Shares of this small-cap company, primarily focused on express distribution and supply chain solutions, surged nearly 5 percent after announcing a 10.2 percent average General Price Increase (GPI) effective from January 1, 2025, for its Express Distribution services.
Share Price Movement
In Thursday’s trading session, Allcargo Gati Ltd shares reached an intra-day high of Rs.119.9 per share, rising 4.9 percent from its previous close of Rs.114.3 apiece. The share price has retreated since then and currently trading at Rs.116.15 per share.
What happened
Express distribution and supply chain management company Allcargo Gati (formerly Gati Limited) announced a 10.2 percent general price increase (GPI) for its express distribution services, effective January 1, 2025. New customers who register between October 1 and December 31, 2024, will be exempt from this price increase.
This marks the first price adjustment since Allcargo’s acquisition of Gati in 2019. The increase is intended to align pricing with ongoing operational investments and uphold high standards of service quality, as stated by the company in a release.
Management Commentary
“At Allcargo Gati, our primary objective is to provide exceptional logistics solutions with unmatched reliability and efficiency. This price revision is a strategic response to the evolving economic environment. Amid rising fuel costs and inflationary pressures, this move is essential to maintaining the high standards of service our customers expect.
The revised pricing will allow us to further invest in infrastructure and technological advancements enabling us to be well-positioned to meet the increasing demands of our clients across diverse regions,” said Ketan Kulkarni, Deputy Managing Director, Gati Express and Supply Chain Pvt. Limited.
Recent Advancements
Allcargo Gati has implemented several technological advancements to enhance service accuracy and transparency. It has deployed handheld printers and improved Proof of Delivery (POD) quality using Machine Learning, boosting precision and operational efficiency.
The introduction of a centralized Control Tower provides seamless visibility across logistics, allowing real-time tracking of shipments. As part of its growth strategy, six of eight planned hubs in metro cities will be operational by the end of this fiscal year, facilitating fleet expansion.
Financial Performance
In its recent financials for the quarter ending June 2024, Allcargo Gati Ltd reported revenue from operations of Rs.408.24 crore, a decrease of 4.21 percent from Rs.426.19 crore in Q1 FY24. Net losses for the period also decreased, falling from Rs.2.75 crore to Rs.2.17 crore.
Company Profile
Allcargo Gati Limited, previously Gati Limited, was established in 1989 and has emerged as one of India’s top logistics companies, specializing in express distribution and supply chain management across road, air, and rail transport.
With over 600 offices and a fleet of 5,000 vehicles, the company offers services such as e-commerce logistics and cold chain solutions to a wide range of customers throughout India.
Written by – Siddesh S Raskar
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