Covid-19 disruptions set to affect Gati’s Q1FY21 performance; stock down 2%

The company was operating at sub optimal levels following Government directives on lockdown in March 2020.

Jul 10, 2020 12:07 IST India Infoline News Service

Gati Limited informed the exchanges Thursday that there will be impact of Covid-19 pandemic in revenue and profitability for Q1FY21 as its operations were partially shut in April 2020 and were gradually ramped up since May 2020.

The operations in end markets have also been disrupted on account of Covid-19 and therefore demand in end markets have been impacted as well.

The company was operating at sub optimal levels following Government directives on lockdown in March 2020. While most of its operating sectors within were under lockdown mode, the movement of goods continued in the essential commodities sectors under the Essentials Commodities Act, accordingly company continued to service these sectors.

As permissions on resumption was granted to Industries from mid-April 2020, the company witnessed an uptick in demand from our customers across various segments.

Gati Ltd is currently trading at Rs49.05, down by Rs1.2 or 2.39% from its previous closing of Rs50.25 on the BSE.

“Amidst the crisis, the safety of our employees has been our top-most priority and the company has taken several measures to ensure their well-being.  We have gradually been ramping up capacities across business verticals, on a gradual basis.

Our corporate and registered office in Hyderabad was closed as per the lockdown directives by respective State and Central Governing Authorities.  All other offices are also following directives from the respective State Governments and functioning accordingly. We had initiated Work from Home since mid-March and have ensured normalcy in daily operations,” company said.

Complete halt in the economic activities during the initial phase of the lockdown has impacted the demand in the month of April 2020, however the same started picking up from May 2020. The company has initiated various cost control measures across verticals with strict monitoring of costs under each head to reduce the impact on profitability of the company going forward.

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