Allcargo Gati shares jump after company announces general price increase

26 Sep 2024 , 02:59 PM

Allcargo Gati Ltd’s shares rose about 5% on Thursday after the business announced a general pricing increase (GPI) beginning next year.

Allcargo Gati, a major player in the logistics and fast delivery industries, will revise the prices for its fast Distribution services beginning January 1, 2025.

Shares of Allcargo Gati Ltd opened modestly higher and surged 5% to an intraday high of ₹119.90 on the BSE.

A 10.2% average GPI will take effect in January 2025, marking the company’s first price change after Allcargo Logistics Ltd purchased Gati in 2019.

At around 1.55 PM, Allcargo Gati was trading 0.61% higher at ₹115.01, against the previous close of ₹114.31 on NSE.

The company has stated that the aforementioned General Price Increase will assist it in offsetting the significant increase in costs over the years due to inflation and administrative costs associated with regulatory and security measures, allowing for additional investment in infrastructure and technological advancements.

The company’s operational Enterprise Research Planning (ERP) platform is being completely overhauled to boost delivery efficiency, assure timely and secure mid-mile operations, and optimise cross-dock processes, it announced on September 26.

Allcargo Gati Limited reported a 4% year-on-year reduction in revenue for Q1FY25. In the first quarter of FY25, the company’s revenue was ₹410.89 Crore, compared to ₹428.37 Crore in Q1 FY24.

In the June quarter, Allcargo Gati’s consolidated net loss decreased by 21% to ₹2.17 Crore, from ₹2.75 Crore the previous year.

For feedback and suggestions, write to us at [e-mail]