GATEWAY - Gateway Distriparks Limited Share Price

Here are the major questions asked during the Q&A session, along with detailed answers per management:

1. Prashant Kale: "I am worried about the growing list of tax disputes in the company. How will we reduce this and improve governance?"

   Samvid Gupta: "We prioritize transparency and ensure thorough disclosure of matters, including tax disputes. While many issues are industry-wide, we've resolved numerous small matters and aim to close disputes amicably. We recently settled several under the government's Vivad Se Vishwas scheme. Where merit exists, we'll contest claims, but we appreciate your feedback and will strive for timely resolutions."

2. Prashant Kale: "Are we planning to increase our rakes beyond 34?"

   Samvid Gupta: "We've consistently operated 34 rakes but have ordered 3 high-capacity, high-speed rakes. By May or June, we will complete this swap and be at 37 rakes in total."

3. Kunal: "The warehousing segment's EBIT margins have recently declined. What is contributing to this?"

   Padamdeep Singh Handa: "The mix has shifted from predominantly frozen storage to more chilled and dry warehousing, which has lower margins. Despite recent declines, we anticipate improvements as we've begun to stabilize revenue across all segments."

4. Kunal: "Can you clarify how margins differ between dry and chilled storage?"

   Padamdeep Singh Handa: "Dry storage caters to quick commerce and has lower margins because it faces stiff competition. For instance, while we previously sold dry pallets at INR600-700, current prices are INR850-1000, showing a potential upward trend."

5. Muralidhara Reddy: "What actions are being taken to resolve the Benami issue, and how will Snowman Logistics turn around?"

   Samvid Gupta: "We believe our stance on the Benami issue is solid, and litigation is underway to resolve it. As for Snowman, we're focused on expanding capacity and addressing EBITDA now. We aim to increase Snowman's capacity from 155,000 to 200,000 over 2-3 years to drive profitability."

6. Vipulkumar Shah: "When will the Indore project be completed, and how much capacity will it add?"

   Samvid Gupta: "The project should be operational in around 2 years, adding 120,000 TEUs annually. We've completed land acquisition and are currently working on converting agricultural land, along with railway connections."

7. Rusmik Oza: "How will the U.S. trade deal impact our business, especially concerning exports?"

   Rajguru Behgal: "The U.S. trade deal is expected to boost exports from sectors like textiles and handicrafts, which currently constitutes about 25% of our sales volume. We're awaiting detailed terms before projecting exact impacts."

8. Kunal: "What changes can we expect regarding pricing hikes in the warehousing division?"

   Padamdeep Singh Handa: "We continuously push for pricing increases at contract renewals and have successfully implemented hikes in past contracts over the last six months."

9. Kunal: "What is Snowman Logistics' timeline for profitability in warehouses?"

   Samvid Gupta: "Typically, we aim for a 7-8 year payback period for warehouses. Though initial profitability may be low, we're investing in quality long-term assets."

10. Prashant Kale: "Has the import of scrap paper in North India improved?"

    Samvid Gupta: "The trend for scrap paper imports has been stable but remains below previous peaks. We will continue monitoring the situation as the market stabilizes."