Gateway Distriparks Limited (SNOWMAN) Earnings Call Transcript & Summary

Ladies and gentlemen, good day and welcome to Q4 FY '25 Earnings Conference Call of Gateway Distriparks and Snowman Logistics Limited Q4 FY '25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinion and expectation of the company as on the date of this call. These statements are not the guarantees of future performance and it involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. Today on the call, we have Mr. Prem Kishan Das Gupta, Chairman and Managing Director; Mr. Ishaan Gupta, Joint Managing Director; Mr. Samvid Gupta, Joint Managing Director. From Gateway Distriparks Limited, we have Mr. Kartik Sundaram Aiyer, CFO; Mr. Rajguru Behgal, Chief Business Officer; Mr. Manoj Singh, Chief Strategy Officer. From Snowman Logistics Limited, we have Mr. Padamdeep Singh Handa, CEO and Director; Mr. N. Balakrishna, CFO. I now hand the conference over to Mr. Samvid Gupta, Joint Managing Director for the opening remarks. Thank you and over to you, sir.

Thank you. Good afternoon, everyone. Just before we started the Q&A, we thought we'll make it a bit 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 INR 46 crores. So if you add that back, then FY '25 revenue for CFS vertical would be higher than FY '24. 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 INR 145 crores of revenue, about INR 25 crores in EBITDA and PBT of INR 3 crores and PAT of INR 3.5 crores on account of consolidation. There was a big onetime hit on -- it's a provision, it's not a cash payout yet but of about INR 12.8 crores. This is on account of the merger that we did within the group between Gateway Distriparks 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 back when we did it 3, 4 years ago, we've just taken it as a contingency right now. And then last item is that we've taken a exceptional income. Last quarter, we took it up about INR 380 crores, INR 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 INR 258 crores there, net of we're still INR 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&A. I'll just hand it back to the moderator, please. Thank you.

[Operator Instructions] First question is from the line of [indiscernible] from Artha India Ventures.

First question is on Snowman Logistics. In the IP, you mentioned on the facilities in Kolkata and Krishnapatnam will commence in June '25 and Q2 of this financial year, respectively. However, on the last -- second last page under the expansion plan states that Krishnapatnam facility is expected to start operate in July '26, which is a Q2 of FY '27. Can you please clarify this are different phases of the same plant? Or is there any change in the time line? And what revenue growth targets has the company set in alignment with this increase in warehouse capacity?

Yes. 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.

Okay. So there will be 2 phase, one in this July '26 and another will be in July '27. Sorry July '25 and July '27?

That is as per the plan. Right. That is as per the plan.

And another question on the transportation services. I can see despite increasing segment-wise revenue for the transportation service, we can see a decline in EBIT from INR 52.88 lakhs to INR 5 lakhs, which is approximately 90% downside in this quarter. So what is the reason of this?

Bala here. Just give me and only a minute. So look, you're looking at the quarter-on-quarter comparison, is it?

Yes.

See, Just for the sake, is it Q4 versus Q3 comparison you're doing a Q4 versus Q4?

Q3, Q4.

Q3, Q4. See in Q4, as a year-end process, we have taken an additional provision as a cautious. Also, there is a slight dip in the margins in the current quarter that itself is the reason. Otherwise, the revenue -- I mean, otherwise, the business itself is a flat in the current quarter. Did that answers your question?

Okay. Yes. And another one is on planned the CapEx that you mentioned INR 100 crores to INR 150 crores. 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?

Yes. We are still the same opinion that we go with 80-20 model. 20 will be from their internal accruals, 80 will be funded through loans.

Okay. And on the cash conversion cycle, I can see that for the -- in FY '25, it is increasing -- is it increasing? Could you help us understand why the company decided to clear payables earlier and how this fits into the overall working capital strategy?

Sorry, what is that decreasing? I didn't hear properly, if you can repeat.

Yes. So it is related to the days payable. You can see that why the company has decided to clear payables earlier and how this fits into the overall working capital strategy.

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 5PL business.

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 our 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.

[Operator Instructions] Next question is from the line of [ Rohit from Samatva Investments ].

So my first question is on Snowman Logistics. See the margins have seen a significant dip over the last 3 to 4 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. So 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?

See the margins, as you see, our blended sales also with more -- with growth coming from 5PL business, the overall blend of margins are reducing. And that is what is reflecting on the P&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 facie with the increase on the 5PL model, this reflection is there.

Sir, I'm only talking about the warehousing part. I get it, 5PL is a bit low margin volume-based business. I'm only talking about the warehousing part of it. So that's also -- those margins also 3 years back were around 18%, 19%, that's come down to 11% this year. So I just wanted to know on the warehousing part of the business.

So some of it is contributed by the park and pay model. This year, we have grown 500x in park and pay model wherein close to 60,000 pallets were outsourced and build. So wherein the margins are lower, thus the percentage margin is pulled down on the warehousing part.

So going forward, can we expect margins to be at these levels due to your new park and pay system that you have adopted?

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.

Fair enough, sir. My second question is on Gateway logistics per se. So just a broader picture I want to understand, in 3 to 4 years back in one of your calls, you had highlighted you want to 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 to improve our volumes. So just wanted what are our plans going forward in terms of maybe setting up new ICDs or leasing out something? What is exactly our goal going forward?

So the plan remains the same. But as we've 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 sites -- 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 2, 3 active opportunities that we're looking at and one of them is also on an asset-light model. So hopefully, we've been saying we'll get back with it. But even though overall sentiment is down right now, fresh investments are much lesser. So we are also reevaluating our plans. But we definitely want to have more rail link type cities.

Got it. Sir and on this Western direct freight corridor. So last, in H1, if I'm not wrong, the rail coefficients to all the 3 ports had seen a big -- seen a significant fall. So what is your -- what are you getting on ground? Why is the rail coefficient actually decreasing the share to Mundra and Pipavav in spite of both of them being connected on the Western DFC? Why is still road being preferred over rail? 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?

Yes. Rajguru, 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 until 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 their side, they are 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.

Fair enough. Sir, just one last question is on your Kashipur ICD. So if I'm not wrong, we had invested -- we had acquired it for around INR 150 crores. And currently, I guess, we are doing around 3,000 to 3,500 TEUs. 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 TEUs. So what was the reasoning to spend so much money on an ICD where the potential volumes within that area is only 3x 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?

So 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 4- to 5-year payback for us which was better than a greenfield ICD project. But 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 Garhi, via Piyala, 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.

Okay. Fair enough. If I just have one more question on Snowman Logistics, per se. So it's on the 5PL business. So I understand organically within the 3 clients that we have, we have been -- you've been doing well. But it's been 3 years, 3 to 4 years and we haven't been able to add any new customers. 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 over the last 3 years, I get it, we have 3 clients but there's been no inorganic growth on that part. So how do we plan to expand the 5PL business?

So this year, we have added 2 new customers. One is Unilever and the other one is an Indonesian coffee chain by the name Kopi Kenangan. 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.

Okay. So sir, the Unilever part, what are we exactly doing for them, if you could just elaborate?

So we're doing their ice cream distribution in Northeastern states, 7 sisters from our Guwahati warehouse.

Next question is from the line of Bhoomika Nair from DAM Capital.

First, I just want to understand all the exceptionals as there are multiple from what I understand. One is clearly the reevaluation of Snowman goodwill, which is INR 258 crores. Second, I believe there is some stamp duty and third there is a revaluation -- sorry, the revaluation of assets because of which the depreciation is also kind of changed during the quarter. Is that understanding -- are these the 3 exceptionals? And if you can just highlight if I missed anything else during the [indiscernible] so far?

Yes, it's [indiscernible] numbers getting line by line consolidated. And also, the CFS revenue getting adjustment, which we've been doing for the last 3 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 -- this is basically gross revenue, net revenue, some discounts earlier we were counting as part of net revenue. So that's about INR 46 crores on the CFS revenue side for the full year.

Okay. And from a depreciation perspective, can you clarify what has been the impact for the quarter and for the year because of this [indiscernible] reassessed?

We've only done it in Q4. We've not done it backdated to -- from Q1, it's between INR 3.5 crores to INR 4 crores.

So it's lower by INR 3.5 crores, INR 4 crores for the 4Q, which is where it will continue. And this is a base to be utilized for now the next year as well. Is that understanding correct?

Yes. Yes.

Okay. And on this revaluation of the Snowman goodwill, INR 258 crores, was there any tax benefit associated to this?

No, this is 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 INR 132 crores for the year. Yes, there's no cash impact, no tax impact, nothing. It's purely a balance sheet item.

Okay. Okay. Fair point. Just if you can call out what has been the rail and the CFS EBITDA per TEU or anything of that thought, if you can just talk about that as well?

Yes. So roughly, it's about [ 9,500, 9,600 ] for the rail side and say [ 1300, 1,400 ] for the CFS side.

This is for the fourth quarter, right?

Yes. And also for the full year actually.

Sure. For rail, if we see, now last 2, 3 quarters, we've kind of settled at this 92,000, 93,000 TEUs per quarter and about INR 9,500 crores to INR 9,700 crores range for EBITDA per TEU. So it's fairly sticky around this number. How are we seeing growth kind of coming back, given that we don't have any particular ICDs in pipeline for '26 per se or -- and it seems that at least at Kashipur, et cetera, 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?

So because Q1 was low, this Q1 will be much better, say, more in line with what we've done in Q2, Q3, Q4. So you'll see some growth there. But otherwise, 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 are 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.

Sure. So -- and in terms of the volumes per se, while obviously, Y-o-Y 1Q will look good but as the market has seen any improvement in terms of the volume trade activity or nontrade activity because of the tariff?

So, 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.

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?

Yes, I'll take it. So in quarter 4, 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%. Yes. So that is the status of the market share. In terms of the double stacking, after this double stacking, which has happened at Faridabad, 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 -- okay. So overall, I 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.

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?

This is only -- yes, full year, NCR was 17% and Ludhiana, 25%, then Kashipur was 28%.

Right. So you know as such, if I...

Yes, yes, full year, you'll see the lower number of Kashipur because Q1 and Q2 were down, so which we gradually improved in Q3 and Q4.

Understood. Understood. So I mean, with the volume growth being restricted to the market-led growth given lack of new capacities, per se, obviously, the focus will have to be our market share gain. Given how competitive the market is, how are you seeing that pan out and versus the EBITDA per TEU? 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?

So we're focusing on Piyala and Viramgam. Those are 2 markets where we feel like we can do better. With Ludhiana we kind of already regained our #1 spot. So I think keeping that consistent will be the -- with these 2 markets, there's good scope, especially after Faridabad double stacked.

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 '26, '27?

So maybe around INR 30 crores other than the new terminals.

Okay. Okay. And sorry, what will it be for Snowman because that will also get consolidated now?

INR 100 crores to INR 150 crores per year. Even Gateway is INR 30 crores per year. So say INR 60 crores for the next 2 years. This is basically some warehousing capacity and vehicles.

Understood. So basically -- and this does not include any new ICDs, as and when we will acquire land, then we will outline that separately?

Yes.

Next question is from the line of Kunal Tokas from FVC.

The first question is about the 5PL 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?

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 5PL. So that has contributed to a lower overall percentage when it is -- vis-a-vis 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 it 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.

So early, you were targeting gross margins of -- in 5PL was 8%, 9%. Has that changed now with the new situation?

Yes, correct. That has changed but it will remain in the range of 6% to 8%, depending upon the product mix.

All right. And just want a clarification on the accounting for the goodwill impairment that you have taken. Can you explain a bit more why that occurred after taking the gain on consolidation last quarter?

Yes. 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 have a choice but to go with this figure. So we've taken a hit of INR 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.

Or -- how much of it was linked to the share price? And how much do the DCF calculation that you yourselves did? What's the weightage of these 2?

The DCF and the share price are roughly in the same range as of March 31. So that's the entire impact. Our last purchase was at about INR 75. So we first took again at that value. Then this has come down from basically INR 75 minus -- close to INR 50. So that INR 25 to INR 27 gap is the hit that we've had to take.

[Operator Instructions] Next question is from the line of Jainam Kiran Kumar from Equirus Securities Private Limited.

I just missed one point where 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?

So there's some duty and write-backs of discounts and incentives payable. Then there's also interest income as the company is sitting on over INR 100 crores in cash right now. And then also, there was a write-back on account of the provision we made for tax last year. And then we opted for Vivad Se Vishwas. 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 PAT.

Got it. And the higher other expense, what could be the reason like we have been doing INR 28 crores, INR 30 crores kind of a number but this year, it went up to INR 40 crores. This is only for the Gateway number that I'm talking about. So any specific other expense which has been added to this number?

Basically, the stamp duty number that we've given of close to almost INR 13 crores. We mentioned it at the start of the call, in the press release. This is a kind of provision. It's not a cash outflow yet. So whenever the demand comes in, we'll pay it.

Next question is from the line of [indiscernible] from Artha India Ventures.

On seeing annual trade receivables, Snowman, increasing year-on-year. Can you please specify how much these are considered good in FY '25? And how much are overdue from like last 6 months? And how much are the provisions basically? So If you can give a breakdown of annual trade receivables?

Bala here. See, increase in trade receivables is a direct relation to our increase in turnover, we put it this way. And we carry a provision approximately INR 4 crores, which is covering 180 days but all -- but majority is from the current year itself. Is that answers your question?

Yes. And how much are the provisions out of this? Is there any provision?

We provisioned full 180 days, which is around INR 4 crores.

Next question is from the line of [ Gaurav Gandhi from GPM ].

Just one question or clarification from your side. Sir, why have we arranged the land acquisition deal at Jaipur in such a way that it came under benami property act? And is there any possibility of settlement there? Or this is going to be dragged for many long years?

So it wasn't our intention to do anything like that. I mean 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 -- we're hopeful within the next year or 2, for whatever reason this bought caught in this legal case but according to us, it's still fine. There's no, unfortunately, like a settlement scheme like Vivad se Vishwas and all that we've done in IT matters but we're confident that the tribunal will rule in our favor.

Next question is from the line of [ Pranay Khandelwal from Alpha Invesco ].

Yes. 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 may be completely merge Snowman into GDL? How is the management thinking about that?

No plans of merger right now as they are 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.

Okay. I was asking since you mentioned that there is some INR 100 crores on cash and GDL will be turning out more cash this year. So any plans on how...

Every year, 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.

Okay. All right. And any -- on now on the [indiscernible] side, any new customers that you are talking to for 5PL business or -- so wanted to confirm that this 2 customers that were mentioned, Unilever and Kopi, they're both on the 5PL side right?

Yes. They are on the 5PL side. And on an ongoing basis, there are many customers who we have a conversation with. But only -- 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 we come across any large new customer which makes sense, then we partner with them for 5PL.

Okay. And Kopi, I believe right now has only one outlet in India, right? So what are their plans? Are they planning all [indiscernible]

[indiscernible] As of now they have 2 plants and they have obviously plans to expand more. But we will not be able to comment exactly how many stores and at what time.

[Operator Instructions] Next question is from the line of Kunal Tokas from FVC.

Just a quick question you mentioned right now that choosing the right customer is very important for your 5PL business because, obviously, you take inventory ownership and you don't want to be left hanging with inventory you can't sell. So for a -- so 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?

See, we have done our due diligence when we speak with our 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 a detailed due diligence to ensure that the company's interests are safeguarded alongside the growth.

What sort of securities do you have in these contracts? Do you have recourse to the parent entity of the -- of Kopi maybe?

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 in enough safety which guarantees us 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 takes time and we are careful about who we choose.

Also another question about the warehousing business. So 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 would the growth have been if we just remove Amazon from the previous year's numbers as well?

If we remove Amazon business alone, from the park and pay [indiscernible] business, it's around 5% increase we can see in a warehousing business, which has exactly been compensated by loss of Amazon business in the top line, which is around INR 10 crores, INR 11 crores, works out to be.

And what has been the sort of sizing decline in the last 1 year?

See, the pricing decline is for the -- say, the margins impact is for the various reasons. One is our temperature control business remained flat. And there is a few customer segments like meat, seafood and poultry. These were down year-on-year by 15%. That has a direct impact on our margins. Hope this address the question.

Yes, it does. So there has been a pricing decline, right?

Yes. Yes. Sorry, just to clarify, Kunal, 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, 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 on an overall pricing basis, you'll see the drop. But contract basis with customers, we are able to get increases.

All right. And how are you seeing the competitive intensity in this business? Because warehousing is the core of your business where you generate the most cash, which you can then use to grow the 5PL business, while transport is more of just an ancillary service. So how do you see the competitive intensity in this business?

As of now on pan India basis, we are still the leader by a large margin in terms of capacity. On a regional level, at every new location, there are some cold storages who we complete with. And on the 5PL 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.

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 cold storage services like you do maybe a little bit too much compared to what they have been doing, which might be unorganized but that is what they have been doing.

It's a mix of both. You're right that people who are shifting 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 understood.

Next follow-up question is from the line of [indiscernible] from Artha India Ventures.

On the industries we are serving in the Snowman [indiscernible] 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?

See, we are serving the -- from QSR to ready-to-cook food to the quick commerce. Quick commerce has been the recent add-on [indiscernible]

Have you gave us the revenue breakdown?

Sorry? We will not be in a position to share that. It's a blended sort of a thing. So not ready yet presently.

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 Distriparks and Snowman Logistics for any further information. With that, we conclude this conference. Thank you all for joining us and you may now disconnect your lines.