The Hindu Business Line : Heavy capex plans going forward: Gati MD

THE Gati Managing Director, Mr Mahendra Agarwal claims that this year, the company is looking at a 25-30 per cent growth in top line and almost double growth in bottom line.

He adds that the company is also planning heavy capital expenditure for building express distribution centres all over the country.

Excerpts' from CNBC-TV18's exclusive interview with Mr Mahendra Agarwal:

What is your biggest revenue contributor and your outlook for the second half of this financial year?

Our biggest contributor is excess distribution and supply chain solution, which is about 70 per cent of our business. Within that more focus is on third party logistics and supply chain solution. In the last quarter, we did pretty well and the present quarter is also going strong.

Can you give us a sense of what sort of compounded annual growth you are going to see?

This year we are looking at a growth of 25-30 per cent in our top line and our bottom line growth should double, or even be better than that.

Can you give us a sense of what kind of EPS you would end the year with?

In the current year, we expect an EPS of about Rs 20. The sales should be about Rs 450 crore, almost 25 to 30 per cent growth over last year.

Most of this would be from express cargo business, or would solutions kick in as well?

Most of the profit is coming from excess distribution and supply chain solution. More and more companies are opting for third party logistics and supply chain solutions. For that, we have started a programme of building express distribution centres all over the country. We are committing ourselves in heavy capital expenditure to fulfil that.

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