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Gateway Distripark hosted a conference call on May 31, 2024.
In the conference call the company was represented by Prem Kishan Dass Gupta,
Chairman & Managing Director.
Key takeaways of the
call
Throughput for Q4FY24 stood lower
by 3.39% at 176506 TEUs [Rail 86521 TEUs
down 7.47%; CFS 89985 TEUs, up 0.88%] and for FY24 it was up 2.55% to 730934 TEUs [Rail 368070 TEUs up 5.76%; CFS 362854 TEUs, down
0.52%]
Q4FY24 performance has been muted
primarily on account of the Red Sea crisis which has disrupted supply chains,
causing a slowdown in EXIM business in India. Higher container ship freight rates on account
of red sea issue have hit the low value commodities such as scrap paper
etc.
Focus remains on expanding
network and sustaining growth. Continue
to explore land for new container terminals and are optimistic that our
Faridabad ICD will soon become a double stack location as railway work nears
completion.
The company in NCR market has maintained
its market share of 16-17% in Q4FY24, but
in Ludhiana the market share at 22% was downs
from 30% same period a year ago. Kashipur 27%
in Q4fy24;
Volume growth in two NCR
terminals including Gadi & Faridabad registered a growth of 5.5%. Ludhiana degrowth of 30% due to lower
imports.
Double staking in Q4FY24 has
declined to 39% from 47% a year ago. Capacity on rail side has gone up. Once
EXIM cargo increases the double staking will also improve.
Rail EBITDA 9000-9800/TEUs for
Q4fy24 and for full year it is below
95000/ TEUS
CFS – competitive intensity
remains and will remain for foreseeable future. Looking at cost control. Expect an EBITDA target of Rs 1500/TEUs.
For rail business the EBITDA of
Rs 9500/TEU is expected with marginal variance due to EX-IM balance etc.
Discounting may increase especially in Ludhiana and Kashipur with increased competition and the EBITDA
guidance of Rs 9500/TEUs factor that in.
General maintenance capex will be
Rs 20 crore for FY25.
Looking at monetization of Kochin
and Krishnapatnam CFS land.
Jaipur terminal work is getting
delayed.
Network advantage along with
double stack hubs has helped it to minimize costs
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