Prem Kishan Dass Gupta, Chairman
and Managing Director; Ishaan Gupta, Joint Managing Director; Samvid Gupta,
Joint Managing Director; Sandeep Shaw, Chief Financial Officer; Rajguru Behgal,
President – Rail; Manoj Singh, President – CFS.
Key takeaways of the call
Current ICD and CFS capacity is
6.5 lakh TEUs and 5.36 lakh TEUS per annum respectively. The total warehousing
capacity currently is about 160000 square meters. The company’s rail fleet
comprises of 31 train sets including 21 owned and 10 leased. The company from next year onwards will be
adding 3 rakes per annum and that will be on lease.
For Q2FY23, while the CFS volume
was down 13% to 92767 TEUs and the Rail volume was up 10% to 90208 TEUs. For H1FY23 the CFS volume was down 13% and
the rail volume was up 12%. The throughput of both rail and CFS consists of
both laden and empty.
On Oct 31, 2022, GDL has signed a Share Purchase
Agreement (SPA) with Kashipur Infrastructure and Freight Terminal Private
Limited (KIFTPL) and its majority shareholders namely, Apollo LogiSolutions
Limited, India Glycols Limited and Kashipur Holdings Limited to acquire about 99% stake in KIFTPL. The company
expects to close the transaction by end of Q3FY23.
The terminal operated by KIFTPL
at Kashipur is spread across 41 acres and has 3 rail sidings as well as 17000
sft of warehousing apart from rail and container yard. While KIFTPL operates the terminal the rail
operations are provided by 3rd party CTOs and that revenue was not
reflected in the financials of KIFTPL. Post acquisition the company will
provide end to end logistics solution at this terminal. It currently handle a
volume of about 3000 TEUs a month and the company expects to double it going
forward considering the potential of catchment area and limited competition in
the vicinity (on ICD Moradabad of competitor is available within 50 km
radius). No revenue was accounted from
KIFTPL in H1FY23.
Greenfield ICD projects - In Sep 2022, the company has completed
purchase of land in Dhanakya, near Jaipur at a cost of Rs 30 crore. It has
commenced construction of new
rail-linked Inland Container Depot (ICD) with a capacity to handle
125000 TEUs and the total cost of construction is to be about RS 60 crore. Apart from Jaipur the company is looking at
one more location for another Greenfield ICD.
Overall, the capex (including the
cost of acquisition of Kashipur terminal and ) will be about Rs 350-400 crore
in next 18 months. Of this about Rs 30 crore is already spend on acquisition of
land for Jaipur ICD and will spend
another Rs 60 crore for construction of ICD at Jaipur, Rs 150 crore will be
spend on acquisition of Kashipur terminal and another Rs 100 crore will be
spent on setting up of 3rd ICD.
Market share of the company in
NCR increased to 17% in Q2FY23.
EBITDA margin of rail and CFS is
RS 9500/TEUs and Rs 22000/TEUs respectively.
As more segments of the DFC are
commissioned, the transit time will come down significantly and double stacking will increase. This will improve the margin. Margin improved to RS 9500/teus. Some section of DFC West already completed
and commissioned. The Rewari-Madar,
Madar-Palanpur, Palanpur-Mehsana, Mehsana-Sanad is completed and Sanad to Makarpure segment is expected to
be commissioned by Dec 2023. Makarpure to Vadodara-Surat -Vaisana-JNPT will happen
over 2023-2024.
With additions of two
terminals at Kashipur and Jaipur, GDL will have 11 container terminals - 6 ICDs
and 5 CFSs.
Jaipur is connected to Pulara
junction and it will be a double stacking terminal. Jaipur volume will kick in only by end of
next year.
Revenue and realization of Kashipur
will be informed only after closing the transaction.
Volume growth excluding Punjab
Conware CFS which the company surrendered in Jan 2022, is 16% for H1FY23 and
the company expects a volume growth of 6-7% not considering that of
Kashipur. Rail volume will be in double
digit for this fiscal. Including the volume of Kashipur and Jaipur the volume
growth next fiscal will be high double digit.
Market size of Kashipur is about
10000 TEUs. Imports of waste paper, home
furnishings, chemicals etc.
|