Gateway Distriparks Q3 Results Review- Investment Thesis Intact Despite The Miss On Earnings: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Gateway Distriparks Ltd.'s Q3 FY23 performance was 6% below our expectations mainly due to lower volumes. Key takeaways:throughput dropped for both rail and container freight station/inland container depots segments owing to decline in export volumes (down 15-20% YoY) and slower running of trains in Dec-22;Ebitda/twenty-foot equivalent unit improved by 4.4% YoY (3% QoQ) to Rs 5,398 due to higher blended realisations; and‘net debt / Ebitda’ rose to 0.86 times (Q2 FY23: 0.67 times) owing to completion of the Kashipur ICD acquisition. Going ahead, Gateway Distriparks' management expects growth in the rail business though CFS segment is likely to remain stagnant. Besides, the guidance of 18% YoY growth in rail business for FY24E might be toned down slightly (in the course of Q4). Taking cognisance of the withdrawn discount on empty containers by Indian railways and slightly lower volumes, we lower our FY23E/FY24E Ebitda by 3%/5%, but retain our valuation multiple of 10 times FY24E Ebitda owing to the increase in market share at key terminals..Click on the attachment to read the full report:.Mahindra Logistics - Entry In New Businesses To Keep Margins Under Check: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gateway Distriparks Q3 Results Review- Investment Thesis Intact Despite The Miss On Earnings: ICICI Securities

Gateway Distriparks' Q3 FY23 performance was 6% below our expectations mainly due to lower volumes.

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