Ladies and gentlemen, good day and welcome to the Gateway Distriparks Limited and Snowman Logistics Limited Q1 FY 2024 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on this date. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Today on this call, we have Mr. Prem Kishan Dass Gupta, Chairman and Managing Director. Mr. Ishaan Gupta, Joint Managing Director. Mr. Samvid Gupta, Joint Managing Director. Mr. Sandeep Shaw, CFO, Gateway Distriparks Limited. Mr. Rajguru Behgal, President Rail, Gateway Distriparks Limited. Mr. Manoj Singh, President, CFS, Gateway Distriparks Limited. Mr. Sunil Nair, CEO and Director, Snowman Logistics Limited. Mr. N. Balakrishna, CFO, Snowman Logistics Limited. I now hand the conference over to Mr. Prem Kishan Dass Gupta. Thank you, and over to you, sir. Thank you. Good afternoon, ladies and gentlemen, thank you for joining us for our quarterly earnings call for Gateway Distriparks Limited and Snowman Logistics Limited. We hope that you have had the opportunity to review our financial statements and earnings presentation, which have been made available on the exchanges and our websites. Overall, Gateway Distriparks performance is satisfactory. The total revenue went up by 6%. EBITDA went up by 10.6%, PAT increased by 9% compared to Q1 2023. This was despite challenges on the train running side during the full quarter. Firstly, there was a derailment of a container train of one of the private container operators, which led to restrictions on the double stack and running of the trains. Thereafter, in the month of June, we had the cyclone in Gujarat, where it affected both the ports Mundra and Pipavav. Both the ports were shut for some time, even when the rail movement started, double stack restrictions were still there, slowly and gradually, they've only come back to normal during the month of July. We feel that the volumes are there in this quarter. In the month of July, we have done well. Both imports and exports have seen upward movement, both in the ICD as well as CFS business. CFS business is impacted because of the buffer yard containers going to a central park in Kadapa as per customs instructions. Which has affected all the CFS in Nhava Sheva, their volumes have come down. Management is doing their best to get the volumes, whatever market share and additional volumes. On the rail side also, we can see growth in both imports and exports. Coming to Snowman Logistics, we are witnessing high growth and most of our facilities are running full. We are on expansion plan, gradually we will add up capacities of chilled and frozen, as well as 5PL distribution services, and also grow our dry warehouse management services under the asset light model. With this, I hand back to the moderator to take the question and answers. We will be happy to answer your questions. Thank you. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes on the line of Sumit Kishore from Axis Capital. Please go ahead. Good evening. Thanks for the opportunity. My first question is, can you give us a sense of the number of rakes which were double stacked Q1 FY 2024. This quarter is what I think Q4 of FY 2023 and the standing quarter last year, Q1 of FY 2024. The second associated question is, what was the impact in terms of volumes that you can roughly give a sense of because of complete restrictions on double stacking as well as the port load? Hi, Sandeep here. We do not share the number of trains of double stack, but overall as a volume, 35% of our volumes were carried on the second stack during the quarter. Whereas a year ago, this used to be closer to 42%-44%. This was the impact of the double stack restrictions plus the port closures that we earlier mentioned. The decrease in volume roughly during June was about, say, 5,000-6,000 TEUs on the rail side, but that will be caught up in the next quarter. Got it. Specifically, what was the contribution of Kashipur in Q2? Did it maintain 2,000 TEU run rate in Q2, in Q1? It's gone up, so it's going as per the projections that we gave earlier. Our market share is between 35%-40% now in that market. Okay. It would have contributed 9,000-10,000 TEUs in Q1 as per your discussion. Sorry? No. 9,000-10,000 what? No, no. I said 9,000, 10,000 TEUs in Q1 of FY 2024. That's right. Okay. The key question is briefly, just on the opening remarks, but how is the experience on the exim imbalance, which based on macro data, it appears that it was really in favor. How has it improved in July, and is that accompanied with a bit of the double stacking or normalized double stacking now in July? Imbalance has gone from 60/40 to about, say, 57/43. It's improved by two, 3%. We are seeing signs of growth in export going forward. We expect it to improve further by two, 3%. Got it. 2 questions. The last one, what is the tax rate that you expect for FY 2024? I think the first quarter was about 15% tax. On the tax call, as we mentioned earlier also, currently we are booking at current tax and we are paying MAT, that is 21.47%, and we keep on paying MAT. Whatever FPI benefits we are getting on our all rail business and all that we are accruing as a deferred tax asset. The overall tax expense is very minimal. Is that likely to be the case for the full year? In what time would you exhaust your tax rate continue to be in those digits, and in what time will you exhaust all your tax credit? After what time frame will your tax rate become nominal? We keep on paying MAT for the current year. This FPI benefit will be available till financial year 2026-2027. Whatever MAT credits which we are accruing based on the current projection, it will get exhausted in financial year 2031-2032. Okay. Thank you. Thank you. The next question comes from the line of Jignesh Shial from BNK Securities. Please go ahead, sir. Hi. Thank you so much for the opportunity. I'm sorry, the audio was not very clear, so maybe just a repeat. The restrictions on double stacking, second quarter also being impacted by those. That's my first question. Sorry, your voice got cut in the middle. Could you just repeat your question? Okay, sure. I apologize if this question is a repeat. The audio was not very clear. My question is the restrictions on double stacking, are they still there and even the second quarter volumes are getting impacted or it is an issue of the past now? No, the restrictions have gone away. The only change is that the maximum speed allowed for double stack trains is 75 km per hour. Other than that, from a loading point of view, we don't have any problems. Fair enough. The second question is, how are the rail volumes doing in July? Are you still confident of the 10% volume growth guidance which you gave earlier? Volumes are going fine. We are seeing growth in exports, so our growth guidance remains the same what we were giving earlier. Okay. Thank you so much. That's it from me for now. Thank you. The next question comes from the line of Roshan from BNK Securities. Please go ahead. Yeah. Thanks for the opportunity. My question is Vadodara on track for double stacking in September 2023? Yeah. Another two, three months is what we're expecting Vadodara to get double stacked. Okay. Do you see any scope for client side at the S3 level in the coming months for rail business? No, not really. It's probably going to stay stable as is. Okay. Yeah. That's all from my side. Thank you so much. Okay. Thank you. The next question comes from the line of Mr. Achal Lohade from JM Financial. Please go ahead. Yeah. Hi. Good evening. This is Achal here. Sir, can you help us with the EBITDA for the CFS and the rail business for the quarter? We don't give a direct split, but on a per TEU basis, we can give a guidance that the rail business is around slightly above INR 9,000, and the CFS business is at INR 2,000. Can you help us with what was it in fourth quarter FY 2023, the previous quarter preceding quarter? It was about INR 9,400, INR 9,500 for rail, and again, INR 2,000 for CFS. These numbers are including other income. Understood. There is slight contraction in rail business, and this is more to do with the restrictions on the double stack. Is my understanding right? Yeah, that's correct. Lower volumes in June due to the cyclone. Without other income, actually, the rail segment has seen a growth. If you look at it, we had a higher other income portion than the last quarter. Okay, understood. Second part is, this 10% growth guidance, can you please just remind us once again, is this excluding Kashipur or including Kashipur volumes? No, it's including Kashipur. We had given 10%-15% depending on the macros. Basically the overall growth will be there at all the locations. Like Garhi has done best ever numbers in the month of July. We don't have separate numbers for each and every ICD, because a lot of it is hub-and-spoke movement. In that case, if you look at Garhi, then you will see Garhi standalone business is at become X and then on the double stack hub-and-spoke model, it becomes 1.5x. It's fair only to give the revenue and EBITDA number, which I think takes care of The growth that we are seeing, like in rail business, we had 5% growth in the previous quarter, whereas in CFS, we had a little over 3% revenue. Overall, I would say it was a flat quarter, but rail revenue has increased by 12% and even the EBITDA has increased here. Right. Sorry, what's the EBITDA, if we were to look at from a 2-3-year perspective, can we look at INR 10,500 per TEU or it's going to be more of around INR 6,000 per TU? It will be more around INR 10,000. The volume increase will be the biggest contributor in the revenue. Sorry, your voice is little weak, sir. Can you please repeat once again? basically the volume increase in rail will be where the growth will come from. This revenue will continue growing on the rail side. Correct. Okay. Understood. If you could help us understand the progress on the green terminals, specifically Jaipur, where we are, what is the likely commissioning date? How do we see the scale-up? For Jaipur, we should be operational by Q4. As mentioned in previous calls, that it takes time to ramp up volumes due to shipping line opening it as an acceptance point. Once the movement starts, the first year we'll just go in building volumes on a slow level. We expect from the FY 2026 then, that we'll see the volumes coming in and it will contribute to EBITDA. Right. You've mentioned in the press release, you're looking at adding terminals, if you could elaborate a bit, what sort of CapEx one could look at, and the geographies, if you could. We are looking at about INR 100 crore per terminal, and we are looking at two immediately, maybe possibly a third as well. Geographically, we will not be able to share right now. Once we have acquired the land, we will make it known to the public. Basically, it will be in the hinterland, which will have a distance of at least 750 or 800 kilometers from the ports. 25 kilometers from the port. Okay. This obviously means it will be all greenfield and not really any acquisition sort of event. Is that understanding right? No, yeah. Right now, there are acquisitions which can be made, but those are not doing well. The reason they are not doing well is because the location was bad. So immediately we do not see any acquisition possibility, but we are always looking around. If there is anything that will come up, we will definitely evaluate and like Kaushik was saying we will be quick to act. Understood. Sir, one last question from my end with respect to pricing action by competition. Has there been any pricing action, any material pricing action in the pockets where we operate in by the competition? Yeah. Hi, Raj. Sunil speaking. There has been discount passed on by CONCOR, that was only in the area wherein we are not present. If we look at overall, because if they have passed on discount on the rail side, then their terminal handling is on the higher side. Overall, we don't see any major impact. Understood. And also- Okay. Yeah. Also there are other operators, you can ask them. We don't want to name the names. Okay There have been some discounts which have been thrown by our competition that we are very confident that because of network of our terminals, because of our service levels, we are able to retain our customers and going forward also we'll be able to do that. Got it. Thank you, guys. Nice talking to you. Thank you. Thank you. The next question comes from the line of Yash Tanna from it hought PMS. Please go ahead. Hello. Good afternoon. Am I audible? Yeah. Yeah. My questions are related to Snowman on the segmental margin. Our warehousing margins seems a little bit on the lower side in the last few quarters. Are we expecting margins to improve as utilization of our newer facilities kicks up? If you could give a steady state number on the offer warehousing. Similarly, I'll just add up to that. On the transportation side, it's shown a significant improvement there at 7.8%. This PBT margin from the results release. On the 5PL side, I think we started out with about 4.6% margins, and now we have reached to 10% odd, which is commendable. Where do we see the margins for 5PL sitting and do we expect further improvement there in this segment? Hi, this is Sunil here. Yash, the margin that we were talking about, the decrease of couple of percentages that is shown in last two quarters are basically because of the SNOWDISTRIBUTE which is contributing more into revenue at a lower margin. The 10% margin that SNOWDISTRIBUTE has in gross margin, as we discussed in length last time, the net margin comes to around 3%-4% in this business. Warehouse, which is at 13% gross margin this quarter, the contribution of warehousing in absolute term has gone up, but SNOWDISTRIBUTE has grown in terms of overall volume. That's why the overall average has slightly come down. Okay. On the other vertical side, sir? Warehouse we have 13% gross margin and transportation 8%. The major increase in the overall transportation business is because of the Snowline technology, wherein we are outsourcing the trucks where the margin is close to 10%-13%. The contribution of these trucks are increasing in the overall business, that's what is helping us to go from 5%-8% this quarter in transportation. The warehousing margin will sustain anywhere around 15% as we keep adding more and more warehouses. Overall price increase this year has been to the extent of 5%, as against typical inflation of 3%-4%. We'll continue to maintain margins in all the businesses. In case of SNOWDISTRIBUTE, the gross margin will remain at 10% and net margin anywhere around 4%. Right. On the 5PL side, do we expect the margins to scale up? With scale, do we expect margins to improve as well? In case of 5PL with the SNOWDISTRIBUTE, we expect it to be around 10% only. Okay. We are expecting to scale the business, from a margin point of view, it will remain around 10%. Right. Similarly, my next question was on 5PL. We have grown tremendously, I think it's a clear 5PL trajectory business with improving margin as well. I wanted to understand the scalability of this business, since we don't require a lot of capital for this business and I'm assuming ROC is better than the warehousing side as of now. Once it becomes a bigger pie of the revenues, our blended ROCs should move up, right? Is my understanding correct? What ROCs are we doing in this segment, and if we have a target number for the same You are absolutely right. We have the share of SNOWDISTRIBUTE, which is high yield business increasing, it will help us a lot in terms of ROCE. We don't have an estimate on that for the future. You are right because here the capital requirement is very little, only a working capital for inventory holding. The overall efforts are to see how SNOWDISTRIBUTE business, high yield business can grow. Last time when we discussed, we talked about the IT system, now it is stable, and you can see slight improvements as compared to last quarter. We expect similar improvements happening every quarter. On an average, we are expecting this year to add another INR 50 crores from this segment. Right. What are the current utilization you are doing in the segment? Sorry, current? ROCE. Sorry, repeat. Current ROCE at the overall company level is around 8%. Oh. It is around 8%. Hello? Yeah. I can't hear you, sir. I'm saying the current ROCE is around 8% approximately. This is our current quarter performance. Hello? We don't calculate ROCE segment-wise. It is at company level only. All right. It is around 8%. Got it. Just one more question, if I may. We have mentioned that we are going for a INR 200 crore CapEx in the next two years, which is almost a 100% addition to our current CapEx. The question is mainly related to how confident are we on utilization of these assets once they start commissioning. Are we in talks with our clients, and that once we start investing, start commissioning these assets, the utilization levels of these assets will pick up sooner than it used to maybe three, four, five years ago? Yeah. Yes, what we do usually is when we decide the location for a new setup, we do the demand estimation, and mostly 60%-70% of our utilization is done by the existing set of customers. We align our location and size of the warehouse depending on our customer growth plans. In all six months of commissioning, we expect facility to be anywhere between 70%-80% utilized. Sorry, within what time frame? Within six months of commissioning. Six months of commissioning. Okay. All right. That's very helpful. Just a suggestion, sir. If we could keep our Snowman call separate and Gateway separate, maybe we could focus and ask more questions on Gateway businesses. Sure. We will consider that. You are free to ask all the questions. You have asked many questions, we have replied. If there is anything still left, you can always talk to Sunil. Why I'm saying that because now we see that Snowman is our strategic business. We are actively looking at the future expansion and all the things. To have a separate conference, it does not really help. People who are following Gateway Distriparks should also know what is happening at Snowman, because at the end of the day, we are a 42% shareholder in that. It is considered as our core activity, and we are not in a hurry to close the call. You can come back again in the queue if you have any more questions. Sure, sir. Thank you. Thank you a lot. Thank you. Before we take the next question, a reminder to all participants that you may press star 1 to ask a question. The next question comes on the line of Bhoomika Nair from DAM Capital. Please go ahead. Greetings, sir. I just wanted to check on our Kashipur terminal. We were trying to increase the rail share out there. They were already handling, I think, 3,000 TEUs per month. How is the scale-up on that aspect, and also how is the scale-up from a rail perspective? They were already using the terminal, but transition to our rail, et cetera, how is that aspect moving out? Is the monthly run rate still at 3,000 or has it gone up? Yeah. Hi, Bhoomika. The monthly rate is somewhere close to 3,000, that is without MTs. With MTs includes export cargo, which is Can you hear me? Yes, sir. Now it is clear. Yeah. Our volume there is roughly 3,000, and we burst 3,500 also in a month. It is going well. Just to clarify, the rail share is 100% with us. We had only done third-party rail just 10 days before the transaction as a transition period. All the movement from Kashipur is all on our rails. We see ramp-up will continue, and we'll take it to 4,000 TEUs very soon. Okay. Got it. This 4,000 would be right now double stacking via the Garhi Harsaru hub and port effective, right? Yeah. Okay. Just in terms of how is the outlook in terms of volumes that you're seeing in terms of scale up and on an overall perspective, because Kashipur pretty much came towards the end of last year in the fourth quarter. To that extent, with Jaipur coming in, Kashipur kind of scaling up to 4,000, how is the trade kind of behaving and our market share and scale up there? Specific to Kashipur you're asking or overall rail? Both Kashipur and overall. Rajguru will answer this. Yeah. Hi, Rajguru here. For Kashipur, as Samvid was mentioning that we have been able to capture volumes. That is primarily on account of our regular services, and we were able to get hold of business from the gas plants which are near to Kashipur. For example, Rudrapur, Sitarganj, and Moradabad belt. We've been able to get not only the import volumes from our competition and from the nearest attachments, but also we have seen some upsurge on the export volumes. Very soon we will be touching that 4,000 TEUs mark. Given the kind of sales pipeline we have and the kind of suggestions which the current customers have given to us. Today. Yeah. Generally on other terminals, we are seeing some growth. Exports are starting to pick up slightly. The 10%-15% growth number that we're giving is looking on track. Okay. I'll also share the perspective in terms of our India terminals, where good growth has started happening. If we look at our Delhi terminal, the cargo volumes are back and the auto, e-tour volumes, then some textile and yarn volumes, they are contributing in the rise of exports. Medication port was always stable because of polymer and auto. At Faridabad terminal, they are doing lot of 4-wire console. There has been some uptick in the export order booking. All the cargo which is bound for U.S. and Europe for Christmas season has also started coming in. That is one of the reason that we have done good volumes in July. We are seeing that we will be handling very good and healthy volumes in the Q2 and this trend will continue. From that logic, shouldn't the growth be higher than the 10% because there will be a full ramp-up of Kashipur, which was not there earlier, and Garhi is starting to see traction, plus Faridabad. Not to mention towards the end of the year, maybe not Jaipur, but these terminals should kind of start seeing a better growth profile. To that extent, our growth should be higher than 10%? Yeah. The imbalance really matters a lot. We can technically handle much more imports if needed, that will destroy our margins and create other empty running, under plane running. Also from a rail capacity point of view, we are pushing our limit with 31 trains. We have three more trains in pipeline, which will be there before the end of the financial year. That will also help us add the volume. Until that comes and the macros improve to a more balanced situation for exports, that's why we're sticking with these 10%-15% numbers. Okay. On Kashipur, how is the, on an overall blended basis, the rail has obviously seen, you mentioned earlier, has been above a 9,000 odd EBITDA per TEU. Is this comparable at Kashipur as well? Yeah, it's similar. Okay. Great. I'll come back with the questions later. Thank you. Wish you all the best. Thank you. Thank you. The next question comes from the line of Jainam Shah from Equirus Securities Private Limited. Please go ahead. Yes. Thanks for the opportunity. Good evening. This question mainly relates to the CapEx guidance for Gateway as we are constructing Jaipur, along with we are planning to add two or three more ICDs in upcoming months. What kind of CapEx outgo would be there for the Gateway in at least next two to three years' time? We'll have about INR 300 crores CapEx in the next two years. This will include two new terminals, upgradation at existing terminals in terms of warehousing capacity and extension of container yards, as well as replacement of our vehicles, and also balance construction works of Jaipur. Got it. Apart from that, as we are adding two more new terminals, is it safe to assume that those would be commencing the operation probably somewhere in 2026 and ramping up volume in 2027 and overall CapEx pool would be post 2026 only? Yeah. Once we finalize it, post land purchase, it'll take about 12 months to construct it and then another 12 months to ramp up. Got it. That's it from my side. Thank you. Thank you. Thank you. The next question comes from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead. Hi. Would you reflect to whether please? I missed it. It's about 57% imports, 33% exports for the last quarter. We're looking at slightly better numbers in the upcoming quarter. Should we end the year with 60-40, sir? It is very hard to say. We will have to see how the macros play out. Hopefully get closer to 50/50 rather than 60/40. Okay, sir. Thank you. Thank you. The next question comes from the line of Jiten Arusi from Axis Capital. Please go ahead. Good evening, sir. Thank you for taking my question. Sir, can you just highlight on the market share and the NCR region? As we continue with the previous question, you had increased your market share in FY 2023. Can you articulate the percentage in terms of market share in Delhi and overall NCR region market share? Have you retained the market share of 31% last time? Can you just throw some light here? Yeah. In NCR, we have been able to retain a market share of +70%. Gurgaon and Faridabad, both the volumes put together. At Sahnewal, we are having a market share of, again, we are retaining 30%. In Uttarakhand market, where we have started mapping that also, our market share has increased from 34%-38%. Okay. That is where our volumes also have risen, and we are able to capture market share. Basically, more or less except for Uttarakhand we have maintained our market share. Yeah. On the new terminals which you are targeting, last time you had a target for the region of northern and central. Do you maintain that same guidance for the new terminal locations? Yeah. Sir, final question is on the CapEx incurred so far in first quarter. For this current quarter, we have incurred a CapEx of INR 10 crore approx. Other than that, we have done an investment in Snowman that is approximately INR 1.5 crore during the quarter one. For the full year is it safe to assume that we should be looking at CapEx of around INR 150 or so? It really depends on the new locations upcoming. We're maintaining that guidance of INR 300 crore for next two years, Jaipur construction will be coming in, that will be approximately INR 50 crore between now and March. Other than that, all the other things I mentioned in the previous question, those will also come. How much have you spent in Jaipur? Jaipur and the land approximately we spent INR 30 crores and then about INR 10 crores has been spent on the initial construction. To the railways and the initial construction. As on today, total investment which we have incurred in Jaipur is approx INR 40 crores. INR 40 crore. INR 30 crore and INR 50 crore will be spent. Okay, sir. That is provided CapEx and all of that, sir. Thank you. Thank you. The next question comes from the line of Kevin Gandhi from CapPro Capital. Please go ahead. Hello, sir. Hello? Yeah. Hi. Hi, sir. My question was from the point of Snowman Logistics. Basically, there was an article that private equity are interested in investing into the warehousing space. Can we expect some stake sale to Blackstone or other such private equities coming in future for Snowman Logistics? Thank you. There is a lot of interest in warehousing and in cold chain in general. That is the reason why we are, like the other investors which you hear of, we are also excited and we are having our CapEx plans and growth plans. Our cash flows support our growth. With our internal accruals and comfortable level of debt, we can keep growing at the pace which we would like. We would not be looking for any outside investment at this point, and definitely not any stake sale from Gateway's point of view. Okay. Thank you, sir. Thank you. The next question comes from the line of Harsh Shah from Dimensional Securities. Please go ahead. Hi. Good afternoon, sir. My question is for Snowman Logistics. During current fiscal, we saw quite a sharp increase in our own fleet from 290 to almost 309. Just for me to understand, are we expecting a very high growth? Or what is the strategy here? Yeah. Hi. We have added 20 trailers in our business for moving 15 containers. At the same time, we have added 50 new refrigerated trucks. We will be disposing off some of the old trucks very soon. Before we do that, we thought we should be replacing with the new trucks. That's the whole strategy. As on earlier, we expect to be somewhere around 250-260 trucks owned and ur lease basis around similar numbers as we move forward. Okay. On the warehousing side, we have a capacity of around 1 lakh 36,000 pallets. Over the next two to three years, what kind of capacity addition are we looking to see? Where do you see this reaching over the next three years? I can tell you about next two years as per our business plan. We would be adding close to 22,000-25,000 pallet positions with own investments, and around similar number of pallet positions on a lease basis where we are going asset light, which is largely focused on our dry segments. You can expect an addition of close to 50,000 pallet positions in two years. 50,000? Yes, 50. This current, out of the existing capacity of 136,000, how much would you lease? The fully leased warehouse would be close to around 15,000-18,000 pallet positions. 15,000-18,000? Yeah. These are totally dry warehouses, right? This 15,000-18,000. Mostly dry. Roughly 1,022 to 1,500 would be cold also in that. Okay. For the 5PL business, essentially we have seen decent bit of growth from 30-60 stores. Is it from the same clients as before, three clients which we had during the last kind of FY, or are there any additional clients in this business? No, it is the same three clients, their own organic growth. As you know, one of the client is Tim Hortons. Last year, they had started the business in June, with one store. Today, they have 20+ stores. 28 stores has become since it's a startup. Those organic growth, since we are their natural partners, everything comes to us. At the same time, for other two clients, we have added some scope of work and new products are added into our 3PL service category. There's no new addition of customers, but there's new addition of scope of work and new products. Sorry, I didn't get the part about the new addition. New addition is in terms of new products that we are supplying to 3PL services to the same three customers. Okay. Have we actually acquired any new clients or anything that you can hear on addition of new clients during the current year? Yes. You will hear soon. We are working on it. As it gets close, we will share it. All right. Thank you so much. Thank you. Thank you. The next question comes from the line of Yash Tanna from ithought PMS. Please go ahead. Yeah. My question was, with this 200 stores target, how much of that are we planning to take and how much will be from a internal sources? We'll maintain a net debt to EBITDA of 1.5 to 1. Snowman cash flows are healthy, we'll do whatever we can internally and then some incremental debt will be there. We want actually 1.5 on that. Yeah. You already answered question on the stake sale, this quarter we have seen buying by Gateway of around 1.5%. Is there any plan to further increase the stake in Snowman? We bought about 1.5% last quarter. Yeah. Depending upon Gateway Distriparks cash flows, because we have dividend to pay, we have our own CapEx and we have our own term loans repayment. We watch our cash flow very closely. I mean, we don't mind increasing in the near future another couple of percent, but timing will all depend on the cash flow. All right. Okay. Thank you. Thank you. Thank you. The next question comes on the line of Achal Lohade from JM Financial. Please go ahead. Thank you for the follow-up opportunity. My question was with respect to DFC. What is the progress on that? When do you see JNPT getting connected? Once JNPT gets connected, how does it impact us? Yeah. Hi. The latest update on DFC is that the total 30% of the construction has already been done. The latest you must have heard about Dadri to Rewari stretch, which is of 127 km that got operational. We are already sending our trains via DFC only to Mumbai and Jalore. Regarding the stretch on WDFC, which is yet to be completed, is a stretch of around 570 km. That is primarily from Sachin to JNPT. What DFC is telling us That it should be operational by end of next year. Those are the timelines which they have uploaded on their website, and we've been constantly interacting with the senior officers. That is the timeline they are indicating. Would be all the land acquisition issues, et cetera, all those sorted in your opinion, or is that still ambiguous? 90% of the land issues have been sorted. 5%-10%, there are still some issues which hopefully should be sorted out within next couple of months. Understood. How does it impact us once JNPT gets connected in terms of volume, competition, pricing, margins? Once JNPT is connected through DFC, the only difference will happen is that some of the volumes will shift from Mundra-Pipavav to JNPT. Right now, almost 90% of our volumes are for Pipavav and Mundra. Basically, some of the shipping lines will start calling more at JNPT. Then some of the customers will start handing over. What we are anticipating is there might be some 5%-10% competition. That is what we are anticipating initially. But then it all depends. We need to wait and watch. At this point of time, it is very difficult to give any numbers that what kind of business will be actually shifting from these ports to JNPT. Just to add one advantage that we'll have, not all CTOs have a pan-India license. Some CTOs can only operate out of Mundra-Pipavav and not call on JNPT. There'll be lesser competition for that route. Is it fair to say that our market share at Mundra, Pipavav is much higher than what we have at JNPT at this point in time? For our volume, 90% goes to Mundra, Pipavav and 10% to JNPT. We don't measure the Mundra rail volumes or Pipavav rail volumes because they go to all sorts of locations where we don't have a presence. For example, like Madhya Pradesh, UP, local Gujarat, Maharashtra, there are other markets being serviced from other CTOs where we don't compete, so we don't measure the total rail share that way. Understood. Would this improve the lead distance and hence margin per TEU? Logically. Yes, exactly. Yes. JNPT right now is single stack with DFC, it will be double stack, so that will also improve margins. Right. Any colors a bit on the pricing? Right now we basically charge the same price, right? There is no differential pricing for DFC. Yes, the same pricing is expected. Okay. The second question I had, with respect to the lead distance, can you help us with respect to the lead distance for the rail business as a whole for 1Q? We don't really track it because for us, most of our terminals and business is from the north only, roughly 1,200, 1,300 kilometers is our average lead distance. Sorry, how much was it? Basically NCR to Mundra Pipavav and Khanewal and Kashipur will be slightly more. It roughly comes to INR 1,300 only. It doesn't change for us quarter-on-quarter because all our terminals are here only. Viramgam is doing very less volumes right now. Got it. Just last couple of statistical questions. With respect to the rakes addition plan, you said three will be added by end of this year. How about next couple of years? Have the issues with respect to the wheelset availability resolved or is still an issue? No, it's improved a lot in the sense that last year when we were looking for rakes, then we were told it will take anywhere from 12-15 months for a rake delivery. Now they're available at six months notice, we don't see that being a challenge. We're planning to add three every year. Got it. Just one more question with respect to the interest and depreciation, if you could give some sense for the full year and the tax rate. Tax rate, I think Sandeep explained earlier that we are paying MAT. We are paying MAT at the rate of 15%, we are getting a MAT credit. This will continue according to our projections until financial year 2027, then the MAT credit will be utilized until 2031 or 2033. Until then, we'll be having this lower tax rate. On the interest and debt, Sandeep. The interest cost for this quarter is INR 10.4 crore, based on our current projection and all, we will continue to pay interest cost of INR 10 crore across per quarter, or based on our capital improvement, it may come down also. Depreciation and amortization, right now, whatever INR 33 crore of depreciation for the quarter, it will remain in the same line for the current year. Till the time new CapEx addition happen, which hopefully will happen in the quarter four. Understood. Thank you, wish you all the best. Thank you. Thank you. The next question comes from the line of Harsh Shah from Jefferies. Please go ahead. Yeah. Thank you for the opportunity. Just wanted to clarify on the EBITDA for TEU number which you gave. Actually, voice was not very clear. Can you just repeat those numbers, please? Thank you. Yeah. For rail, it's approximately INR 9,100, and CFS, it's about INR 2,100. Okay. This is including your other expenses? Yeah. What was the same number for the last quarter, 4Q? Rail would be about 9,400, and CFS, again, similar, about 2,100. Okay. Thank you for the clarification. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. Participants that have missed out due to time constraints can reach out to the management and SGA. On behalf of Gateway Distriparks Limited, that concludes this conference. Thank you for joining us and you may now disconnect.