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High realizations made up for lower volumes in CFS
CFS business reported YoY growth of 19.79% in revenues at INR
792mn in Q3FY12 on the back of strong growth in realization.
Total throughput declined by 8.42% YoY and 8.68% QoQ to 79,347
TEUs due to lower volumes at Mumbai CFS (65% of total CFS
throughput) which were partially impacted by lower port volumes
at JNPT. Other CFS at Chennai (8.74% YoY) and Vizag (31.28% YoY)
maintained good volume growth. The lower growth in volumes
was made up by strong growth in realization/TEU which grew by
30.81% YoY on the back of increased dwell time (12 days in Q3FY12
compared to usual 10.5-11 days). Higher realizations also boosted
EBIDTA margin by 514bps YoY to 52.96%.
Rail business on sturdy track
GDL rail freight business continued to maintain good run-rate in
revenues which grew by 24.45% to INR 1,006mn in Q3FY12. This
was on the back of higher throughput growth of 23.78% YoY with
improvement in capacity utilization (~87% in Q3FY12). Company
also took a new initiative by adding new routes connecting Mundra/
Pipava with Sanand in Gujarat and Jodhpur in Rajasthan by linking
up existing facilities which are not owned by the company. This
resulted in better utilization of rakes but impacted EBIDTA margins
slightly which came at 16.78%, down by 36bps QoQ.
Snowman going aggressive
Cold logistics division of the company, Snowman Logistics,
reported YoY growth of 39.16% to INR 167mn on the back of
Sumit Duseja
sumit.duseja@spagroupindia.com
Ph. No. 91 4289 5600 Ext.630
February 02, 2012 RESULT UPDATE Q3FY12
aggressive expansion plans by the company. EBIDTA margins came
at 27.45%. The cold logistics market is mostly dominated by
unorganized sector. Company plans to expand aggressively by
adding capacities and expects to capture substantial share from
unorganized sector.
Expansion status
CFS: CFS at Vallarpadam (Kochi) is ready but awaiting custom approval.
Management expects to start partial operations by March 2012.
Rail freight: Management plans to add 6-8 rakes in FY13 to support
higher throughput growth which will be further boosted by
commencement of operations at Faridabad ICD, expectedly by
July 2012.
Snowman: Plans to expand pallet capacity to ~46,000 units from
currently ~19,000 units by FY13.
Outlook & Valuation
GDL continued to show impressive growth in revenues on back of
higher realization in CFS and volume growth in rail freight and
cold logistic division. Going forward, we expect company to
continue to maintain strong growth momentum in rail freight and
cold logistics business on back of capacity expansion plans.
Throughput in CFS business also expected to improve with
commencement of operations at Kochi CFS and addition of port
capacities in the long term. At CMP, stock is trading at 9.77x FY13E
EPS. We retain BUY with a target price of INR 188.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
High realizations made up for lower volumes in CFS
CFS business reported YoY growth of 19.79% in revenues at INR
792mn in Q3FY12 on the back of strong growth in realization.
Total throughput declined by 8.42% YoY and 8.68% QoQ to 79,347
TEUs due to lower volumes at Mumbai CFS (65% of total CFS
throughput) which were partially impacted by lower port volumes
at JNPT. Other CFS at Chennai (8.74% YoY) and Vizag (31.28% YoY)
maintained good volume growth. The lower growth in volumes
was made up by strong growth in realization/TEU which grew by
30.81% YoY on the back of increased dwell time (12 days in Q3FY12
compared to usual 10.5-11 days). Higher realizations also boosted
EBIDTA margin by 514bps YoY to 52.96%.
Rail business on sturdy track
GDL rail freight business continued to maintain good run-rate in
revenues which grew by 24.45% to INR 1,006mn in Q3FY12. This
was on the back of higher throughput growth of 23.78% YoY with
improvement in capacity utilization (~87% in Q3FY12). Company
also took a new initiative by adding new routes connecting Mundra/
Pipava with Sanand in Gujarat and Jodhpur in Rajasthan by linking
up existing facilities which are not owned by the company. This
resulted in better utilization of rakes but impacted EBIDTA margins
slightly which came at 16.78%, down by 36bps QoQ.
Snowman going aggressive
Cold logistics division of the company, Snowman Logistics,
reported YoY growth of 39.16% to INR 167mn on the back of
Sumit Duseja
sumit.duseja@spagroupindia.com
Ph. No. 91 4289 5600 Ext.630
February 02, 2012 RESULT UPDATE Q3FY12
aggressive expansion plans by the company. EBIDTA margins came
at 27.45%. The cold logistics market is mostly dominated by
unorganized sector. Company plans to expand aggressively by
adding capacities and expects to capture substantial share from
unorganized sector.
Expansion status
CFS: CFS at Vallarpadam (Kochi) is ready but awaiting custom approval.
Management expects to start partial operations by March 2012.
Rail freight: Management plans to add 6-8 rakes in FY13 to support
higher throughput growth which will be further boosted by
commencement of operations at Faridabad ICD, expectedly by
July 2012.
Snowman: Plans to expand pallet capacity to ~46,000 units from
currently ~19,000 units by FY13.
Outlook & Valuation
GDL continued to show impressive growth in revenues on back of
higher realization in CFS and volume growth in rail freight and
cold logistic division. Going forward, we expect company to
continue to maintain strong growth momentum in rail freight and
cold logistics business on back of capacity expansion plans.
Throughput in CFS business also expected to improve with
commencement of operations at Kochi CFS and addition of port
capacities in the long term. At CMP, stock is trading at 9.77x FY13E
EPS. We retain BUY with a target price of INR 188.
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