Gateway Distriparks - Volumes Rebound Along With Margin Improvement; Result Update Q2FY15 :: Edelweiss, link

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Gateway Distriparks (GDPL) beat estimates with PAT surging 42% YoY at INR477mn, driven by YoY increase in CFS and rail throughput (22%/33%) and improvement in margins of both segments. Revenue grew 17% YoY to INR2,927mn. EBITDA margin jumped by 300bps YoY to 29.3%. Snowman Logistics/cold chain businesses proved to be a slight drag on quarter performance.

Rail reports highest-ever EBITDA margin in past 3 years

Volumes scaled up to 67,706 TEU’s as Faridabad started operations (up 33% YoY/18% QoQ). Management indicated higher import of metallic scrap and positive trade sentiment bolstered volumes. Increased utilisation and double stacking saw EBITDA margin improve to 24.7%, the highest in past 3 years.

CFS logs strong rebound in volumes; Snowman disappoints

CFS volumes at 102,587 TEU were up 6.3% QoQ and 21.8% YoY, a positive surprise as Q2 is generally a weak quarter for volumes. Growth at non-Mumbai CFS was higher at 36.5% YoY compared to Mumbai at 12.2% due to scale up at Chennai and capacity utilisaiton at Vizag (crossed 110%). Overall realisations were up 5.2% QoQ to INR 8,665/TEU because of tariff restructuring at Mumbai. For Mumbai CFS, EBITDA at INR239.5mn was highest since Q1FY13. In the quarter, Snowman Logistics became an associate as holding reduced to 40.4% post the IPO. The company’s PAT declined due to additional depreciation and interest cost on account of expansion.

LINK

https://www.edelweiss.in/research/Gateway-Distriparks--Volumes-Rebound-Along-With-Margin-Improvement;-Result-Update-Q2FY15/27437.html