During Monday’s trading session, shares of a leading multimodal logistics solutions provider based in India hit a 5 percent upper circuit on BSE, after securing a 6-year long-term contract from the Indian Railways (Northeast Frontier Railway).
With a market capitalisation of Rs. 370.08 crores, the shares of AVG Logistics Limited hit a 5 percent upper circuit at Rs. 249 on BSE, as against its previous closing price of Rs. 237.15. The stock has delivered negative returns of over 52 percent in one year, but has gained around 1 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, AVG Logistics Limited secured a 6-year long-term contract from the Indian Railways (Northeast Frontier Railway) for the lease of Parcel Cargo Express Train (PCET).
This special train connects Agartala (Tripura)/Guwahati (Assam) to Delhi/Ludhiana (Punjab) and will complete 4 trips every month over the 6-year period, amounting to a total of 313 trips during the contract tenure.
The Express Train Service will cover a distance of 2,768 kilometres in ~90 hours, ensuring fast and seamless connectivity between the two locations, with the train’s Carrying Capacity expected to be 364 tonnes per trip for the initial 6 months, which will subsequently increase to 484 tonnes per trip later.
Sanjay Gupta, Managing Director & CEO of AVG Logistics Limited, stated that the company anticipates generating revenue of ~Rs. 198 crore (around Rs. 33 crore annually) over the 6-year tenure. He noted that the contract is expected to elevate the company’s financial performance and support its plans to pursue larger and more ambitious projects.
Financial Performance
AVG Logistics reported a growth in revenue from operations, experiencing a year-on-year increase of nearly 14 percent, rising from Rs. 124.7 crores in Q3 FY24 to Rs. 142.4 crores in Q3 FY25. Similarly, during the same period, the company’s net profit jumped from Rs. 4.8 crores to Rs. 5.5 crores, indicating a rise of around 14.6 percent YoY.
About the company
AVG Logistics Limited provides customised and technology-driven solutions across transportation, warehousing, distribution, and supply chain management. The company also offers Third-Party Logistics Services (3PL), effectively complementing its wide range of logistics solutions.
AVG’s esteemed customers include Nestle, HUL, DS Group, Apollo Tyres, JK Tyres, ITC, Airtel, MRF, Jubilant, Ultra Tech Cement, Coca Cola & many other retail and multinational companies.
Written by Shivani Singh
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