Global Distriparks Reports 23% Decline in Profit to Rs 49 Cr in Q1

Global Distriparks Ltd (GDL) reported a 23% decline in net profit for the June quarter, amounting to Rs 49 crore. This is a decrease from the Rs 63.72 crore profit recorded in the same period last year.

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Revenue for the quarter was Rs 357.65 crore, reflecting a 4.59% drop from Rs 374.85 crore in Q1FY24. The rail vertical's revenue fell by 2.86% year-on-year to Rs 289.90 crore, while revenue from container freight stations (CFS) decreased by 11.32% to Rs 67.75 crore.

Impact of Global Crisis on Volumes

GDL handled a total container traffic of 171,425 TEUs during the June quarter, which is a 4.71% decrease compared to the same period last year. The rail vertical managed 82,043 TEUs, down from 89,939 TEUs in Q1FY24, and the CFS business handled 89,382 TEUs compared to 89,958 TEUs previously.

Chairman and Managing Director Prem Kishan Dass Gupta stated, "Volumes continue to be impacted by the global Red Sea crisis, which has disrupted supply chains and increased ocean freight rates."

Maintaining Market Share Amid Challenges

Despite these challenges, GDL has managed to maintain its market share due to its network advantage. Gupta added, "Due to our network advantage we have been able to maintain our market share despite the challenges and remain focused on providing efficient multimodal solutions for our customers."

The company is also exploring opportunities to develop new rail terminals as part of its strategy to expand its network further.

CFS revenue included an adjustment of Rs 8.42 crore due to a change in accounting methods for Q1FY25. This adjustment contributed to the overall decline in revenue for the segment.

The company's efforts to navigate through global disruptions while maintaining service efficiency highlight its resilience and strategic planning capabilities.