Gateway Distriparks shares rose 5 percent on May 29 as positive comments from management were hailed by investors despite a weak quarterly performance.
At 12.32pm the shares on the BSE were trading at 66.63 rupees, up 4.16 per cent from the previous close. Trading volume was 99,546 shares versus the five-day moving average of 26,756 shares, an increase of 272 percent.
Gateway Distriparks aims to expand its rail business through both organic growth (internal development) and inorganic growth (acquisitions or partnerships).
The company anticipates that the completion of additional sections of the Dedicated Freight Corridor (DFC) will result in reduced transit times and more efficient operations, management said. The company’s goal is to increase the use of containers for the transport of goods in India, thereby contributing to the creation of a modern and efficient logistics system.
Prem Kishan Gupta, chairman and chief executive officer of Gateway Distriparks, said Kashipur Terminal performed exceptionally well in the second half of FY23 despite a 16 percent drop in exports.
To further improve its operations, the company plans to add three more trains this year. While the container freight stations segment is expected to remain flat in FY24 due to competition, Gupta expressed confidence in the rail business, forecasting volume growth of 15 to 20 percent.
In the National Capital Region (NCR), the company has achieved a market share of 16-16.5 percent, demonstrating a strong presence.
Gupta assured stakeholders that the company will maintain a 25-26 percent rail business margin and keep the EBITDA margin at current levels, driven by forecast revenue growth of 13-15 percent.
Although net debt was Rs.340 crore in FY23 versus Rs.268 crore in FY22, Gateway Distriparks expects it to remain at the same level.
The company plans to invest 24 and 25 300 crore in capital expenditures in FY 2009 and to use internal provisions for funding.
The logistics company reported a 19.4 percent year-on-year decline in net profit to Rs.68.5 in the March quarter. However, there was a 5 per cent increase in sales to 377 crore rupees.
EBITDA fell about 2 per cent to Rs.93.5 crore compared to Rs.95 crore year-on-year. The operating margin fell to 24.8 percent from 26.5 percent in the previous year.