Throughout Monday’s buying and selling session, shares of a number one multimodal logistics options supplier primarily based in India hit a 5 p.c higher circuit on BSE, after securing a 6-year long-term contract from the Indian Railways (Northeast Frontier Railway).
With a market capitalisation of Rs. 370.08 crores, the shares of AVG Logistics Restricted hit a 5 p.c higher circuit at Rs. 249 on BSE, as in opposition to its earlier closing worth of Rs. 237.15. The inventory has delivered damaging returns of over 52 p.c in a single yr, however has gained round 1 p.c within the final one month.
What’s the Information
In accordance with the most recent regulatory filings on the inventory exchanges, AVG Logistics Restricted secured a 6-year long-term contract from the Indian Railways (Northeast Frontier Railway) for the lease of Parcel Cargo Specific Prepare (PCET).
This particular prepare connects Agartala (Tripura)/Guwahati (Assam) to Delhi/Ludhiana (Punjab) and can full 4 journeys each month over the 6-year interval, amounting to a complete of 313 journeys through the contract tenure.
The Specific Prepare Service will cowl a distance of two,768 kilometres in ~90 hours, making certain quick and seamless connectivity between the 2 places, with the prepare’s Carrying Capability anticipated to be 364 tonnes per journey for the preliminary 6 months, which can subsequently enhance to 484 tonnes per journey later.
Sanjay Gupta, Managing Director & CEO of AVG Logistics Restricted, acknowledged that the corporate anticipates producing income of ~Rs. 198 crore (round Rs. 33 crore yearly) over the 6-year tenure. He famous that the contract is predicted to raise the corporate’s monetary efficiency and help its plans to pursue bigger and extra formidable initiatives.
Monetary Efficiency
AVG Logistics reported a development in income from operations, experiencing a year-on-year enhance of practically 14 p.c, rising from Rs. 124.7 crores in Q3 FY24 to Rs. 142.4 crores in Q3 FY25. Equally, throughout the identical interval, the corporate’s web revenue jumped from Rs. 4.8 crores to Rs. 5.5 crores, indicating an increase of round 14.6 p.c YoY.
Concerning the firm
AVG Logistics Restricted gives customised and technology-driven options throughout transportation, warehousing, distribution, and provide chain administration. The corporate additionally gives Third-Get together Logistics Companies (3PL), successfully complementing its big selection of logistics options.
AVG’s esteemed prospects embrace Nestle, HUL, DS Group, Apollo Tyres, JK Tyres, ITC, Airtel, MRF, Jubilant, Extremely Tech Cement, Coca Cola & many different retail and multinational corporations.
Written by Shivani Singh
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