Shares of the GATI Ltd surged 7 percent in morning trade on June 8, after the company announced a rise in volume in May.
At 10:09am, the company's stock was trading at Rs 125.80, representing a 7.66 percent rise on the NSE.
For May 2023, the logistics solutions provider reported an 8 percent month-on-month (MoM) increase in total volume, including surface and air express at 98 kilo tonnes. On a year-on-year (YoY) basis, Gati’s total volume had a 1 percent growth as compared to May 2022. Volume remained healthy YoY despite a strong base.
Volumes in May continued to exhibit a positive trajectory. An uptick was seen in the last week of May on the back of preparations for the upcoming festive season. This upward trend is expected to persist in the following months. Additionally, the volumes in the West zone experienced a positive trend after the introduction of the new superhub in Bhiwandi, as per the regulatory filling.
Gati Ltd, acquired by Allcargo in 2020, is primarily engaged in express distribution and supply chain solution through surface, air and rail logistics, supply chain management (SCM), e-commerce logistics, freight forwarding and cold chain transportation.
The company was in focus after reports said that Delhivery is in early talks for the acquisition of Gati Ltd. However, Delhivery went on record to deny the claim making it clear that there have been no discussions on this issue. A clarification on the issue will soon be made on the official website, said Delhivery in its filing.
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