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Snowman Logistics plans 3 warehouses; 2 will have 5000 pellets capacity
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Wednesday, 05 November, 2014, 08 : 00 AM [IST]
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Our Bureau, Bengaluru
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fiogf49gjkf0d Snowman Logistics has now embarked on setting up a 5,000 pellets capacity warehouse at Chennai which would complete the expansion as proposed when the company went public in September this year.
Further, the company has also started construction of additional warehouses at Mumbai with a 4,500 pallets capacity and proposes to set up a 5,000 pallet warehouse in Bengaluru.
As is one of the largest integrated temperature-controlled logistics service providers in India, the company provides warehousing, distribution, transportation and value-added services. It currently has a warehousing capacity of 79,500 pallets spread across 27 warehouses and 15 locations with temperature ranging from ambient to chilled and frozen i.e. +20ºC to -25ºC. The capacity was built over a period of eight years starting from 2006 when Gateway Distriparks Limited became the largest shareholder in the company. Gateway now holds a 40% stake in the company and other major shareholders include Mitsubishi Corpn, IFC and Norwest Venture Partners.
In its maiden Q1 results that ended September 30, 2014, the sales increased by 40% to Rs 48.27 crore and the EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 7% to Rs 9.93 crore compared to the previous year.
During Q2 FY 15 warehouse capacity reached 79,500 pallets as compared to 53,130 pallets YOY. Higher capital investment has resulted in increased depreciation and interest cost compared to previous quarter. This has resulted in a lower PBT of Rs 1.11 crore and PAT was Rs 2.29 crore. The Q2 PBT also includes additional depreciation charge on account of change in rates as per Companies Act 2013. The added capacity will result in higher occupancy in the coming quarters and with the repayment of loans, the interest cost will reduce.
Commenting on the results, Gopinath Pillai, chairman, Snowman Logistics, said, “Its expansion objectives were on track. The margins have been comparatively subdued due to lower occupancy in the new warehouses, higher incidence of depreciation and interest costs. However, this is a short- term phenomenon and the utilisation levels in the new warehouses have already started improving and this will reflect in the results of the coming quarters.”
“Going forward, we would maintain its growth trajectory,” he added. The company also announced that Wataru Kato joined the board as director representing Mitsubishi Corporation in place of Masakazu Sakakida.
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