Credit rating agency, CARE has revised rating of Gati’s long-term Bank Facilities worth Rs 72.84 crore from 'BBB+' to 'A-' and of Short-term Bank Facilities worth Rs 5 crore to 'A2+' from 'A2'. The rating agency has also revised rating of company’s Medium Term Fixed Deposits worth Rs 50 crore to ‘A-’ from ‘BBB+’.
The revision in the ratings takes into account the improvement in total operating income of Gati at the consolidated level during FY15 (refers to the period April 1 to March 31), improvement in profitability margins, remodelling of the group leading to strengthening of financial risk profile of the group. The ratings continue to derive strength from the experienced promoters supported by efficient management team, synergy derived from extensive support of its group companies, diversified revenue portfolio at the consolidated level, comfortable capital structure and comfortable liquidity position and favourable industry prospects.
Gati is a leading player in express distribution and logistics and operates through two divisions - Express Distribution & Supply Chain (EDSC) and Coast- to-Coast (C2C) division. It also operates two container yards at Chennai and Port Blair which increases capability and provides for efficient handling of the cargo