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Target: ₹99
CMP: ₹75.85
Gateway Distriparks’ (GDL) Q4-FY22 PAT at ₹85 crore beat estimate of ₹36.30 crore (consensus: ₹33.20 crore) led by higher volumes and other income, lower depreciation and tax write-back. Total volumes grew 4.2 per cent y-o-y to 178k TEUs, revenue grew 2.5 per cent y-o-y to ₹360 crore and EBITDA declined 0.4 per cent y-o-y to ₹94.90 crore.
EBITDA margin declined 80 bp YoY to 26.4 per cent on a relatively-higher base. GDL guided for mid-teen volume growth for rail business with EBITDA being sustained at nearly ₹9,000/TEU.
While CFS volumes in FY23 will remain impacted due to the end of Punjab-Conware agreement, margins should inch up on improved mix.
Net debt reduced from ₹440 crore in March 2021 to ₹300 crore in March 2022 led by improved OCF (₹360 crore in FY22 vs ₹310 crore y-o-y).
GDL, while being a mid-sized logistics player, enjoys a strong early-mover advantage in its rail business catering to northern markets. Its ICDs operate at about 50 per cent capacity utilisation, and with the potential to double their capacities, offer strong scalability.
Business restructuring initiatives have helped improve profitability and strengthen balance sheet with Net D/E of 0.18x and Net Debt/EBITDA of 0.8x as on March 2022.
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