Q1 2027 Gateway Distriparks Ltd Earnings Call Transcript
Key Points
- Market share remains intact despite industry de-growth caused by the West Asia crisis.
- Management remains confident of achieving double-digit volume growth for the fiscal year once geopolitical uncertainties resolve.
- Ankleshwar ICD is expected to be operational for EXIM by September, adding new volume and revenue streams.
- Indore ICD construction is progressing, with land expanded to 26.4 acres and operations targeted by 2028.
- The company has a substantial land bank of ~475 acres in prime locations, with high potential market value.
- Accumulated MAT credit allows for a low cash tax rate of ~18.88% for the next 7-8 years, supporting cash flows.
- DFC connectivity to JNPT is complete, and the company is well-positioned to benefit from potential cargo shifts and rail coefficient improvements.
- Snowman Logistics achieved 5-7% average price hikes and is adding 24,000 pallets this year, supporting growth.
- The company is open to selling CFS business at a good valuation, with no compulsion to sell due to a net debt zero position.
- Management is exploring new locations for both domestic and EXIM operations to drive future growth.
- Volumes in the ICD segment declined YoY due to the West Asia crisis, with continued uncertainty impacting operations.
- Rail EBITDA was negatively impacted by lower double stacking (down to 39%), higher empty running, and port imbalances.
- July volumes were further affected by bad weather and port restrictions, causing operational disruptions.
- The company faces cost pressures from significant minimum wage hikes (e.g., 35% in Haryana) and fuel costs, with a time lag in passing these to customers.
- CFS business remains weak and is not expected to benefit from DFC; a previous attempt to sell the business did not yield the right valuation.
- JNPT currently accounts for only ~5% of volumes, and shifting cargo from Mundra/Pipavav is uncertain and may take time.
- The company's growth guidance is heavily dependent on the resolution of global geopolitical issues, which are beyond its control.
- New ICDs like Ankleshwar and Indore will take time to ramp up, with Ankleshwar expected to reach only ~5,000 TEUs in 3-4 years.
- The Jaipur ICD legal case remains unresolved, with final arguments scheduled for September, creating uncertainty.
- The reported PAT declined 15% due to higher tax provisions, despite stable cash tax outgo.
Today on the call we have Mr. Prem Kishan Dass Gupta, Chairman and Managing Director. Mr. Samvid Gupta, Joint Managing Director. From Gateway Distriparks Limited, Mr. Kartik Sundaram Aiyer, Chief Financial Officer. Mr. Rajguru Behgal, Chief Business Officer. From Snowman Logistics Limited, Mr. Padamdeep Singh Handa, CEO and Director. Mr. Raghav Garg, Chief Financial Officer.
Questions & Answers
(Operator Instructions) Jainam Shah.
Yeah, good afternoon. Hope I'm audible.
Yes, you are.
Yeah. This question is related to the Gateway Distriparks. What we see is that volume for the ICD segment was quite segmented on a YOY basis. Just wanted your thought on the market share part. Is it something that market has grown like this and we have maintained our market share because of all this West Asia crisis that has been happening,
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