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.