A slump in its shipping business and the signing of a joint venture with a Japanese giant to extend its presence overseas, were the key developments during the quarter ended December 31 for Indian logistics major Gati Ltd .

    The company reported a 71 per cent rise in its net profit at US$1.06 million for the second quarter ended December 31, compared to $620,000 in the corresponding quarter the previous year, reported The Hindu.

    The total income during the period was up by five percent at $47.79 million.

    The core business of the company — express distribution and supply chain division where it is a market leader — was up 12 per cent at $45.3 million in comparative quarters. The operating profit of the division rose by 38 per cent to $6.29 million.

    The shipping business of the company remained sluggish and registered a de-growth on revenues at s $1.66 million, impacting the performance of the core business by $470,000.

    The re-structuring of the shipping business is in progress by way of de-merging it into an independent subsidiary and strengthening it by bringing in a global strategic partner according to the quarterly results release.

    Gati formed the JV with the Japanese global logistic service major Kintetsu World Express for its express distribution and supply chain business. Under the JV agreement, Gati will hold a 70 per cent stake and 30 per cent will be held by KWE.

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