Company Update - Gateway Distriparks - ICICI Direct

Rail margin clocked Rs. 10350+/TeU levels.

- Revenues remained flattish YoY at Rs. 359 crore (16% rail volume growth)

- EBITDA too remain flattish at Rs. 95 crore with margins of 26.4% (vs. 27.2% in Q4FY21)

- However, PAT grew 87% YoY as flattish operating performance was supported by higher other income and negative tax rate

Key triggers for future price performance

- Higher double stacking on the route (both export and import direction) in the near term, de-bottlenecking at critical junctions and electrification of the entire route (from GPPL, Mundra to NCR region) in the medium to long term; leading to higher road to rail shift

- GDL plans to pass on higher inflation component and cost increases to customers in near term, in spite of higher competitive intensity

- The management expects to sustainably improve its margins beyond Rs. 9000 TeU levels and at the same time reach 1 lakh TeU/quarterly rail volume run-rate. This would translate into strong FCF generation (>9% yield in FY23E)

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

GatewayDistriparks CompanyUpdate ICICIDirect