Shares of this leading integrated multimodal logistics company rose nearly 2 percent to Rs.93 per share after acquiring 11 lakh shares in Snowman Logistics Limited, increasing its stake as a promoter.
Price Movement
In Friday’s trading session, the share price of Gateway Distriparks Limited reached an intraday high of Rs.93 per share, up 1.5 percent from the previous close of Rs.91.75 apiece, before settling at Rs.92 per share.
Reason for the Rise
Gateway Distriparks, the promoter of Snowman Logistics, recently acquired 11 lakh shares, representing a 0.66 percent stake in the company, at an average price of Rs.53.36 per share.
This strategic acquisition further solidifies Gateway Distriparks’ position within Snowman Logistics. As of June 2023, Gateway Distriparks already held a substantial 41.75 percent stake in Snowman Logistics, and this additional purchase serves to strengthen its influence and control over the company’s operations and future direction.
Gateway Distriparks has expressed its intention to further increase its stake in Snowman Logistics, signaling a long-term commitment to enhancing its position within the company.
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Domestic Presence & Installed Capacity
The ICD terminals operated by Gateway Distriparks Ltd have the following installed capacities: Gurgaon 2,50,000 TEUs, Ludhiana 1,50,000 TEUs, Faridabad 1,50,000 TEUs, Ahmedabad 1,00,000 TEUs, Kashipur 60,000 TEUs, and Jaipur has a planned capacity of 1,25,000 TEUs.
In addition, the installed capacity of Gateway Distriparks Ltd at its CFS terminals is as follows: Nhava Sheva, Mumbai 2,16,000 TEUs, Chennai 1,50,000 TEUs, Krishnapatnam 50,000 TEUs, Kochi 50,000 TEUs, and Visakhapatnam 2,70,000 TEUs.
Management Guidance
The EBITDA margin has seen a slight decline this quarter due to lower volumes and a 2 percent drop in the double stack percentage. However, management is committed to maintaining margins and will not compromise profitability for revenue growth. They aim to sustain margins of around Rs.9,400 per TEU (Twenty-foot Equivalent Unit) while working to regain business from existing customers.
Shareholding Pattern
According to the June 2024 shareholding pattern, the promoters of Gateway Distriparks hold 32.32 percent of the shares. Foreign Institutional Investors hold 11.82 percent, while Domestic Institutional Investors and Retail Investors hold stakes of 43.60 percent and 12.26 percent, respectively.
Financial Performance
In its recent financial update for the quarter ending June 2024, Gateway Distriparks Limited reported revenue from operations of Rs.345 crore, reflecting a 3.6 percent decrease from Rs.358 crore in Q1 FY24. Additionally, net profits declined by 23 percent to Rs.46 crore, down from Rs.60 crore in the same period.
Company Overview
Gateway Distriparks Limited is a leading Indian logistics company based in Mumbai, specializing in integrated intermodal logistics services, including Container Freight Stations (CFS) and Inland Container Depots (ICD) with rail connectivity.
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Written by – Siddesh S Raskar
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