Snowman Logistics Limited (NSE: SNOWMAN) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Samvid Gupta — Joint Managing Director
Balakrishna N. — Financial Controller
Rajguru Behgal — President Rail, Gateway Distriparks Limited
Analysts:
Unidentified Participant
Bhoomika Nair — Analyst
Kunal Tokas — Analyst
Jainam Shah — Analyst
Love Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q4FY25 earnings conference call of Gateway District Parks and Snowmel Logistics Limited. Q4FY25 earnings conference call. This conference call may contain forward looking statements about the company which are based on belief, opinion and expectation of the company as on the 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 touch tone phone. Please note that this conference is being recorded today.
On the call we have Mr. Prem Kishan Dasgupta, Chairman and Managing Director. Mr. Ishan Gupta, Joint Managing Director. Mr. Samvet Gupta, Joint Managing Director. From Gateway District Parks Ltd. We have Mr. Kartik Sundaram Iyer, CFO. Mr. Rajguru Begal, Chief Business Officer. Mr. Manoj Singh, Chief Strategy Officer. From Snomel Logistics Ltd. We have Mr. Padamdeep Singh Handa, CEO and Director. Mr. N. Balakrishna, CFO. I now hand the conference over to Mr. Samvit Gupta, Joint Managing Director for the opening remarks. Thank you. And over to you sir.
Samvid Gupta — Joint Managing Director
Thank you. Good afternoon everyone. Just before we started the Q and A we thought we’ll make it a bit easier. Easier because this time we had some accounting entries which were a bit of one off in nature. So we’ll just give clarity on a couple of them. We’ve given it in our press release but we uploaded that a bit late as the meeting ran for longer. So basically CFS revenue it appears to be negative. But actually this is on account of change in accounting method between gross revenue, net revenue of some certain discounts. So for the full year this figure is about 46 crores.
So if you add that back then FY25 revenue for CFS vertical would be higher than FY24. Then another big change is that in December Snowman Logistics became a subsidiary. So now it gets line by line consolidated. So for the full year we have 145 crores of revenue, about 25 crores in EBITDA and PBT of 3 crores and PAT of 3 and a half crores on account of consolidation. There was a big one time hit on. It’s a provision. It’s not a cash payout yet but of about 12.8 crores. This is on account of the merger that we did within the group between Gateway District Parks and Gateway Rail at the time.
And one more group entity, this is A provision we’ve taken on stamp duty amount payable for it. But since the amount was not ascertainable, you know, back when we did it three, four years ago, we’ve just taken it as a contingency right now. And then the last item is that we’ve taken exceptional income. Last quarter we took it up about 380 crores, 390 crores for gain in goodwill of Snowman. But this quarter we’ve corrected it. We’ve done the fair value of equity on consolidation and there’s a minus 258 crores there. Net off is still 131 crores.
But again it’s a line item that’s come in. It’s not having any impact on cash flow or actual losses to the company. So I hope that clarifies a few of things in the results. We can now move to Q and A. I’ll just hand it back to the moderator, please. Thank you.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handset while speaking and avoid Bluetooth earphones or speakerphones. Participants are also requested to limit themselves to three questions at a time to give others in the queue a chance can rejoin the queue thereafter. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles.
First question is from the line of Love Jain from Artha India Ventures. Please go ahead.
Love Jain
Hi, good evening. Thank you for the opportunity. First question is on Snowman Logistics in the IP you mentioned on the facilities in Kolkatan Krishnapatnam will commence in June 25 and Q2 of this financial year respectively. However, on the last second last page under the extension plan state that Krishna Putnam facility is expected to start operating in July 26th which is a Q2 of FY27. Can you please clarify this? Are different phases of the same plant or is there any change in the timeline? And what revenue growth targets has a company set in alignment with this increase in warehouse capacity?
Samvid Gupta
Yeah, hi. See the facility in Calcutta is starting on in the month of June itself and it will add additionally almost 6,000 pallets with the current inflow of material and the seasonality. If we look into it, we are quite positive in ramping up the facility much faster than what we earlier would have if it would have come earlier. So the business alignment is quite in line with the New facility. As far as Krishnapatnam goes, that will be up in this year only in the month of July. So for that when I go back to expansion plans that is the second phase of Krishnapatnam which will be taken in future for the expansion.
There’s a possibility as we do have another warehouse available in Krishnapatnam to be converted to a cold store.
Love Jain
Okay, so there will be two phase. One in this July 26th and another will be in July 27th. Sorry, July 25th and July.
Samvid Gupta
Right? That is as per the plan.
Love Jain
Okay. And another question on. On the transportation services I can see the SL increasing segment wise revenue for the transportation service we can see a decline in EBIT from 52.88 lakhs to 5 lakhs which is approximately 90% downside in this quarter. So what is the reason of this?
Balakrishna N.
Hi Bala. Here. Just give me a minute. So look, you’re looking at the quarter on quarter comparison. Is it?
Love Jain
Yes.
Balakrishna N.
See this just for the sake, is it Q4 versus Q3 comparison? You’re doing a Q4 Q4 versus Q4.
Love Jain
Q3. Q4, Q3, Q4.
Balakrishna N.
See in Q4 you know as a eran process we have taken an additional provision as a cautious also there’s a slight dip in the margins in the current quarter. That itself is a reason. Otherwise the revenue. I mean otherwise the business itself is a flat in the current quarter.
Love Jain
Okay, that answers your question. Yes. And another one is on the planned capex that you mentioned 100 to 150 crore. And in the previous call you mentioned 80% of the capex is expected to fund it by debt. So is this the same capital structure you’re going to follow for the capex or is there any change in the capital structure for this CapEx amount?
Balakrishna N.
Yeah, we are still at the same opinion that we go with 8020 model 20 will be from the internal accruals. 80 will be funded through loans.
Love Jain
Okay. And on the cash converter cycle I can see that for the FY in FY25 it is increasing. It is increasing. Could you help us understand why the company decided to clear payables earlier and how this fits into the overall working capital strategy?
Samvid Gupta
Sorry, what is that decreasing? I didn’t hear properly. If you can repeat.
Love Jain
Yes, so it is related to the days table. I can see why the company has decided to clear payables earlier and how this fits into the overall working capital strategy.
Samvid Gupta
So I think it’s just a function of business. Depending on the business mix at that time it varies Terms vary customer to customer. Whoever is growing at a different pace for the quarter and this is primarily on account of the size PL business.
Love Jain
Okay cool. Thank you so much.
Samvid Gupta
Thanks Love.
Balakrishna N.
Just one more thing since you touched upon expansion I just want to add that apart from the capex which we are planning which will be for buying land and building up our own facilities similar to a Lucknow model, we are also discussing BTS where someone else builds a warehouse and we do a long term lease for more locations. So we’ll be growing on both asset light model as well as our own projects.
Love Jain
Okay cool. Thank you so much.
operator
Thank you. Before we move to the next question, a reminder to the participants. To ask a question you may press star and one next question is from the line of Rohit from Samatva Investments. Please go ahead.
Unidentified Participant
Yeah, good evening and thank you for the opportunity. My first question is on Snowman logistics. See the margins have seen a significant dip over the last three to four years where we were reaching somewhere around 18 to 19% and I guess this year we have entered in 11% for the warehousing part of the business. Just wanted your thoughts on what’s been the reason for this decline. Is it some accounting change or is there a mix change or what is the main reason for this?
Samvid Gupta
See the margins as you see are blended sales also with more with growth coming from 5 PL business the overall blend of margins are reducing and that is what is reflecting on the on the P and L as well. Also there has been certain cost pressures in the last year which further because of the business mix change as some of the industries did fantastically well and the others didn’t do much. So that also created some sort of a marginal dip. So which is reflecting but prima faciea with the increase on the 5PL model. This, this reflection is that.
Unidentified Participant
Sir, I’m only talking about the warehousing part. I get it. 5 PL is a bit low margin volume based business. I’m only talking about the warehousing part of the business. So that’s also those margins also three years back around 18 19% that’s come down to you know 11% this year. So I just wanted to know on the warehousing part of business.
Samvid Gupta
So some of it is contributed by the park and pay model. This year we have grown 500 times in park and pay model wherein close to 60,000 pallets were outsourced and built. So wherein the margins are lower thus the percentage margin is pulled down on the warehousing part.
Love Jain
So going forward can we expect margins to be at these levels due to your new park and pay system that you have adopted.
Samvid Gupta
See, this is the short term park and pay what I’m talking about and we will continue to grow in that. Also there was another business with Amazon which was shut down, which also impacted the overall warehousing margins. So the mix of warehousing change also has contributed in overall reduction in terms of percentages which is reflected.
Love Jain
Fair enough, thank you. My second question is on gateway logistics per se. So just a broader picture I want to understand. You know, three to four years back in, in one of your calls you had highlighted you want to, you know, increase your satellite terminals, you want to expand more in central India. In Rajasthan, I get Jaipur hasn’t come through, but apart from the facility in Uttarakhand, Kashipur facility, we haven’t been able to add a lot of satellite terminals, you know, to improve our volumes. So just wanted what are our plans going forward in terms of, you know, maybe setting up new ICDs or you know, leasing out something? What is exactly our goal going forward?
Samvid Gupta
The plan remains the same but as we mentioned over the last few calls, that land acquisition continues to be a big challenge. We’ve almost finalized a couple of parcels and then due diligence doesn’t go through. Some title issue. Is there some people back out last minute on price. So we’re looking for viable projects only and we don’t want to expand for the sake of expanding. That being said, there are still two, three active opportunities that we’re looking at and one of them is also on an asset light model. So hopefully, you know, we’ve been saying we’ll get back with it, but even the overall sentiment is down right now.
Fresh investments are much lesser. So we’re also reevaluating our plans, but we definitely want to have more re linked icities.
Love Jain
Got it. So and on this western direct rate corridor, so last if in H1, if I’m not wrong, the real coefficients to all the three ports had seen a big, I’d seen a significant fall. So, so what is your, you know, what are you getting on ground? Why is the rail coefficient actually decreasing the share to Mundra and Pipawa in spite of both of them being connected, you know, on the western dfc, why is still road being preferred over over rain? So I’m speaking because once JNPT comes through, maybe by the end of the year, is there a possibility that volumes might not kick through for us or for the industry as a whole?
Samvid Gupta
Yeah.
Rajguru Behgal
Hi Rajkur, this side. So one of the reason you have seen a slight dip in rail volumes was also due to the congestion issues faced especially at Mundra Port and there was double stack restrictions very often and especially due to heavy pipeline towards Mundra and there was a restriction going towards Mundra which really hit the overall volumes. Plus trade was also expecting that with the completion of DFC which is not done till now, there will be some kind of positive commercial advantage given to the trade that has also not happened. So we are just waiting and watching.
So hopefully once the JNPT corridor is completed, which now they are saying is as per the site they’re mentioning December, but as per our sources it might take another couple of months so it should happen by March. So then only we will see 100% advantage. Then there’s a possibility of some shift from road to rail.
Love Jain
Fair enough. So just one last question is on your Kashipur icd. So if I’m not wrong, we had invested, we had acquired it for around 150 crores and currently I guess we are doing around 3000 to 3500 Tus. Just wanted what was the reasoning to buy the Kashipur icd? Considering in your only calls earlier you had said the total addressable volume is only around 10,000 to 12,000 tus. So what was the reasoning to spend so much money on an ICD where the potential volumes within that area is only three times what we are doing right now.
So just your thoughts on that and what how do you see it going forward in terms of expanding volume from that icd?
Samvid Gupta
So you know that time the operations, rail operations were done by someone else. So we looked at the whole picture of rail plus road plus ICD and it made sense because it’s about a four to five year payback for us which was better than you know, a greenfield ICD project. While the volumes are not as high as say NCR or Ludhiana, it’s still a good catchment area. There are some fresh investments also coming in that region and with our increased services and us hubbing it via Gadi, via Piala, we can target a slightly wider market there because we can pass on the DFC and double stacking margins.
So that was the thought behind it.
Love Jain
Okay, fair enough. If I just have one more question on Snowman Logistics per se. So it’s on the 5 PL business. So I understand organically, you know, within the three clients that we have, we have been doing well but it’s been three years, three to four years and we haven’t been able to add any new customers you know, so are you still confident? And I just want to know if you. Is there any real value addition that you are able to give to the clients? Because if I look on the last three years, I get it.
We have three clients but there’s been no inorganic growth on that part. So how do we plan to expand the 5 PL business?
Samvid Gupta
So this year we have added two new customers. One is Unilever and the other one is an Indonesian coffee chain by the name Kopi Kanangan. And that will start reflecting. I mean it has already reflected in our books this year and it will further increase the volumes in the coming years. And we are constantly working on creating new similar customers apart from our organic growth from the existing ones.
Love Jain
Okay, so this Unilever part, what are we exactly doing for them? If you could just elaborate.
Samvid Gupta
So we’re doing their ice cream distribution in northeastern states. Seven sisters from our Guwahati warehouse.
Love Jain
Okay, thank you so much sir, and all the very best.
Samvid Gupta
Thank you.
Bhoomika Nair
Thank you. Next question is from the line of Bhumika Naya from Dam Capital. Please go ahead.
Balakrishna N.
Yeah.
Samvid Gupta
Hi.
Bhoomika Nair
First I just want to understand all the exceptionals as there are multiple from what I understand. One is clearly the revaluation of Snowman goodwill which is 258 crores. Second, I believe there is some stamp duty and third, there is a revaluation or sorry the revaluation of assets because of which the depreciation is also kind of changed during the quarter. Is that understanding are these are three exceptional. And if you can just highlight. If I’ve missed anything else during the.
Samvid Gupta
Yeah, it’s that plus moment number getting line by line consolidated and also the CFS revenue getting adjustment which we’ve been doing for the last three quarters as well. So it’s not a like to like if you look at Q4 last year versus Q4 this year, you’ll see a change in. You know this is basically gross revenue, net revenue, some discounts earlier were counting as part of net revenue. So that’s about 46 crores on the CFS revenue side for the full year.
Bhoomika Nair
Okay. And from a depreciation perspective, can you clarify what has been the impact for the quarter and for the year because of this reassessed?
Samvid Gupta
We’ve only done it in Q4. We’ve not done it backdated from Q1. It’s between three and a half to four crores.
Bhoomika Nair
So it’s lower by three and a half. Four crores for the four Q which is where it will continue as. And this is a base to be utilized for now, the next year as well. Is that understanding correct?
Samvid Gupta
Yes. Yeah.
Bhoomika Nair
Okay. And on this revaluation of The Snowman Goodwill, 258 crores, was there any tax benefit associated to this?
Samvid Gupta
No, this is a just a pure good. It comes as goodwill. So we had taken a gain on goodwill and then now we’ve taken an impairment on goodwill. So net we’re left with plus 132 crores for the year. There’s no cash impact, no tax impact, nothing. It’s purely a balance sheet item.
Bhoomika Nair
Okay, okay, fair point. Just if you can call out what has been the rail and the cfs, EBITDA per tu or anything of that sort, if you can just talk about that as well.
Samvid Gupta
Yeah. So Roughly it’s about 9500, 9600 for the rail side and say 13, 1400 for the CFS side.
Bhoomika Nair
This is for the fourth quarter, right?
Samvid Gupta
Yeah. And also for the full year, actually.
Bhoomika Nair
Sure. For real, if we see now last 2, 3/4, we’ve kind of settled at this 92, 93,000 tus per quarter and about 95 to 9,700 crore range for EBITDA per tuition. So it’s fairly sticky around this number. You know, how are we seeing, you know, growth kind of coming back given that we don’t have any particular ICDs in pipeline for 26 per se or, you know, and it seems that at least at Kashipur, etcetera, we’ve not been able to scale up volumes per se. So if you can just throw some light on this and any progress on any land acquisition for any ICDs that we were planning, any progress out there.
Samvid Gupta
So because Q1 was low, this Q1 will be much better. Say more in line with what we’ve done. Q2, 3, 4. So you’ll see some growth there, but otherwise, you know, we’re just waiting on say one is the July date of the tariffs, how that plays out overall. Also, sentiments are lower, fresh investments are less. So volume will probably remain around the same range with some growth. More growth we’re getting from gaining market share. But say the NCR market, Ludhiana market, those are flat as an overall basis. So that’s there on the new terminals. We’re still waiting on finalizing something.
We’ve still not been able to secure it. We’re being extra careful after Jaipur. So once it’s there, we’ll announce it and let you know.
Bhoomika Nair
Sure. So and in terms of the volumes per se, you know, while obviously yoy1q will look good. But you know, has the market seen any improvement in terms of the volume trade activity or not really because of the tariff?
Samvid Gupta
Not solely because of the tariffs generally. Also even before that volumes were flat. And I think if you see across the industry, it’s like this right now.
Bhoomika Nair
Okay, okay. If you can just also talk about the market share numbers and how our double stack has panned out in this particular quarter.
Rajguru Behgal
Yeah, I’ll take. So in quarter four, our market share at NCR has been steady at 17% and at Ludhiana so we have regained our market share to 27% which last year it was as low as like 24, 25% in Uttarakhand market. At Kashipur we have regained market share to 37%. Yeah. So that is the status of the market share in terms of the double stacking. After this double stacking which has happened at Farida Maan, our double stacking percentage has increased to 41% in Q4. And if we split this further into different ICDs. So earlier we were in the range of 40% of Faridabad volumes.
Now it is gaining, you know. Okay, so overall, just wanted to tell you, the overall 41% is there and earlier it was around 38%. So we have gained 2, 3% advantage. And going forward also as the volumes grow, we are anticipating a good amount of increase. So we are targeting 42, 43% going forward.
Bhoomika Nair
Sure. Just on this market share number. These were fourth quarter market share numbers or for the full year, sir. So these were fourth quarter over last year. Fourth quarter. And how would it be for the full year?
Rajguru Behgal
Yeah, full year NCR was 17% and Ludhiana 25%. Then Kashipur was 28%.
Bhoomika Nair
Right. So you know.
Rajguru Behgal
Yeah, full year you see the lower number of Kashipur because Q1 and Q2 were down. So which we gradually improved in Q3 and Q4.
Bhoomika Nair
Understood, understood. So you know, I mean with the volume growth being restricted to the market led growth, given lack of, you know, new capacities per se, you know, obviously the focus will have to be on market share gains. But given how competitive the market is, how are you seeing that pan out and versus the EBITDA per tu? You know, where are we seeing the ability to kind of actually grow volumes or will it be more driven by the margin expansion as we move forward?
Samvid Gupta
So we’re focusing on Piala and Virangam. Those are two markets where we feel like we can do better. With Ludhiana, we kind of already regained our number one spot. So I Think keeping that consistent will be there. But these two markets, there’s good scope. Especially after Faridabad got double stacked.
Bhoomika Nair
Sure. Okay, this helps. Maybe I’ll come back in the queue. And sorry, just lastly, what is the capex that we’re looking for in FY 2626.
Samvid Gupta
So maybe around 30 crores other than the new terminals.
Bhoomika Nair
Okay, okay. And sorry, what will it be for Snowman? Because that will also get consolidated now.
Samvid Gupta
100 to 150 per year. Even Gateway is 30 per year. So say 60 crores for the next two years. This is basically some warehousing capacity and vehicles.
Bhoomika Nair
Understood. So basically you know, and this does not include any new ICDs as and when we will acquire land, then we will outline that separately.
Samvid Gupta
Yeah.
Bhoomika Nair
Okay.
Samvid Gupta
Okay.
Bhoomika Nair
Okay, got it. Thanks so much.
Bhoomika Nair
Thank you. Next question is from the line of Kunal Tokas from fvc. Please go ahead.
Kunal Tokas
Hello, I’m audible.
Bhoomika Nair
Yes, you are. Please go ahead.
Samvid Gupta
Yeah, hi.
Kunal Tokas
Okay.
Samvid Gupta
Hello.
Kunal Tokas
The first question is about the 5 PL vertical. This is represented as the trading and distribution segment in your statement. And while revenue has grown, well, margins have fallen. So can you explain why that is?
Samvid Gupta
See as I have mentioned that we have acquired a new business with Unilever wherein the margins are different to the earlier businesses we were doing in 5 PL. So that has contributed to a lower overall percentage. When it is visible, the top line and also the product mix for the current customers of ours has changed which has resulted in lower margins. There are certain items which are imported and comes at a different margin than what we procure and what we procure from India. So the differential is because of the mix change plus the new business with Unilever wherein overall margins are differently packed.
Kunal Tokas
So earlier you were targeting gross margins of in 5 PL was 89%. Has that changed now with the. With the new situation?
Samvid Gupta
Yes, correct. That is changed. But it will remain in the range of 6 to 8% depending on upon the product mix.
Kunal Tokas
All right. And just want your clarification on the accounting for the goodwill impairment that you have taken. Can you, can you explain a bit more why that occurred after taking the gain on consolidation last quarter?
Samvid Gupta
Yeah, it’s basically linked with the share price also as well as the accounting standard where we have to make a discounted cash flow. So we didn’t really have a choice but to go with this figure. So we’ve taken a hit of 258 crores. But again it’s purely a balance sheet item. No tax, no cash outflow. It has no bearing on the overall operations of the company.
Kunal Tokas
How much of it was linked to the share price and how much to the DCF calculation that you yourself did. What’s the weakage of these two?
Samvid Gupta
The DCF and the share price are roughly in the same range as of March 31st. So that’s the entire impact. Our last purchase was at about 75 rupees. So we first took a gain at that value. Then this has come down from basically 75 minus close to 50 rupees. So that 2527 rupee gap is the hit that we’ve had to take.
Kunal Tokas
All right, thank you. Thank you very much and have a good day.
operator
Thank you. Participants, if you wish to ask question you may press Star and one next question is from the line of Jainam Kiran Kumar Shah from ICVirus securities Private Limited. Please proceed.
Jainam Shah
Yeah, hi sir. Thanks for the opportunity. I just missed one point. You clarified on the other income part. So can you just repeat that part? Like other income is higher during this quarter. What has led to that particular thing?
Samvid Gupta
So there’s some routine write backs of discounts and incentives payable. Then there’s also interest income as the company is sitting on over 100 crores and cash right now. And then also there was a write back on account of a provision we made for tax last year. And then we opted for Vivajse Vishwa. So we paid out the tax and closed out all the old matters. But last year we had only taken a provision on a contingency basis. So it got added back in EBITDA but it’s subtracted back from Pact. Got it. And the higher other expense, what could be the reason? Like we have been doing 2830 cr kind of a number but this year.
Balakrishna N.
It went up 240 cr. This is only for the gateway number. That I’m talking about. Any specific other expense which has been added to this number. The basically the stamp duty number that we’ve given of close to almost 13 crores. We mentioned it at the start of the call in the press release. This is again a provision. It’s not a cash outflow yet. So whenever the demand comes in we’ll pay it.
operator
Thank you. Next question is from the line of Love Jane from Artha India Adventures. Please go ahead.
Love Jain
Hi. Thank you. On seeing annual trade receivables snowman increasing year on year. Can you please specify how much is these are considered good in FY25 and how much are overdue for from like last 6 months and how much are the provisions? If you can give a big breakdown of annual Trade receivable.
Samvid Gupta
Hi Bala here. See, increase in traditionals is direct relation to our increase in turnover. We put it this way and we carry provision approximately 4 crores which is covering 180 days.
Rajguru Behgal
But all. Majority is from the current year itself. Is that answers your question? Yeah.
Love Jain
Yeah. And how much are the provisions out of the. Is there any provision?
Samvid Gupta
We provisioned full 180 days which is around 4 crores.
Love Jain
Okay, good. Thank you.
Samvid Gupta
Yeah, thank you.
Bhoomika Nair
Thank you. Next question is from the line of Gaurav Gandhi from gpm. Please proceed.
Love Jain
Yeah, thanks for the opportunity. Just one question or clarification from your side, sir. Why have we arranged the land acquisition.
Love Jain
Deal at Jaipur in such a way.
Samvid Gupta
That it came under Benami Property act.
Love Jain
And is there any possibility of settlement. There or is this issue going to. Get dragged for many long years?
Samvid Gupta
So it wasn’t our intention to do anything like that. We still believe we did it the right way. We have good top legal firm also advising us who believes that we have a strong case. We’re hopeful, you know within the next year or two for whatever reasons this got caught in this legal case. But according to us it’s still fine. There’s no unfortunately like a settlement scheme like Vivat Seviswas and all that we’ve done in it matters. But we’re confident that the tribunal will, you know will go in our favor.
Love Jain
Thank you.
operator
Thank you. Next question is from the line of Pranay Khandelwal from Alpha Invesco. Please proceed.
Love Jain
Hi. Thanks for the opportunity and congratulations on our head of Humbers. Hello. Hello.
operator
Yes, please go ahead.
Love Jain
Is it better now?
operator
Yes, please proceed.
Love Jain
Yeah, so I just wanted to know now that Gateway has reached that 50% plus mark for snowman. So is there. Is the Gateway still looking to invest more in the company or maybe completely merge Snowman into gdl. How is the management thinking about that?
Samvid Gupta
No plans of merger right now as they’re different businesses. Regarding stake also we haven’t thought of anything yet. We’re not against it but we don’t have any immediate plans to increase our stake either.
Love Jain
Okay. I was asking since you mentioned that there’s some hundred crores on cash and GDL will be churning out more cash this year.
Samvid Gupta
So. Every year you know there will. Be certain capex which is required in gdl. And we have a track record of paying dividend also. So based on the cash flows if and when there is any surplus then we could consider it. But as of now we have not announced any plans.
Love Jain
All right. And now on the side Any new customers, customers that we are talking to for 5 PL business also wanted to confirm that these two customers that were mentioning Undeliver and Kopi, they’re Both on the 5 PL side, right?
Samvid Gupta
Yes, they are on the 5 PL side and on an ongoing basis, you know, there are many customers who we have conversation with but only, you know, we also select those customers who we are confident of their growth and their ability to make payments on time because this business is very working capital intensive. So as and when, you know, we come across any large new customer which makes sense, then we partner with them.
Love Jain
For 5pm and op, I believe right now has only one outlet in India. Right. So what are their plans?
Samvid Gupta
Okay, as of now they have two plans and we have obviously plans to expand more. But we will not be able to comment exactly how many stores and at what time.
Love Jain
Okay. All right, I think that’ll be all. Thank you.
operator
Thank you. Participants, to ask a question, you may press star and 1. Ladies and gentlemen, to ask a question, you may press star and 1. Next question is from the line of Kunal tokas from FVC. Please go ahead. Mr. Kunal, your line is unmuted. Please go ahead with your question.
Kunal Tokas
Hello. Am I audible?
Bhoomika Nair
Yes.
Kunal Tokas
Okay, there’s a quick question. You mentioned right now that choosing the right customer is very important for your 5 PL business because obviously you take inventory ownership and you don’t want to be left handing. But inventory you can’t sell. So for onboarding a player like Kopi, which is just entering the industry, do you think it makes sense to take that risk versus going with more established players? But then obviously you also have the thing that established players have their own supply chain established. So how do you manage that trade off between taking more risk versus getting more growth from new players entering India or expanding in India?
Samvid Gupta
See, we have done our due diligence when we speak with a customer in terms of their plans in India, their stability plus we see their global presence as well. So at the pace Kopi is expanding globally and the way their contract is structured, it keeps us quite covered in all aspects. And we try and put in our best effort in terms of doing detailed due diligence to ensure that the company’s interests are safeguarded alongside the growth.
Kunal Tokas
What sort of securities do you have in these point rats? Do you have recourse to the parent entity of the of copi? Maybe.
Samvid Gupta
You know, unfortunately because of an NDA, we are not able to disclose the details of the contract with our customers. But we can assure you that we have Built enough safety which guarantees us, you know that we will not be at a loss. And that’s why finding customers who are acceptable, who are amenable to such terms of the agreement that it takes time and we are careful about who we choose.
Kunal Tokas
Also another question about the warehousing business. So it’s, it’s flat as we can see but that’s obviously also because of the, of Amazon moving out. So on a like for like basis what, what would the growth have been if we just remove Amazon from the previous year’s numbers and frame. CSP remove.
Samvid Gupta
Okay. Yeah. If we remove Amazon business alone from the park and pay and dry business, it’s around 5% increase we can see in a warehousing business which is exactly been compensated by loss of Amazon business in the top line which is around 10, 11 crores. Works out to be.
Kunal Tokas
And what has been the sort of rising decline in the last one year?
Samvid Gupta
See the pricing decline is for the. See the margins impact is for the various reasons. One is our temperature control business remained. Flat and there is, there is few. Customer segments like meat, seafood and poultry. These were down year on year by 15%. That has a direct impact on our margins.
Kunal Tokas
Yeah. And rd. Yeah it does. So there has been a pricing decline, right?
Samvid Gupta
Yeah.
Kunal Tokas
Yeah. Okay. And.
Samvid Gupta
Sorry, just to clarify, when we say there’s been a pricing decline it’s because our mix has changed. So certain products which are stored at certain temperatures, you know the pricing is more and those, some of those have come down. But on an average with across most of our existing customers who we do renewals with then about 4 to 5% pricing increase we have this year, so 4% but the mix changes. That’s why you know on an overall pricing basis you will see the drop. But contract basis with customers we are able to get increases.
Kunal Tokas
All right, and how are you seeing the competitive intensity in this business? Because you know warehousing is the core of your business where you generate the most cash which you can then use to grow the 5 PL business. While transport is more of just an ancillary service. So. So how do you see the competitive intensity in this business.
Samvid Gupta
As of now on a Pan India basis we are still the leader by a large margin in terms of capacity on a regional level at every location there are some cold storages will be compete with. And on the 5 PL side we don’t have any competition as of now. But the scenario can change as the industry is maturing and more and more shift is happening from unorganized to organized. So we do expect healthy competition to come in and that is why we continue with our growth plans.
Kunal Tokas
And is the growth in this business limited just by the supply side? That is people not building enough cold storages or do you think there’s also hesitancy from demand side that is customers finding the cost of cold storage, professional storage services like you do maybe a little bit too much compared to what they have been doing, which might be organized but that is what they have been doing.
Samvid Gupta
It’s a mix of both. You’re right that people who are shifting, you know, from an unorganized setup to more organized, they see the value in using professional cold chain services. And also there are certain places where our warehouses are running 100% full. So that’s a supply side constraint that we have.
Kunal Tokas
Thank you very much and have a good day.
operator
Thank you. Next follow up question is from the line of Love Jain from Artha India Adventures. Please go ahead.
Love Jain
On the industries we are serving in the Snowman in the IT agency we have good amount of industry that we are serving. If you can give me which one is the highest margin in this quarter. If you can provide what are the top industry that we are serving?
Samvid Gupta
See we are serving from QSR to ready to cook food to the quick commerce. Quick commerce has been the recent add on. We will not be in a position to share that. It’s a blended sort of a thing. So not ready at present with you.
Love Jain
Okay. Thank you so much.
operator
Thank you ladies and gentlemen. That was the last question for today. Participants that have missed out due to time constraint can reach out to the management and SGA for Gateway District Parks and Snowman Logistics for any further information. With that we concludes this conference. Thank you all for joining us and you may now disconnect your lines.