Gateway Distriparks (GATEWAY) Q3 24/25 earnings summary

Executive summary

• Market share improved year-over-year and quarter-over-quarter in key regions, despite overall market degrowth in Ludhiana and Uttarakhand due to weak scrap and waste paper volumes.

• Achieved Q3FY25 revenue of ₹132 crore, a 6% YoY increase, reflecting resilience amid seasonal and economic fluctuations.

• Snowman Logistics faced a net loss and sequential revenue decline, attributed to contract changes and cost increases, but cost-cutting and contract renewals are underway.

• Acquisition of further stake in Snowman Logistics Limited completed, making it a subsidiary from December 24, 2024.

• Un-audited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and reviewed by the Board and auditors, with a qualified conclusion due to ongoing regulatory matters.

Financial highlights

• Standalone revenue from operations for Q3 FY25: Rs. 38,568.83 lakhs; consolidated revenue: Rs. 40,251.56 lakhs.

• Q3FY25 EBITDA: ₹21.8 crore, down 20.6% YoY; 9MFY25 EBITDA: ₹69.1 crore, down 11.9% YoY.

• Snowman EBITDA margins at 16%, with guidance to sustain 18–20% as distribution business expands.

• Operating cash flow for nine months was ₹250 crore; CapEx for the same period was ₹20 crore.

• Exceptional gain of Rs. 39,076.72 lakhs recognized on remeasurement of Snowman stake.

Outlook and guidance

• No specific volume or revenue guidance for the next quarter/year due to global uncertainties, but market share gains and double-stacking improvements expected to support growth.

• Snowman targets ₹800–900 crore revenue by FY26–27, driven by Snow Distribute and new facilities.

• Ice cream and dairy segment expected to rebound with summer; seafood segment showing revival.

• QSR segment anticipated to normalize post-Q4FY25.

• Management believes MAT credit entitlement of Rs. 19,674.84 lakhs is fully recoverable.