Gateway Distriparks Limited (NSE: GATEWAY) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Prem Kishan Dass Gupta — Chairman & Managing Director
Ishaan Gupta — Joint Managing Director
Samvid Gupta — Joint Managing Director
Kartik Sundaram Aiyer — Chief Financial Officer
Rajguru Behgal — President
Manoj Singh — Senior VP – CFS
Analysts:
Unidentified Participant
Aditya Mongia — Analyst
Bharat Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of Gateway District Parks Limited and Snowman Logistics Limited. 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 date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a dashtown phone. Please note that this conference is then recording today.
On the call we have Mr. Prem Kishan Daz Gupta, Chairman and Managing Director Mr. Ishan Gupta, Joint Managing Director Mr. Sambit Gupta, Joint Managing Director from Gateway District Parks Ltd. Mr. Karthik Sundaram Iyer, CFO Mr. Rajgulu Begum, Chief Business Officer Mr. Manoj Singh, Chief Strategic Officer from Snowman Logistics Ltd. Mr. Paramb Singh Handa, CEO and Director Mr. N. Balakrishna, CFO I would now hand the conference over to Mr. Prem Krishan Daz Gupta, Chairman and Managing Director from Gateway District Park Limited. Thank you. And over to you sir.
Prem Kishan Dass Gupta — Chairman & Managing Director
Thank you. Good afternoon ladies and gentlemen and thank you for joining us today. It is my privilege to address you at the outset of our quarterly earnings call. I hope everyone has had an opportunity to look at our investor presentation and press link that is uploaded on our website and I am pleased to report that our performance during the quarter has seen strong year on year improvement. This is largely attributable to the absence of the Red Sea disruption that adversely impacted the first quarter of the previous financial year. Our volumes have been consistent along with slight increase in market share in the.
Region where we operate. There are some geopolitical and geoeconomic conditions that remain, but we expect them to stabilize soon. India has already closed a trade deal with UK and is expected to close trailer deals with USA and EU which will improve EXIM volumes. It may not lead to immediate impact but it will be good for long term business as Indian exporters competitiveness improves. The business remains stable where our EBITDA cost was around which is €9100 slightly down due to the higher empty and underpinned running, lower tracking and increased imbalance due to lack of exports. Our CS plus business sees some improvement with an E around is for 1500.
Our focus on expanding our container terminal network continues. However, land acquisition continues to be a challenge. These delays are unfortunate, but we remain committed. Sorry. We remain committed and are large actively engaging on multiple fronts to finalize new locations. By exploring domestic opportunities as well as asset light models, Coven continues to maintain its position as the market leader and further capacity in Calcutta, Vishnabaknam and Kundi. In ncr, we have plans to add more capacity in both home and light asset models and continue our expansion in the 5pm mobile as well. With that, I now hand over to the moderator for the Q and A session.
Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer section. Anyone who wishes to ask question May Press Star N1 on the touchdown telephone. If you wish to remove yourself from question Q q may press star N2. Participants are requested to use handsets while asking a question. Participants are also requested to limit themselves to three questions at a time to give others in the queue a chance and can rejoin the queue thereafter. We will wait for a moment while the question queue assembles. The first question is from the line of Rehan Syed from Trina Asset Managers.
Please go ahead.
Unidentified Participant
Hello, Am I audible?
operator
Yes sir.
Unidentified Participant
Good evening to all of the team and thank you for giving this opportunity. So in the first place your voice is bleaching so I just want clarification on the PNL side like on the operating expenses increased Y O Y despite revenue growth. So are these specific cost headsets in clean manpower technology investment that we should expect to continue in going forward?
Prem Kishan Dass Gupta
Sorry, there’s some some echo or some. Disturbance coming menu when you’re speaking something longer. Can you try.
Unidentified Participant
Your voice is not audible
operator
so can. You just please use your handset to ask the question please. Actually there is a micro from your line please.
Unidentified Participant
Oh, now. Now I am audible.
operator
Yes sir.
Unidentified Participant
I want some more clarification regarding the operating expenses increased via despite revenue growth. So are there any specific cost headwinds in fuel manpower technology investment that you should expect to continue in copper 22?
Prem Kishan Dass Gupta
These are general increases. You know, yearly there’s manpower and minimum wage and fuel increases. The hikes keep happening so it’s part of that only.
Unidentified Participant
Okay, so it’s like a recurring expense we are in this quarter.
Prem Kishan Dass Gupta
Yeah, this quarter had more under frame and empty running. So we do expect some improvement in margin going forward as the overall imbalance also improves.
Unidentified Participant
Okay, and my second question is around the figure tech. The company has made significant investment in digital platforms in IoT based monitoring. Could you please share any political impact on cost saving or service levels from this initiative so far?
Prem Kishan Dass Gupta
It’s hard to quantify but we continuously keep investing in it just to stay ahead of the growth. Like we have ocr technology and ICDs now. We were the first to do RFID and GPS. Again it’s very hard to keep quantifying things like this. It’s a continuous improvement that we keep working on.
Unidentified Participant
Okay, okay. The last question from my friend highlighted the use of roofstop, solar and renewable energy integration at warehouses. So could you say your target for renewable power uses in next two to three years, its potential impact and margins coming we have seen coming forward.
Prem Kishan Dass Gupta
So all our majority of our warehouses say 80, 90% of all our locations in both gateways Snowman put together have sold us. We’ve done this under the OPEX model so far where someone else invests and we just take the benefit. We take like a discount to the grade rate. But now going forward we’re evaluating doing it ourselves where we invest in the soda and then it will be about two rupees or two and a half rupees compared to something the average is about 4 and a half rupees right now. Then we’re also looking at electric lease packers, electric vehicles for movement.
The CAPEX is almost double but the opex is about 1/3, 1/4 so there are savings there Also other than this, we’re also looking at LNG vehicles. So that’s also similar to EV. We’re already running CNG. We have about 65 vehicles. So that also is focused more on the greener side.
Unidentified Participant
Okay, okay, okay. That’s it for everyone. Thank you and good luck for your.
operator
Thank you. A reminder to all the participants, you may press task and when to ask questions. The next question is from the line of Anjun Lohade from Nuama Institutional Equities. Please go ahead.
Unidentified Participant
Yeah. Good afternoon team. Thank you so much for the opportunity. My first question is, you know, if you could help us understand in terms of the competitive intensity the overall exit growth if we have maintained market share.
Prem Kishan Dass Gupta
So the trend for the last couple of quarters has been roughly the same. So whatever market share we’ve been reporting, it’s broadly along the lines of that only no fresh competition intensity has increased. Anything like discount levels also remain more or less the same.
Unidentified Participant
Right. If you could help us understand, if I see the numbers right, 319 crores of revenue in real segment which implies a realization of 34,200 which is down about 3%. YoYo is it entirely to do with the lead issance or is it to do with anything specifically on the pricing part?
Prem Kishan Dass Gupta
No. So it’s more mix of MP versus lead in. So we’ve done more empties in the last quarter due to the imbalance. So you’ll see a decline in revenue per to you because of that.
Unidentified Participant
Would it be possible to get some sense how the MPs are usually. And what was it in first quarter?
Prem Kishan Dass Gupta
They’re not really sharing the makeup publicly for MT versus JD.
Unidentified Participant
Right. But on an average, how much would that be typically? Would that be 15, 20% or could that be 30, 40%?
Prem Kishan Dass Gupta
I mean like I said, we’re not getting into the split of versus NP.
Unidentified Participant
Understood. And you said margin was 9100 rupees per tu. I presume this again includes the other income but X of other income, how much would that be? Would that be closer to 9,000 per t?
Prem Kishan Dass Gupta
Income was very nominal this quarter. It’s only about 2.9 crores average majority of it is business related only. So we’re not measuring it other side.
Unidentified Participant
Right. And in terms of the outlook, how do you see that? You know, terms of the margins.
Prem Kishan Dass Gupta
So there’s scope to increase double stacking possibly we will go back to 9,500 in the coming quarters.
Unidentified Participant
Right. And if I may ask, you know, in terms of the volumes, how do we see last two, three quarters? We are seeing rather four quarters. We are stuck in that 92 to 94,000 use on a quarterly basis. You know, if you could give us some sense in the near term and from a medium term perspective, how it.
Prem Kishan Dass Gupta
Is. Generally Q1 is weaker. I know last year was weak because of the Red Sea board and so but for Q1 needed to stay at the same level that we did for Q4. It’s a good achievement. For even the rest of the year we should see some growth coming in. We’re still targeting a double digit growth for the entire year.
Unidentified Participant
Okay, so which implies a very steep ask for the balance nine months. Is that still doable according to you?
Prem Kishan Dass Gupta
Yeah.
Unidentified Participant
Okay, got it. If I may ask for the question, you know with respect to the dfc, what is the update you have with respect to the connection at JNPT&B? How does it impact us?
Rajguru Behgal
Yeah. Hi Rajput. So right now we have the same status. The last stretch of 100km it is just to get operational. So what we are expecting as per dst so it will get operational by like on the side they are telling 31-12-2025. But when we spoke to them. So we are expecting that it should get completed by 31st March 2026.
Unidentified Participant
Right. And when it gets connected, does it benefit us, hurt us in terms of given we are not really much present at the jmpt.
Rajguru Behgal
So it is too early to say. Because you know there are multiple, you know factors that will come into play. How the shipping lines are going to do their vessel rotation and how the cargo which is going to Depava and Mundra, how the exporter importers they are going to ship because ultimately it is an extra distance of 300 km mudra and depava. So that will also come into play. And what pricing shipping line are going to come up and what the pricing the port authorities are going to come up reserves. So that is something which will determine how much volume will get shifted.
But we have a Pan India license. And we have that advantage that after onboard. So we are the only ones with private operators who have a regular services towards the nbt. And definitely we will foresee an advantage once this corridor starts.
Unidentified Participant
Understood. Thank you. I have more questions but I’ll fall back in the queue.
Rajguru Behgal
Thank you.
operator
Thank you. The next question is from the line of Aditya Mondi from Kotak Securities. Please go ahead.
Aditya Mongia
Hello everyone. Thank you for the opportunity. I hope I’m audible to you all. Go ahead with my question. The first question is you talked about the double stacking quotient declining for you in the quarter. Could you quantify the quantum or double tracking for the quarter And B, why is it declining?
Prem Kishan Dass Gupta
So it’s 39% and it’s basically declined due to lack of export. There’s also realignment of trade certain points rather than which is further increasing their balance. Also there’s a slight echo on your line so I would request if you’re on speaker or something.
Aditya Mongia
Understood. I hope this is better from my side. The second question that I had was if you could share the individual market shares that you typically do for the key markets of Morgana, MCR and others that will be helpful.
Rajguru Behgal
So basically we have been able to retain the same kind of market share. NCR we have retained between 16 to 17%. And Ludana we have retained 27% and Uttarakhand that is 37%.
Aditya Mongia
Okay. The third question that I had was more on the guidance of 9,500 rupees of EBITDA per TEU at some of time this was the 10,000 rupees kind of guidance and our numbers have fallen to about 9,100. I understand there is an empty mix issue inside, but just wanted to get a sense of how to think through the steps that need to be taken to get to 9,500 and what is the outside chance of doing better than that?
Prem Kishan Dass Gupta
9,500 would be our normal only. So that would just be the slight better grade volumes like export increasing and there was some double stack restrictions during the months of May and June, so that is no longer there. So we should probably get back there quite fast. 10,000 plus we had kind of said when it would be connected to Bombay, the dsc and also we had factored in jettool coming in. But still that means that we can still look towards the 10,000 even when Bombay comes in.
Aditya Mongia
Okay, the last question that I had. Was I just wanted to get a more comprehensive response on Jaipur and outside. What are the key cases including an outside Jaipur wherein there is some issue linked to land acquisition and what has been the progress in the last quarter gone by? Because I see several disclosures inside which talk about beyond Jaipur, certain other issues in Snowman and the CFA side of things. So it’d be useful to get a confidence response from the company.
Prem Kishan Dass Gupta
Yeah, there’s only one other landmass going on which is in Krishna Bhatnam. So basically GDI sold some lines to Snowman and part of it got registered, part of it didn’t get registered because there’s some old survey from old records from the 1920s which are being questioned by the local government over there. So we filed an appeal over there to get this plant registered, but it’s not stopped any operations at all. So we don’t believe that this will have any effect for us. But it is an old case and we can’t do anything about it. And we believe we’re in the right because when GDL bought the land it got registered without any problems.
It’s only when Snowman was trying to fire from within gdl. So that will get sorted out soon, hopefully. Jaipur, we’ve already disclosed what’s there and no other land issues going on in the group. Generally what we say land acquisition remaining a challenge. That’s the same issues that we mentioned that either pricing or clear title, that we don’t want any encroachment on it. It should have specific road access, connectivity to a railway station, the right length and the width and near the manufacturing. So those are the constraints and you generally see lesser and lesser. It has been coming in which is why we started exploring the asset type model also.
And we are in discussions with a couple of people where we do the rail part, but they’ll run the terminal. So hopefully we can update you on that soon.
Aditya Mongia
And any update on the sale of the land at the css, that will be your final question. Thank you. So the CFS portfolio, there were some land parcels or let us say some CFs that you would wanted to discontinue and sell as land for other purposes to players outside. Is there any progress being made on that aspect?
Prem Kishan Dass Gupta
So we are in discussion with some people but we’ve not found the right valuation and it’s long in this test chain so we don’t want to sell it at anything. And meanwhile it’s still generating good cash flow. So only when the right valuation comes in, we’ll consider selling it.
Aditya Mongia
Thank you very much for your responses. All the very best. Those are my questions.
Prem Kishan Dass Gupta
Thank you.
operator
Thank you. The next question is from the line of flat Alexandra from ALA India Ventures. Please go ahead.
Unidentified Participant
Yeah. Hi, good evening. So my question is regarding the segmental revenue trends for Snowman. So for the transportation and warehouse segments there has been a slight change, like a single digit change quarter on quarter. But for the trading and distribution segment I can see a change of around 54% quarter on quarter. So that seems to be far more than the other two segments. So could you please tell me some more about the nature of this tape, what mainly drove it and how sustainable that will be for the coming quarters.
Prem Kishan Dass Gupta
Quarter. And.
operator
So your voice is not clear. I’m sorry to interrupt sir.
Prem Kishan Dass Gupta
Is it clear now?
Unidentified Participant
Yeah.
operator
Yeah.
Prem Kishan Dass Gupta
So I was saying that we have seen good reviews from our existing customers, couple of new plants which were added last year, I mean last quarter of last year and they have also started gaining some momentum. So overall the segment of snow distributed five years has helped us gain that. Momentum and maintain it. And as we see the projections from all these customers, it looks like there will be a pulsate impact going forward as well.
Unidentified Participant
Okay, so can you please give maybe some guidance for the three segments, how much growth will be expected in the coming quarters for the revenue?
Prem Kishan Dass Gupta
So typically quarter one is a little higher than Q2 that we see historically as well and we expect to maintain the same quarter one and continue there on.
Unidentified Participant
So then, so quarter one was high for the transportation, trading and distribution segment, but then transportation and warehouses weren’t as high. So are you saying that that same trend will continue? That it will just be single digit growth for transportation and warehousing?
Prem Kishan Dass Gupta
An informed decision wherein we wanted to weed out the low yield margin or the negative margin businesses and thus the growth is not reflecting. But as for our targets, from next quarter onwards, we are going to work back on that and it will be an issue of positive trend.
Unidentified Participant
Okay. And for warehousing as well.
Prem Kishan Dass Gupta
Warehousing has been onboarded our two facilities which is Calcutta and Krishna Patna. They will definitely be adding the revenue. Plus we have taken a warehouse on asset light model in Kumbi which will also start contributing from the month of August. And then some of them are in pipeline as well in new locations. So that will help you out. Furthermore.
Unidentified Participant
Yes, Sorry to be repetitive, but you know, if you could give like some figure what would be expected from these new warehouses like in percentage terms or absolute terms? Just an estimate.
Prem Kishan Dass Gupta
I mean if I say for the quarter, a utilization percentage increase by approximately 7 to $10,000.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. The next question is from the line of canal to fbc. Please go ahead.
Unidentified Participant
Hello, I’m audible.
operator
Yes sir.
Unidentified Participant
Okay. My first question is about the FPL business. It would be great if you could tell us what the scope of your work is geographically for some of your clients like Tim Hortons or Dr. Or Copy Canadian.
Prem Kishan Dass Gupta
So typically we do the end to end supply chain management for them. And in that it includes right from procurement activities for customers like I. We also do the factory audits of the vendor. It includes warehousing, distribution. I mean distribution per se goes to your. So right from procurement to planning to execution, everything falls in our portfolio there. We also do for a few of the clients, vendors, I mean we do evaluate vendors, we do find out new vendors and offer them products and then for customers like Ikea and from across the globe and then bring it to our bonded warehouse and then distribute it to them or sell it to them.
Unidentified Participant
Yes sir. Thank you. And what regions would you be handling for those clients? Are you catering to them on a Pan India basis or handling specific geographies only? Just to confirm, you said for Tim Hortons, BR and copy chain engine you do Pan India.
operator
Your voice is not audible properly.
Prem Kishan Dass Gupta
Can you hear me now? Is this fine?
operator
Yeah, now is better.
Prem Kishan Dass Gupta
In order. IKEA and Copi is Pan India. Baskin and Hula regional.
Unidentified Participant
Okay, understood. And second question is about a comment you made early in the call that you are pivoting to a model where you own the asset. Does this also apply to your transportation business instrument?
Prem Kishan Dass Gupta
So we have a mix of we do own trucks and we also take on asset like model. So the same model pertains to transportation as well. There is the own adjustment to 300 vehicles and then a similar number is on lease basis or on trip basis with us, which is through our snow Link platform.
Unidentified Participant
And as you grow, do you want to maintain a certain ratio or will you onboard more third party vehicles rather than your own?
Prem Kishan Dass Gupta
Most will go towards the third party vehicles and then we will maintain our fleet almost approximately to the numbers we have today.
Unidentified Participant
Okay, and this last question on warehousing, so the 6% growth rate can decompose it in terms of new capacity added and rate increases or decreases, whatever was the result.
Prem Kishan Dass Gupta
So in the last quarter, we have seen rate hikes from most of our customers and we have been able to achieve that. That has ended up giving us a better yield than last quarter and last year, same quarter as well, in terms of the capacity orders approximately.
operator
I’m sorry, I’m sorry.
Unidentified Participant
I understood what you were saying.
Prem Kishan Dass Gupta
Okay.
Unidentified Participant
Yes, sir. Thank you very much, sir. And have a good day.
operator
Thank you. The next question is from the line of Visha Gharani from Ashika Institution. Please go ahead.
Unidentified Participant
Hello. I hope I’m audible.
operator
Yes, ma’. Am.
Unidentified Participant
Hi, sir. So in your presentation, you had mentioned that there are certain new opportunities available in the domestic segment for Gateway District parks. So if you could justify them a bit.
Prem Kishan Dass Gupta
While aggregate volume remains stable, we are looking at different ways to increase our volume. So within our existing customers and network, there are some opportunities we have to secure domestic containers. Right now we have a fleet of 800, but it’s a bit aged. So we’re looking to get some new containers and then start moving things into the domestic segment. We’ve already crossed about 6, 700 teams on it last quarter, last month average. So we should be expanding on this plan.
Unidentified Participant
Okay, my next question is. Over the past 11 1/2 years, we had a expansion plan. The stepping stone of it was the Jaipur icd. Now it has been delayed due to the land issues and everything and connectivity issues. Meanwhile, there’s another competitor who’s willing to enter into the same industry and as a very huge FY30 target which they plan on achieving. So how would you compete with the additional competition? How will you meet your expansion initiative? Because you already have two big players in this industry. That’s Concord and Adani. With the third best player coming in, how are you going to compete and how will it impact your expansion strategies?
Prem Kishan Dass Gupta
Which announcement are you referring to for FY30? Can you just elaborate?
Unidentified Participant
I’m talking about. I’m talking about JSW’s logistics expansion plan.
Prem Kishan Dass Gupta
See, people have been announcing ITDS since before we started also. So we’ve been focused on Our growth story. We’ve had problems in the last couple of years that we’ve not been able to identify the right location. But we do have plans. And it’s not just one or two locations. We identified probably the next six, seven ICDs that we want to open up. But it will take some time and we don’t want to get stuck in a situation like Jaipur again. So we are being extra careful. We’re looking at some asset light models also, apart from domestic, where we mentioned earlier that someone else operates the terminal but we operate the rail.
Unidentified Participant
Sorry, in the Gati Shakti scheme.
Prem Kishan Dass Gupta
No, these are some private freight terminals that someone is looking at. Gati Dakti also. So far we’ve not found anything suitable. But if some good proposal comes in the Datisha also, we’ll be happy to look at that as well.
Unidentified Participant
Okay. All right. But there has been issues in an expansion plan and it has delayed it significantly. If I am correct, the Japur ICD at the start was supposed to be operational by FY25. Then it got delayed to 26 and then now 27. Expected timeline. And if we plan on having the 6, 7 more ICDs, how will that pan out? Any timeline as such?
Prem Kishan Dass Gupta
Yeah, it takes two years to build up an icd. So six, seven. I’m talking over a period of five to seven years. Not even immediate. We are focused on two in the near term. But this is not just an issue with us. It’s an industry wide issue. If you look all across. Everyone is struggling to find land to expand in the right locations. We can expand in a place which has 500 or thousand views per month, but it won’t make sense. So we’re trying to target key market areas along the northwest and central parts of India.
Unidentified Participant
All right. Okay. That is it from my end.
operator
Thank you. I reminded all the participants you may press Star and one to ask questions and they are requested to limit themselves to one question at a time to give other in a queue a chance and can be joined the queue way after the next question is from the line of PRA from EVIS Park. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes sir, you’re audible.
Unidentified Participant
Thank you so much for taking my question. Just a couple of questions from my. Friend if you can. I’m sorry you had missed out on your. So if you can just. Can you hear me?
operator
It’s. There is some background noise from your side.
Unidentified Participant
If you can keep the gaming segmental EBITDA Portugal for the rail and CFS business and also a broad outlook on. On the Capex going forward this year and through FY27.
Prem Kishan Dass Gupta
Sorry, I can’t really understand if you’re on speaker. I just request that you can go on answer.
Unidentified Participant
Yeah, just a couple of bookkeeping questions from my side. I’m audible now.
Unidentified Participant
Yeah, yeah.
Unidentified Participant
If you can please share the EBITDA TEU segment wise for rail and the CFS business and also broad capex outlook for FY26 and through FY27 that would be great.
Prem Kishan Dass Gupta
Is at 9100 and CSS is at 1500. We had announced at the start of the call the CAPEX plan remains the same. Basically we are looking at about 30 crores of capex per year. This is not counting any new terminals as in when a new terminal comes in as we had an average of about 150 crores per terminal. So we’ve earmarked 300 crores for two terminals and then the balance works of Jaipur whenever that comes in will be about 60, 70 crores.
Unidentified Participant
Okay, thank you so much for taking my question. I’ll be back in the queue.
operator
Thank you. The next question is from the line of Bharat from Fair Value Capital. Please go ahead.
Bharat Gupta
Hi, thanks for. Thanks for taking my question. Sir, a couple of questions with regard to swimming. So like we have added some capacity with respect to the pallet size. So can you just describe like what kind of opportunity size you’re looking at over the next three years, what kind of the capex we will be incurring. And also in your opening remarks you mentioned about the pricing hikes we have taken in this segment. So just can you describe on the same.
Prem Kishan Dass Gupta
So I mean our plan is to continue to spend something around 100 crores from our investments into our own facilities and then build couple of asset like models alongside. So maybe three to four facilities in next two years and next three years is probably six five to six facilities is what is on the horizon right now. And the other question was on price increase. So price increase 5 to 7% in general looking at segment to segmented variance. But that’s in general what is coming at present.
Bharat Gupta
Right. So overall in terms of the pallet size I think 1.5 we have currently. But overall if you look three, three years down the line how do you see the overall level of talib reaching up.
Prem Kishan Dass Gupta
200,000 tales.
Bharat Gupta
And so secondly just to get a sense about what’s your thought process with respect to 5 PL given out, it’s a low margin business as compared to the warehousing which is one of the traditional business for us and what kind of a risk are associated because we are involved in the complete value chain for all the. For all the customers we are catering to. So how do you read it? Like what’s the strategic thought process behind investing in five pool right now.
Prem Kishan Dass Gupta
Gives us additional stickiness to the customers. That’s first part of it. It adds to my warehousing, it adds to my distribution business which is the core and then we add upon other opportunities of creating margins from the trading of products. So it’s a very healthy business to be in. We have to be thoughtful of the customers we take and we are very careful on with whom we are engaging and then the long term we look at the longevity of the relationship as well and the customer we get into a north and start operating.
Bharat Gupta
Last question sir if I can squeeze in with respect to the quick common ecom just to get a sense what will be the revenue contribution coming out from this towards the logistics team And I believe this has been the or this has been one of the segments which has exponentially been growing. So how do you see that thing playing out with respect to the industry and with respect to us?
Prem Kishan Dass Gupta
So Quick Commerce is also income and quick Commerce is part of our business as of now and they have been contributing to the extent. I mean we have an exposure with them and we do fairly well. That’s what I can tell you.
Bharat Gupta
Any quantification sir with respect to our revenue exposure towards them?
Prem Kishan Dass Gupta
I would not be. Yeah, segment wise numbers and all will be not sure.
Bharat Gupta
Got it sir. Thanks for answering my question sir.
operator
Thank you very much ladies and gentlemen. That was the last question for the day. Participants that have missed out due to the time function can leave off to the management and SGA team for the Gateway District and Snowman Logistics for any further information. With that we conclude this conference. Thank you for joining us and you may now disconnect your lines. Thank you.