Adani Ports & Special Economic Zone Ltd — Q3 FY26

Adani Ports & Special Economic Zone Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=6WJIKSlaYWc Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Adani Ports and Special Economic Zone Limiteds Q3 FY26 0:09 9 seconds conference call hosted by MK Global Financial Services Limited. 0:14 14 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the 0:32 32 seconds conference over to Mr. Anul Agarwal from MK Global Financial Services Limited. Thank you and over to you sir. 0:40 40 seconds Thanks Ry. Good evening everyone. I would like to welcome the management and thank them for giving us this opportunity to host the earnings call. 0:49 49 seconds Representing the senior management uh we have with us today Mr. Mr. Ashwini Gupta wholetime director and chief executive 0:56 56 seconds officer Mr. D Mutumaran chief financial officer Mr. Dish Tanja CEO logistics 1:03 1 minute, 3 seconds business and Mr. Rahul Agraal head of investor relations and ESG shall now hand over the call to the management for their opening remarks over to you gentlemen. 1:13 1 minute, 13 seconds Thank you Anul. Hello everyone and a warm welcome to ABSC's third quarter earnings conference call. Uh we will 1:20 1 minute, 20 seconds begin with Ashwini's opening remarks and then open the floor for Q&A. Ashwini uh good afternoon, good morning, good 1:29 1 minute, 29 seconds evening uh depending on the time zone you are in. U thank you so much uh for 1:35 1 minute, 35 seconds being on this uh on this call. Um and uh thank you uh for your uh for your 1:42 1 minute, 42 seconds continued support um and confidence in uh in APS-C. Um as uh India's largest 1:52 1 minute, 52 seconds and world's fastest growing integrated utility company uh APS-C has once again 2:01 2 minutes, 1 second uh demonstrated exceptional performance u in regular 2:08 2 minutes, 8 seconds consistent way. All the four business pillars of the company are delivering 2:14 2 minutes, 14 seconds strong high double-digit growth rates. U much more than the markets, much more 2:21 2 minutes, 21 seconds than uh the competition, much more than u uh the trade and we are setting up the 2:30 2 minutes, 30 seconds new benchmarks and this quarter we have even surpassed our internal benchmarks. 2:40 2 minutes, 40 seconds uh whether we talk about financials, we talk about revenue growth, 2:47 2 minutes, 47 seconds we talk about AIDA growth, we talk about pack, we talk about market share, we 2:54 2 minutes, 54 seconds talk about free cash, we talk about if you talk about any 3:00 3 minutes indicator, you will see a consistent uh growth uh delivering a very very 3:09 3 minutes, 9 seconds sustainable uh performance and we have been saying that in every quarter and we 3:16 3 minutes, 16 seconds are demonstrating it in in in every quarter. Now I will go little bit more 3:23 3 minutes, 23 seconds in detail. Uh the domestic ports uh deliver the highest ever 9 month 3:30 3 minutes, 30 seconds container share at 40.6 which is our main pillar uh of uh of growth. 3:38 3 minutes, 38 seconds Uh then when we talk about international ports um I still remember we always talked about how the international ports 3:46 3 minutes, 46 seconds will perform and now you can see that in quarter uh we had a revenue which was 3:54 3 minutes, 54 seconds 1,000 K. So which means that international business is also becoming between 4,000 to 5,000 K revenue annual 4:02 4 minutes, 2 seconds business uh which is a very very hyper growth uh trajectory. 4:08 4 minutes, 8 seconds Uh when we talk about marine and if you remember uh that when 4:15 4 minutes, 15 seconds we did the acquisition of estro uh we very smartly handiccrafted this business 4:22 4 minutes, 22 seconds and this is the reason that marine is also pulling our profitable growth and 4:30 4 minutes, 30 seconds all these do not come at the cost of profitability. So if you look at marine and international force aida it is more 4:40 4 minutes, 40 seconds than double with doubledigit growth and also when you look at logistics which is 4:49 4 minutes, 49 seconds uh of course our second pillar uh we have delivered the revenue uh 1,121 cr 4:56 4 minutes, 56 seconds which is 62% higher in year and this was possible because of our strategy which 5:04 5 minutes, 4 seconds is based on asset heavy, asset light and asset zero. Um 5:11 5 minutes, 11 seconds then um all these financial disciplines, all these operational excellence results in a very strong financial discipline. 5:22 5 minutes, 22 seconds Um, which means despite the NQXT acquisition where we are taking 700 5:30 5 minutes, 30 seconds million Australian dollars of debt, we are still able to keep our leverage 5:38 5 minutes, 38 seconds under a check of 1.8x, 8x which means moving forward when we are 5:46 5 minutes, 46 seconds following this higher doubledigit uh growth trajectory 5:52 5 minutes, 52 seconds um our our our cash flow uh is so much significant for us which will help us in 6:02 6 minutes, 2 seconds investing in the capacities on the existing asset which is uh giving us the organic growth 6:10 6 minutes, 10 seconds but also to explore the meaningful rate of return in organic uh growth by a merger and acquisitions. 6:20 6 minutes, 20 seconds So with the operational excellence and the financial discipline we have revised our guidance by 800 uh kes. 6:33 6 minutes, 33 seconds Now all this have been very clearly appreciated and recognized by the 6:39 6 minutes, 39 seconds external agencies. To start with u our balance sheet strength is now validated 6:46 6 minutes, 46 seconds by Japan credit research agency which rated us a notch above uh India's sovereign uh rating. 6:56 6 minutes, 56 seconds Now moving forward we continue to invest in the capacities for the organic growth 7:04 7 minutes, 4 seconds especially in India u including uh liquid including 7:10 7 minutes, 10 seconds containers and very recently uh we announced 16,000 crores vijing phase 2 expansion and we are investing in 7:19 7 minutes, 19 seconds dhhamra anor kadupali halya and so on and so on and this growth momentum along 7:26 7 minutes, 26 seconds along with the operational efficiency positions us to be very much to be very 7:32 7 minutes, 32 seconds much on the trajectory towards the FY29 which is our end of 5-year plan where we 7:41 7 minutes, 41 seconds said we will be doing 65,500 crores of revenue and 36,500 7:49 7 minutes, 49 seconds crores of Ebida. So once again quarter and quarter we are overd delivering with respect to internal as well as the 7:58 7 minutes, 58 seconds external benchmarks which are making us very much confident uh to reach uh the five-year plan in uh in FY29. 8:09 8 minutes, 9 seconds Now giving little bit more details that how we are investing in the technology to improve the operational efficiency. 8:17 8 minutes, 17 seconds Um very recently Vijenim has achieved the worldass GCR which is the which is a 8:25 8 minutes, 25 seconds gross grain rate at 30 containers lifts per hour which is a benchmark just after 8:32 8 minutes, 32 seconds 8 months of operation and that's why we keep on continuing uh to invest in the technologies. Now all this profitable 8:41 8 minutes, 41 seconds growth comes with sustainability at the center of our strategy. Sustainability is an 8:49 8 minutes, 49 seconds enabler not an objective for us. That's why as a global leader in sustainable transportation 8:57 8 minutes, 57 seconds uh APSZ has become India's first company in its sector and among a select group 9:04 9 minutes, 4 seconds of global players to adopt the task force on nature related financial disclosures setting a new benchmark for 9:12 9 minutes, 12 seconds nature positive infrastructure development. We now take the questions. Uh thank you. 9:22 9 minutes, 22 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchstone telephone. 9:31 9 minutes, 31 seconds If you wish to remove yourself from the question, you may press star and two. 9:35 9 minutes, 35 seconds Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 9:44 9 minutes, 44 seconds To ask questions, please press star and one. 9:49 9 minutes, 49 seconds The first question is from Ketan Jane from Aventis Spark. Please go ahead. 9:55 9 minutes, 55 seconds Thank you. Uh congratulations on a very good set of numbers sir. Uh my first question is uh I was observing the 10:01 10 minutes, 1 second numbers. Uh our domestic realization is up 9% yearon year in this quarter. Uh can you tell us what is the reason driving this? 10:13 10 minutes, 13 seconds Hi this is Mutumar. Thank you very much. 10:17 10 minutes, 17 seconds Uh spot on we have increased and we have mentioned in page number 16 uh where we talking about domestic ports that the 10:25 10 minutes, 25 seconds higher implied revenue on aida per ton of this quarter is non-representative as it also includes some take up pay charges in addition to the routine price 10:33 10 minutes, 33 seconds increase and mix change. So what we're trying to say is that actually you know um we have uh you know sort of enjoyed 10:42 10 minutes, 42 seconds the benefit of price increase mix increase uh and you know benefit of mix change 10:50 10 minutes, 50 seconds and there is little bit of benefit from forex uh and besides all these things there is a little bit of an element on the 10:58 10 minutes, 58 seconds denominator being suppressed because we are getting take or pay but the volume is not. So if you're calculating price 11:05 11 minutes, 5 seconds per ton you know uh you'll have to actually you know sort of uh put all these things and of course we don't give 11:12 11 minutes, 12 seconds the breakdown of each of these elements uh but yeah I mean uh we have all these things put into the price increase. 11:22 11 minutes, 22 seconds Understood. Understood. So that is why that uh difference in this thing. Uh so my uh second question is uh if you could 11:29 11 minutes, 29 seconds help us with the cargo breakdown of the international uh international cargo in port 11:40 11 minutes, 40 seconds okay I'll flip to the page can you go to the next question in the meanwhile uh uh yeah the uh my last question is on 11:50 11 minutes, 50 seconds Mundra uh uh what is your outlook on Mundra uh for the full year I think we are down around 2% uh for 9 months uh uh 11:59 11 minutes, 59 seconds what is your outlook on Mundra for the folure? 12:03 12 minutes, 3 seconds Yeah, so you know as you can see uh Mundra is doing uh extremely well uh 12:12 12 minutes, 12 seconds utilizing each and every uh capacity which which we uh which we could. um 12:19 12 minutes, 19 seconds quarter three uh uh if you look at the container cargo because if you remember I always talk about container container 12:27 12 minutes, 27 seconds and container uh because uh we know that two of the power plants in Mundra are highly dependent on the imported coal so 12:34 12 minutes, 34 seconds we are focusing on that uh you can see that month on month quarter on quarter uh we are increasing um we are 12:41 12 minutes, 41 seconds increasing the container um in uh in quarter three uh we did uh 2.2 2 roughly 12:49 12 minutes, 49 seconds 2.2 million. Uh in January we touch 754,000. 12:55 12 minutes, 55 seconds This is when when we have not yet opened up the capacity uh for the new terminal uh which will be coming in next year. So 13:05 13 minutes, 5 seconds uh I think in January we already did 754,000 which is a real benchmark uh because our efficiency in Mundra is is 13:14 13 minutes, 14 seconds reaching the is reaching the best best of best in terms of GCR in terms of rail evacuation and so on and now after the 13:22 13 minutes, 22 seconds CT5 uh comes in uh definitely uh we will we will have we will have a add-on add-on capacity. So to answer to your 13:31 13 minutes, 31 seconds question, container, liquid terminal, uh fertilizers, um and and all these commodities, Mundra 13:39 13 minutes, 39 seconds is on the right track. Um when it comes to uh when it comes to the the the the coal especially the thermal coal uh 13:47 13 minutes, 47 seconds there uh we of course see flat uh movement but anyhow that is not going to 13:54 13 minutes, 54 seconds change uh the dynamics of our Mundra financials because as Mutkumar said just before uh those are all take or pay 14:02 14 minutes, 2 seconds capacities uh when it comes to uh when it comes to financial and uh okay on the Given the volume spread, 14:12 14 minutes, 12 seconds Colomb is about 8.4 uh Israel about 2.1 and Tanzania about 3.1 MMT. 14:21 14 minutes, 21 seconds Uh sorry, I didn't uh I couldn't hear you. Can you repeat? 14:25 14 minutes, 25 seconds Colbo 5.4 MMT, uh HIA 2.1 and Tanzania 3.1. 14:34 14 minutes, 34 seconds 3.1 MMT for these are all quarterly numbers. 14:38 14 minutes, 38 seconds M. Uh thank you sir. Those are my questions. Thank you. 14:43 14 minutes, 43 seconds Thank you. The next question is from Priyanka Biswas from JM Financial. Please go ahead. 14:51 14 minutes, 51 seconds Uh first of all my congratulations to you for uh increasing the guidance. Uh and uh of course for a very strong 14:59 14 minutes, 59 seconds outlook for the year. Uh my first question is uh so when I see the numbers in a bit more detailed we are seeing 15:07 15 minutes, 7 seconds that there is a this others revenue that we are seeing there is a significant increase in the top line there and 15:14 15 minutes, 14 seconds almost a doubling of the AIDA uh what is driving that is it our dredging entity or is it the track 15:22 15 minutes, 22 seconds maintenance entity and how should we look at this particular item going forward hi thanks a lot for the question you Now 15:32 15 minutes, 32 seconds uh subsequent to last financial year's uh income tax changes uh we did a little bit of a restructuring of assets and 15:40 15 minutes, 40 seconds some ledgers which were sitting in Nani ports at the you know top company did go to Shanti Sagar which is the subsidiary 15:48 15 minutes, 48 seconds companies and that gets clubbed under others and then there are also you know sort of others include you know uh 15:56 15 minutes, 56 seconds another subsidiary Suja where our volumes have ramped up quite significantly ly in these uh in this 16:02 16 minutes, 2 seconds financial year. So uh I just wanted to lay these explanations out to you before 16:09 16 minutes, 9 seconds coming to your uh I guess the purpose of question quality of analysis or quality of uh revenue uh you know these are you 16:19 16 minutes, 19 seconds know sort of sustainable non-recurring sorry uh recurring noturing sorry these are sustainable recurring usual routine 16:27 16 minutes, 27 seconds incomes. So there is no it's it's just a classification. There is nothing in particular uh you know sort of for you 16:35 16 minutes, 35 seconds to focus on uh other line and in any case actually as you can see as the last point uh on a per turn basis these 16:43 16 minutes, 43 seconds contribute you know contributes to rupees so increase uh so which is not uh 16:49 16 minutes, 49 seconds quite significant. So uh overall I just wanted to reemphasize that these are accounting classifications and uh 16:57 16 minutes, 57 seconds nothing to highlight to you on uh you know sort of uh quality of income. 17:05 17 minutes, 5 seconds Sir uh furthermore uh in vising we just uh heard the announcement of uh this 17:11 17 minutes, 11 seconds 16,000 crores uh further expansion of capacity. 17:16 17 minutes, 16 seconds Uh now on that uh can you just provide us like what s like uh let's say what is the timeline for the capeex and uh 17:25 17 minutes, 25 seconds following that what sort of a volumes let's say you are building in because by the time it comes uh let's say on stream 17:32 17 minutes, 32 seconds we would be very close to our uh fi uh 28 and uh 29 targets. So if you can 17:39 17 minutes, 39 seconds share share some color and is there some plans for I think uh uh offshore ship to 17:46 17 minutes, 46 seconds ship bunkering something of that plans uh at least for the press release that I would make out. 17:54 17 minutes, 54 seconds The last question can you just repeat the last sentence? 17:58 17 minutes, 58 seconds So uh so uh is there some plans for liquids as well vising uh like uh ship 18:05 18 minutes, 5 seconds to ship bunkering or something of that sort? 18:08 18 minutes, 8 seconds Now I think uh I think Mutu will talk about uh think I mean this 16,000 per is 18:15 18 minutes, 15 seconds for the phase 2 development uh this will uh take the capacity more than 5 million 18:23 18 minutes, 23 seconds uh because uh you know uh with the technology and with the efficiency we are delivering 20 to 30% more than the 18:29 18 minutes, 29 seconds name plate capacity. Um this 16,000 includes extension of the extension of 18:36 18 minutes, 36 seconds the breakwater includes the birth includes the equipments and includes all the ecosystem which is needed to uh to 18:44 18 minutes, 44 seconds run the to run the port. Um obviously this includes uh the the the potential 18:51 18 minutes, 51 seconds to develop u the to develop the liquid terminal. Uh to to start with um uh uh 19:00 19 minutes to uh to start with we have uh already signed uh theou with BPCL uh for LNG 19:08 19 minutes, 8 seconds bunkering. Uh this will be a ship to ship bunkering. uh because as you know 19:14 19 minutes, 14 seconds that uh uh uh today um the LNG bunkering is uh at um uh Java Ali uh and then u 19:24 19 minutes, 24 seconds you know the uh Colombo is still struggling uh and the because on this international channel there is no not 19:33 19 minutes, 33 seconds many competitive LG bunkering facility that's the reason that shipping lines are not bringing their LG capable 19:39 19 minutes, 39 seconds vessels on this channel but uh with this uh with the uh uh vessel to vessel ship 19:47 19 minutes, 47 seconds to ship bunkering facility in Virginia which is just 10 nautical miles from the international water is boosting uh the 19:55 19 minutes, 55 seconds shipping lines and motivating them uh to bring their vessels which are LG capable and and and I'm pretty sure uh this will 20:03 20 minutes, 3 seconds be uh this will be very successful and BPCL will of course bring um uh the LNG from very nearby Kochi plant. 20:14 20 minutes, 14 seconds Thank you. Uh so to question Priyanka on uh uh Cape uh the Cape will go on till 20:22 20 minutes, 22 seconds FY29 and the payments will happen uh until FY30. 20:27 20 minutes, 27 seconds uh I'm actually like talking to you trying to pull out the EGM notice in which we have given the year-wise anticipated 20:36 20 minutes, 36 seconds uh cash flows and uh you know uh just one second I'm getting it up for you and 20:44 20 minutes, 44 seconds uh this will increase the capacity from the current 1.6 6 million TEUs to uh we 20:51 20 minutes, 51 seconds will expand it by 4.1 and so therefore in total we will go up to 5.7 million TUS of total capacity and 21:01 21 minutes, 1 second uh we have also given the details of exact project specification uh you know how many cranes what is the 21:09 21 minutes, 9 seconds breakwater requirement all of them are in the EGM notice that we have actually circulated and uh I'm actually trying to 21:16 21 minutes, 16 seconds read out to M from there the capeex F26 we have 90 million FI 27 we have 350 21:23 21 minutes, 23 seconds million FYI 28 we have 700 million and 29 550 million and FI30 63 million uh 21:31 21 minutes, 31 seconds this is the you know uh anticipated cash flows on account of this project um I mean it will not be out of place to 21:40 21 minutes, 40 seconds actually put in uh you know a caveat that these are estimates which is going to go four years out. So there may be 21:48 21 minutes, 48 seconds variations but uh this is our estimate of cash flow. 21:53 21 minutes, 53 seconds Sir, very helpful. What I was uh trying to actually understand like when you are doing uh this large expansion of vising 22:00 22 minutes and uh you have a plan for 36,000 crores Aida in FY29. 22:06 22 minutes, 6 seconds So is is this asset uh contributing handsomely to that from this expansion? 22:13 22 minutes, 13 seconds No, this expansion you know it will it will we will see the basic port already exists right we already have a 800 m 22:21 22 minutes, 21 seconds worth so we will keep on building up it is not that we will increase the volume in 2028 only I think we will be doing a 22:29 22 minutes, 29 seconds incremental ramp up of uh of our uh of our volume and uh and uh uh this epida 22:37 22 minutes, 37 seconds uh which we have declared that we will be doing by FY29 includes includes all the all the ports which we 22:45 22 minutes, 45 seconds have includes a ramp up and includes the existing business. So it's not a new decision which we took which is going to 22:51 22 minutes, 51 seconds impact the MBA. It is all included uh in our business plan right and just to add to it actually you know as I mentioned 22:59 22 minutes, 59 seconds this project will only be completed by FI29 and 36,000 cr you're talking about is for FI29 so it will be very very small 23:08 23 minutes, 8 seconds contribution to that uh estimate. It will it is being built based on the markets uh growth and you know sort of 23:18 23 minutes, 18 seconds uh our company's growth going forward and that that's very clear and just if I 23:25 23 minutes, 25 seconds can squeeze just last one in uh since NQXT would be included from the next quarter so can you give us some idea 23:34 23 minutes, 34 seconds like uh how should the balance sheet be essentially looking like when we close the year like FY26 and how should we look at uh let's say a little bit ahead. 23:46 23 minutes, 46 seconds So uh I think in the page number I'm trying to remember but uh basically the total debt net debt of uh Australia is about 4,800 crores as of December 2025. 24:00 24 minutes Uh that's a gross debt 4,744 crores is the gross debt. 280 crores is the is the cash. Yeah, sorry. Yeah. 4 4,500 plus. 24:12 24 minutes, 12 seconds Okay. Okay. Sir, I'll come back into the uh queue. Thank you. 24:21 24 minutes, 21 seconds Next question is from Paras Jane from HSBC. Please go ahead. 24:26 24 minutes, 26 seconds Yeah. Hi Ashi and I I have two questions. Uh first of all if you can 24:32 24 minutes, 32 seconds talk about your 2030 target of 1 billion ton uh will it be entirely or largely 24:43 24 minutes, 43 seconds fulfilled by the ongoing expansion in half a dozen port that you mentioned in your presentation including them and so 24:51 24 minutes, 51 seconds on and so forth that's question number one and if not then will the acquisition target will be in India or in overseas. 25:01 25 minutes, 1 second The second question is with respect to vision. 25:05 25 minutes, 5 seconds Uh do you need like do we have an entire ecosystem in place to handle your target 25:13 25 minutes, 13 seconds capacity in terms of evacuation in terms of carbo uh if you can share any color and also 25:21 25 minutes, 21 seconds the pricing difference between them and Colombo. 25:27 25 minutes, 27 seconds So let me start with the second question first palash vinjum basically you know at this point in time we are positioning it as a transipant 25:35 25 minutes, 35 seconds uh so you know evacuation into interland is marginal for now that said you know 25:43 25 minutes, 43 seconds uh there is a road connectivity which is right outside the port which can evacuate for exam cargo and you know 25:51 25 minutes, 51 seconds there is also a plan for us and we are you know evaluating and implementing a rail connectivity program in that port. 25:58 25 minutes, 58 seconds So if and when uh you know rail also happens we will have uh you know added evacuation capacity and road of course 26:07 26 minutes, 7 seconds can serve to the extent that we need. So it is not a constraint as the market develops we'll be able to actually you 26:14 26 minutes, 14 seconds know sort of handle the exam cargo quite easily. Uh at the moment it is positioned as a trans shipment cargo. uh 26:21 26 minutes, 21 seconds to your question on uh 1 billion ton. Uh basically uh you know we are talking about uh the you know uh split of 26:31 26 minutes, 31 seconds largely domestic and international. Uh domestic is you know sorry international is about 150 million uh metric tons for 26:40 26 minutes, 40 seconds which the current four ports that we have in the portfolio uh you know sort of has a very clear visibility of how we 26:46 26 minutes, 46 seconds can get to 150 uh from these four ports with a current program with nothing you know sort of added new. Uh now if we do 26:56 26 minutes, 56 seconds add anything more in the international it'll actually add to the comfort of a billion ton. As far as the balance 850 million ton is concerned 27:05 27 minutes, 5 seconds it is all going to come from domestic market. Uh you know veninjam is the trans shshipment port and if you uh go 27:14 27 minutes, 14 seconds back to the earlier question I did mention that uh you know veninjam is going to have phase 2 coming in only 27:21 27 minutes, 21 seconds post FY13 volumes. So therefore you know you current volumes that we are doing you know uh you have the current 27:29 27 minutes, 29 seconds indication of where we will do. Now if you remove that everything else is uh you know sort of coming from the existing ports that we already have and 27:38 27 minutes, 38 seconds uh you know we have explained in the last quarter that we see a disproportionate increase in uh dhamra 27:47 27 minutes, 47 seconds uh you know we uh we can see that going up to uh you know 100 million tons in times to come. Other than that you know 27:56 27 minutes, 56 seconds all the ports will actually go up in proportion. Mundra has an ecosystem to grow faster than other people. Uh but 28:04 28 minutes, 4 seconds that is you know sort of only at the margin. By and large we don't anticipate any proportionate uh contribution 28:14 28 minutes, 14 seconds uh coming from ports in a way which is different from what we have today. So the current uh split is by and large 28:22 28 minutes, 22 seconds indicative of how we will do. All the ports you know we expect to contribute to growth and you will see that we've 28:30 28 minutes, 30 seconds been investing in all of the ports uh you know expansion capacity is being created in an organic manner. So we 28:39 28 minutes, 39 seconds expect the proportion to by and large remain the same on if you can talk about the pricing of 28:49 28 minutes, 49 seconds transit when car goes versus Columbbo for instance. 28:54 28 minutes, 54 seconds Sorry comparable high low. 28:57 28 minutes, 57 seconds Yeah. Yeah. See as you know pricing is always uh the consequence of supply and 29:05 29 minutes, 5 seconds demand. So uh Columbbo is short of capacity. uh and I'm pretty sure that in a coming 3 to four years Columbbo will 29:13 29 minutes, 13 seconds be struggling for the capacity. Uh we have the capacity and in addition to the capacity uh we would be also offering uh 29:22 29 minutes, 22 seconds the exim very very very very soon. So uh vigum anyhow as a overall port will uh 29:31 29 minutes, 31 seconds keep his competitiveness and we will uh we will fight with the competition accordingly. So far uh in last uh since 29:40 29 minutes, 40 seconds we started absolutely we have no uh pricing pressure uh because of that because we are driving driving the 29:47 29 minutes, 47 seconds business by the services we we give uh to the shipping lines uh not only uh not only in port but everywhere in the world including Colbo. 30:00 30 minutes Fair enough that's very helpful. Thank you and have a good rest of the evening. Thank you. Thank you Paris. Thank you. 30:09 30 minutes, 9 seconds Next question is from Sumit Kashor from Access Capital. Please go ahead. 30:14 30 minutes, 14 seconds Hi, good evening. Uh thanks for the opportunity. Uh one question on uh the uh container cargo volume growth that you have seen the logistics business. 30:25 30 minutes, 25 seconds It's about 4% a quarter. uh seem to be a bit low uh uh versus what you were tracking and what uh is in Concore has 30:34 30 minutes, 34 seconds done slightly more than that. Uh uh uh uh also uh uh you know uh as the second biggest player uh in the space right now 30:43 30 minutes, 43 seconds uh um given that DFC is going to come up uh in in March uh and the uh uh Concore has given a fairly strong growth 30:52 30 minutes, 52 seconds guidance for the next uh 3 four years on their call. just wanted to hear your thoughts on uh how you are looking at the next three four years post TFC. 31:02 31 minutes, 2 seconds So hi I'll just respond to that. So you're right we're uh Q looking at 4% so that's roughly 1.64 to 1.70. 31:12 31 minutes, 12 seconds So uh initial response to that is that we are going down the integrated path and looking at having a complete port to 31:22 31 minutes, 22 seconds factory sort of thought process. That's where you're seeing a reconfig happening uh with regards to the DFC which is 31:30 31 minutes, 30 seconds roughly 156 kilometers which ultimately will connect uh the the northern hinterland into 31:36 31 minutes, 36 seconds let's say Nawash or Mundra uh we don't see too much of uh disruption we're 31:44 31 minutes, 44 seconds looking at our volumes remaining steady and primarily if I look at it the rail flaps that you're looking at between 31:52 31 minutes, 52 seconds let's say Mundra and the other ports uh vary from six to seven rail slabs that will increase. So apart from uh 32:00 32 minutes let's say the increase in cargo carrying capacity the rail slabs will not really uh you know benefit that process. So we 32:08 32 minutes, 8 seconds will see a little more movement no doubt uh maybe from road into rail but we don't see any delta uh affecting us. In 32:16 32 minutes, 16 seconds fact we do look at uh the industry as a whole benefiting from this. 32:23 32 minutes, 23 seconds So uh your response sort of gives me the impression that you are looking at a singledigit growth for the next 3 four 32:30 32 minutes, 30 seconds years in the real container volumes even after DSC. Is that the right impression? 32:36 32 minutes, 36 seconds No not really. I'm if I'm looking at Dani logistics in particular we are targeting uh doubledigit growth as we 32:43 32 minutes, 43 seconds have done even in this year if you look at my year on year numbers we are in uh double digit roughly at 11%. So we are 32:51 32 minutes, 51 seconds looking at double digit to continue or real container volumes. That's right. Okay. 32:58 32 minutes, 58 seconds I think for the for the DFC uh you know we appreciate uh DFC because 33:05 33 minutes, 5 seconds at the end it is contributing to the to the overall trade and it is contributing to the uh to the to the to the traffic. 33:14 33 minutes, 14 seconds Uh one thing which is very important for all of us to uh to be very clear what comes to our competitor port is because 33:23 33 minutes, 23 seconds of their port competitiveness which is draft uh which is evacuation 33:30 33 minutes, 30 seconds and so on and so on. What comes to Mundra is uh because of Mundra's competitiveness of the port whether it 33:38 33 minutes, 38 seconds is the vessel turnaround time whether it is the efficiency of our ecosystem at Mundra um whether it is the draft uh and 33:47 33 minutes, 47 seconds also our relationship with the shipping lines everywhere right anything which comes to Mundra can also go to Vijam for 33:55 33 minutes, 55 seconds the trans shipment so uh that is the competitiveness and Mundra as a port now Um we can always say that catchment area for our competitor and us are different. 34:08 34 minutes, 8 seconds So that will always continue. Uh now the question is what is the impact of TFC uh 34:15 34 minutes, 15 seconds on us uh is negligible and I would say zero. Why? uh 34:22 34 minutes, 22 seconds because when it comes to the travel time, the travel time on the DFC will improve but the travel time on 34:31 34 minutes, 31 seconds connections to the competitor port and to the competitor ICD will remain the 34:37 34 minutes, 37 seconds same as it is between Mundra and other IC our other ICDs in the NC. So we don't 34:45 34 minutes, 45 seconds expect the total end to end uh time using the DFC to go much less uh uh in 34:53 34 minutes, 53 seconds in in unless until the bottlenecks and which will take time and efforts both. 34:58 34 minutes, 58 seconds But more than that uh the only competitiveness which may come is from 35:04 35 minutes, 4 seconds what is the cost per TU uh after the DFC will be started because this is where the shipping lines can say that even if 35:13 35 minutes, 13 seconds Mundra has got a better draft even if Mundra has got a better vessel turnaround time even if Mundra has got a 35:20 35 minutes, 20 seconds better services which is end to end but still you know u your competition uh will have a competitiveness because of 35:28 35 minutes, 28 seconds BSC and answer is no. Why? Uh because uh there will be additional 300 to 350 35:37 35 minutes, 37 seconds kilometers uh where Munda will have the competitiveness which is roughly five to six railway slabs and which is not few 35:45 35 minutes, 45 seconds hundred rupees which is few thousand rupees. So I think our customers/ shipping line will think twice uh to use 35:54 35 minutes, 54 seconds our competition DFC if it is our catchment area if it is uh if it is our 36:02 36 minutes, 2 seconds competitiveness and that's where we do believe that DFC will increase uh the efficiency of our competition but what will not take away the business from us. 36:14 36 minutes, 14 seconds Very clear. Uh also just a brief comment if you can make on the GTWIS volumes which have been flattished this year. Is 36:22 36 minutes, 22 seconds that mainly because of uh coal uh uh not being too much invoke or what what is it for GPWI's volume being flattish for 9 months? 36:34 36 minutes, 34 seconds So it's predominantly if you look at it on the east coast we've had an extended monsoon. So I've gone from 5.5 to 5.2. 36:43 36 minutes, 43 seconds So this is primarily the reason extended mono. Okay. And flattish for 9 months is uh again uh linked to which commodity. 36:54 36 minutes, 54 seconds So no change in commodity mix. So it will remain flat. 36:58 36 minutes, 58 seconds I mean you know we I mean we were thinking and and we wanted to take your feedback also. I mean we started 37:05 37 minutes, 5 seconds communicating about GPWIS when you know um the Indian policy was talking about 37:12 37 minutes, 12 seconds uh increase in the GPWIS and increase in the participation of private players in GPWIS and we were very bullish on that. 37:21 37 minutes, 21 seconds Uh but then all of a sudden there was a pause on the policy. uh so uh only thing 37:28 37 minutes, 28 seconds which we can do is to run uh GPWIS in a very efficient way. But the issue comes 37:35 37 minutes, 35 seconds when uh we we want to run the GPWIS in efficient way but at the end they are connected to the main traffic of the 37:42 37 minutes, 42 seconds railways. So if GPWIS um is u um is not getting the load 37:50 37 minutes, 50 seconds sometime it comes empty and that's where you will see the fluctuation uh of the utilization of the GBWIS not because 37:58 37 minutes, 58 seconds GBWIS does not have the business opportunity just because that overall ecosystem of rakes uh owned by Indian 38:06 38 minutes, 6 seconds railways and the rakes owned by us uh do not get the full optimization because of uh because of import export imbalance. 38:17 38 minutes, 17 seconds Got it. Just one last question. Your uh EIDA for 9 months is uh 16,830 crores. 38:24 38 minutes, 24 seconds How's been the conversion to operating cash flow for the 9 month period and the way you are tracking on operating cash 38:31 38 minutes, 31 seconds flow which is much much ahead as compared compared to your AIDA uh so as compared to your capex uh uh plan for 38:40 38 minutes, 40 seconds FI26. I mean uh we've been asking it uh uh in the past to your your cash position and your balance sheet just 38:48 38 minutes, 48 seconds gets uh better. Um uh so uh what are your capex plans through 2030 if you can 38:55 38 minutes, 55 seconds repeat them once again and what do you do with the extra cash generation? 39:01 39 minutes, 1 second H so uh first question conversion basically you know uh we have an annual 39:08 39 minutes, 8 seconds interest net including you know sort of our netting of income uh in the region of about 1,800 crores and uh tax you 39:17 39 minutes, 17 seconds know uh little less but call it similar amount and we have already given you the guidance for the full year of 22,800 39:24 39 minutes, 24 seconds crores as the iida. So you know uh if you remove these two or dedect these two 39:31 39 minutes, 31 seconds you will uh get the you know sort of uh operating cash flows a little over 18,000 crores. Um so that is answer to 39:40 39 minutes, 40 seconds your first question and we are on track uh you know sort of u uh for this conversion. Uh to your second question 39:48 39 minutes, 48 seconds what we are going to do uh with extra cash you have seen that over the last 2 three years uh we have been uh you know 39:58 39 minutes, 58 seconds sort of doing uh you know sort of uh buybacks where required uh we've been 40:05 40 minutes, 5 seconds actually prepaying some loans. uh so you know uh we have said there is a policy 40:12 40 minutes, 12 seconds we will keep cash you know uh to a comfortable level of at least two quarters of kix and uh you know 40:21 40 minutes, 21 seconds anticipated cash outflows. So that's the minimum that we would like to carry in our balance sheet and uh you know as and 40:28 40 minutes, 28 seconds when we generate a you know excess cash flows we will deal with the way we did in the past 40:36 40 minutes, 36 seconds which which is in the past you would on a capex pre uh you know but right now your capeex plans uh are much lower. 40:46 40 minutes, 46 seconds M so uh we will actually give you along with the next quarter the you know sort of KX plan for FY27. 40:57 40 minutes, 57 seconds It will be you know sort of discussed in detail uh like we have done for you know uh past years. Uh at the time of Q4 41:06 41 minutes, 6 seconds result we will give you and you will see that you know directionally uh for all the projects that we have 41:13 41 minutes, 13 seconds already announced uh we will have more cash cakes uh than what we have done in the past. So uh it will all stack up when we give you the breakdown in Q4. 41:25 41 minutes, 25 seconds Sure. But just to revisit uh give to meet your target of 1 billion ton has the capex uh plan over a 5year time frame which was there earlier changed. 41:37 41 minutes, 37 seconds No. 41:40 41 minutes, 40 seconds Okay. So it's it's only going to be timing of the capex rather than Okay. Uh I think we we'll have we'll look forward to the fourth quarter discussion. Thank you. 41:51 41 minutes, 51 seconds The next question is from Mr. Archelare from Nwama Institution Equities. Please go ahead. 41:58 41 minutes, 58 seconds Uh good evening sir. Thank you for the opportunity. 42:01 42 minutes, 1 second Um the first question I have uh is with respect to container at Mundra. Yeah. If I see the last three quarters um you 42:10 42 minutes, 10 seconds know our our container volume has been between 2 to 2.2 million TUS. So a if you could uh or rather last four 42:19 42 minutes, 19 seconds quarters. Um so if you could uh give us some sense as to what you know uh what 42:25 42 minutes, 25 seconds is the challenge out here and B um the outlook uh you know I know you've given the kind of overall number but if you 42:33 42 minutes, 33 seconds could just um talk a little bit on container and coal uh for Mundra particularly and also at aggregate level. Thank you so much. 42:45 42 minutes, 45 seconds Yeah, I mean sorry uh the I'm trying to understand your question. You're saying that between 2 to 2.2 is less or more or 42:54 42 minutes, 54 seconds okay or no actually okay let me let me rephrase sir um if I look at the container volume growth for last three quarters it's minus3 + 4 and plus 6 at Mundraur. 43:06 43 minutes, 6 seconds Uhhuh. Uh so if you could I mean it has uh been growing uh in in uh high high 43:14 43 minutes, 14 seconds double digit or machines in the past. If you could uh you know give us some sense as to what is uh creating this hiccup 43:23 43 minutes, 23 seconds and be the outlook and similarly for coal. I think no there is no hiccup in Mundra. 43:30 43 minutes, 30 seconds Uh of course there was a hiccup in quarter 1 when we had this operation Synindur uh because of which you know we 43:37 43 minutes, 37 seconds had the disturbance in the supply chain and that's where the quarter 1 was uh was uh 22 2 million but then it started 43:45 43 minutes, 45 seconds picking up from quarter 2 and quarter 3 as you can see is 2.2 2 million and January itself is 7.5. So if I do my 43:55 43 minutes, 55 seconds math correct um you know we should be more than more than 2.2. So um as I said 44:02 44 minutes, 2 seconds before uh Mudra uh is still having the capacity and we are really and caching 44:09 44 minutes, 9 seconds each and every uh bit of the capacity and uh very soon our city 5 will be uh 44:16 44 minutes, 16 seconds city will be will be open. uh so we don't see any challenge uh in u in increase in increase of volume uh in 44:25 44 minutes, 25 seconds increase in volume in u in mundra uh I think on the coal um um there was a 44:31 44 minutes, 31 seconds combination of uh two things number one India as a whole uh saw uh the sluggish 44:40 44 minutes, 40 seconds um uh power demand uh that was uh that was number one uh which means the 44:47 44 minutes, 47 seconds thermal coal uh import all India basis was uh was uh um was minus uh 2.7%. 44:56 44 minutes, 56 seconds Uh and we uh as uh the two uh power plants in Mundra because they are 45:04 45 minutes, 4 seconds dependent on the imported coal uh they also got the hit uh because of that and that's where you know we had this uh we 45:13 45 minutes, 13 seconds had this uh issue. Now moving forward uh both the both the plants uh have been fired uh and I think both have got the 45:22 45 minutes, 22 seconds approvals to move forward um and they will move forward because that's where the India power needs are. Having said 45:29 45 minutes, 29 seconds that once again I repeat that the Mundra growth is not driven by these two power 45:35 45 minutes, 35 seconds plants uh or by the thermal core. Mundra growth is driven by container container and container. That's why we decided to 45:44 45 minutes, 44 seconds invest in container uh container terminals. Uh Mundra growth is also uh by uh the liquid if you would have seen 45:53 45 minutes, 53 seconds uh in last two quarters. So you would have seen the growth in the in LPG also um and uh and the fertilizers the agree 46:03 46 minutes, 3 seconds and so on and so on. So overall we really want to drive the growth in Mudra by uh by container. 46:12 46 minutes, 12 seconds Got it. Uh secondly just a clarification um NQXT will be uh consolidated from 1st 46:19 46 minutes, 19 seconds of January have I understood right or 1st of April 26. 1st of January. 46:26 46 minutes, 26 seconds Understood. Uh and uh if you could clarify, you know, in terms of the other expenses line item, um you know, that 46:35 46 minutes, 35 seconds seems to have kind of seen a decline on a Y basis. Um you know, any particular reason out here if you could call out uh if I see this is 475 crores. 475. 46:49 46 minutes, 49 seconds Yes. 46:53 46 minutes, 53 seconds No. So there isn't actually any particular uh you know sort of reason. 46:58 46 minutes, 58 seconds These are just uh you know quarterly and seasonal things. And if you see here as a whole it'll actually stack up. 47:06 47 minutes, 6 seconds Got it. Uh thank you. Uh I'll fall back in the queue for more questions. Thank you. 47:12 47 minutes, 12 seconds Thank you. The next question is from Vasuda Kurana from Aviva Life Insurance. Please go ahead. 47:19 47 minutes, 19 seconds Hi. Hey uh thank you for the opportunity. Uh I would like to ask if uh what are the kind of uh borrowing target for FY27 and what kind of avenues 47:29 47 minutes, 29 seconds would uh would the company be looking at in terms of uh domestic and external borrowing? If you could share some segregation. 47:37 47 minutes, 37 seconds Okay. So in uh FY27 uh we have only uh routine uh you know amotizations coming 47:46 47 minutes, 46 seconds up for repayments which is in the order of some 3 and a half thousand crores. Isn't it? 47:52 47 minutes, 52 seconds Uh you know we we will generate we will give you the guidance uh for the next 47:59 47 minutes, 59 seconds year when we discuss next quarter numbers. uh but directionally you will find that you know we are generating sufficient cash flows to meet the 48:08 48 minutes, 8 seconds mandatory prepayments required as well as the capeex plan that we have. Uh this is a little bit of a without numbers 48:16 48 minutes, 16 seconds it's a little bit of a peep into you know what you might you know sort of hear from us in uh next quarter about 48:23 48 minutes, 23 seconds the next financial year. Uh so we don't need any borrowing. Uh you know that 48:29 48 minutes, 29 seconds said you know we have been having uh you know sort of virtually all markets open. 48:35 48 minutes, 35 seconds We've been able to borrow in the ECB market. We have been able to borrow in the rupee banking market and the rupee 48:44 48 minutes, 44 seconds NCD market. So we have mult and then we also have short-term markets like CP. So we have multiple avenues of uh uh you 48:52 48 minutes, 52 seconds know sort of markets open to us and uh you know over the course of last one year uh you know we have been dipping 49:00 49 minutes into each of these markets just to actually remain active in these markets. 49:05 49 minutes, 5 seconds Uh so we've been done we've been doing uh you know borrowings in all these markets over the period of last one 49:12 49 minutes, 12 seconds year. uh it gives me the confidence to uh tell you that all these things are open because you know sort of we have done deals. 49:23 49 minutes, 23 seconds Okay. Thank you so much. 49:28 49 minutes, 28 seconds Thank you. The next question is from Kalpit Sava from GYR Capital Advisor. 49:35 49 minutes, 35 seconds Please go ahead. 49:38 49 minutes, 38 seconds big congratulations to the management and for the good quarter. So my question is uh regarding the upcoming projects 49:46 49 minutes, 46 seconds like with the recent notification of uh Galatia as India's 13 major spot and the government's move towards the PCP model 49:55 49 minutes, 55 seconds with a private anchor uh is the company planning for any uh interest in the bidding for this 50:04 50 minutes, 4 seconds get that 50:17 50 minutes, 17 seconds sorry yeah sorry I missed your question so I just got it so thank you know in India we are already running between 27 50:26 50 minutes, 26 seconds 27% market share uh and uh and any new capacity which is built up uh in India 50:34 50 minutes, 34 seconds definitely we will go for it even if it is a PPP model or it is a it is a ham model whatever model comes in uh we will 50:43 50 minutes, 43 seconds go for it okay great sir and the uh if as per the research I had made and estimated cost 50:51 50 minutes, 51 seconds of around 44,000 cr at the phase one uh how would such a massive green investment project will be uh like goes 51:00 51 minutes through the uh current leverage ratios and uh doubling the IDIA by FI29. 51:06 51 minutes, 6 seconds Hey, sorry to interject. Your voice is not coming through clearly. It's a little blurred. 51:13 51 minutes, 13 seconds Uh is it is it properly now? 51:16 51 minutes, 16 seconds Uh we we'll try to make it work. Go ahead. Just go ahead. 51:21 51 minutes, 21 seconds Yeah. So the uh estimated project cost is around 44,000 cr. and uh how much uh 51:28 51 minutes, 28 seconds uh massive graceful investment uh impact will will occur on the current leverage ratios and the long-term uh target for 51:36 51 minutes, 36 seconds doubling aid fi 29 or 30 the current 44,000 means what 51:43 51 minutes, 43 seconds no understood so basically you know uh we have given the strategy presentation where we have said that total investment program identified is 75,000 crores out 51:52 51 minutes, 52 seconds of which 50,000 crores is for the is for the ports And uh for us to do uh that kind of 52:00 52 minutes investment, we don't need fresh borrowings. On the contrary, even after 52:07 52 minutes, 7 seconds this investment in a 5-year plan, we will be in a net cash generative because our operating cash flows are far more 52:15 52 minutes, 15 seconds than the currently declared investment program. So on that basis our leverage will go down uh you know on a net basis 52:25 52 minutes, 25 seconds and of course uh we are always on the lookout for more growth opportunities and you know that is something that will 52:32 52 minutes, 32 seconds occur uh you know uh episodically and whenever we actually get the opportunity we will invest in organically. 52:42 52 minutes, 42 seconds Okay got it. Uh that's it from my side all other questions were covered up. Thank you. 52:50 52 minutes, 50 seconds Thank you. Next question is from Manish Sumea from Cantor. Please go ahead. 52:57 52 minutes, 57 seconds Uh thank you so much for taking my questions. Uh good afternoon, good evening. Uh obviously a lot of things 53:04 53 minutes, 4 seconds went right in the quarter. Uh but maybe at a higher level if you can just tell us you know what could have been better. 53:10 53 minutes, 10 seconds Uh what are we missing? What what are we not seeing uh in the quarter that could have gone better? 53:17 53 minutes, 17 seconds That's great. Uh thank you. Uh uh I think uh in Mindam we reached uh 30 uh 53:27 53 minutes, 27 seconds GCR in the month of December. If we would have reached it in the month of October, we would have done more volumes in Virginia because we are up up in 53:35 53 minutes, 35 seconds Virginia. So uh let me uh let me say uh let me say that. Um I think the the the 53:42 53 minutes, 42 seconds second point uh is um is uh on the on the logistics. Uh I think we announced 53:51 53 minutes, 51 seconds our strategy 9 months before and quarter and quarter we are demonstrating uh significant increase in our in our logistics. 54:01 54 minutes, 1 second uh and very recently we have started uh the optimization uh of uh of the rail trucking and 54:09 54 minutes, 9 seconds warehousing uh I would say that you know the rail volume which we saw um the container volume especially the 4% increase uh 54:18 54 minutes, 18 seconds definitely has many opportunities and this is where just before we said that especially in logistics and especially 54:26 54 minutes, 26 seconds in rail container uh uh we will be doing much better With respect to the with respect to the previous quarter, I think 54:34 54 minutes, 34 seconds rest I would say um you know coal thermal coal import is not in our hands. 54:40 54 minutes, 40 seconds Whatever is in our hands I would say that if I prioritize I think the rail container um and I would say that 54:49 54 minutes, 49 seconds um um I mean that is something which I would say that we we will be doing much better. 54:56 54 minutes, 56 seconds Uh and and then uh just looking at international ports and logistics margins uh appreciating the fact that those two segments are ramping up. 55:07 55 minutes, 7 seconds How should we think about margins? 55:09 55 minutes, 9 seconds Because margins you know did decline sequentially from second quarter to third quarter. How should we think about 55:17 55 minutes, 17 seconds the cadency of margins uh as we look out the next few years? Where do they settle? 55:26 55 minutes, 26 seconds So uh Manish you're absolutely right uh you know at you know sort of the 55:33 55 minutes, 33 seconds headline level are profitability margins you know sort of has come down in this quarter uh but if I were to set the 55:42 55 minutes, 42 seconds context correct and analysis correct we've been you know sort of laying out a strategy which will go down this path it 55:49 55 minutes, 49 seconds is well within the framework of what we have set ourself to And uh you know our international 55:57 55 minutes, 57 seconds margins bulk of it is coming from marine. Marine is firing at about 55% of 56:04 56 minutes, 4 seconds fibida margin and it is also giving an return on capital employed of 14% which is far far above the threshold. uh and 56:13 56 minutes, 13 seconds we've been guiding that as far as the logistics and international ports is concerned the best metric is to use the 56:21 56 minutes, 21 seconds return on capital employed because you know it's a non-homogeneous market uh in a heterogeneous market it's pointless to 56:30 56 minutes, 30 seconds compare you know iida margin it actually does not tell you the business performance so therefore you know we uh 56:38 56 minutes, 38 seconds have been providing details on return on capital employee 56:46 56 minutes, 46 seconds Okay. Uh and then just lastly Ashwini um you know there's been fair amount of discussion today on uh the 29 targets 56:55 56 minutes, 55 seconds but maybe if you can just help us understand uh you know what are what could be the tightest constraints to 57:03 57 minutes, 3 seconds achieving the fiscal 29 guidance that you have laid out and uh I think that 57:12 57 minutes, 12 seconds would be super helpful and and and actually related to at uh you know do you have any plans to 57:18 57 minutes, 18 seconds potentially revise the fiscal 29 u outlook that you have provided? 57:26 57 minutes, 26 seconds I think of course I will answer the question uh number two uh I don't think we are revising the guidance on the five 57:34 57 minutes, 34 seconds year because fiveyear is always a guidance which guides us uh to execute the business on day-to-day basis and uh 57:43 57 minutes, 43 seconds deliver and uh communicate the results on quarteronquarter so I think uh this is what is the is the policy the 57:50 57 minutes, 50 seconds philosophy or the uh procedure we have adopted and we will keep But um obviously like we have seen in this 57:58 57 minutes, 58 seconds quarter um that we were we were confident we have the visibility so we revised the guidance but we will not 58:06 58 minutes, 6 seconds update the five years just because we are revising the guidance for this quarter. I think this is how we are managing our business uh by maximizing the opportunity and minimizing the risk. 58:16 58 minutes, 16 seconds Uh that's answer to number two. uh answer to number one u Manish that uh u 58:23 58 minutes, 23 seconds there is only one thing uh which can take away uh from reaching the target which is a big turmoil uh between the 58:32 58 minutes, 32 seconds between the countries and uh which is uh which may impact the trade but otherwise 58:38 58 minutes, 38 seconds with a small geopolitics here and there with a small you know tariff discussions 58:45 58 minutes, 45 seconds here and there you would have seen that it does not move the needle uh on the reverse direction. So I think we are very much on the track and we will be on 58:54 58 minutes, 54 seconds the track. Um and uh and uh yeah as I said there is only one thing it's a big turmoil between the countries which will 59:02 59 minutes, 2 seconds impact the global trade then only we will be impacted but a small thing here and there whether it is red sea or it is 59:09 59 minutes, 9 seconds uh it is some or it is something it does not move the needle because now you know fortunately our base is base is quite big. 59:20 59 minutes, 20 seconds Okay. No, that that's super helpful, Ashini. Thank you so much and and good luck, Mutu. Thank you. 59:28 59 minutes, 28 seconds Thank you. 59:31 59 minutes, 31 seconds Thank you. Next question is from Pulkit Partney from Goldman Sachs. Please go ahead. 59:37 59 minutes, 37 seconds Um sir, thank you for taking my questions. I have a few of them. The first couple are just bookkeeping. Uh 59:44 59 minutes, 44 seconds I'm sorry to interrupt, but your voice is not very clear if you're on a handsree. Is is is this better? 59:52 59 minutes, 52 seconds Is is this better? Can you hear me? 59:57 59 minutes, 57 seconds Okay. So, it's still not clear. 1:00:00 1 hour I mean, we can make do with this pulkit, but it's not very clear. 1:00:04 1 hour, 4 seconds Oh, I'm I'm actually surprised. Okay. Uh yeah. So, I I'll just uh try to be a little loud. Uh my first question is bookkeeping. Um is it fair to assume 1:00:13 1 hour, 13 seconds part of the realization improvement that you've seen in the quarter is also to do with the repeat appreciation? 1:00:20 1 hour, 20 seconds Uh the answer is yes pulkit but can you be a little far away from your handset or whatever you're talking from because it's little too jarring we can't hear you clearly. 1:00:29 1 hour, 29 seconds Uh okay uh just uh is that better mut? Yeah yeah it's better. Please go ahead. 1:00:35 1 hour, 35 seconds Okay. Okay. My second question is in your uh press release uh uh in the release you've spoken of the the gross 1:00:43 1 hour, 43 seconds debt which where you mentioned that it includes uh it excludes certain non-core liabilities related to NQXT. Could you 1:00:51 1 hour, 51 seconds just highlight what those are and what would be the total number for those? 1:00:56 1 hour, 56 seconds So this is also a matter that was approved by shareholders yesterday in the extraordinary general meeting. If 1:01:03 1 hour, 1 minute, 3 seconds you go back pulkit to the deal construct uh you know along with our acquisition came certain non-port related assets and 1:01:12 1 hour, 1 minute, 12 seconds liabilities. We said that you know in short order as much as soon as possible we will take them out. Uh we guided over 1:01:20 1 hour, 1 minute, 20 seconds a few months time frame but we actually ended up doing within the month. uh and also you know as of now it stands 1:01:29 1 hour, 1 minute, 29 seconds approved so it's only an accounting entry that we need to pass. So for all practical purpose you can ignore them as 1:01:36 1 hour, 1 minute, 36 seconds we speak today but just to give you a sense of amount because you asked for the amount we have uh indicated the 1:01:43 1 hour, 1 minute, 43 seconds amount to be $2.54 billion as on 31st January 2026. 1:01:50 1 hour, 1 minute, 50 seconds Uh however none of these have any bearing uh and uh as of today it stands dissolved and there are no non-core assets and liabilities as we speak. 1:02:02 1 hour, 2 minutes, 2 seconds Okay. So everything is dissolved as of now. Um my my next question is on on coal volumes. uh a quarter of our total 1:02:12 1 hour, 2 minutes, 12 seconds volumes come from thermal coal and and while there is lot of uncertainty and we've seen the last sort of couple of 1:02:20 1 hour, 2 minutes, 20 seconds years coal has had some downward pressure. How is the company looking at sort of diversifying away from this 1:02:27 1 hour, 2 minutes, 27 seconds exposure to coal? Like what's the plan uh for for coal to settle down for us in terms of our total proportion of of 1:02:36 1 hour, 2 minutes, 36 seconds volumes? just some sort of forwardlooking looking looking uh guidance there. 1:02:50 1 hour, 2 minutes, 50 seconds The broad outlook if you want or I can give 1:03:09 1 hour, 3 minutes, 9 seconds I don't know from where you got this number. Coal has got different codes, right? Coal has got thermal coal. Uh 1:03:17 1 hour, 3 minutes, 17 seconds thermal coal has got uh imported coal and coastal coal. So imported coal is 1:03:24 1 hour, 3 minutes, 24 seconds going down but coastal coal is increasing. Right? all India level uh coastal coal is uh coastal coal is increasing then second is the cooking 1:03:33 1 hour, 3 minutes, 33 seconds coal cooking coal is used in the steel industries because the steel uh is having a growth the cooking coal is also 1:03:41 1 hour, 3 minutes, 41 seconds having a growth 10.8% 8% is the growth which is on the cooking coal right uh then coastal coal 1.9% is the is the 1:03:50 1 hour, 3 minutes, 50 seconds coastal coal so at first to answer to your question coal is not going down overall coal is going up uh only the 1:03:57 1 hour, 3 minutes, 57 seconds thermal coal which is linked uh to the import is going down right so uh as far as we are concerned uh we have a 1:04:06 1 hour, 4 minutes, 6 seconds business portfolio uh which is uh which is mix of container coal iron liquid fluid and so on and we and we manage the 1:04:15 1 hour, 4 minutes, 15 seconds mix in the way trade is progressing. So if the imported thermal coal is going down it's not going to change the needle 1:04:23 1 hour, 4 minutes, 23 seconds as you would have seen it has not changed the needle in this quarter also. 1:04:28 1 hour, 4 minutes, 28 seconds No no absolutely sir let me rephrase I didn't mean it's going down I'm looking at slide 41 where it's going down as a proportion which is actually a good 1:04:36 1 hour, 4 minutes, 36 seconds thing I just meant to understand where do you think it settles as a proportion of the overall cargo for us. So from 30% in FI24 1:04:45 1 hour, 4 minutes, 45 seconds n this 9 month it's at 22%. And I but where did you get this 30% of thermal coal? 1:04:52 1 hour, 4 minutes, 52 seconds No. So thermal coal as a percentage of overall cargo on slide number n 41 is 22% coming down from 30%. That's what I meant. 1:05:07 1 hour, 5 minutes, 7 seconds So uh see you are asking uh Kolkit where will it actually settle down? Uh if you see that you know the coal will uh I 1:05:16 1 hour, 5 minutes, 16 seconds mean if you look at next 5 years trajectory India is talking about uh the declared power thermal power plants 1:05:24 1 hour, 5 minutes, 24 seconds increase by 50% in capacity and uh that is one data point. The other data point is uh you know we have been 1:05:33 1 hour, 5 minutes, 33 seconds investing in uh container over the past you know sort of several quarters our uh 1:05:40 1 hour, 5 minutes, 40 seconds growth in containers you know sort of uh is let's say 20%. You know or if you had to pick one number which is growing the 1:05:48 1 hour, 5 minutes, 48 seconds highest amongst the portfolio of products that we have got. So you know if you bake in both these two uh you 1:05:57 1 hour, 5 minutes, 57 seconds know I would say in the long term you know if you're starting with 30% as a number for FY24 1:06:05 1 hour, 6 minutes, 5 seconds you know uh there is no reason why you know we could we will be you know sort of away from let's say 20 or coal in 5 1:06:13 1 hour, 6 minutes, 13 seconds years from now. uh considering that our container is uh you know sort of growing 1:06:20 1 hour, 6 minutes, 20 seconds the highest and uh we also have uh in our business plan you know sort of uh oil and gas products coming in in the 1:06:29 1 hour, 6 minutes, 29 seconds next 5 years. So if you put all of them so we you know the weightage of coal will go down and you know we should be somewhere between 20 to 22%. 1:06:39 1 hour, 6 minutes, 39 seconds Okay. So around the same 20 20%. Thank you. This is very useful. Thank you. 1:06:47 1 hour, 6 minutes, 47 seconds Next question is from Ankita Sha from Ira Capital. Please go ahead. 1:06:55 1 hour, 6 minutes, 55 seconds Yeah. Hi. Uh am I audible? Yes. Anita. 1:06:59 1 hour, 6 minutes, 59 seconds Hi. Uh firstly congratulations on a very all round performance. U congratulations to the team. Uh my question is on uh 1:07:08 1 hour, 7 minutes, 8 seconds NQXT. Uh so uh in EIA you've mentioned that uh you know one quarter uh in the 1:07:15 1 hour, 7 minutes, 15 seconds guidance sorry uh guidance on EIA and that one quarter of NQX inclusion is uh included in this uh at 300 crores this 1:07:24 1 hour, 7 minutes, 24 seconds is for the fourth quarter expectations right for 26 yes I'm what would be the similar number 1:07:32 1 hour, 7 minutes, 32 seconds on the revenue side so uh it is firing at 65% IDA 1:07:39 1 hour, 7 minutes, 39 seconds So that 300 crores is roughly 65%. So it'll be about 450 crores 500 crores little less. 1:07:48 1 hour, 7 minutes, 48 seconds Oh 65% I bet that is I I'll correct correct going forward there there was expectation uh that u uh you know there 1:07:57 1 hour, 7 minutes, 57 seconds will be contract negotiations. So will we see contract negotiations on the higher side from FI27 onwards itself or 1:08:05 1 hour, 8 minutes, 5 seconds it will take time to pan out? Uh no there isn't there isn't much happening in FI27. 1:08:13 1 hour, 8 minutes, 13 seconds Uh there is a little bit of a quantity in FI28 and there a large uh volume coming up in FI29. 1:08:21 1 hour, 8 minutes, 21 seconds Okay. And this could lead to this uh 65% margin can go up to what levels will it 1:08:29 1 hour, 8 minutes, 29 seconds become like similar to what our uh domestic ports are making margins? Uh perfect. 1:08:38 1 hour, 8 minutes, 38 seconds Uh yeah, it will be it'll reach to that level. You're right. 1:08:42 1 hour, 8 minutes, 42 seconds That that will be like mostly beyond FI28, right? 1:08:47 1 hour, 8 minutes, 47 seconds Uh sorry, I was actually doing the math while talking to you. Uh no, actually we would still be at around similar percentage because both denominator and 1:08:56 1 hour, 8 minutes, 56 seconds uh you know sort of numerator will both go up. As theida goes up, it is coming from price realization. So absolute will 1:09:04 1 hour, 9 minutes, 4 seconds go up uh to the 400 million mark that we have guided. 1:09:09 1 hour, 9 minutes, 9 seconds Okay. But you're saying in terms of a bit margin it will remain more or less similar. 1:09:16 1 hour, 9 minutes, 16 seconds Let me just do the math for you while talking to you. There is I can take it offline. It's okay. 1:09:23 1 hour, 9 minutes, 23 seconds Yeah. I mean it will not significantly off. It'll be you know few percentage point up. See, you know, currently we are doing $350 million of uh revenue and $230 million of fibida. 1:09:35 1 hour, 9 minutes, 35 seconds And uh the 230 will go up to 400. So the 350 will correspondingly go up to 520. 1:09:41 1 hour, 9 minutes, 41 seconds So it's 4 400 upon 520. So it'll roughly be similar percentage 70. I mean uh that's the percentage. That's the max. 1:09:50 1 hour, 9 minutes, 50 seconds Got it. Got it. And uh in our consolidation will we take the name plate capacity of 1:09:57 1 hour, 9 minutes, 57 seconds 50 million tons or contracted capacity of 40 40 in our um calculation over future. 1:10:06 1 hour, 10 minutes, 6 seconds So capacity will be 50 million. 1:10:10 1 hour, 10 minutes, 10 seconds So no the volume number that we will be calculating uh will be using the name capacity only 50 million from NQX. Will that be the number that we should work? 1:10:22 1 hour, 10 minutes, 22 seconds No. No. So for volume we will actually go with and we will probably put it as a note also whenever this comes up. We 1:10:29 1 hour, 10 minutes, 29 seconds will put actually uh contracted volume or actual whichever is higher. And uh the reason for that is actually 1:10:37 1 hour, 10 minutes, 37 seconds contracted volume will give us a definitive revenue at a per turn rate 1:10:43 1 hour, 10 minutes, 43 seconds and if we do more volume than contracted then you know we are going to realize you know that much more we will be paid 1:10:52 1 hour, 10 minutes, 52 seconds for the extra volume at the similar rate. Got it. Got it. 1:10:58 1 hour, 10 minutes, 58 seconds Okay, great. I think yeah that's it from my side and wish you all the best and best wishes. Thank you. Thank you. 1:11:07 1 hour, 11 minutes, 7 seconds Thank you. 1:11:09 1 hour, 11 minutes, 9 seconds The next question is from Rajasri Maitra from INCR. Please go ahead. Yeah. 1:11:14 1 hour, 11 minutes, 14 seconds Yeah. Hello. Uh thanks for the opportunity. Uh so my question is on the margins. So if I see uh slide 22 in your 1:11:22 1 hour, 11 minutes, 22 seconds PPT. So if I look at the margins for few portuts like uh Mundra, Katupali, uh Dhhamra and Karakal. So there seems to have been a year-on-year margin decline. 1:11:33 1 hour, 11 minutes, 33 seconds So is there anything specific that you would like to highlight uh for these and also for Gopalur? Uh it's uh obviously 1:11:41 1 hour, 11 minutes, 41 seconds there has been a sharp decline. So these five ports anything specific that uh needs to be noted? Thank you. 1:11:51 1 hour, 11 minutes, 51 seconds Uh no there is nothing specific here and uh you know on an absolute peran basis 1:11:58 1 hour, 11 minutes, 58 seconds our IIDA has been going up in the large ports uh Gopalpur of course we will implement the turnaround program and as 1:12:05 1 hour, 12 minutes, 5 seconds happens it'll catch up so it is a peranida that you need to track where we are going now 1:12:13 1 hour, 12 minutes, 13 seconds okay and uh goalpuru specifically what has been the reason for I mean so this quarter there has been actually a 1:12:19 1 hour, 12 minutes, 19 seconds negative EIT and uh about uh yeah I mean about close to 70% decline in revenue on a year-on-year basis. So what is the 1:12:28 1 hour, 12 minutes, 28 seconds basis here because the volume decline is I think 25% or so what explains this kind of a sharp dip. 1:12:36 1 hour, 12 minutes, 36 seconds So there are certain fixed costs in the ports you know all the equipments that we have there are all on on higher. So 1:12:44 1 hour, 12 minutes, 44 seconds our fixed cost is uh you know sort of uh is something that we need to work on. So like I said as we actually work on it uh 1:12:53 1 hour, 12 minutes, 53 seconds we will actually sort that also out in times to come. Thank you. Thanks a lot. 1:13:02 1 hour, 13 minutes, 2 seconds Thank you. The next question is from Nidhisha from ICICI securities. Please go ahead. 1:13:09 1 hour, 13 minutes, 9 seconds Uh yes, thank you so much for taking my question. So my my question mainly surrounds that how much of our uh 1:13:16 1 hour, 13 minutes, 16 seconds container volumes uh depend on exports to the US 380,000. 1:13:25 1 hour, 13 minutes, 25 seconds All right. And have we seen any um any decline in these? 1:13:30 1 hour, 13 minutes, 30 seconds Uh uh just a minute 380,000 out of uh 12.5 million which we do. 1:13:39 1 hour, 13 minutes, 39 seconds All right. Okay. 1:13:40 1 hour, 13 minutes, 40 seconds And have we seen any weakness in these volumes? Uh specifically? 1:13:45 1 hour, 13 minutes, 45 seconds No, we can't measure it because it's so so minor. 1:13:50 1 hour, 13 minutes, 50 seconds All right. Uh my last question is that uh what do you think uh would be the impact of volumes at Mundra given that 1:13:59 1 hour, 13 minutes, 59 seconds uh there is copper coal to PVC and the solar module capacity will also be expanding in that region. So overall 1:14:07 1 hour, 14 minutes, 7 seconds what is the contribution of additional volume that we can expect from uh companies? difficult. It's difficult to 1:14:16 1 hour, 14 minutes, 16 seconds say but yes it is contributing is difficult to say how much all right uh thank you those are my 1:14:24 1 hour, 14 minutes, 24 seconds questions yeah thank you thank you thank you very much that was the last question in queue I would now like to 1:14:32 1 hour, 14 minutes, 32 seconds hand the conference back to the management team for any closing comments yeah uh hang on a second please so thank you uh thank you for your thank 1:14:40 1 hour, 14 minutes, 40 seconds you for your time thank you for your support uh I also So um want to take this opportunity uh to share with you uh 1:14:49 1 hour, 14 minutes, 49 seconds that uh Mr. Mutuk Kumaran will be taken will be taking um uh the assignment in the group uh with effect from 1st of 1:14:58 1 hour, 14 minutes, 58 seconds March. Um so I really want to say uh uh thanks to you for your great support to Mr. Mutur because of which APS is at 1:15:07 1 hour, 15 minutes, 7 seconds this uh at this stage. Um we will be introducing uh to um the uh the succession uh this 1:15:16 1 hour, 15 minutes, 16 seconds is in line with our succession plan uh and the career development plan and we will be introducing uh Mr. Krishna as the new CFO in the next call. 1:15:29 1 hour, 15 minutes, 29 seconds Thank you. Thank you for your support. 1:15:32 1 hour, 15 minutes, 32 seconds Thank you very much on behalf of MK Global Financial Services Limited. That concludes the conference. Thank you for 1:15:39 1 hour, 15 minutes, 39 seconds joining us ladies and gentlemen. You may now disconnect lines.