Gateway Distriparks extends rally on robust Q4 nos; surges 51% in 6 days

Shares Gateway Distriparks Limited (GDL) hit a fresh 52-week high of Rs 258.85 after rallying 12 per cent on the BSE in intra-day trade on Tuesday. The stock has now surged 51 per cent in the past six trading days, after the company reported four-fold jump in consolidated net profit at Rs 46.60 crore in the March quarter (Q4FY21). The company, an integrated inter-modal logistics service provider, had posted profit of Rs 11.69 crore during the quarter of previous fiscal.

The company's total income grew 16 per cent to Rs 353 crore from Rs 304 crore in the corresponding quarter of previous fiscal. The company’s rail container business recorded highest ever monthly throughput of 26,426 twenty-foot equivalent units (TEUs) in March ’21. Earnings before interest, taxes, depreciation, and amortization (Ebitda) margins expanded 490 basis points (bps) to 27.8 per cent.

The management said container freight station (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.

GDL is one of the first Container Train Operators to run its train on the newly inaugurated section of the WDFC (Western Dedicated Freight Corridor). The transit time of 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 customers through North India inland container depots (ICDs) at Garhi Harsaru, Faridabad, and Ludhiana,” the management said.

Meanwhile, the company has reduced net debt by Rs 237 crore in FY21 to Rs 444 crore. The board approved the payment of first interim dividend of Rs 5 per equity share for the current financial year 2021-22 (FY22).

GDL operates four container freight stations located at Navi Mumbai, Chennai, and Krishnapatnam and two container freight stations at Kochi and Visakhapatnam, through its subsidiaries, Gateway Distriparks (Kerala) Limited and Gateway East India Private Limited, respectively.

At 01:35 pm, GDL was the top gainer among S&P BSE500 index, up 14 per cent at Rs 258, as compared to 0.07 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped four-fold with a combined around 1.9 million equity shares changing hands on the NSE and BSE, so far.