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Gati share zooms 8% post Q4 earnings

The company informed that there was an exceptional loss of Rs 172.8 crore on a reduction in the value of assets held for sale

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Share of Gati Ltd. rose nearly 8 per cent to hit an intraday high of Rs 130.95 in early trade after the company reported earnings for the quarter ended March 2021.

Revenue from operations grew 10 per cent to Rs 406.64 crore in Q4 compared to Rs 370.09 crore in the year-ago period.

However, the company reported a net loss of Rs 173.4 crore in Q4 compared to a loss of Rs 70.6 crore in the year-ago period. The company informed that there was an exceptional loss of Rs 172.8 crore on a reduction in the value of assets held for sale.

The share opened 2 per cent lower at Rs 119 against the previous close of Rs 121.40. It has gained 253 per cent in one year and risen 27 per cent since the beginning of this year.

Gati share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 1,535.50 crore.

The stock touched a 52-week high of Rs 138.45 on May 21, 2021, and a 52-week low of Rs 36.05 on May 26, 2020. Currently, it is trading 258 per cent above its 52-week low and 6.8 per cent below its 52-week high.

"During the period ended March 31, 2021, Gati Kausar India Limited (GKIL), a subsidiary of the company, has incurred a loss of Rs 16.50 crore and as of that date, the accumulated losses amounting to Rs 108.91 crore has resulted in complete erosion of its net worth and the current liabilities exceeded its current assets by Rs 95.82 crore," the company said.

"The Group has taken into account the impact of Covid - 19 in preparation of financial results including its assessment of going concerned and recoverability of the carrying amounts of financial and non-financial assets. The extent to which the pandemic will impact our future financial results is currently uncertain and will depend on various other economic developments," it added.

The company further added that Gati Import Export Trading Limited (GIETL), a wholly-owned subsidiary of the Company, has discontinued its operations in FY 2021.

At 11:06 hours, the stock was trading at 128.85, up 6.14 per cent on BSE.