Gateway Distriparks

Strong all-round show

Apr 29, 2021 03:04 IST capital market

Net sales (including other operating income) of Gateway Distriparks has increased 17% to Rs 350.25 crore led largely by strong growth in revenue of both CFS and Rail business. The rail business revenue was up 16% to Rs 254.6 crore with volume up 15% to 77772 TEUs. That of CFS was up by 20% to Rs 95.6 crore driven by 7% growth in volume to 92851 TEUS and 12% jump in per TEU realisation.  Operating profit margin has jumped from 21.5% to 27.2%, leading to 48% rise in operating profit to Rs 95.28 crore.  Employee cost increased from 4.19% to 5.96%.   Other expenses fell from 74.27% to 66.84%. Other income fell 44% to Rs 2.86 crore.  Provision for interest fell 30% to Rs 17.35 crore.  Provision for depreciation fell 7% to Rs 32.17 crore. Profit before tax grew 376% to Rs 48.62 crore.    Effective tax rate was 4.48% compared to negative 8.9%. Thus the PAT was up 318% to Rs 46.44 crore. Minority interest increased to Rs 0.35 crore from mere Rs 0.01 crore in the corresponding previous period.  Net profit attributable to owners of the company increased 315% to Rs 46.09 crore.  

Yearly performance

Net sales (including other operating income) has declined 9% to Rs 1179.35 crore. Operating profit margin has jumped from 24.3% to 26.5%, and thus the operating profit stood flat (up 0%) to Rs 313.00 crore.     Other income fell 35% to Rs 11.33 crore.  Provision for interest fell 23% to Rs 79.48 crore.  Provision for depreciation fell 2% to Rs 131.42 crore.  Profit before tax grew 19% to Rs 113.43 crore.  EO was nil compared to Rs 8.08 crore in the corresponding previous period. Thus the PBT after EO was up 10% to Rs 113.44 crore. Effective tax rate was 16.7% compared to negative 6.1%. Thus the PAT was was down 14% to Rs 94.45 crore. The share of profit from associates was nil compared to a loss of Rs 5.48 crore in the corresponding previous period. Minority interest decreased 87% to Rs 0.12 crore.  Net profit attributable to owners of the company decreased 8% to Rs 94.33 crore.  

Other developments

Equity capital increased from Rs 108.73 crore as of 31 March 2020 to Rs 124.84 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 32.14% as of 31 March 2021,compared to 30.17% as of 31 March 2020.  Promoters pledged stake was 9.72% as of 31 March 2021,compared to 19.81% as of 31 March 2020.  

Board of Directors at their meeting held on 27th April 2021 approved the payment of First Interim Dividend of Rs. 5 (Rupees Five only) per equity share of face value Rs. 10/- each, for FY22.

Net Debt as on March 31, 2021 stands at Rs. 444 Crores against Rs. 681 Crores as on March 31, 2020.

During earlier years, income tax department had raised demands for the assessment years 2008?2009 to 2014?2015 amounting to Rs. 7,304.15 lakhs primarily on account of disallowance of deduction under Section 80-IA(4)(i) of the Income-tax Act, 1961 and certain other expenditures. Assessment of all such orders are under litigation at various forums. Further in relation to assessment years 2004-2005 to 2007-2008, in earlier years deputy commissioner of income tax had issued notices under Section 148 of the Income-tax Act, 1961 proposing to re-assess the income and disallowed the deduction under section 80-IA(4)(i) of the Income?Tax Act, 1961 amounting to Rs. 4,460.34 lakhs. The Company has filed a writ petition against the said notices with the Bombay High Court and the honourable High Court has granted Interim stay. Based on lawyer and tax consultants opinion, the management believes that the Company is entitled to aforesaid deductions and claims and hence no provision for the aforesaid demand/notices has been made in the financial statements as at March 31, 2021.

Management comment

Commenting on the performance, Mr. PremKishanDass Gupta, Chairman & Managing Director, commented, The growth momentum we had gathered in Q3 has continued in Q4 as well. H1FY21 was impacted by COVID-19-linked disruptions, , however as the year went on, we could see volumes bounce back month over month and reach a new all time high. The revival in the EXIM trade has been much faster than anticipated. In Q3FY21, the company witnessed a sharp recovery in its overall volumes for both our CFS and Rail Container business. The CFS business recorded peak throughput of 33,793 TEUs in month of March 2021 for the year whereas the Rail container business recorded highest ever monthly throughput of 26,426 TEUs in the month of March 2021, thus surpassing previous all-time high throughput of 25,676 TEUs recorded in December 2020. The 306 km long Rewari-Madar section of the WDFC (Western Dedicated Freight Corridor) was inaugurated in the first week of January 2021. The WDFC will bring in a lot of operating efficiency at our 4 owned ICDs in the North-West corridor leading to further improvement in service quality for our customers. The trials on the next section of Madar to Palanpur which will connect Mundra and Pipavav have already started and is expected to be commissioned soon. We were one of the first Container Train Operators to run our train on the newly inaugurated section of the WDFC. The transit time of our trains have already reduced and will further reduce significantly, allow higher double stacking of containers and help to provide an even more reliable service to our customers through our North India ICDs at GarhiHarsaru, Faridabad, and Ludhiana. During the year we have been able to reduce our net debt from Rs. 681 crores to Rs. 444 crores. Further, in April we have redeemed another Rs. 20 crores worth of NCDs. Our efforts towards strengthening our balance sheet through reducing our debt continues and will enable us to start working on our next phase of expansion of container terminals alongside the WDFC.

Gateway Distripark: Consolidated Results

 

2103 (3)^ 2003 (3)^ Var. (%) 2103 (12)^ 2003 (12)^ Var. (%)
Sales 350.25 299.08 17 1179.35 1292.01 -9
OPM (%) 27.2 21.5 26.5 24.3
OP 95.28 64.43 48 313.00 313.58 0
Other inc. 2.86 5.10 -44 11.33 17.56 -35
PBIDT 98.14 69.53 41 324.34 331.14 -2
Interest 17.35 24.84 -30 79.48 102.63 -23
PBDT 80.80 44.70 81 244.86 228.51 7
Dep. 32.17 34.49 -7 131.42 133.46 -2
PBT before EO 48.62 10.21 376 113.44 95.05 19
EO Income 0.00 0.00 0.00 8.08
PBT after EO 48.62 10.21 376 113.44 103.13 10
Taxation 2.18 -0.91 PL 18.98 -6.27 -403
PAT 46.44 11.12 318 94.45 109.40 -14
Share of P/L from discontinuing Operations 0.00 0.00 #DIV/0! 0.00 -5.48 -100
Net profit 46.44 11.12 318 94.45 103.92 -9
Minority Interest (MI) 0.35 0.01 5056 0.12 0.89 -87
Net profti (After MI) 46.09 11.11 315 94.33 103.03 -8
EPS (Rs)* # # 7.6 7.6
* EPS is on Post rights issue equity of Rs 124.84 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business, PL: Profit to Loss
* Gross Figures ; ^ as reported consolidated figures to stock exchanges
Figures in Rs crore
Source: Capitaline Database

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