Gateway Distriparks (GATEWAY) Q2 24/25 earnings summary

Executive summary

• Rail segment achieved improved volumes and EBITDA per TEU, driven by market share gains in Ludhiana and NCR, and operational efficiencies from new double-stacking at Faridabad.

• Cold chain and 5PL services expanded, with new client additions and increased cold storage capacity, though warehousing margins were impacted by weak QSR, seafood, and ICD segments.

• CFS business faced margin and revenue pressure due to competition, higher labor costs, legal and R&M expenses, and accounting changes, with ongoing land monetization efforts.

• Recognized as the 14th largest global cold chain company by GCCA and received multiple industry awards.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2024, were approved by the Board.

Financial highlights

• Rail EBITDA per TEU reached ₹9,800, while CFS operational EBITDA per TEU was ₹1,200–1,300, affected by recurring one-offs.

• Q2 FY25 consolidated revenue from operations was ₹38,999.27 lakh, with net profit at ₹6,013.89 lakh and total income at ₹39,457.20 lakh.

• Q2 FY25 cold chain revenue grew 15.7% YoY to ₹14,345 lakh, with EBITDA margin at 16.0% and net income margin at 0.4%.

• Double-stacking accounted for 38% of rail volumes, with potential to rise above 40% as restrictions ease.

• Interim dividend of ₹1.25 per share (12.5%) paid, totaling ₹6,245.55 lakh.

Outlook and guidance

• Management expects H2 rail volumes to exceed last year’s H2 if Q2 trends continue, with further market share gains targeted.

• Expansion plans include new facilities in Kolkata, Lucknow, and Krishnapatnam, with further infrastructure for pharma and e-commerce under discussion.

• CFS asset sale is under evaluation, but no transaction is expected within the current financial year.

• Management believes MAT credit entitlement of ₹19,109.27 lakh is fully recoverable as of September 30, 2024.