Container logistics firm Gateway Distriparks today reported 43 per cent decline in net profit at Rs 30.93 crore for the quarter ended December 2015 due to the impact of Chennai rains on business.
The company had reported a net profit of Rs 54.34 crore for the October-December quarter of the previous fiscal.
Total income from operations declined to Rs 268.04 crore during the quarter under review from Rs 273.67 crore in the same quarter a year ago.
Total expenses rose to Rs 225.40 crore during the quarter as against Rs 207.27 crore in the corresponding quarter of 2014-15, the company said in a BSE filing.
Although results were down due to a combination of macro level factors and unprecedented rains at Chennai, on a consolidated level this has been partly offset due to improved performance by the Rail division, it added.
"The CFS (container freight station) business has been adversely affected by current macro situation wherein overall port volumes have gone down, especially on the Exports side.
"Unprecedented rains at Chennai had disrupted operations at Chennai Port which further affected our volumes," said Gateway Distriparks Chairman and MD Prem Kishan Gupta.
However, normal operations have now resumed at the port, and second CFS at Chennai also resumed operations in January 2016.
"At Krishnapatnam, construction has already commenced and we plan to start operations within the year. We are also actively looking to expand further in new locations where we see potential of container volume growth," Gupta said.
On the Rail front, volumes had increased as compared to the second quarter and profitability was maintained due to double stack operations, the statement said, adding that construction has commenced at Viramgam which is expected to be operational as a second hub for our double stack operations in August.
The company hopes to gain substantial double stack benefits through their existing network after completion of Viramgam, even before the Dedicated Freight Corridor (DFC) becomes operational.
"With new facilities under construction, the GDL group will continue as the market leader in the industry and expand its network with good quality assets and we are confident the volumes will come in as the macro level situation improves," the company said.
Shares of Gateway Distriparks today closed 3.26 per cent down at Rs 273.15 per scrip on BSE.
