Allcargo Logistics will be declaring its third quarter (Q3) results next week and shares of the company were down 2.68 percent at Rs 169 on the BSE on Thursday at around 2.35 pm. On Tuesday, peer company Gati had reported 41 percent fall in consolidated net profit to Rs 6.49 crore.
The company recently concluded buyback of 64 lakh shares at a price of Rs 195 per share.
Read: GST Council resolves dual control issue; July 1, 2017 rollout looks realistic
Shares of logistics companies will be in focus as they are expected to gain once the Goods and Services Tax (GST) is implemented, hopefully from July 1, 2017. A unified tax regime and streamlined collection of taxes is expected to result in seamless movement of goods, improving business and margins for these companies.
Other logistics companies in India include state-owned Container Corporation of India (Concor), VRL Logistics, Snowman Logistics, Transport Corporation of India and Gateway Distriparks.
On Thursday, at around 2.55 pm, Gati shares were marginally up at Rs 122, Snowman down 0.77 percent at Rs 58 and Concor shares were up 1.53 percent at Rs 1,307, on the BSE.
The Sensex was trading 11 points higher at 28,302.
Gati's net profit fall was attributed to additional amortisation expenditure of Rs 2.94 crore arising out of foreign exchange loss on restatement of foreign currency convertible bonds (FCCBs). Consolidated income had gone up marginally to Rs 428 crore, YoY.
The Goods and Services Tax (GST) Council will be meeting on February 18 to take up the CGST to be passed by the Parliament during the budget session. The Council is headed by finance minister Arun Jaitley.
The ninth meeting of Council last month made significant headway on the contentious issue of dual control of assessees, raising hopes of a rollout by July 1, 2017, after missing the earlier deadline of April 1, 2017.
