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Gateway Distripark hosted a
conference call on Aug 2, 2023. In the conference call the company was
represented by Prem Kishan Gupta, Chairman and Managing Director.
Key takeaways of the call
Throughput of rail business in
Q1FY24 was up 5% (to 89939 TEUs) and that of CFS was down 3% (to 89958 TEUs).
Train running was impacted in
Q1FY24 quarter by the Biparjoy cyclone when the rail network & port
operations were shut for some time in Gujarat, along with some double stack
restrictions imposed temporarily by Indian Railways during the quarter as well.
Double stacking was impacted due
to derailment of one train and subsequent restriction on double stacking.
Things normalized only in July 2023. Restrictions have gone away but speed
restrictions are still (speed 75 km/hour) there but loading restrictions have
gone away. Gujarat Cyclone in June 2023
has affected operations of both the Gujarat ports. In the month of July 2023 the rail volume
were good.
CFS biz impacted by new customs
regulations which impacted container volume at Navaseva. Management is doing their best to bring back
the volume.
Rail business volume growth guidance
remains same at 10-15% for FY24. The
volumes have been catching up and are starting to see signs of improvement in
the Export volumes as well. Export
volume have been low in the last few
quarters due to lesser demand in Western Europe and North America, especially
for retail products manufactured in India for those markets. Exports to US and
Europe for Christmas demand are driving the export volumes recovery.
Jaipur ICD will be operational by
Q4FY24 but the volume ramp up will be gradual.
Jaipur ICD expected to reach proper volume from FY26 and strong
contribution to EBITDA.
The company is now adding three
trains to its fleet over the next 6 months as the overall EXIM demand continues
to grow.
On the expansion front, the
company is on track to finalize new locations in the hinterland to expand its
container terminal network.
Share of double stacking in
Q4FY24 was 35% of total rail volume vs 42-44% last year. 5000-6000 TEUs of volume was lost in June
2023.
EBITDA/TEUs in Q1FY24 is about Rs
9100/TEUs (9400/TEUs in Q1FY23) for Rail biz and Rs 2100/TEUs (Rs 2100/TEUs in
Q1FY23)for CFS.
Tax rate - 17.4% mat and 80IA
benefits also taken so the tax rates were low.
Kashipur ICD – monthly rate is
about 3000 TEUs without empties. Some months it has touched 3500 TEUs as
well. Rail share is 100% with the
company. Ramp up will continue and hope to take it to 4500 TEUs soon. Able to get volume from catchment both import
and exports.
Incurred a capex of about Rs 10
crore in Q1FY24. Aggregate capex for next 2 years will be in the range of Rs
300 crore.
DFC update – 70% construction is
done. Dadri to rewadi is operational. Sending trains via DFC only to Mundra and
Pipavav. Track of about 570 km stretch
to JNPT will be operational by end of next year. Some volume might shift to
JNPT at about 5-10% migration from Pipavav and Mundra.
About 90% of its rail volume is
towards Pipavav & Mundra and 10% to JNPT.
During Q1FY24, the company
(Gateway Distriparks) acquired additional stake of 1.50%, post which the
company’s stake in Snowman Logistics has increased to 41.75%. Depending on cash
flow of the company the company may increase its stake in Snowman Logistics.
Snowmen logistics witnessing high
growth in volume Most of the facilities are full and pursuing capacity
expansion. Warehousing margin will continue
at 15% going forward. Expecting 5pl business margin to sustain at 10% even the
company focus to grow revenue of 5PL. Added
20 trailers added 50 new refrigerated trucks. Expect to have about 250 trucks
on own.
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