Gati LTD Detailed Report

F
Gati Limited BUY

I
C.M.P: Target Price:
Rs.59.00 Rs.71.00 May 24th, 2010
R
SYNOPSIS
1 Year Comparative Graph Gati Limited provides distribution and
supply chain solutions primarily in India. It
S
offers integrated cargo services through
road, rail, air, and sea transportation. T
The company offers distribution solutions
through Gati Express, Gati Priority, Gati
Coast to Coast, IC-Zipp, and Gati Saver.
C
During the quarter two old vessels were
Gati Ltd BSE SENSEX sold resulting in the net loss of Rs.31Lakhs. A
Gati plans financial recast to pay off debts.
Stock Data L
Sector Logistics Gati to explore operations and restructure
its business to meet increasing demand.
Face Value (Rs.) 2.00
52 wk. High/Low (Rs.) 73.00/40.00
The company has acquired 26.01% L
outstanding equity of Kausar India through
Volume (2 wk. Avg.) 89000 open offer reverse book building process.
BSE Code 532345 GationCoast to Coast, the EST.
shipping division
of
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Market Cap (Rs.mn.) 5023.85 Gati, had launched its first custom built
ship- MV Gati Pride. R
Share Holding Pattern
Gati rolls out distribution center in
Hyderabad. E
The company’s Net sales are expected to
grow at a CAGR of 16% over FY08 to
FY11E.
S
E
*Year ending
on June A
30th
Financials FY08 FY09 FY10E FY11E
V.S.R. Sastry
Equity Research Desk
Net Sales 1714.6 1822.1 1891.9 1986.5 R
vsrsastry@firstcallindiaequity.com EBIDTA 557.4 446.6 869.7 1027.1
Dr. V.V.L.N. Sastry Ph.D.

PAT 237.8 -150.5 157.8 244.3 C
Chief Research Officer EPS 2.81 -1.77 1.85 2.87
drsastry@firstcallindia.com
P/E 21.00 -33.28 31.82 20.56 H
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Table of Content
Content Page No.
1. Peer Group Comparison 03
2. Investment Highlights 03
3. Company profile 07
4. Financials 14
5. Charts & Graph 16
6. Outlook and Conclusion 18
7. Industry Overview 19
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Peer Group Comparison
Market
Name of the company CMP(Rs.) Cap.(Rs.Mn.) EPS(Rs.) P/E(x) P/Bv(x) Dividend (%)
Gati Ltd 159.00 5023.85 - - 1.82 0.00
Gateway Distriparks
Ltd 114.15 12317.30 7.16 15.94 1.73 35.00
Aegis Logistics 296.70 5578.80 20.26 14.64 3.21 25.00
All Cargo Global

Logistics 167.75 20942.80 8.45 19.85 2.65 50.00
Sical Logistics 75.45 2981.90 22.39 3.37 1.52 0.00

*As on 24/05/2010
Investment Highlights
Results Updates (Q3 FY10)
For the third quarter, the top line of the company increased 22%YoY and stood
at Rs.1891.90mn against Rs.1547.90mn of the same period of the last year. The
bottomin-mapegroup
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company for theon quarter
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(170.960) mn of the corresponding period of the previous year i.e. an increase of
124%YoY.
EPS of the company for the quarter stood at Rs.0.48 for equity share of Rs.2.00
each.
Expenditure for the quarter stood at Rs.1690.10mn, which is around 7% higher
than the corresponding period of the previous year. Operating Expenses of the
company for the quarter accounts for 65% of the sales of the company and
stood at Rs.1224.70mn. Employee cost stood at Rs.219.70mn from
Rs.190.00mn. and accounts for 12% of the revenue of the company for the
quarter i.e., an increase of 16%YoY.
OPM and NPM for the quarter stood at 11% and 2% respectively from -2% and -
11% respectively of the same period of the last year. During the quarter two old
vessels were sold resulting in the net loss of Rs.31Lakhs.
• Segment-Wise revenue for the quarter
Segment Revenue (Rs. million)

Express Distribution & Supply Chain 1630.30
Coast to Coast (Shipping) 250.80
Total 1881.10
Less: Inter Segment Revenue 0.00
Net sales/income from Operations 1881.10
The company is in final phase of its internal restructurting. The ramping up of
Asia Pacific International business is expected to also pick up significantly as
Asia leads the momentum of the Western groth. All counries in the APAC region
have shown steady in revenues in the freght forwarding sector.
• Gati plans financial recast to pay off debts
Burdened with huge debts, the company has embarked on a financial

restructuring plan. The strategy is to pay off the entire debt amount of Rs
300crore in two years and avoid investments in new assets. In fact, the
company has planned to selloff some of its existing assets like ships that are
used to transport goods.
• Gati to allot equity shares under ESOS
During the quarter, the 2127500 options at a price of Rs. 47.75 per option were
granted under Eemployees stock option scheme. The number of options
outstanding as on March 31, 2010 was 2989860.
• Gati board approves options to improve its market position
The board of directors of the company has discussed the increasing demand for
the logistics and distribution services that the company provides.
To meet this increasing demand and to improve its market position, the board
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its business and also to appoint legal counsels, merchant / investment
bankers, accountants, consultants, valuation agencies and such other
intermediaries as may be required from time to time to help achieve this
objective.
• Gati board to offer convertible warrants on preferential basis
The company has approved to offer 4,872,000 warrants convertible within a

period of 18 months into equal number of equity shares at the price of Rs 81 a
warrant to promoter(s) group namely Mahendra Investment Advisors (P) on
preferential basis further the board has also approved to offer 5,360,400
warrants convertible within a period of 18 months into equal number of equity
shares at the price of Rs 58 a warrant another to promoter, Mahendra Kumar
Agarwal on preferential basis.
The board has also decided to offer of 1,441,418 warrants convertible within a
period of 18 months into equal number of equity shares at the price of Rs 58 a
warrant to the Infrastructure Fund of India LLC on preferential basis, subject to
the approval of the shareholders and necessary regulatory authorities including
FIPB at the forthcoming annual general meeting of the company.
• Gati buys 26% stake in Kausar India
The company has acquired 26.01% outstanding equity of Kausar India on Mar.
31, 2009 through open offer reverse book building process. The total holding of
the company is 99.73% as on date due to above acquisition.
• Gati discontinues wet lease pact with Air India
The company has announced that the arrangement under wet lease agreement
with Air India (now known as National Aviation Company of India) for five B737-
200 has been discontinued with immediate effect.
Consequently, the freighters leased by Air India have also been withdrawn with
immediate effect. However, the strategic alliance with Air India is being
continued as usual without affecting air cargo movement business.
• Gati Coast to Coast launches its sixth vessel, MV Gati Pride
Gati Coast to Coast, the shipping division of Gati, had launched its first custom
built ship- MV Gati Pride. The 7000 DWT and TEU, at USD 13.40 million, MV
Gati Pride is the sixth addition to Gati fleet of world class vessels, and was built
in two years at Asimar, Thailand.
With the induction of this new state-of-the-art vessel, Gati Coast to Coast will
be able to serve more ports with a younger fleet and enhance connectivity, thus
offering customers reliable services. The vessel has the best of equipment to
ensure safe and reliable handling of cargo. The fleet will operate and serve the
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• Gati rolls out distribution center in Hyderabad
The company has rolled out its express distribution centre (EDC) at Jeedimetla
in Hyderabad. The centre, which is spread over 1.8 lakh sq ft, is equipped with
the most advance warehousing technologies and equipment.
The EDC aims to fulfill the rising logistics requirement businesses especially in
industries like FMCG, retail, apparel and fashion, automotive, pharmaceutical
and healthcare, telecom and high tech, agrochem etc.
Company Profile
Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain
Solutions in India. It was the revolutionary approach adopted by Gati that helped
launch many path-breaking initiatives in the logistics segment and many were the
firsts for the Indian market. Having started as a cargo management company in 1989,
Gati has grown into an organization with more than 3500 employees and a turnover of
Rs 576Crore covering 603 out of 611 districts in India.
Gati has over 4000 vehicles on road, fleet of refrigerated trucks, container vessels and
world class mechantronic warehousing facilities across India. Gati was also the first to
run the millenium parcel express train in October 2001 between Mumbai and Kolkata
with 10 VPUs. The initiative to run a parcel express train between KYN (Mumbai) and
NGC (Guwahati) was again taken by Gati - this is a classic example of PPP (Public
Private Partnership).
The Gati advantage of seamless connectivity across air, road, ocean and rail has
resulted in a plethora of offerings to the customer unmatched in the industry. Besides
having a strong network in India, Gati has a strong market presence in the Asia Pacific
region and SAARC countries. Gati has offices in China, Singapore, Bhutan, Dubai,
Hong Kong, Thailand, Nepal and Sri Lanka and has plans to foray into other markets.
Gati's shipping division, Gati Coast to Coast based at Chennai, with two decades of
experience in the industry has many firsts to its credit: first in operating direct service
to Yangon; first in operating a direct container service from Ranong Port, Thailand;
and the first in operating direct container service from Penang, Malaysia. Gati Coast to
Coast has a tonnage of 43,581 DWT and a fleet strength of six vessels.
Subsidiaries
• Gati Holdings Ltd.

• Gati Asia Pacific Pte. Ltd
• Gati Hong Kong Ltd.
• Gati China Holdings Ltd.
• Gati Cargo Express (Shanghai) Co. Ltd.
• Gati Japan Ltd.
• Gati Middle
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• Newatia Commercial & Trading Pvt. Ltd.
• Trymbak Commercial & Trading Pvt. Ltd.
• Ocimum Commercial & Trading Pvt. Ltd.
• Sumeru Commercial & Trading Pvt. Ltd.
• Kausar India Ltd.
• Zen Cargo Movers Pvt. Ltd
• Gati Import Export Trading Ltd.
• Gati Skyways Ltd.
Company Services
Services in India
Services in India
Distribution Solutions Logistics Solutions
Distribution Solutions
• Gati Surface Express
With the widest network, the best of cargo movement facilities and several value
added services to choose from, Gati Express is the preferred distribution
solution provider in India today. Gati’s customers include companies from
industries such as pharmaceuticals, textile and apparel, white goods, electronic
goods, IT Telecom and other high value cargo.
• Gati Air Express
Gati Air Express delivers shipments across all major locations the very next day
during business hours, and to some prime locations even before noon! A fleet of
dedicated freighters (cargo planes) that fly during the night and a seamless
multimodal network that goes down to the last mile, to ensure that your
shipments arrive on time. The company has assured the customer, frieght
would be refunded if the assured timelines are not met by the company.
• Gati Coast to Coast
Gati Coast to Coast (CTC) is Gati's shipping division. Set up way back in 1986,
the CTC vision was to become the preferred service provider for all sea bound
cargo in the Bay of Bengal, Andaman Islands and Malacca Straits.
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Air India and Gati have entered into a strategic tie up to bring to the retail
courier service of global standards -AI Gati, the most efficient way of delivering
courier at an affordable price.
• Gati Desk to Desk Cargo
An affordable surface product especially designed for non-commercial packages.
o Flat rate of Rs. 200 per package (up to 5 kgs) ideal for samples, gifts, study
materials & printed material
Logistics Solutions
• Supply Chain Management
The focus is on integrated logistics solutions. Gati's transport infrastructure, IT

systems, cutting - edge technology solutions and an intensive knowledge of
India allows it to tailor its products to meet every customer’s unique needs. Gati
offers a wide range of options and does not waver in its focus on quality,
reliability and speed.
• Gati logistics package
This ready - to - use package comes with an instant distribution network and a
wide system of storage locations and distribution channels. It is ideal for clients
looking to distribute goods from multiple locations and those with changing
distribution needs. For an SME or an MNC entering the Indian market, Gati
Logistics is the right choice.
• Integrated logistics
Gati provides customized solutions by integrating all the four stages of your
business — procurement, production, distribution, after sales service and
reverse logistics.
• Process flow
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• Warehousing
Gati's warehousing facilities consist of completely modern storage systems and

material handling equipment. Thus, Gati is able to offer customers very high
levels of operational efficiency.
• Industry solution
o Consumer Goods
o Food & Beverage
o Engineering / Electronics
o Industrial Goods
o Healthcare / Life Sciences
o Computer & IT Peripherals
o Retail
o Fashion & Garments
o Automotives
Tactical and
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Gati International
Gati pioneered the cargo management movement in India. And then spread its wings
over the sub - continent. The logistics leader is now making its presence felt in the
SAARC countries and the Asia Pacific region.
Gati International, the global operations wing, provides with a strategic USP — an
international reach, along with a highly focused expertise in India - centric operations.
This ensures that Gati remains the undisputed leader not just in Indian operations,
but also in India - focused operations. The company has offices in Singapore, Hong
Kong, China and Sri Lanka which offer a range of distribution solutions to and from
India.
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Gati International
India centric solutions Gati Thailand
India centric solutions
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its deeply entrenched network and domain knowledge, Gati has brought India and the
world closer. Entering India by air, sea and road, Gati offers seamless multi-modal
connectivity to road, air, sea and rail transport modes, thus enabling customers to
effortlessly access the Indian markets.
Gati Thailand
Gati introduced customized solutions to cater the needs of Indian businesses in

Thailand. The individuals can send their Cargo to India at very economical prices.
Within a span of less than 2 years Gati Thailand has become an expert in relocation of
cargo to India. Gati tied up with Indian Airlines to facilitate speedier delivery of
shipment. To make the importing and exporting more convenient Gati Thailand
provides following services
o Air Freight
o Ocean Freight
o Inland Transportation
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Clients:
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Financials Results
12 Months Ended Profit & Loss Account (Standalone)
Value(Rs.in.mn) FY08 FY09 FY10E FY11E
Description 12m 12m 12m 12m
Net Sales 5520.70 6303.30 7415.10 8527.36
Other Income 234.40 - 3.47 3.82
Total Income 5755.10 6303.30 7418.57 8531.18
Expenditure -5197.70 -5856.70 -6548.85 -7504.08
Operating Profit 557.40 446.60 869.72 1027.10
Interest -97.30 -354.10 -429.63 -455.07
Gross profit 460.10 92.50 440.09 572.04

Depreciation -145.70 -230.10 -242.40 -266.64
Profit Before Tax 314.40 -137.60 197.69 305.39
Tax -76.60 -12.90 -39.82 -61.08
Net Profit 237.80 -150.50 157.87 244.32
Equity capital 169.30 169.80 170.30 170.30
Reserves 2799.20 2529.90 2687.77 2932.09
Face Value 2.00 2.00 2.00 2.00
Total No. of Shares 84.65 84.90 85.15 85.15
EPS 2.81 -1.77 1.85 2.87

* Year ending June 30th
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Quarterly Ended Profit & Loss Account (Standalone)
Value(Rs.in.mn) 30-Sep-09 31-Dec-09 31-Mar-10 30-Jun-10E
Description 3m 3m 3m 3m
Net sales 1714.60 1822.10 1891.90 1986.50
Other income 0.90 0.70 0.90 0.97
Total Income 1715.50 1822.80 1892.80 1987.47
Expenditure -1495.90 -1604.80 -1690.10 -1758.05
Operating profit 219.60 218.00 202.70 229.42
Interest -118.30 -113.30 -96.60 -101.43
Gross profit 101.30 104.70 106.10 127.99

Depreciation -66.80 -60.50 -56.70 -58.40
Profit Before Tax 34.50 44.20 49.40 69.59
Tax -11.80 -5.80 -8.30 -13.92
Net Profit 22.70 38.40 41.10 55.67
Equity capital 169.80 170.30 170.30 170.30
Face Value 2.00 2.00 2.00 2.00
Total No. of Shares 84.90 85.15 85.15 85.15
EPS 0.27 0.45 0.48 0.65
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Key Ratio
Particulars FY08 A FY09 A FY10 E FY11 E

EBIDTA % 10% 7% 12% 12%
PAT % 4% -2% 2% 3%
P/E ratio (x) 21.00 -33.28 31.82 20.56
ROE - % 8% -6% 6% 8%
ROCE - % 8% 3% 8% 9%
EV/EBIDITA (x) 15.06 11.74 6.47 6.11
Debt Equity Ratio 0.75 1.74 1.81 1.83
Price/Book Value 2.83 1.86 1.76 1.62

A-Actual E-Expected
Charts:
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• P/E Ratio (x)
• P/BV (X)
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• EV/EBITDA(X)
Outlook and Conclusion
At the market price of Rs.59.00, the stock is trading at 31.82 x and 20.56 x for
FY10E and FY11E respectively.
On the basis of EV/EBDITA, the stock trades at 6.47 x for FY10E and 6.11 x for
FY11E.
Price to book value of the company is expected to be at 1.76 x for FY10E and 1.62
x for FY11E respectively.
EPS of the company is expected to be at Rs.1.85 and Rs.2.87 for the earnings of
FY10E and FY11E respectively.
During the quarter, the 2127500 options at a price of Rs. 47.75 per option were
granted under Eemployees stock option scheme. The number of options
outstanding as on March 31, 2010 was 2989860.
During the quarter two old vessels were sold resulting in the net loss of
Rs.31Lakhs.
The board has approved in principle investment up to 613 Lakhs which is

equivalent of 5% of the proposed equity share capital of Gati Infrastructure
Bhasmey Power Private Limited in which the company is one of the sponsors.
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The company has embarked on a financial restructuring plan. The strategy is to
pay off the entire debt amount of Rs 300crore in two years and avoid investments
in new assets.
Gati to explore operations and restructure its business to meet increasing demand.
The name of Gati Sky Ltd., a wholly owned subsidiary of the company has been
changed to Redsun Supply chain solutions Ltd. With effect from 08-03-2010.
The company is in final phase of its internal restructurting. The ramping up of Asia
Pacific International business is expected to also pick up significantly as Asia leads
the momentum of the Western groth. All counries in the APAC region have shown
steady in revenues in the freght forwarding sector.
The Company’s future strategies are focused on development of both domestic and
international businesses by building new strategic relationship through its
subsidiaries, process improvement, and effective cost management, offering
innovative products and services and establishment of state-of-the-art warehouses.
We recommend ‘BUY’ this stock with a target price of Rs.71.00 for medium term
investment.
Industry Overview
Logistics call for an understanding of the total supply chain, the elements of which
include inventories, packing, forwarding, freight, storage and handling. Logistics is
responsible for
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inbound logistics of incoming, raw materials or movement within the company or the
physical distribution of finished goods, logistics encompasses all of these. Typical
logistics framework mainly consists of Physical Supply, Internal Operations and
Physical Distribution of Goods and Services. To put it more simply, the material
supply logistics starts from the base level of “generation of the demand”, through the
“process of purchase” and “supply of material from the vendor” right through to “final
acceptance” and “payments to the supplier” and “issue to the indenter” and has to be
considered as a “one whole activity” with each stage having an impact on price/cost of
material supply. Logistics is, in itself, a system; it is a network of related activities with
the purpose of managing the orderly flow of material and personnel within the logistics
channel.
DEFINITION:
The simplest way to describe logistics is to say that it is all about ways and means of
meeting the demand for materials i.e. satisfying the customer with what he wants,
when he wants, where he wants etc. Definition includes outbound, inbound, internal
and external movements and returns of material for environmental purposes. The
logistics concentrate on dynamic processes, related to the flow of materials and the
relationship between the materials and their use at different facilities. The most wide
spread definition from council of Logistics Management says that “Logistics is the part
of the supply chain process and plans, implements and controls the efficient, effective
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flow and storage of goods, services and related information from the point of origin to
the point of consumption in order to meet customers requirements.”
SCOPE:
Logistics is not confined to manufacturing operation alone. It is relevant to all

enterprises, including Govt. institutions such as Hospitals and schools and service
organization such as retailers, banks and financial service organizations. The study of
logistics is especially important for bulk raw materials, where substantial outflow of
freight is involved. Management of Logistics is an art which is extremely difficult to
perfect in India, JIT ends up being SHIT - some how in time. The study of logistics is
important to establish a lean supply chain which would give an advantage of quick
product change over, capability, excellent short and long term forecast visibility and
JIT capability.
MODES OF TRANSPORTATION IN LOGISTICS:
In order to transport material from one place to another Logistics Managers are using
Rail, Road, Air, Water & Pipe Line as the modes of Transportation. A logistics expert
need to understand these modes based on priorities, product type. lead time etc. to
decide the appropriate mode of Transportation.
Rail: Used for delivery of a wide range of goods including coal, iron ore, cement, food
grains, fertilizers, steel, petroleum products and other heavy goods.
Road: Used by suppliers to deliver goods in a cost effective manner and best suited for
short distances. Many transport companies have expertise for fast delivery, packaging
etc. for making
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Air: Used mostly for delivery of high value and tow volume goods from distant
suppliers, usually not connected by any other mode of Transportation. It is also
suitable for emergent item to be imported for some specific requirement.
Water: Used by firms for delivery of goods from distant suppliers, mostly conducted in
containers of varied size. This mode is ideal for transportation of heavy and bulky
goods and suitable for products with long lead times.
Pipe Line: Used by oil sector companies for mass movement of Petroleum products
including gases Due to quite low operating cost it is one of the preferred modes of
transportation
THIRD PARTY LOGISTICS:
Third Party Logistics (3PL) provider handles all or most of freight of the organizations
including the management of information by the third party, freeing the company from
day to day interaction with carriers, and having to oversee hundreds or thousands of
shipment. New and cheaper information flow resulting from internet enabled
solutions, will lead not only achieving immediate cost reductions in operations but
also to enormous productivity gains over the next few years.
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The tracking and control of movement of goods drive freight optimization and asset
utilization. The options are: increased trailer utilization, combining full truckload
shipments, consolidation, and aggregation of smaller buyers. Purchase asset based
transportation is becoming increasingly a commodity.
To put simply, 3PL refers to the outsourcing of a logistics function. It could be the use
of a transportation carrier, a warehouse, or a third party freight manager to perform
all or part of a company’s production distribution functions.
The principle reasons of for this function are as under:
• Globalization of sourcing, manufacturing and distribution leading to an

increase in the complexity of material movement.
• Competition that has forced companies towards more responsiveness and a

reduction in inventories. An increased need for small but frequent shipments
with 100 percent reliability requiring core competence in logistics management
• Resource constraints that require companies to concentrate only on their core

manufacturing or new product development activities.
FOURTH PARTY LOGISTICS:
Fourth Party Logistics (4PL) provider is a supply chain integrator that assembles and
manages the resources, capabilities and technology of its own organization with those
of complementary service provider to deliver a comprehensive supply chain solution.
4PL is emerging
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and asset transfers of a traditional outsourcing arrangement. Through alliances
between best-of-breed third party service providers technology providers and
management consultants
4PL organizations can create unique and comprehensive supply chain solutions that
cannot be achieved by any single provider. According to John Gaftorna, “White
outsourcing third party logistics is now a accepted business practice, Fourth Party
Logistics is emerging as a breakthrough solution to modern supply chain challenges...
to provide maximum overall benefits.”
4PL can be described as the complete outsourcing of the logistics function including
procurement of service providers. 4 PL companies are suppliers which have the
expertise to manage resources, value delivery processes and technology for their
clients in order to allow their clients to totally outsource their logistics management
activity. The 4PLs do not compete with 3PLs as they have superior expertise in their
respective fields by virtue of their investment and specialization.
4PL providers do not own assets for transportation or warehousing, but rather
leverage the solutions created by 3PL.providers, in order to identify and provide ‘best
in class’ services to their clients. There are many variations of the 4PL model that are
practiced.
Three different models are summarized as under;
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A) Lead logistics provider: The 4PL provider acts as an in house freight management
company, it might or might not have a role in the selection of 3 PL partners. It takes
care of transport invoicing and the monitoring of the performance of the 3 PLs.
B) Solution Integrator: In this variant of the model, the 4PL acts as the integrator of
various 3PLS and as a single window for freight negotiations, 3PI selection and freight
management on behalf of its client.
C) Industry Innovator: Under this model the 4PL uses its expertise and resources to
create a solution not for any single client, but for offering 4PL services to a number of
clients in an industry.
The services provided by a 4PL provider are:
• Freight Negotiations with 3PLs
• Freight Contract Management
• Transport Billing
• Continuous Improvement Programs
• Management of Service Providers
• IT Solutions
• Risk
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• Cash-flow Management.
RESERVE LOGISTICS:
Increasingly, as a strategy, to compete on services, companies offer repair and

replacement services for their products under the warranty periods. The defective
products are often shipped across international borders to common repair centers to
be refurbished and returned to the originating station. Logistics service providers who
offer these services have to tackle issues pertaining to duty payment on refurbished
products, customs documentation and the establishment of collection points for repair
for the customers.
CONCLUSION:
Logistics is one of the areas of the supply chain i.e. growing at a tremendous case as
the Internet and E-Commerce is drastically changing the range, delivery time and the
speed of information as well as ordering and payment process. Due to the big boon of
information technology, greatly influencing and enhancing the effectiveness of
logistics, the time is not far when 5 PLs and 6 PLs may emerge which will probably we
doing part of the manufacturing and marketing for the organizations. Transport and
logistics is a very diverse sector that plays a major role in the UK and global economy.
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Disclaimer:
This document prepared by our research analysts does not constitute an offer or solicitation
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24

Gati LTD Detailed Report

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Gati LTD Detailed Report

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F

Gati Limited BUY

Dr. V.V.L.N. Sastry Ph.D.

Content Page No.

1. Peer Group Comparison 03

5. Charts & Graph 16

6. Outlook and Conclusion 18

ISIEmergingMarketsPDF in-mapegroup from 114.143.218.106 on 2011-02-17 00:26:55 EST. DownloadPDF.

Gati Ltd 159.00 5023.85 - - 1.82 0.00

Aegis Logistics 296.70 5578.80 20.26 14.64 3.21 25.00

All Cargo Global

Sical Logistics 75.45 2981.90 22.39 3.37 1.52 0.00

Results Updates (Q3 FY10)

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Segment Revenue (Rs. million)

• Gati plans financial recast to pay off debts

Burdened with huge debts, the company has embarked on a financial

• Gati to allot equity shares under ESOS

• Gati board approves options to improve its market position

• Gati board to offer convertible warrants on preferential basis

The company has approved to offer 4,872,000 warrants convertible within a

• Gati discontinues wet lease pact with Air India

• Gati Coast to Coast launches its sixth vessel, MV Gati Pride

• Gati rolls out distribution center in Hyderabad

• Gati Holdings Ltd.

Distribution Solutions Logistics Solutions

• Gati Surface Express

• Gati Air Express

• Gati Coast to Coast

• AI Gatiin-mapegroup from 114.143.218.106 on 2011-02-17 00:26:55 EST. DownloadPDF.

• Gati Desk to Desk Cargo

An affordable surface product especially designed for non-commercial packages.

• Supply Chain Management

The focus is on integrated logistics solutions. Gati's transport infrastructure, IT

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Gati's warehousing facilities consist of completely modern storage systems and

o Food & Beverage

o Healthcare / Life Sciences

o Computer & IT Peripherals

o Fashion & Garments

India centric solutions Gati Thailand

India centric solutions

Gati has beenin-mapegroup

Gati introduced customized solutions to cater the needs of Indian businesses in

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12 Months Ended Profit & Loss Account (Standalone)

Value(Rs.in.mn) FY08 FY09 FY10E FY11E

Description 12m 12m 12m 12m

Net Sales 5520.70 6303.30 7415.10 8527.36

Other Income 234.40 - 3.47 3.82

Total Income 5755.10 6303.30 7418.57 8531.18

Expenditure -5197.70 -5856.70 -6548.85 -7504.08

Operating Profit 557.40 446.60 869.72 1027.10

Interest -97.30 -354.10 -429.63 -455.07

Gross profit 460.10 92.50 440.09 572.04

Profit Before Tax 314.40 -137.60 197.69 305.39

Tax -76.60 -12.90 -39.82 -61.08

Net Profit 237.80 -150.50 157.87 244.32

Equity capital 169.30 169.80 170.30 170.30

Reserves 2799.20 2529.90 2687.77 2932.09

Face Value 2.00 2.00 2.00 2.00

Total No. of Shares 84.65 84.90 85.15 85.15

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