Gateway Distriparks Ltd (GDL) on Thursday reported a 75 percent dip in its consolidated profit to Rs 4.26 crore for the September 2020 quarter.
The integrated inter-modal logistics facilitator had clocked a consolidated profit of Rs 17.38 crore for the year-ago quarter, the company said in a filing to the BSE.
Its total consolidated income during the quarter under review decreased to Rs 266.95 crore, against Rs 328.62 crore a year ago.
Total expenses declined to Rs 251.79 crore, compared to Rs 312.28 crore in the year-ago quarter.
"Net debt as on September 30, 2020, stands at Rs 509 crore against Rs 681 crore as on March 31, 2020,” the company said in a statement.
In August 2020, the company raised Rs 116 crore via rights issue.
The fund proceeds were used towards pre-payment of non-convertible debentures (NCDs) totalling to Rs 118.19 crore, including interest.
The company in September 2020 said its board approved the proposed composite scheme of amalgamation to reverse merge GDL into its subsidiary Gateway Rail Freight Ltd (GRFL).
"After this restructuring exercise, GDL would be delisted, and GRFL would be listed and renamed later,” it said.
It added that the rationale behind the business restructuring is to drive operational synergies and cost efficiencies, improve cash flows and debt-servicing ability of the newly-merged entity GRFL.
This step goes in line with the company’s year-long effort targeted to unlock value while aggressively eyeing reduction of debt, the company said.
Gateway Distriparks Chairman and Managing Director Prem Kishan Dass Gupta said, "The business restructuring will enhance our future cash flows significantly and provide us flexibility for ramping up our business operations.”
He added that the new structure will enable the firm to grow our rail intermodal logistics business faster and capitalise on new growth opportunities.
This restructuring enables the company to realise its full potential, while rationalising the cost base which will create value for shareholders, he said.
"A robust balance sheet combined with our strategically located state-of-the-art infrastructure alongside the western DFC will help us capitalise on the future growth opportunities,” he said.
Gateway Distriparks operates four container freight stations located at Navi Mumbai, Chennai and Krishnapatnam, and two container freight stations at Kochi and Visakhapatnam, through its subsidiaries Gateway Distriparks (Kerala) Ltd and Gateway East India Pvt Ltd, respectively.