Gateway Distriparks hosted a
conference call on Feb 14, 2024. In the conference call the company was
represented by Prem Kishan Gupta,
Chairman and Managing Director. Ishan Gupta, JMD, Sandip Shah, CFO.
Key takeaways of the call
Volume throughput in Q3FY24 up 8% [ Rail volume
up 16% to 90976 TEUs; CFS volume up 1% to 90546 TUEs] and 9mFY24 up 5% [ Rail
volume up 11% to 281549 TEUs; CFS volume down 1% to 272879 TUEs].
EBITDA/TEUs in Q3FY24 were Rs 9700/TEUs (Rs
9500/TEUs in Q1FY24; Rs 9000/TEUs in Q2FY24) for Rail and Rs 13000/TEUs for CFS.
Change of mix (exim balance) and double stacking. 9000-10000/teus is the EBITDA
the company guides for rail moving in the range depending on level of double
stacking and mix. GAddi originating volumes are going up providing more
benefits of double stacking during the quarter.
The company continue to invest in rail infrastructure
and the company expect delivery of one more rake by end of the fiscal boosting
the current rake strength of 33 rakes.
Kashipur volume ranges about 3000-3500 TEUs. In Kashipur the volume currently at 2/3rd import 1/3 rd exports till
there is balance the company is not picking additional volume. No 3rd party trains are used for
container movement in case of Kashipur.
Jaipur operations will be delayed by 3 months
compared to scheduled date of operation earlier.
Faridabad terminal of the company is still not
double stacked and the work of double stacking infra is under progress. Able to
start operating double stacking trains in 2 months time from Faridabad terminal.
Apart from Faridabad the Taniwal and Kashipur volume can be routed through Faridabad
once double stack operation starts from that terminal.
Ludhiana market has five ICDs and thus there is
competition with every player want to increase their market share. The company
not focus on low margin volumes in Ludhiana market. But a market share of 25%
is achievable from current 20-22% market share without any impact in
profitability and the company is working towards that.
Red Sea issue to result in export import
imbalance in the short term. The problem
started in mid December 2023. Cargo from Europe and East Coast of USA are
taking more time. This has resulted in lower volume in Jan 2024. But able to catch in the month of Feb/March
2024 as it is experiencing spill over volume in Feb/March 2024.
The company is enjoying a market share of 16%
in rail business. But CFS there is strong competition and the company looking
to monetise excess land in certain CFS.
Krishnapatnam Port there is hardly
any container volume and thus there is no work for CFS. There is also drop in
volume in Vishakhapatnam. There is pricing pressure in Chennai CFS.
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