Gateway Distriparks hosted a
conference call on Jan 24, 2023. In the conference call the company was
represented by Prem Kishan Gupta, Chairman and Managing Director.
Key takeaways of the call
Dip in throughput in Q3
particularly in the export direction is largely due to global macroeconomic
situation. Further, track upgradation work was taking place in NCR throughout
the month of December 2022, leading to slower running of trains and reduced
double stack and hub & spoke operations of the company hurt the throughput.
CFS volumes for Q3FY23 do not have the
benefit of Punjab Conware CFS which was part of Q2FY22 for one month.
The company have not lost any
market share in NCR and Ludhiana market, where the market share continue to be
around 16-17% and 35% respectively.
Growth in per TEU realisation (up
10%YoY) for rail business in Q3FY23 despite lower volume was largely due to mix
with imports higher than exports.
Exports volume have not picked up
so far in Jan 2023.
Targets to improve EBITDA per
TEUs of Rs 6000 from about Rs 5500 in 9mFY23.
The company completed its acquisition of Kashipur
Infrastructure Freight Terminal (KIFTPL) on 23rd December 2022 and has started
regular train services between Kashipur and Mundra, Pipavav & Nhava Sheva.
Currently, KIFTPL was only earning the terminal income but from Q4 onwards
Gateway Distriparks will earn the entire revenue for rail and terminal
services.
Construction at the proposed ICD
in Jaipur remains in progress and the terminal is expected to be operational in
Q3 FY 2024. The company is also actively looking to set up 2 more terminals by
FY2025.
The revenues appear to be flat as
last year due to Punjab Conware CFS numbers being included in Q3 FY2022. But the company expect the full benefit of
Kashipur terminal in Q4FY23 and significantly offset the impact of
punjabconware.
The company will add 3 rakes as
planned for this fiscal as the company have increased need due to Kashipur
terminal operational and expected commissioning of Jaipur terminal. But further
addition of 3 rakes a year largely depend on how market conditions shapes up.
Net debt as end of Dec 2022 was
Rs 349 crore.
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