Snowman Logistics Limited Q3 FY15 Results

During the quarter ended December 31, 2014, sales increased by 6% to Rs. 51.30 crores and the EBITDA increased by 15% to Rs. 11.42 crores as compared to the previous quarter. PAT increased by 156% to Rs.5.84 crores from Rs.2.29 crores over the previous quarter. For the nine month period ending 31 ^st December, the company has achieved sales of Rs. 149.09 crores, EBITDA of Rs. 33.05 crores & PAT of Rs. 10.50 crores. The capital expenditure for the nine months ended 31^st December 2014 was Rs. 80.12 crores.

On the expansion front, the 5,980 pallet warehouse at Chennai is due to commence operations from March 2015, whereas the Mumbai warehouse of 4,500 pallets and Bangalore warehouse of 4,500 pallets will commence operations during the second and third quarters of 2015-16 respectively. The Company is also in the process of adding capacities at Baramati, Cochin and Jaipur, which when completed will take the total installed capacity above our target of 1,00,000 pallet mark. In the transportation vertical, the fleet size during the nine months ended 31^st December has increased to 393 vehicles from 370 vehicles.

Commenting on the results, Mr. Gopinath Pillai, Chairman, of the Company said, “Snowman is a member of the Gateway Distriparks family which has a tradition of maintaining strong corporate governance, good returns to the shareholders and reasonable compensation to its staff. We will ensure that Snowman will adhere strictly to these core values. The Company is on track to achieve its expansion objectives. There is a tremendous demand for cold chain in India and only a very small part of this market is currently being catered by the organized players. With increase awareness of food safety and hygiene, customers have been moving to organized players. Hence Snowman’s immediate focus will be to bridge this gap by ramping up capacities across the country. This would apply to the transportation division also. The Company currently operates at 80% capacity utilization and this will increase as and when the new warehouses complete a few quarters of operations. Profitability too would grow with the warehouses maturing. ”