Gateway Distriparks posts 5% income increase to ₹266 crore in Q2 FY21
October 29, 2020: The integrated inter-modal logistics facilitator Gateway Distriparks (GDL) today announced its unaudited financial results for the quarter and half year ended September 30, 2020, with total income increased five percent to ₹ 266.96 crore from ₹ 254.32 crore last year.
Prem Kishan Dass Gupta, chairman " managing director, Gateway Distriparks
October 29, 2020: The integrated inter-modal logistics facilitator Gateway Distriparks (GDL) today announced its unaudited financial results for the quarter and half year ended September 30, 2020, with total income increased five percent to ₹ 266.96 crore from ₹ 254.32 crore last year.
Prem Kishan Dass Gupta, chairman & managing director, Gateway Distriparks, said, “Through our internal accruals and money raised through rights issue, we have completed prepayment of A1 series NCDs totalling to ₹250 crore since January 2020. This significant deleveraging of our balance sheet will allow us to focus on future growth opportunities through capex towards satellite rail terminals.”
Gateway Distriparks
Gateway Distriparks operates six container freight stations located at Navi Mumbai, Chennai, Krishnapatnam, Kochi and Visakhapatnam. The company also own a fleet of 193 trailers for transportation between maritime ports and the CFSs. In addition, its subsidiary, Gateway Rail Freight, provides container rail transportation service between the maritime ports at Nhava Sheva, Mundra, and Pipavav and the four inland container depots owned and operated by it at Gurugram, Ludhiana, Faridabad, and Viramgam, and additionally operates a domestic terminal at Navi Mumbai. GRFL operates a fleet of 31 trainsets along with 338 trailers which facilitate last-mile pick-up and delivery of cargo.
Financial highlights
Particulars (₹ cr) | Q2FY21 | Q1FY21 |
Total Income | 266.96 | 254.32 |
EBIDTA | 69.68 | 71.45 |
EBIDTA Margin | 26.1% | 28.1% |
PBT | 15.15 | 15.04 |
PBT Margin | 5.7% | 5.9% |
PAT | 4.26 | 11.12 |
PAT Margin | 1.6% | 4.4% |
Operational highlights
Particulars | Throughput (TEUs) | Revenues (₹ cr) | EBITDA/ TEU (Rs./TEU) | ||||||
Q2FY21 | Q1FY21 | QoQ% | Q2FY21 | Q1FY21 | QoQ% | Q2FY21 | Q1FY21 | QoQ% | |
Rail Business | 56,135 | 47,555 | 18.0% | 175.47 | 158.55 | 10.7% | 7,649 | 8,622 | -11.3% |
CFS Business | 78,280 | 64,821 | 20.8% | 87.05 | 94.23 | -7.6% | 3,376 | 4,309 | -21.7% |
Other highlights
- Prepaid total NCDs of ₹ 19 crore (including interest) in Q2 FY21
- Net debt stands at ₹ 509 crore against ₹ 681 crore as on March 31, 2020
- Gateway Rail Freight Q2 FY21 financial performance
- Revenues were ₹ 175.47 crore
- EBITDA was ₹ 42.94 crore and EBITDA margin stood at 24.5 percent
- PAT was ₹ 17.24 crore and PAT Margin stands at 8 percent
- CFS business Q2 FY21 financial performance:
- Revenues were ₹ 87.05 crore
- EBITDA was ₹ 26.43 crore with an EBITDA margin of 30.4 percent
- Net Loss (after tax, including on dividend income) was ₹ 11.44 crore
- Snowman Logistics Q2 FY21 financial performance:
- Revenues were ₹ 57.69 crore
- EBITDA was ₹ 14.80 crore and EBITDA margin stood at 25.7 percent
- Net Loss was ₹ 1.70 crore
Rights issue and debt reduction
In August 2020, the company raised ₹ 116 crore via rights issue. The fund proceeds were used towards prepayment of NCDs totalling to ₹ 118.19 crore (including interest). The consolidated debt has now reduced from ₹ 681 crore as on March 31, 2020, to ₹ 509 crore as on September 30, 2020.
Business restructuring
In September 2020, the board of directors of the company have approved the proposed composite scheme of amalgamation to reverse merge Gateway Distriparks into its subsidiary Gateway Rail Freight. Post this restructuring exercise, GDL would be delisted and GRFL would be listed and renamed later. The rationale behind the business restructuring is to drive operational synergies and cost efficiencies, improve cash flows and debt servicing ability of the newly merged entity GRFL and reduce statutory and regulatory compliances. This step goes in line with the company's yearlong effort targeted to unlock value while aggressively eyeing reduction of debt.
Prem Kishan Dass Gupta, said “The business restructuring will enhance our future cash flows significantly and provide us flexibility for ramping up our business operations. The new structure will enable us to grow our rail intermodal logistics business faster and capitalize on new growth opportunities. This restructuring enables the company to realize its full potential, whilst rationalizing the cost base which will create value for all our shareholders. The restructuring will also enable us to remain focused on operational and technological advances to maintain and extend our leadership positions.
“Industry dynamics dictates that rail transport will continue to gain transportation share at the cost of the road mode. The government also recognises that modal shift from road to rail freight has significant potential to help improve efficiency for transportation of goods as well as reduce carbon emissions. Ministry of Railways recently announced that it is proactively taking efforts and working aggressively to attract a wider share of freight with an aim to increase its modal share of freight to up to 40 percent. This shall benefit us due to our multimodal capabilities to cater our customers who are increasingly demanding integrated logistics solutions,” he added.
“The performance for the quarter has been as per our expectations. We continue to see a month on month improvement in business parameters thereby gives us hope of sustained recovery over the future quarters. A robust Balance Sheet combined with our strategically located state of the art infrastructure alongside the Western DFC will help us to capitalize on the future growth opportunities,” he noted.
