Snowman Logistics Limited Q3 FY15 Results

Snowman Logistics Limited is happy to present the results of the Company for the quarter ending 31^st December. This will be the first full quarter of performance, since the Company was listed on the Indian Stock Exchanges in September 2014. We were one of the first companies to make a public offer of its shares after the new Government came to power. The response to the issue reflected the new mood of optimism that was spreading among the investing community. Snowman rekindled the vibrancy of the stock market. Our offer of 42 million shares was well received with an over subscription of about 60 times. We thank the investing community for their overwhelming support and we will strive to live up to their expectations.

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

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

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

About the Company:

“SLL is one of the largest integrated temperature controlled logistics service providers in India with an ability to service customers on a pan India basis. It provides warehousing, distribution, transportation and value added services and it currently has a warehousing capacity of 79,500 pallets spread across 27 warehouses and 15 locations (with temperature ranging from ambient to chilled and frozen i.e. +20 ºC to -25 ºC). The capacity was built over a period of 8 years starting from 2006 when Gateway Distriparks Limited became the largest shareholder in the Company. Gateway Distriparks Limited hold a 40% stake in the Company and other major shareholders include Mitsubishi Corporation, IFC and Norwest Venture Partners. “