revival for Gati in terms of revenue and EBITDA growth. Consolidated revenues for FY19 increased by 7% YoY to | 1863 crore, while EBITDA grew by 22% YoY to | 94 crore. However on the quarterly performance front, Gati’s Q4FY19 revenues remained flat YoY, mainly as 4% de-growth in express distribution and supply chain segment (~80% of the revenues) was negated by 10% and 58% growth in the fuel (16%) and other segment (14%), respectively. After eight quarters, margins clocked 5.7% (previous high at 6% in Q3FY17) signalling improved asset utilisation, cost control measures employed by the management. Subsequently, EBITDA improved 69% and PAT came in at | 8.3 crore vs. loss of | 5 crore.