Gateway
Distriparks hosted a conference call on April 26, 2022. In the conference call the
management was represented by Prem Kishan Dass Gupta, Chairman & Managing
Director; Ishaan Gupta, Joint Managing Director; Samvid Gupta, Joint Managing
Director; Sachin Bhanushali, Chief Executive Officer; Sandeep Shaw, Chief
Financial Officer and Manoj Singh Senior VP – CFS.
Key
takeaways of the call
CFS
throughput for Q4FY22 was down by 6% to 87487 TEUs and that for FY22 was up 17%
to 373906 TEUs.
Rail
business throughput was up 16% (to 90385 TEUs) and 34% (333270 TEUs) respectively
for Q4FY22 and FY22.
Rail
Logistics business have done exceptionally well in FY22. And this is due to lower
passenger operation by IR releasing rail network capacity for container
transportation as well as 750km out of 1100 km of WDFC becoming operational thereby
reducing transit time providing better predictability and asset
utilisation. However, delays at Chinese ports especially
on south of China due to Covid have impacted the sea trade and the situation
are expected to return to normalcy soon.
EBITDA
per TEU of Rail business in Q4FY22 was Rs 10357, a growth of 7%YoY and
15%QoQ. However for FY22 it was Rs 9485/TEU,
a growth of 7%.
Q4FY22 margin (EBITDA/TEU)
got a bump on account of EO income of Rs
12 crore reported in Q4FY22 on account of profit from sale of land (small
parcel of land acquired by Haryana government in garhi haus for a road project).
On
annualised basis the EBITDA margin/TEUs looked at is Rs 9000/TEU plus or minus
5%.
IR
rebate of 5% on laden containers and 25% on empty containers is withdrawn by
May 1, 2022 (on laden) and from Aug 1, 2022 (on empty containers) by Indian
Railways. The same will be passed on to
customers.
NCR
and Punjab the company able to outperform the industry growth in Q4FY22 and
able to increase market share. In NCR
the ICD business of the company grew by 36% against 15% growth of the industry.
And similarly the company grew by 25% vs 18% of industry in Ludhiana. The market share of the company in NCR
improved to 15.85% and that in Ludhiana was at about 35%.
Post surrender of Punjab
Conware CFS by Jan 31, 2022, the company shifted lot of business to its own CFS
in Mumbai, whose volume has jumped from 8000-9000 TEUs to about 14000-15000
teus in Mumbai. Punjab Conware used to do a volume of about 5000 teus.
Depreciation
on Punjab conware CFS was accounted upto Jan 2022 (only for one month in
Q4FY22). That's why depreciation was lesser in Q4FY22.
On
DFC are able to offer better transit time to customers.
Trucking
rates gone up by 25% due to fuel price rise.
Long haul no major change in trucking rates. No change in rail haulage charges. Now the
driver of growth will be assured transit time available for the customer. So there
will be modal shift from cfs to icd/rail container transportation.
1.5:1 is net debt to
EBITDA is the company will be comfortable with.
Volume drop is about
10-15% due to closure of south china ports and Ukraine war. But seeing firming
up of exports. Adequate empty containers in ports and hinterland but bookings
are not happenings. On 90-95% of Q4FY22
volume is expected for Q1FY23.
Capex - two
terminals Rs 60 crore each; Rs 80 crore in equipment and vehicles along with maintenance
capex. Total capex will be Rs 200 crore.
Double stacking
share in Q4FY22 was about 38%.
The company will be
under MAT for this fiscal and next fiscal.
EO
Income of Rs 12 crore in Q4FY22 are part of other income.
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