Shares of Allcargo Gati Ltd. surged by 4% to touch a day’s high of Rs 119.85 on 26th September after the company announced a general price increase (GPI) starting next year.

Allcargo Gati, a major player in the logistics and express delivery industry, will implement a price revision for its Express Distribution services starting from 1st January, 2025.

The average general price increase (GPI) will be 10.2%, marking the company’s first price revision since Allcargo Logistics Ltd. acquired Gati in 2019.

The company stated that this GPI is necessary to offset significant cost increases due to inflation and administrative expenses related to regulatory and security measures, enabling further investments in infrastructure and technology.

New customers who sign up between 1st October and 31st December will not be affected by the GPI.

The company is currently overhauling its operational Enterprise Resource Planning (ERP) platform to enhance delivery efficiency, ensure timely and secure mid-mile operations, and improve cross-dock processes, as announced on 26th September.

They reported a 4% year-over-year decline in revenue for Q1 FY25, with revenue at Rs 410.89 crore compared to Rs 428.37 crore in Q1 FY24.

The company’s consolidated net loss decreased by 21% to Rs 2.17 crore in the June quarter, compared to a net loss of Rs 2.75 crore during the same period last year.

So far in 2024, the shares of Allcargo Gati have given negative returns of 9%. The company’s market capitalisation as of today stands at Rs 1,692 crore.

At 2:08 PM, the shares of Allcargo Gati were trading 0.67% higher at Rs 115.08 on NSE.

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