MOSL: GATEWAY DISTRIPARKS (Buy): In-line results-CFS reports healthy volume growth
Gateway Distriparks: In-line results; CFS reports healthy volume growth
(gdpl IN, Mkt Cap USD0.3b, CMP INR166, TP INR199, 20% Upside, Buy)
GDPL reported EBITDA (Rail + CFS) of INR545m (est. of INR575m; +4% YoY, -4% QoQ) in 4QFY18. PAT (after minority interest) came in at INR194m (est. of INR204m; +1% YoY, +2% QoQ). Reported PAT is higher at INR327m due to INR322.5m of SIES income booked in 4QFY18 as part of rail income.
Rail margin continues to be under pressure
- Rail reported adj.EBITDA of INR331m (est. of INR325m; flat YoY, -5% QoQ), led by 2% YoY growth (flat QoQ) in container volumes to 58,908 TEUs. GDL improved its market share in NCR region by ~200bp in FY18, as against a loss of market share of ~300bp in the Ludhiana market. .
- Rail realization declined to INR32,432/TEU (-13% YoY, -2% QoQ), led by higher discounts. Hence, EBITDA/TEU fell 2% YoY (-5% QoQ) to INR5,619.
- Productivity of rail segment will continue to be impacted until end-FY19 due to higher turnaround time on account of ongoing railway capex at GDL’s key routes.
- CFS witnesses healthy volume; Margins continue to be impacted
Gateway Distriparks Limited is an integrated logistics facilitator. The Company's principal business activities include storage and warehousing, which includes general merchandise warehouses and warehousing of furniture, automobiles, gas and oil, chemicals and textiles. It also includes storage of goods in foreign trade zones. Its segments include Container Freight Station, which includes common user facilities located at various sea ports in India, offering services for handling (including related transport), temporary storage of import/export laden and empty containers, and cargo carried under customs control, and Rail Logistics, which includes transportation by rail, storage, handling of the containers and related transportation by road. It is also engaged in business of container-related logistics. Its primary business is to operate Container Freight Stations, which are facilities set up for the purpose of in-transit container handling, examination and assessment of cargo.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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