GatewayRail Freight posts 23% jump in Q1 net

GatewayRailMumbai:  Logistics player Gateway Distriparks (GDL) today reported 23 per cent jump in consolidated net profit to Rs.36.9 crore in the first quarter ended June 30, aided by rail business.

The company had posted a net profit of Rs.30 crore in the same quarter a year ago.

Total income increased by 9.30 per cent to Rs.278.18 crore from Rs.245.34 crore in Q1 FY14, Gateway Distriparks said in a release here.

The April-June period saw good growth compared to the first quarter of the previous fiscal. The main contributor was the rail business which helped offset the decline in CFS (container freight station) business (due to stagnant port volumes and increased competition), it said.

The company’s arm, GatewayRail Freight, had yesterday announced the commissioning of an Inland Container Depot (ICD) terminal at Faridabad in Haryana.

“We are positive on the outlook of our businesses. The listing of Snowman Logistics (a subsidiary) will unlock inherent value and the potential of cold chain operations. The coming on stream of the Faridabad facility will further enhance performance of the rail operations,” Gateway Chairman Gopinath Pillai said.

Increase in global trade and a stable business scenario in India should have a positive impact on the CFS operations, he said, adding overall the Group is expected to improve its performance further in the current financial year.

Gateway provides container logistics services though its port-side Container Freight Stations (CFS) at Nhava Sheva (Navi Mumbai), Chennai, Vishakhapatnam and Kochi.

Snowman Logistics, the cold chain subsidiary of GDL, provides storage and distribution services for temperature controlled cargo across India.