Valuation Maintain Buy with a revised PT of Rs. 110: GDL's rail business and cold chain business continue to fare well in the current environment owing to being categorized in essential services. The CFS business may remain under pressure in FY2021 while gradually improving in FY2022. We believe GDL's deleveraging plan along with healthy profitability in the rail division should gradually drive net earnings growth during FY2022. We have lowered our earnings estimate for FY2021-FY2022 factoring in lower volumes on account of COVID-19 pandemic. GDL's current valuation at 5.7x EV/EBITDA and 0.7x...

Valuation Maintain Buy with a revised PT of Rs. 110: GDL's rail business and cold chain business continue to fare well in the current environment owing to being categorized in essential services. The CFS business may remain under pressure in FY2021 while gradually improving in FY2022. We believe GDL's deleveraging plan along with healthy profitability in the rail division should gradually drive net earnings growth during FY2022. We have lowered our earnings estimate for FY2021-FY2022 factoring in lower volumes on account of COVID-19 pandemic. GDL's current valuation at 5.7x EV/EBITDA and 0.7x...

Key risks: (1) Delayed execution of the DFC, (2) Gateway Rail has received a circular from the DGFT, regarding the basis for availing SEIS benefits of Rs 1bn (received for FY16-18). This matter is being contested and the mgmt is confident of its stance (3) Weaker than expected economic recovery. We initiate on Gateway Distriparks (GDL) with a BUY. We expect rail volumes to grow in double digits from here on due to managements focused approach and the commissioning of the DFC over FY21-22. Further, the co is proactively exiting noncore segments/selling excess land, which will enable GDL to reduce debt by Rs 2.5bn in the near term. We set a Dec-21 based SoTP of Rs 180.

The company used the proceeds to redeem debentures of INR500m along with interest in Jan20, and now plans to focus on the core business. Commissioning of DFCC will be a key trigger for the company GDPLs YoY numbers are not comparable due to the consolidation of Gateway Rail from Mar19. CFS volumes declined 15% YoY to 94,337 TEUs, while Rail volumes were up 8% YoY to 61,634 TEUs. that the adoption of Ind-AS 116 led to an increase in EBITDA by INR123m. an exceptional gain of INR80m related to the sale of the CFS terminal. Also, the sale of the Chandra CFS in Chennai impacted volumes for the quarter, resulting in a loss of market share in Chennai. For GDPL, discounts have increased by ~14% over last one year to INR4,000/TEU. The company plans to incur capex of INR1.5b over the next two years, majorly toward setting up of satellite terminals in north.

Gateway Distriparks (GDL) has sold its entire stake of 40.25% in Snowman Logistics (SLL) for ~Rs. 296 crore to Adani Logistics (subsidiary of Adani Ports) in a deal valued at Rs. 44 per share. The stake sale was in line with GDL's focus on de-leveraging its balance sheet by exiting non-core businesses. In Q2FY2020, the company sold its Chennaibased container freight station (CFS) - Chandra CFS for ~Rs. 50 crore. Thus, the total proceeds (CFS + SLL stake sale) of ~Rs320crore will be utilised to repay debt (including the part payment of Rs. 270crore non-convertible debentures by March 2020). This would help in deleveraging the balance sheet and would help the company restructure...

Gateway Distriparks (GDL) has sold its entire stake of 40.25% in Snowman Logistics (SLL) for ~Rs. 296 crore to Adani Logistics (subsidiary of Adani Ports) in a deal valued at Rs. 44 per share. The stake sale was in line with GDL's focus on de-leveraging its balance sheet by exiting non-core businesses. In Q2FY2020, the company sold its Chennaibased container freight station (CFS) - Chandra CFS for ~Rs. 50 crore. Thus, the total proceeds (CFS + SLL stake sale) of ~Rs320crore will be utilised to repay debt (including the part payment of Rs. 270crore non-convertible debentures by March 2020). This would help in deleveraging the balance sheet and would help the company restructure...

Gateway Distriparks Limited (GDL) reported sequential improvement (not comparable y-o-y due to IND AS 116 adjustments) in performance for Q2FY2020. The CFS and Rail verticals reported 6% plus q-o-q improvement in EBITDA per TEU leading to 11% q-o-q rise in consolidated operating profit. The consolidated net revenue was up 3.5% y-o-y aided by rail (volume rise by 9% y-o-y). For rail, an increase in market share in Ludhiana, price hike taken at the start of FY2020 and reduction in variable costs improved profitability despite lower double stacking....

Gateway Distriparks Limited (GDL) reported mix bagged results for Q1FY2020. The rail division witnessed marginal volume improvement along with improvement in profitability. However, the container freight station (CFS) vertical suffered on both counts because of competitive intensity and higher DPD volumes. GDL booked Rs. 54.8 crore SEIS income pertaining to FY2017-FY2019, while on adoption of IND AS 116, EBITDA stood higher by Rs. 11 crore bifurcated to increased interest and depreciation. On like-to-like basis, revenue grew by 3.7%...

Q3 Rail volume declined 4% QoQ (up 8% YoY; Concor volume down 2% QoQ, up 11%YoY) on intermittent impact of rising trade imbalance (imports growing faster than exports); management highlighted slower volume growth for hinterland based cargo, though port volumes have grown YoY.

Rail reported EBITDA of INR349m (est. of INR386m; +2% YoY, -7% QoQ), led by 8% YoY growth (-4% QoQ) in container volumes to 58,720 TEUs. Rail volumes were impacted due to shift of traffic on account of increase in turn around times of trains due to capacity enhancement program by Indian railways in North west routes. Rail realization declined to INR32,936/TEU (-4% YoY, -1% QoQ) due to increase in discounts led by heightened competition. Hence EBITDA/TEU declined 5% YoY (-3% QoQ) to INR5940. Higher proportion of double stacking due to ramp up of Viramgam terminal partly negated the impact of higher turn around times. Productivity of rail segment will continue to be impacted in 4QFY18 due to higher turnaround times.

Gateway Distriparks' (GDPL) Q2 witnessed strong rebound in rail performance: (a) volume up 20% QoQ/ 12% YoY on improved market share in NCR and uptick in import volume and (b) synergies from Viramgam terminal (hub terminal now, operational from Aug'17)

Rail margin revives sharply on cost efficiencies GDPL reported EBITDA (RAIL + CFS) of INR587m (est. of INR513m; 1% YoY, 31% QoQ). PAT (before associate/minority interests) of INR290m (+15% YoY, 61% QoQ) was higher than our estimate of INR214m due to a higher margin in the rail segment and a lower tax rate. Rail margin revives led by commissioning of Viramgam Rail reported EBITDA of INR375m (est. of INR303m; +10% YoY, +49% QoQ), led by 11.5% YoY growth in container volumes to 61,254 TEU. Rail volume...

Mixed Quarter: Gateway Distriparks Ltd (GDL) has posted mixed set of standalone numbers wherein revenue from operations for Q1FY18 came at Rs.809 Mn as against Rs.803 Mn of Q1FY17 and Rs.744 Mn of Q4FY17 thereby exhibiting moderate growth of 0.8% and 8.8% on YoY and QoQ basis respectively.

Gateway Distriparks' (GDPL's) Q1 was marred by subdued Rail business performance due to (a) operational issues with Railways' line at Ajmer (one of the key routes for GDPL) this led to lower volumes as well as higher operating cost and

In compliance with IND AS, GDPL reported Gateway Rail Freight (50% owned) as a JV. As current consolidated financials (CFS business only) is only ~40% of aggregate EBITDA (CFS and Rail)

EBITDA/PAT below estimates; volumes appear bottoming out; awaiting EXIM revival Gateway Distriparks' (GDPL) reported EBITDA* (RAIL + CFS) of INR555m came in below our estimate of INR600m (-20% YoY, -2% QoQ), primarily due to lower-than-estimated EBITDA in the rail division. PAT (before associate/minority interests) of INR225m (+13% YoY, -7% QoQ) missed our estimate of INR274m. Difference at the PAT level increased due to higherthan-estimated tax rate of 35.6% (due to one-off). Rail volumes subdued, profitability impacted by continued EXIM imbalance Rail division reported EBITDA of INR323m (est. of INR358m; -19% YoY, -8% QoQ). Container volumes stood at 52,024TEU (est. of 52,300TEU; -5% YoY, +3% QoQ)....

GDLs strategies to enhance its reach and capacity through organic and inorganic expansion would trigger growth: GDL is consolidating its existing positions at various CFSs (Container Freight Stations) and ICDs (Inland Container Depots). Its expanding by setting up/acquiring new CFSs at major upcoming modern ports and ICDs at various industrial areas, connected through rail and roads.

Results below estimates; macro revival key to volume uptick; Completion of Viramgam terminal to boost Rail division's margin GDPL's reported adjusted EBITDA came in at INR569m (vs. our estimate of INR617m; -38%...

Strong growth with margin improvement in rail logistics: The rail logistics business of the company has witnessed strong growth of 22% in FY15 with margins improving by over 600 bps on back of tariff hikes in Dec-14 and Mar-15. It has also resorted to double stacking of containers to reduce haulage charges. Though volume growth is likely to remain muted in H1FY16 due to increase in tariffs, it is expected to pick up H2FY16. However, with double stacking and higher proportion of imports handle margins are likely to be sustained. Further, government initiatives to set up Dedicated Freight Corridors (DFC) will aid to...