Gateway Distriparks Q1 Results Review - Subdued Performance; But Green Shoots Visible: ICICI Securities

ICICI Securities Report

Gateway Distriparks Ltd. Q1 FY25 Ebitda performance was below our /consensus estimate by 6.5%/8.9%, respectively. Key points:

1. Rail volume fell 8.8% YoY (down 5.2% QoQ), but container freight stations volume was largely stable. Dip in volume was mainly due to Rea Sea issue, increased freight rates and container shortages.

2. Ebitda/tonne improved QoQ to Rs 4,951 (versus Rs 4,715 in Q4 FY24) on better QoQ margins.

3. Double-stack volumes slipped to 33% in Q1 FY25 (Q4 FY24: 35%).

Year-to-date FY25 was impacted due to decline in volumes of low-value commodities like scrap and waste paper.

While we are positive on long-term prospects, we would keep a close tab on evolving EXIM environment as it is the major earnings enabler for Gateway Distriparks.

Maintain 'Add' with an unchanged target price of Rs 113 based on 12 times FY26E Ebitda.

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