Gateway Distriparks is working towards both organic and inorganic growth opportunities as part of its long-term strategy for the rail business, the logistics firm has said
Shares of Gateway Distriparks rose 5 percent on May 29 as positive commentary from the management despite a dull quarterly performance was cheered by investors.
At 12.32 pm, the stock was quoting at Rs 66.63 on BSE, up 4.16 percent from the previous close. It was trading with volumes of 99,546 shares against its five-day average of 26,756 shares, an increase of 272 percent.
Gateway Distriparks is looking to expand its rail business through both organic growth (internal development) and inorganic growth (acquisitions or partnerships).
The company expects that as more stretches of the Dedicated Freight Corridor (DFC) are completed, it will lead to faster transit time and make operations more efficient, the management said. The company’s goal is to increase the use of containers for transporting goods in India, which will help in creating a modern and efficient logistics system.
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Prem Kishan Gupta, Chairman and Managing Director, Gateway Distriparks, told CNBC-TV18 that despite a 16 percent decline in exports during second half of FY23, Kashipur Terminal performed exceptionally well.
To further enhance its operations, the company aims to add three more trains this year. While the Container Freight Station segment is expected to remain flat in FY24 due to competition, Gupta expressed confidence in the railway business, projecting a volume growth of 15-20 percent.
In the National Capital Region (NCR), the company has achieved a market share of 16-16.5 percent, showcasing a strong presence.
Gupta assured stakeholders that the company will maintain a railway business margin of 25-26 percent and sustain the EBITDA margin at current levels, driven by a projected revenue growth of 13-15 percent.
Although the FY23 net debt was Rs 340 crore, up from Rs 268 crore in FY22, Gateway Distriparks expects it to remain at the same levels.
The company plans to invest Rs 300 crore in capex over FY24 and FY25 and utilise internal accruals for funding.
The logistics company’s reported a 19.4 percent year-on-year decline in net profit in the March quarter at Rs 68.5. However, there was a 5 percent increase in revenue at Rs 377 crore.
EBITDA decreased by about 2 percent to Rs 93.5 crore from Rs 95 crore YoY. The operating margin shrunk to 24.8 percent from 26.5 percent in the previous year.
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