Gateway Distriparks (Gateway), which operates container freight stations (CFS) near ports and offers transportation, storage and warehousing services, had a weak Q4 with its net profits falling sharply for the March quarter by 36.5% yoy to Rs. 15.56 crore. The company also saw a revenue decline of 2% yoy for the quarter. The firm's performance was impacted by EXIM imbalances and higher competition in the segment.

The company is also reeling from lower revenues in its Container Freight Station segment, due to changing operations at Mumbai's Jawaharlal Nehru Port Trust. The port has implemented DPD or Direct Port Delivery, a global clearance method where cargo is transferred straight from the terminal to the place of delivery, bypassing the holding time at a container freight station. The process, by not including Gatway's CFS, resulted in much lower volumes for the company from JNPT.   

In the stock markets, the company was among the top volume losers today, falling by 6.3%. Investors have been spooked by the weak Q4 numbers, but analysts such as Motilal Oswal expect three things - EXIM growth, margin improvement for the company from the Viramgam terminal, and the GST rollout - to improve the fortunes of the company in coming quarters, and justify an upside for the stock of over 30%.