{"id":130978,"date":"2022-07-07T13:21:45","date_gmt":"2022-07-07T17:21:45","guid":{"rendered":"https:\/\/44.250.171.167\/?p=130978"},"modified":"2022-10-06T04:41:26","modified_gmt":"2022-10-06T08:41:26","slug":"gati-ltd-q4-fy-2022-research-summary","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/gati-ltd-q4-fy-2022-research-summary\/","title":{"rendered":"GATI Ltd Q4 FY 2022 Research Summary"},"content":{"rendered":"\n<p>GATI is an Indian Logistics company. It was founded in the year 1989 and first started operations between Madras (now&nbsp;Chennai) and&nbsp;Madurai. The company has its headquarters in Hyderabad, Telangana, India. It offers various services like air express logistics, warehousing and supply chain, air freight and&nbsp;e-commerce services. GATI has entered into a partnership with Japan\u2019s Kintetsu World Express&nbsp; and formed KWE Gati-Kintetsu Express Private Limited where KWE holds a 30% stake and Gati holds the remaining 70%.<\/p>\n\n\n\n<p><strong><u>Business Outlook<\/u><\/strong><\/p>\n\n\n\n<p>GATI has laid 5 major aspects for FY23. They are moving towards digitization, sales acceleration, infrastructure, operations, and increasing talent pool. The company is focusing on digitization to automate a number of processes which will enable faster execution and decision making. The new launched software, GEMS 2.0 will enhance many major functions like finance, CRM, and management data for report generation and performance analysis. The Gati genie chat box, digital payment solutions, ERP System, robust tracking systems and sophisticated software along with sales force for CRM will help the seamless movement of cargo. The sales acceleration strategy will help to capture more and more MSME accounts which will add up to the overall growth of the company.<\/p>\n\n\n\n<p><strong><u>Financial Snapshots (In Rs Crores)<\/u><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"756\" height=\"456\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/image-7.png\" alt=\"\" class=\"wp-image-130981\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/image-7.png 756w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/image-7-300x181.png 300w\" sizes=\"auto, (max-width: 756px) 100vw, 756px\" \/><\/figure>\n\n\n\n<p>In Q4 FY 2022 Business revenue increased to 304 Crores. Revenue from MSME and SME and retail accounts stood at 42%. Gross profit stood at 95 Crores as compared to 104 Crores in Q4 FY2021. GP margins for Q4 FY2022 stood at 24.7%. Consolidated EBITDA for Q4 FY2022&nbsp; increased by 32% Y-O-Y to Rs. 13 Crores. EBITDA margins for Q4 FY2022, improved by 100 basis points. Total debt reduced by Rs 11 Crores for Gati KWE. The cost of debt declined by 7.2%.<\/p>\n\n\n\n<p>For FY 2022 consolidated revenue, including other income for FY2022&nbsp; increased by 14% year on year to&nbsp; Rs. 1,505 Crores. Surface express revenue for FY2022 grew by 26% and stood at Rs. 1151 Crores.&nbsp; SCM revenue stood at Rs. 48 Crores. Air express revenue improved by 58% year on year to Rs. 52 Crores. Revenue share from MSME, SME and retail accounts stood at 43% for FY2022. Gross profit grew by 6% to Rs. 356 Crores and gross profit margins were 23.7%.<\/p>\n\n\n\n<p><strong><u>Business Portfolio<\/u><\/strong><\/p>\n\n\n\n<p>The services of GATI have been classified to four major services &#8211; Express<\/p>\n\n\n\n<p>Distribution, Special Services, Transportation Services and End to End Logistics.<\/p>\n\n\n\n<p>Express Distribution offers a complete range of express distribution services that gives the flexibility to choose as per your business requirement. Express Plus offers faster delivery&nbsp; compared to the average surface movement services. It delivers across all the major metros. Premium plus service is designed to cater the need of critical shipments. The shipment is transported in 12 hrs. Premium is another cost effective service for delivery. It transports shipment in 24-48 hrs.<\/p>\n\n\n\n<p>Special Services- The special Services is categorised as Bike Express,&nbsp; laabh, Surface Lite, Premium Flexilite, Art Express, Student Flexilite. The Bike Express helps to transport in two-wheeler safely and quickly. The laabh service is used in &nbsp;shipping requirements of individuals as well as small &amp; medium enterprises. It is mainly used in transporting&nbsp;NON COMMERCIAL households, equipments, home appliances, etc. Surface Lite is mainly used in transporting small non- commercial household goods and corporate organizations sending gifts, print materials and other such small cargos. Premium Flexilite is cost effective service for shipment of small parcels at a freight rate. Art Express is a special service offered by Gati to transport art pieces with the &nbsp;utmost care. Students Express is a special facility offered to the students for transporting&nbsp; materials like books, musical instruments or even their bikes when they are relocating to\/ from the hostel.&nbsp;<\/p>\n\n\n\n<p>Transportation Services provides transport of bulk goods&nbsp; by railway or truck. It provides safety to customers\u2019 shipments along with being cost-effective and highly reliable.<\/p>\n\n\n\n<p>End to End Logistics- This facilitates the flow of goods between the point of origin and the point of consumption. GATI-KWE offers end to end Logistics solutions for individuals and corporate. To boost the logistic management GATI has 500 pick-up points in India and over 5500 people.<\/p>\n\n\n\n<p><strong><u>SWOT Analysis<\/u><\/strong><\/p>\n\n\n\n<p>Strength \u2013This is one of the most popular brands in India. GATI has the facility to carry various types of cargo. It has wide geographical presence and operates with &nbsp;4000+ vehicles on road, 3 marine vessels and 7000+ business partners. It has different customer centric cargo shipments based on price, facility.<\/p>\n\n\n\n<p>Weakness- GATI has failed to dominate the air cargo industry. The major part of the expenses is freight expenses as per the &nbsp;profit&amp; loss . The company needs to invest more on supply chain management. It should focus more on the growth areas.<\/p>\n\n\n\n<p>Opportunity-GATI should target more on international markets. It has huge assets which can be used forthe &nbsp;major investments purpose. GATI should focus more on digitization.<\/p>\n\n\n\n<p>Threat- The companyhas very low contingent liability. Slowing down in GDP is impacting the business growth. Strong competition from other courier companies.<\/p>\n\n\n\n<p><strong><u>Industry Analysis<\/u><\/strong><\/p>\n\n\n\n<p>Logistics industry is the backbone for economic development, but also plays a significant role in resolving environmental and social issues. It facilitates us with transportation of goods and helps in maintaining the supply chain management. The Indian logistics sector is valued at USD$150 billion, contributing 14.4 % of the country\u2019s GDP.&nbsp;It is expected that the youth will be benefitted with the increase in income levels and rapid growth in organised retail, e-commerce, QSR etc.<\/p>\n\n\n\n<p>The major challenges faced by the logistics Industry is prevailing rules and regulation in different states. Though the sector is booming, there is a lack of training institutions which is creating issues among the employees and the logistics managers. Moreover the Indian Logistics Industry still needs more backup for development of Supply Chain Management.<\/p>\n\n\n\n<p><strong><u>Moving towards Digitization<\/u><\/strong><\/p>\n\n\n\n<p>GATI is moving towards digitization. It has implemented CRM systems for better management of its customers.&nbsp; It will enhance customer relationships and enhance the ability to offer a range of services to KEA and MSME. It has focused on route optimization, Load planning, enabling better service quality at the best possible cost. GATI has inclined towards digital payments. Customers can now pay through net-banking, credit cards, debit cards, UPI and digital wallets and even by scanning the QR codes. The company has improved the sales acceleration through Customer experience enhancement,&nbsp; dedicated portal and chat bots.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GATI is an Indian Logistics company. It was founded in the year 1989 and first started operations between Madras (now&nbsp;Chennai) and&nbsp;Madurai. The company has its headquarters in Hyderabad, Telangana, India. It offers various services like air express logistics, warehousing and supply chain, air freight and&nbsp;e-commerce services. GATI has entered into a partnership with Japan\u2019s Kintetsu [&hellip;]<\/p>\n","protected":false},"author":1796,"featured_media":58681,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6352,9908],"tags":[9184,8159],"class_list":["post-130978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-summary","category-research-tear-sheet","tag-integrated-freight-logistics","tag-logistics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":151328,"url":"https:\/\/alphastreet.com\/india\/gati-ltd-q1fy24-1-fall-in-revenue\/","url_meta":{"origin":130978,"position":0},"title":"Gati Ltd Q1FY24; 1% fall in Revenue","author":"Hardik Bhandare","date":"August 4, 2023","format":false,"excerpt":"Gati Ltd is primarily engaged in express distribution and supply chain solution through surface, air and rail logistics, supply chain management (SCM), E-comm logistics, freight forwarding and cold chain - transportation and warehousing. 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