The festive season has started off on a good note for Hyderabad-based Gati, an express distribution and supply chain company. Pirojshaw Sarkari, the company's MD & CEO sees double-digit revenue growth in the second half of the year.

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In the second quarter, the company posted volume growth of 18% over last year and 14% over the previous quarter. Sarkari attributed this to the company's efforts in redesigning the network.

"The redesign has led to increased customer satisfaction and higher volumes. The focus now is on translating this volume growth into revenue," Sarkari assured, adding "You will witness significant progress in this area over the next couple of quarters."

Gati had a challenging Q2, with revenue increasing by only 1%, to ₹441.50 crore compared to ₹435.10 crore in the previous quarter. EBITDA (earnings before interest, tax, depreciation and amortisation) dropped by 26% to ₹14.88 crore from ₹20.07 crore leading to margin contraction from 4.6% to 3.4%.

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Gati shares have declined more than 8% over the past month. The company's market capitalisation is ₹1,901.85 crore.

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(Edited by : Shweta Mungre)