AVG Logistics bags ₹105 Crore 6 years long term contract from Indian Railways for operations of Leased Parcel Express Train

AVG Logistics Limited has secured a 6 year long term contract, valued at ₹105 crore, for lease of Parcel Cargo Express Train (PCET) from the Indian Railways. This special train, connects Korukkupet Goods Shed (Chennai) to New Guwahati Goods Shed (Guwahati), will complete 4 trips every month over the next 6 years, totalling 313 trips during the contract tenure. The Carrying Capacity during the trip is expected to be 364 tonnes for the first six months. Later, it will be 484 tonnes per trip. The Express Train Service will cover the distance of 2500 kilometres in 72 hours ensuring expeditious, seamless connectivity between the two locations.

Commenting on the collaboration, Mr. Sanjay Gupta Managing Director & CEO, AVG Logistics Limited said, "We are excited about our new collaboration with Indian Railways. This collaboration highlights our strong commitment to improving cargo transportation services, bringing us nearer to our sustainability goals and increasing the proportion of Green (eco-friendly) logistics in our revenue stream. Generating ₹105 crore revenue from this contract enhances our financial standing and help us fuel our ambition to undertake more ambitious projects, thereby elevating our overall financial performance. Through this Contract, while departure of the train from Chennai to Guwahati company will serve the industries in the field of Tyres, Hosiery, Garments, FMCG, Incenses etc and departure of the train from Guwahati to Chennai, the company will serve the industries in the field of Tea, Bamboo, Plastic granules, Mosquito repellent, FMCG, Hair oil etc.

We believe that this strategic move and committedservices will have a positive impact on our operational efficiency, service reliability, and overall business growth. The long-term nature of this contract underscores our commitment to achieving sustained excellence in logistics services. We look forward to the rest of the year with renewed vigour, excited tocreate value for the company, stakeholders, and the environment."

Shares of AVG Logistics Limited was last trading in BSE at Rs. 621.25 as compared to the previous close of Rs. 522.85. The total number of shares traded during the day was 136658 in over 4239 trades.

The stock hit an intraday high of Rs. 627.40 and intraday low of 523.90. The net turnover during the day was Rs. 83005022.00.

Source : Equity Bulls

Keywords

AVGLogistics INE680Z01018 LongTermContract IndianRailways ParcelCargoExpressTrain