Gati to return to profitability next quarter: Allcargo Logistics
June 05 , 2020
Publication: Economic Times
Source: https://bit.ly/3d2CP1v
Allcargo Logistics expects Gati, the express courier services firm it recently acquired, to return to profitability next quarter, after having been stalled by the coronavirus lockdown in the current quarter.
Allcargo Chairman Shashi Kiran Shetty also expects a brighter future for the Hyderabad-based subsidiary as it is awaiting a tax write-back of Rs 50-60 crore through the ongoing dispute settlement scheme and thus close the fiscal year with a healthy bottomline.
"We've applied for the Vivad Se Vishwas scheme, under which the government is encouraging taxpayers to end their disputes with taxmen through negotiated settlement. Gati has a disputed tax claim of Rs 150-160 crore and we hope to settle it at half... and thus will be able to write back at least Rs 50-60 crore by December," Shetty told PTI.
After its open offer, Allcargo now controls close to 47 per cent in Gati, and Shetty expects the integration of the two companies over the next 16 months. Allcargo had appointed turnaround experts Alvarez & Marsal to revive Gati and improve the best practices between the two companies.
The Covid-19 lockdown had almost crippled the business of Gati.
"While April was really bad, from mid-May, the situation began to improve and so far June seems to be normal. But Mumbai being But Mumbai being still shuttered is a big drawback," he said.
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