Container volumes boost Gateway net

Our Bureau Mumbai | Updated on April 29, 2011 Published on April 29, 2011

Higher container volumes and improved rail traffic helped Gateway Distriparks Ltd (GDL) to report a 38 per cent increase in consolidated net profit at Rs 34.98 crore ( Rs 25.43 crore) for the fourth quarter ended March 31.

The Mumbai-based logistics company operates container freight stations (CFS), inland container depots (ICDs), cold chains and container rail services. GDL operates container freight stations at JN Port, Chennai, Vizag and Kochi and operates container rail services in the North.

Revenues grew by 21 per cent to Rs 171.04 crore (Rs 141.29 crore), led by CFS and rail businesses.

Though CFS continues to contribute to bulk of the net income, the rail business, which became cash positive from the third quarter, also boosted the bottom line. GDL is the largest private sector container rail operator in the country with 21 rakes and three ICD facilities.

On a stand-alone basis, the company posted a 23 per cent rise in net profit for the quarter at Rs 26.70 crore ( Rs 21.69 crore).

An analyst with IDFC Securities said the overall operating margins increased sharply by 570 basis points to 31.2 per cent in the quarter, due to better margins in CFS and rail business.

The company's interest cost came down as it retired a part of its high cost debt with the Rs 300 crore investments it got from the private equity firm Blackstone.

The company expects a growth of 15-20 per cent in the current fiscal, according to Mr R Kumar, Deputy Chief Executive Officer. The Kochi CFS, which is being set up as a joint venture, is expected to be operational by September.

The container rail service at Faridabad is likely to be ready by the second half of this fiscal. This will further improve the revenue from rail services.

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Published on April 29, 2011
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