Allcargo Terminals Limited — Q3 FY26

Allcargo Terminals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=6UUtUHbNDh4 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to All Cargo Terminals Limited Q3 and 9 months FY26 earnings conference 0:08 8 seconds call. As a reminder, all participant lines will be in a listen mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shuya Saman from Stellar Advisor. 0:33 33 seconds Thank you and over to you sir. 0:36 36 seconds Thank you. Good afternoon everyone and thank you for joining us today. We have with us today the senior management team of all cargo terminals limited Mr. 0:45 45 seconds Suresh Kumar managing director Mr. Pitam chief financial officer and Mr. Sai Punjabi investor relations who will 0:53 53 seconds represent all cargo terminance limited on the call. The management will be sharing the key operating and financial highlight for the quarter and 9 month 1:02 1 minute, 2 seconds ended 31st December 2025 followed by a question and answer session. Please note this call may contain some of the 1:10 1 minute, 10 seconds forward-looking statements which are completely based upon the company's beliefs, opinions and expectations as of today. These statements are not a 1:19 1 minute, 19 seconds guarantee of the company's future performance and involve unforeseen risk and uncertaintities. The company also 1:26 1 minute, 26 seconds undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the 1:35 1 minute, 35 seconds conference to Mr. Suresh Kumar. Thank you and over to you sir. 1:41 1 minute, 41 seconds Thank you. Thank you Sash. Good afternoon to everyone. A warm welcome to the all cargo terminals limited quarter 1:47 1 minute, 47 seconds 3 and 9 months FI26 earnings call. We have uploaded the results, press release and presentation uh on the stock 1:55 1 minute, 55 seconds exchanges and the company's website. I hope you have had an opportunity to go through the scene. To begin with, a brief outlook uh on on global trends. 2:06 2 minutes, 6 seconds The IMF expects global growth to remain resilient at 3.3% in 2026 and 3.2% in 2:12 2 minutes, 12 seconds 2027. This is broadly in line with the recent years and reflects a modest upward revision for 2026. 2:19 2 minutes, 19 seconds Growth is supported by technology-led investment including artificial intelligence investments, continued fiscal and monetary support, 2:27 2 minutes, 27 seconds accommodative financial conditions and private sector resilience which are offsetting some of the headwinds from shifting trade policies. Global 2:35 2 minutes, 35 seconds inflation is easing and is projected to decline to about 3.4% by 2027. 2:42 2 minutes, 42 seconds Coming closer to home, India in the recently announced uh union budget, it highlights the government's focus on 2:50 2 minutes, 50 seconds public investment raising FI27 capital expenditure to rupees 12.2 lakh crores from rupees 11.2 lakh cr in FI26. 3:01 3 minutes, 1 second This targets infrastructure across roads, railways, ports, logistics parts and multimodel connectivity, enabling 3:08 3 minutes, 8 seconds and supporting manufacturing exports and MSMES. 3:12 3 minutes, 12 seconds That scale spending is expected to enhance freight movement, improve logistics efficiency, reduce supply chain costs and create sustained 3:19 3 minutes, 19 seconds opportunities for infrastructure linked businesses. Additionally, you would have seen a 10,000 cr scheme to promote 3:27 3 minutes, 27 seconds domestic container manufacturing which was announced aimed at strengthening India's logistics ecosystem, reducing import dependence and supporting higher container availability and trade growth. 3:39 3 minutes, 39 seconds Coming to all cargo terminals, Q3 FI26 was a quarter where all cargo terminals witnessed significant growth. Volumes 3:47 3 minutes, 47 seconds for the quarters stood at 1.76 lakh TUS reflecting a growth of 18% yearonear. 3:53 3 minutes, 53 seconds The volume growth is a clear reflection of the early benefits from our three-year strategic plan in which we have added capacity at JNPA in Q2 FI26 4:03 4 minutes, 3 seconds and earlier in the year renewed contract with CWC and in Mundra revenue grew by 17% during the same 4:12 4 minutes, 12 seconds period while profit after tax increased by 28% underscoring the operating leverage that we have in our business. 4:19 4 minutes, 19 seconds Our deep customer equity is enabling us to leverage capacity expansion, grow volumes, and strengthen profitability. 4:27 4 minutes, 27 seconds Continuing on the three-year plan with the capacity augmentation, we have recently been awarded a 10-year extension of our speedy JNPT facility. 4:36 4 minutes, 36 seconds We plan to upgrade the facility with assistance from J&PA and there is a potential for annual capacity 4:43 4 minutes, 43 seconds enhancement in this facility by up to 60,000 TUS. We remain confident about the long-term growth prospects of CFS 4:51 4 minutes, 51 seconds and ICD operations in India, especially at a time when global trade dynamics are being reset. Recent trade agreements 4:59 4 minutes, 59 seconds signed by India with the European Union and the United States are expected to provide a meaningful boost to manufacturing activity and India's XM 5:07 5 minutes, 7 seconds trade. On that note, I wish to hand over the call to our CFO, Mr. Priamak. 5:16 5 minutes, 16 seconds Thank you, Sesh. Good afternoon everyone. Uh welcome to our Q3 and 9 months FY26 earning calls. I will now 5:25 5 minutes, 25 seconds present the key highlights of the financial results for the third quarter and the 9 months ended FY26. 5:33 5 minutes, 33 seconds Total volume handled in Q3 FY26 was 1 lak 76,560 5:40 5 minutes, 40 seconds TUS up by 18% over Q3 FI25 and 5% over Q2 FY26 5:49 5 minutes, 49 seconds for 9 months FY26 total volume stood at 4 lakh 96,296 5:54 5 minutes, 54 seconds TUS up 7% over 9 months FY25 6:00 6 minutes revenue for Q3 FY26 was rupes 218 crores up 17% over Q3 FI25 6:10 6 minutes, 10 seconds and 5% over Q2 FI26 for 9 months FYI26 revenue stood at 6:18 6 minutes, 18 seconds rupees 613 crores up 7% over 9 months FY25A 6:26 6 minutes, 26 seconds excluding other income for Q3 FY26 was rupees 43 wrote up 31% over Q3 FY25 6:37 6 minutes, 37 seconds and 6% over Q2 FY26 implying an AIDA per TU of Rs 202,435 6:50 6 minutes, 50 seconds for 9 months FY26 AIDA stood at rupees 118 crores up by 24% 6:58 6 minutes, 58 seconds over 9 months FY25 Net profit for Q3 FI26 7:05 7 minutes, 5 seconds was rupees 15 crores up by 28% over Q3 7:10 7 minutes, 10 seconds FI25 and up by 33% over Q2 FI26 for 9 months FY26 net profit stood at 7:20 7 minutes, 20 seconds rupees 35 cr up by 9% over 9 months FY25 7:26 7 minutes, 26 seconds I would like to highlight here that we have repaid our borrowings and The company 7:33 7 minutes, 33 seconds will be debt free in Q4 FY26. As on date, we have repaid that balance loan 7:39 7 minutes, 39 seconds and we stand uh debt free as of uh as of today. With this, I would like to open the floor for the question and answer session. 7:56 7 minutes, 56 seconds Thank you very much, sir. 7:58 7 minutes, 58 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 8:08 8 minutes, 8 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 8:20 8 minutes, 20 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:38 8 minutes, 38 seconds Participants if you wish to ask a question to the management please press star N1. 8:43 8 minutes, 43 seconds Our first question comes from the line of Vikram Suryamanchi with Philip Capital. Please go ahead. 8:53 8 minutes, 53 seconds Good afternoon sir. I hope I'm audible. Yes, you are. 8:57 8 minutes, 57 seconds Okay, thank you. Uh so you've given volume numbers overall but uh uh obviously you can uh if you are not comfortable you can give the actual 9:06 9 minutes, 6 seconds number at the ICD but directionally are we seeing good growth even at ICD also or similar to what we are looking at GFS. 9:20 9 minutes, 20 seconds Hello. Uh thank you. Thank you Vram for for the question. Uh in terms of directional growth in the ICD, it is similar growth uh that we have seen. 9:30 9 minutes, 30 seconds Okay. And if you look at um J&P particularly or even at other location customers trying to facil facilitate the 9:39 9 minutes, 39 seconds trade with lot of automation and uh uh risk management system. So will uh particularly my question regarding the 9:47 9 minutes, 47 seconds speedy CFS opportunity uh will that uh uh create more opportunity for importers 9:54 9 minutes, 54 seconds uh to take a cargo under uh uh basically faster clearance without taking it to 10:02 10 minutes, 2 seconds the CAS and can that impact or how do you see that panning out or what uh uh improvement in the processes uh will it 10:11 10 minutes, 11 seconds impact this particularly opportunities speed. 10:15 10 minutes, 15 seconds So that's a good question and I think we have spoken about this in earlier calls. 10:20 10 minutes, 20 seconds Uh any improvement in technology which makes life simpler for the customer is obviously very welcome because it only 10:26 10 minutes, 26 seconds makes uh brings down logistics cost for everybody concerned makes uh the whole trade XM cycle move faster. CFSS and ICD 10:35 10 minutes, 35 seconds exist because there is a need for customers to store the containers at strategic locations for a certain amount 10:44 10 minutes, 44 seconds of time. And we are seeing that there is an even when there is an overall increase in volume and when DPD volumes pick up there are a set of customers 10:53 10 minutes, 53 seconds there are a group of customers there are set of commodities which definitely end up coming to the CFSS for the reasons 10:59 10 minutes, 59 seconds that are uh value adding for the customer. So that trend continues and for speedy once we have the renewal and 11:07 11 minutes, 7 seconds once we are able to do the necessary infrastructure upgrade uh as you would know it's a 20-year-old facility. Now we 11:14 11 minutes, 14 seconds have got another 10-year extension. The facility will uh be enhanced with regard to some of the technology that we have 11:21 11 minutes, 21 seconds in the other cargo facilities. It'll only make the whole process uh better for customers. Speedy also has the 11:29 11 minutes, 29 seconds unique advantage of being the CFS which is closest to the port and therefore the 11:36 11 minutes, 36 seconds most attractive location for over dimension cargo and the amount of refer work that we do. So we believe that the 11:42 11 minutes, 42 seconds extension is a a very good one for us and will help us in the plans that we have chocked ahead 11:50 11 minutes, 50 seconds and how much we would be spending on uh speedy upgradation and capacity increase. 11:56 11 minutes, 56 seconds So in terms of uh the capex requirement we are in discussion with J&PA to finalize uh the work the work which 12:03 12 minutes, 3 seconds needs to be done there involves uh some technology deployment. There is also yard and warehouse repair work which 12:10 12 minutes, 10 seconds needs to be done. We received the uh uh extension in the in the last week of uh December. We are in the process of 12:18 12 minutes, 18 seconds working out the estimated investment along with JNBA. Maybe in the next uh investor call I think we will have clarity about this but the work is 12:27 12 minutes, 27 seconds expected to start maybe in another 3 to four weeks. We are in the final stages of getting the estimates uh done and we are in discussion with J&PA. 12:37 12 minutes, 37 seconds Got it. And I think just last question uh what would be broadly proportion of DPD DPD at J&PA port currently and are 12:45 12 minutes, 45 seconds we seeing that is like almost like a mature now? So it's mature. This number has been in in the high 70s for the past many quarters and it is in that range. 12:55 12 minutes, 55 seconds It remains at that. So it's a stable kind of a number. Some months it gets to about 78 79. Some months it comes down a little. If my memory is right in the 13:03 13 minutes, 3 seconds month of December the DPD volumes marginally dip but it is as you rightly mentioned matured and it's in the range of uh about 75 to around 80%. 13:14 13 minutes, 14 seconds Got it. Thank you very much. 13:20 13 minutes, 20 seconds Thank you. The next question comes from the line of Daril Javiri with Crown Capital. Please go ahead. 13:29 13 minutes, 29 seconds Hello. Uh good evening team. Thank you so much for taking my question. Firstly, congratulation on a good set of numbers sir. Uh I'm a bit new to the company so 13:38 13 minutes, 38 seconds pardon my ignorance. Uh so just we I just saw that we've done an expansion in JNPT. Right. So for FY27 we can expect the full kick in of that right sir. 13:50 13 minutes, 50 seconds Yeah I so thank you thank you Dashan for asking the question and thank you for covering this sector 13:57 13 minutes, 57 seconds uh and then your question about J&P is about the capacity that we added there. 14:02 14 minutes, 2 seconds So the capacity addition that we did was in the month of August we added about 1 lakh 70,000 additional TU handling 14:09 14 minutes, 9 seconds capacity in JNPa. So for the first four five months of the year we didn't have that capacity and when you build the capacity it takes a little time to fill 14:17 14 minutes, 17 seconds in that capacity. So this whole capacity as you rightly mentioned will come into play for us in the next financial year. 14:25 14 minutes, 25 seconds So so with that additional capacity which I think is nearly uh you know a quarter's volume. So what can the growth be in FI27 sir? 14:37 14 minutes, 37 seconds Yeah. So I'll just take a a couple of uh data points here. So in the first quarter of this year including our DADRI 14:46 14 minutes, 46 seconds facility we used to do an average of about 56,000 TUS. Uh that is what we were doing in Q1 of this financial year. 14:54 14 minutes, 54 seconds Q3 the quarter which just ended our average monthly volumes grew to about 64,000 u cues. So there's about 7 and a 15:02 15 minutes, 2 seconds half to 8,000 increase in use out of which about uh 3 and a half thousand came in from the JNPA facility. We had 15:12 15 minutes, 12 seconds also got an extension in Mundra in the beginning of the calendar year. There also compared to Q1 we have been able to 15:19 15 minutes, 19 seconds grow our volumes that also has contributed to another three three to three and a half thousand. So both the locations where we have added capacity 15:27 15 minutes, 27 seconds we have seen growth in volume. So out of the 8,000 about 80% of that volume growth has come in from JNPA and Mundra. 15:34 15 minutes, 34 seconds And if you were to look at what's happened in the industry and the overall growth uh JNPA has been one of the faster growing uh ports in the country. 15:43 15 minutes, 43 seconds Overall volumes have increased somewhere in the range of about 6 to 7%. We have outpaced that marginally and we expect 15:52 15 minutes, 52 seconds this to strengthen with the trajectory that we are having now. So we currently this year growing at about 7%. We expect to add at least another one or two 16:01 16 minutes, 1 second percentage points uh to this growth next year. 16:05 16 minutes, 5 seconds Okay. So we can be around 8 to 9% uh volume growth in FI27. So yeah. 16:11 16 minutes, 11 seconds Uh yeah. So an so just wanted to know like once the additional volumes you know kick in uh what kind of operating 16:19 16 minutes, 19 seconds leverage you know we can get because as the volumes have increased our you know uh you know EITA margin has also been 16:27 16 minutes, 27 seconds increasing right so uh that uh so that journey will keep on continuing right how do we see thea margin because I 16:34 16 minutes, 34 seconds think it's around the highest in the last few you know few years also maybe like right now in Q3 so how do we see that so doing ahead. 16:42 16 minutes, 42 seconds Yeah. Yeah. Yeah. I'll request Pam to answer this. 16:47 16 minutes, 47 seconds So, uh you're right. I think uh last few quarters as we have been able to push the volumes up, the operating leverage 16:54 16 minutes, 54 seconds is coming into uh play here. Uh in few quarters back, we were very close to 2,000 or looking to break the 2,000 per 17:02 17 minutes, 2 seconds to uh is the KPI which we uh basically track every month on month. EITA per it 17:10 17 minutes, 10 seconds used to be around 1,800 1,900 then we crossed 2,000 and now we are very uh close to 2,500. 17:18 17 minutes, 18 seconds So uh so there has been substantial operating leverage which has come into picture. Uh initially when we added capacity we were started paying the 17:27 17 minutes, 27 seconds rent. However the volume impact has kicked in in last couple of quarters. Um as there are still some capacity which 17:34 17 minutes, 34 seconds is available especially in ZNPT and also uh in speech the capacity would get added once the upgradation is done. Uh 17:42 17 minutes, 42 seconds we expect that this upward trend which is there in IITA for TU or would would continue because the operation leverage 17:50 17 minutes, 50 seconds would be would be there and could come into picture. Uh so just to answer your question yes the operation leverage has come into play here. So we have been 17:58 17 minutes, 58 seconds able to push our AIDA RTU upwards and as we do the better utilization of our capacity which has been added uh this upward trend we expect it to continue. 18:10 18 minutes, 10 seconds Oh okay that's great. So even if it's not a very significant uptick but at least the new normal of you know around 18:16 18 minutes, 16 seconds 2500 that you're saying or 2400 that is something that we can sustain for sure right because that's enough uh to do 18:25 18 minutes, 25 seconds right sir that's a fair way to look at it sir. Yes. Yes. 18:29 18 minutes, 29 seconds Yeah. Okay. Okay. And I just wanted to know like you know these been very turbulent times especially the last 12 months and you know we've navigated it 18:38 18 minutes, 38 seconds decently well. So now when you know all this you know macro risks has kind of reduced how do we see like the next two 18:46 18 minutes, 46 seconds years because if everything's you know working at a normal what do we you know look at it what are our intel estimates 18:54 18 minutes, 54 seconds of the macro environment as well as like how will our company also you know look to accelerate in terms of growth. So could you just you know help us with 19:02 19 minutes, 2 seconds that? So again um if you were to look at what's happened in the macro environment and what's happened in the Indian economy, 19:10 19 minutes, 10 seconds Indian economy has managed to be uh a strong contributor to what's happening uh in the world in terms of GDP growth 19:19 19 minutes, 19 seconds and various other macro indices. This could only further strengthen as we go ahead. Port volumes in the country have 19:26 19 minutes, 26 seconds grown at about 7% uh as of now. Couple of ports have done better but overall that's been the kind of volume growth 19:35 19 minutes, 35 seconds and if you were to look at for the coming years and even as the three-year plan discussions that we are having we have we have estimated market to grow at 19:44 19 minutes, 44 seconds about anywhere between 6 to 8%. So that's a range that we are talking about for market and our ambition and aspiration is to grow faster than the 19:51 19 minutes, 51 seconds market and the capacity additions that we have planned and the capacity additions that we have already completed. When we began this financial 19:58 19 minutes, 58 seconds year we began with a capacity of about 8.3 lakh TUS annually during the course of the year with the expansions we have 20:05 20 minutes, 5 seconds now at about 10 lakh TUS annually and there are further steps which are planned. So our primary focus is to ensure that the capacity utilization 20:13 20 minutes, 13 seconds that we have gets to about 85 86%. So that's a good level of capacity utilization with laden containers. When 20:22 20 minutes, 22 seconds we talk about capacity utilization normally we use the laden containers. On top of that there is empty containers which move in and out of the CFSS. So 20:29 20 minutes, 29 seconds 85% laden capacity utilization would mean that the CFSS are virtually full including the laden including the empty 20:37 20 minutes, 37 seconds container. So our estimate is market should grow anywhere between 6 to 8%. We will do all that we can uh and then with 20:44 20 minutes, 44 seconds the support of our customers and the equity of the brand we expect to grow uh a shade better than how much the market grows and that's what we spoke about a 20:53 20 minutes, 53 seconds little earlier. This year we grow at about seven. We expect at least one to two basis point improvement uh in that growth going into next year. 21:01 21 minutes, 1 second Okay. Fair fair enough. Yeah. That's it from my side. So thank you so much. All the best. 21:10 21 minutes, 10 seconds Thank you. The next question comes from the line of Kiran Gard with Nightstone Capital Management. Please go ahead. 21:18 21 minutes, 18 seconds Hello. Hi, good evening. So, has uh dedicated freight corridor network connected to JMD port? 21:31 21 minutes, 31 seconds Dedicated freight corridor. Not yet. Yeah, it's not yet. Yeah. 21:35 21 minutes, 35 seconds Okay. and what sort of volume uptake can we see once it is connected. 21:42 21 minutes, 42 seconds So we we have not really done a estimate around it and the the point with which I made in response to Dashan's earlier 21:50 21 minutes, 50 seconds question is our our intention is that the market grows at a certain pace. We would like to grow faster than the 21:57 21 minutes, 57 seconds market. We have built capacity and we believe an 85% capacity utilization is the growth that we need to get into and I think there is enough containers in the market for us to achieve that. 22:09 22 minutes, 9 seconds Okay. Thank you. 22:15 22 minutes, 15 seconds Thank you ladies and gentlemen. If you wish to ask a question please press star and one. 22:23 22 minutes, 23 seconds The next question comes from the line of Nilles Sharma with Anand Skyon Private Limited. Please go ahead. 22:31 22 minutes, 31 seconds Hello. Thank you so much sir. Sir, last year last year we have handled 6.8 lakhs TU and in this quarter we have handled 1.76. 22:42 22 minutes, 42 seconds So we will reach around 7 to 7 lakhs. So may I know the capacity utilization percentage that we can expect for the this year? 22:52 22 minutes, 52 seconds Yeah, thank you. Thank you Nilles for that question. This year most of the part uh most part of the year we were having a capacity of around 8.3 lakh to 23:00 23 minutes use till about September. Post the expansion that we have had in in JNPA our capacity has increased to about 10. 23:08 23 minutes, 8 seconds So you can weighted average for the year you could consider our capacity to be in the range of about 9 9 to 9.2 to lack uh 23:17 23 minutes, 17 seconds to use for the year and then in that if you were to do around seven that's the capacity utilization that we have of laden containers and just as I was 23:26 23 minutes, 26 seconds answering the earlier question from Kiran and Dashan when we talk about capacity utilization we also need to factor in leaden plus empty and if you 23:34 23 minutes, 34 seconds were to look at it uh on a on a monthly basis uh we handle close to 23:41 23 minutes, 41 seconds 30 35,000 uh empty uh containers also in the facilities that we handle Okay. 23:49 23 minutes, 49 seconds If you don't add in container volume that we report. 23:53 23 minutes, 53 seconds Okay. And sir, how much beta that we can expect in coming 2 3 years per container which was around 2,300 last year. 24:04 24 minutes, 4 seconds So uh I think uh uh Pam answered this uh in in terms of the earlier question. We 24:11 24 minutes, 11 seconds have seen a steady uptick in our EITA per over the last six to seven quarters which is a reflection of operational 24:18 24 minutes, 18 seconds efficiency. The kind of work that we have done on the cost side holding revenue where it is in a market in which there is always a lot of pressure and 24:26 24 minutes, 26 seconds with the capacity addition we are now starting to get uh operational leverage and we have now come to an EITA for TU in the range of around 2,400. 24:36 24 minutes, 36 seconds We expect our ebitita to be around this region because we also need to remain competitive in terms of pricing. So we 24:44 24 minutes, 44 seconds expect our ebitita to remain at this level and whatever operation leverage which can happen uh that can add a few 24:53 24 minutes, 53 seconds percentage to the current level of IIT that we are having. So we would we would be happy uh if we are able to hold our IIT at the current current levels uh and 25:02 25 minutes, 2 seconds if there are opportunities in terms of operation leverage more capacity as we build in further that that will flow in into 25:11 25 minutes, 11 seconds okay and sir what percentage of revenue that we can expect from dedicated freight corridor expansion. 25:20 25 minutes, 20 seconds So again I was trying to answer this uh in the earlier question. We have not separately looked at dedicated freight 25:27 25 minutes, 27 seconds corridor. The way in which we we approach the market is there is a certain capacity that we have built in. 25:32 25 minutes, 32 seconds There is a rate in which the markets will grow. Then the car cargo gets into DPD cargo and non DPD cargo and DPD CFS cargo. From that a certain share of 25:41 25 minutes, 41 seconds cargo is what we target and that's that that will deliver us the revenue and IATA goals that we have planned ahead. 25:49 25 minutes, 49 seconds Okay. As a last question, any planning to raise the debt for capacity expansion? Uh because in your capacity 25:57 25 minutes, 57 seconds expansion in today's presentation uh target is 13 lakhs PU till 2030. 26:07 26 minutes, 7 seconds So any planning to raise the fund? 26:10 26 minutes, 10 seconds So I will I will answer the initial portion and then I'll hand it over to Priam. So the 13 lakh tu that we are talking about is a combination of the 26:18 26 minutes, 18 seconds present capacity that we are at up at about 10 lakh. We started the year at 8.3. The expansion till now has taken us to 10. There are a couple of projects 26:26 26 minutes, 26 seconds that are lined up in which there is uh the most important project for us in the in the future years in the coming years 26:34 26 minutes, 34 seconds is the Faruk Nagar ICD project which is supposed which is estimated to uh go live uh in 2027 uh April May time frame 26:43 26 minutes, 43 seconds that will add another lakh and a half capacity plus there is uh the search for adding another facility in in Chennai. 26:52 26 minutes, 52 seconds So these are the key projects that we have in terms of uh adding capacity for this funding what is required. Priam 26:59 26 minutes, 59 seconds will take you through in our investors presentations also in our investor meet 27:08 27 minutes, 8 seconds that for all these expansions which we are looking at by 2030 we would be investing capex upwards of uh in the 27:16 27 minutes, 16 seconds range of 400 crores. Uh the primary sources of funds identified for this investments is one number one is equity. 27:25 27 minutes, 25 seconds Uh recently we issued made made right issue which was fully subscribed. Uh 18 year old was the was the quantum of 27:33 27 minutes, 33 seconds right issues that we also made uh allotment of warrants uh to uh to the promoters and promoters group that gave 27:41 27 minutes, 41 seconds us access to 40 crores of equity overall 120 cr by way of equity. We do have existing cash reserves in the tune of uh 27:50 27 minutes, 50 seconds 30 crores. Uh so that would also be used for uh the future expansion. 27:56 27 minutes, 56 seconds Uh also the existing business generate very strong or continue to generate very strong uh cash flow in the range of 100 28:04 28 minutes, 4 seconds Ks every year and that would also be deployed for the uh for expansion projects. uh to because of these 28:13 28 minutes, 13 seconds identified sources we the dependency on borrowings external borrowings would be minimal. Uh so we expect that we would 28:21 28 minutes, 21 seconds be borrowing somewhere in the range of uh 150 crores based on the uh the present estimate. 28:28 28 minutes, 28 seconds So we will try and limit our borrowings to that extent. So the primary source of funding for this project would be equity and internal approvals and the graph uh 28:37 28 minutes, 37 seconds the gap would be bridge by way of uh external borrowing. 28:42 28 minutes, 42 seconds Okay, great. Great. Thank you so much and wishing you all the very best for the future. Thank you. Thank you very much. 28:51 28 minutes, 51 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. 29:07 29 minutes, 7 seconds The next question comes from the line of Arin Batya with Invaded Research. Please go ahead. 29:15 29 minutes, 15 seconds Thank you. Thank you for the opportunity sir. My first question I'm new to the company. I have a basic question. My first question is like what is the 29:22 29 minutes, 22 seconds incremental benefit do like get having a CTO license as compared to us because we don't have a CTO license right? So I 29:32 29 minutes, 32 seconds just wanted to know the TU like we hit 2400. What is the you know incremental TU they get due to having the PTO 29:40 29 minutes, 40 seconds license that is a container train operation license. 29:48 29 minutes, 48 seconds Thank you. Thank you um uh Mr. Bio for the question. So you're talking about the uh rail connectivity and what is 29:56 29 minutes, 56 seconds likely uh additional uh EIA that can happen out of that. So is that your question if I understand you correctly? 30:04 30 minutes, 4 seconds Yes. Yes. Yes sir. Yes sir. 30:06 30 minutes, 6 seconds Okay. So as of now if you were to look at the operations that we have we have seven facilities in the country out of which six are safes and one is ICD. The 30:14 30 minutes, 14 seconds ICD is in Dadri where we have a tie up with concore and the rail operations are completely handled uh by concore. Our 30:23 30 minutes, 23 seconds first rail connected ICD facility which is a faro facility is estimated to go live uh in the month of April. So we are 30:32 30 minutes, 32 seconds we have a certain estimate uh as to what the economics would be for that facility. I think it is a little too 30:39 30 minutes, 39 seconds early for us to talk about it at this stage but at the right time at in in in a future right time I think we will be able to uh respond to with with uh with 30:48 30 minutes, 48 seconds an estimate for what are we planning at Faruka but suffices to say that but it suffices 30:56 30 minutes, 56 seconds to say that if you have rail connectivity obviously it's another service that you're giving the customers and therefore the either that you get 31:03 31 minutes, 3 seconds for handling the cargo including the CFS plus the rail will be significantly better than what you do by only handling 31:09 31 minutes, 9 seconds CFS. Some of our peers in the industry, listed peers, if you were to look at their uh numbers, it clearly shows the 31:17 31 minutes, 17 seconds EITU would be at a different level than the AITA to you of a CFS heavy business like ours. 31:26 31 minutes, 26 seconds Um I will just like to add here. So currently in our CFS our operations which are CFS dominated uh we handle 31:34 31 minutes, 34 seconds transportation from port to CFS uh which is uh like certain portion of our overall revenue of 12,000 rupees per DU. 31:42 31 minutes, 42 seconds However, when you have CTO license, uh you have access to the rail revenue as well, wherein the the cargo is 31:50 31 minutes, 50 seconds transportated transported by way of uh rail from uh from port to uh the hinterland ICD. Um just to give you an 31:59 31 minutes, 59 seconds idea in terms of revenue earn uh for say Mundra to uh say north ICD 32:07 32 minutes, 7 seconds transportation could be in the range of 40 to 45,000 per TU. So uh currently as our business is CFS dominated we are 32:15 32 minutes, 15 seconds handling only port to CFS transportation. uh whenever we operate uh an ICD uh where we have rail license 32:23 32 minutes, 23 seconds this revenue will also become part of our portfolio with a with a significantly higher revenue property. 32:32 32 minutes, 32 seconds Got it. Got it. So thanks and my second question is like are we looking to bit for some new terminals specifically the gut terminals and just wanted to 32:40 32 minutes, 40 seconds understand like what is the difference between like the business model of the terminals and ICD terminals. 32:51 32 minutes, 51 seconds So in terms of Gatishappi terminals, this is a a program announced by the government and these are on on the 32:59 32 minutes, 59 seconds Indian railway uh facility. You have identified areas where a certain amount of railway land 33:08 33 minutes, 8 seconds is allocated for uh on on a PPP basis uh to to develop uh passenger freight 33:16 33 minutes, 16 seconds terminals. We have identified a few stations across the country. Whenever there are opportunities which come up 33:23 33 minutes, 23 seconds there that follows the bidding process, we will participate in them. But ahead of that, we have identified our own PFT 33:31 33 minutes, 31 seconds terminal to come up in Farukadar and that is a Farukadar project that we spoke about which we are estimating to go live by uh April April 27. 33:44 33 minutes, 44 seconds Got it. Thank you. and discussion. Thank you. 33:50 33 minutes, 50 seconds Thank you. Ladies and gentlemen, if you wish to ask a question to the management, please press star N1. 33:58 33 minutes, 58 seconds The next question comes from the line of Sanskar Raja, an individual investor. Please go ahead. 34:06 34 minutes, 6 seconds Hello. Thanks for this opportunity. Am I audible? Yes, you're audible. Please go ahead. 34:11 34 minutes, 11 seconds Yes sir. My first question would be sir as we can see the financial performance this quarter has been very strong. Can you elaborate more on the key drivers of 34:20 34 minutes, 20 seconds operating leverage that has led to this higher profitability? 34:25 34 minutes, 25 seconds Okay. Any other follow-up questions or would you want me to answer this first please? 34:29 34 minutes, 29 seconds Uh you can go ahead and answer this first. 34:32 34 minutes, 32 seconds Okay. So earlier in the conversation what we talked about as the prime driver for this growth is as part of a three-year plan we have been adding 34:40 34 minutes, 40 seconds capacity. So the first capacity uh enhancement large capacity enhancement that we did was by adding about 25 acres 34:49 34 minutes, 49 seconds of yard capacity in JNPA in the flagship ATL facility and this this the necessary approvals and everything had come in the 34:57 34 minutes, 57 seconds beginning of the financial year and we operated started operating that facility from mid August. So that's uh a capacity addition of about 1 lakh 70,000 TUS that 35:06 35 minutes, 6 seconds we have done there. That is something which has helped us add volumes. The second is we had renewed our CWC uh 35:14 35 minutes, 14 seconds Mundra uh license. Uh there's an extension of the contract that we had. 35:18 35 minutes, 18 seconds So last year uh there was a point in time in which heading towards the the renewal there was uh a bit of slowness 35:25 35 minutes, 25 seconds in volumes. Once the renewal happened and an additional 10 acres of facility has been granted to us in the renewal, we have been able to add capacity there 35:34 35 minutes, 34 seconds too. These two locations and I have taken you through the numbers the incremental numbers between Q1 and Q3 that we have had on a monthly average 35:42 35 minutes, 42 seconds basis is about 8,000 use out of which around 75 to 80% has come in from these two locations. Otherwise the market has 35:50 35 minutes, 50 seconds grown organically. There have been market growth in even in the other markets that we operate like Chennai and Dadri and Kolkata. The rest of the 35:58 35 minutes, 58 seconds volumes have come in from there. In terms of operational leverage, wherever we have had volume growth in the existing facilities like in J&PA where 36:07 36 minutes, 7 seconds we have extended the yard, operational leverage starts to kick in because uh in in terms of people, in terms of equipment, in terms of all the other 36:16 36 minutes, 16 seconds support facilities which are required to keep the CFS running, you start to get the operational leverage and that is what is starting to reflect in the EITAU 36:24 36 minutes, 24 seconds that we have been having. But this EITA peru strengthening is not only a phenomena based on the capacity addition 36:32 36 minutes, 32 seconds and over the last six seven quarters through a combination of measures that we have taken both on the revenue and the cost side we have been able to 36:41 36 minutes, 41 seconds slowly inch this epida per TU number up and now the latest increases in the last couple of quarters or in Q3 specifically 36:49 36 minutes, 49 seconds can be attributed to the operational leverage from the additional capacity that we have put up in JNBA. So whenever we add capacity I think there is scope 36:58 36 minutes, 58 seconds for operational leverage and this comes from better utilization of the equipment that we have better utilization of the people that we have at the facility 37:05 37 minutes, 5 seconds better utilization of the warehousing that we have in the facility and that's how margins margins show uh upward trend 37:16 37 minutes, 16 seconds thank you thank you so much professor detail answer as we talking about capacity expansion can you put some more light on the timeline of speedj J G J G 37:24 37 minutes, 24 seconds J G J G J G J G J G J G J G J G JPT facility that 6,000T capacity that how what is the timeline that we are seeing? 37:31 37 minutes, 31 seconds Yeah. So thank you. So Speedy J&P is an existing facility. It's a 20-year facility which has been operated by the 37:38 37 minutes, 38 seconds all cargo group over the last uh five six years. At the time of renewal, we have taken stock along with uh the 37:46 37 minutes, 46 seconds experts in JNPA and we have recommended that upgrade has to be uh facilitated for the yard and some of the warehouses. 37:55 37 minutes, 55 seconds So once the upgrade of the yard is completed which we expect to take about 3 to four months we will be able to 38:03 38 minutes, 3 seconds handle more uh containers in the yard and that is expected to give us an additional capacity improvement of about 38:11 38 minutes, 11 seconds 60,000 annually and this is because portions of the yard are not in uh great shape now for us to stack multiple 38:19 38 minutes, 19 seconds containers. we'll be able to do that post post this upgrade and that is how it's not as if we are getting additional area or something it's because the 38:26 38 minutes, 26 seconds quality of the yard becomes better and then the warehouses that we operate in uh also it needs a bit of refurbishment 38:34 38 minutes, 34 seconds both this will enable the additional capacity the timeline for this I said we expect the finalization of the scope of 38:42 38 minutes, 42 seconds work everything to happen by March and maybe another 3 4 months for completing the necessary work so H2 H2 definitely 38:51 38 minutes, 51 seconds we will have the benefits of uh this upgradation of 38:58 38 minutes, 58 seconds yeah I guess that was uh good enough for me uh just one last question from my side would be on the current scenario as 39:05 39 minutes, 5 seconds we are seeing there are you know agreements paid agreements with EU and US so how do you think this is expected 39:13 39 minutes, 13 seconds to increase our volumes moving forward uh would you like to uh share some point on 39:20 39 minutes, 20 seconds Yeah. Uh I would like to share this saying that during the course of this year we have had a bit of turbulence around different changes which have been 39:28 39 minutes, 28 seconds happening. They have impacted volumes for the industry and obviously that impact cascades down to an operator like 39:35 39 minutes, 35 seconds us. In spite of all the things current year volume uh the Indian uh excellent trade volume which comes into CFSS have grown at about 7 6 7%. 39:47 39 minutes, 47 seconds with stability and clarity about some of these trade agreements and tariffs coming in. We expect sentiment to 39:54 39 minutes, 54 seconds improve more export to happen and which is why in terms of growth of the industry we have always said that it it 40:00 40 minutes is in the range of 6 to 8%. So sometimes you fall a little down and get to around 5 and a half 6% everything becoming 40:09 40 minutes, 9 seconds better and no other instability on account of global shipping or any of those things then it gets to about 8 9%. 40:16 40 minutes, 16 seconds So we are optimistic that with all the changes which have happened we should see uh an uptick in growth that is one. 40:24 40 minutes, 24 seconds Second is the contribution from US and EU to the container volumes which coming into the country and that is estimated 40:30 40 minutes, 30 seconds about close to about 30 32% is the estimate that we have at least to the facilities that we operate. So in that portion of the volume one could see 40:39 40 minutes, 39 seconds uptick but you also know and I'm sure that everybody is in the in the public domain it's clear that the EU agreement 40:46 40 minutes, 46 seconds in terms of becoming operational could take uh x number of months so we are also waiting for all these procedural 40:54 40 minutes, 54 seconds things to get done and finally I would like to say that the way in which we plan our businesses there is a certain capacity that we have built for our 41:01 41 minutes, 1 second business there is a certain amount of cargo which is available customers need great quality service we need to be operationally excellent and 41:09 41 minutes, 9 seconds operationally efficient. By this we we attract cargo to us and we try to keep ourselves a little away from some of 41:17 41 minutes, 17 seconds these larger macro things which happen even though there will be an impact of that on our business. So we are sharply focused on ensuring that we meet 41:24 41 minutes, 24 seconds customer requirements with the capacity that we have and and with that we have planned the growth for the coming years. 41:33 41 minutes, 33 seconds Thank you. Thank you so much for such a detailed answer sir and really happy with the numbers as you know it's I can see that the the quarterly and the 9 41:41 41 minutes, 41 seconds month figure are are the best ever. So just all the best wish for the coming quarters and we'll we'll thank you and thank you very much. 41:47 41 minutes, 47 seconds Yeah. 41:53 41 minutes, 53 seconds Thank you ladies and gentlemen. If you wish to ask a question you may press star and one. 42:02 42 minutes, 2 seconds The next question comes from the line of Deepak Carva, an individual investor. Please go ahead. 42:09 42 minutes, 9 seconds Hello, I'm audible. 42:12 42 minutes, 12 seconds Yes, you're audible. Deeper, please carry on. 42:14 42 minutes, 14 seconds Uh, congratulations for a good set of numbers, sir. Uh, so sir, can you quantify the contribution from the JNP 42:23 42 minutes, 23 seconds capacity addition and the TWWC Mumbra contract renewable in Q3 volumes? 42:31 42 minutes, 31 seconds Yeah. Um I had shared this earlier uh in response to one of the questions that I got. I'm happy no I'm happy to happy to 42:39 42 minutes, 39 seconds share that again. Um so in Q1 our average monthly volumes including Dadri was about 56,000 TUS per month. In Q3 we 42:48 42 minutes, 48 seconds have grown that to around 64,000 TUS a month including our Dadri uh joint venture. So it's an increase of about 42:55 42 minutes, 55 seconds 8,000 TUS per month on an average out of which about 80% 75 to 80% has come in equally divided between JNPA and Mundra. 43:07 43 minutes, 7 seconds Okay, understood sir. And sir like uh how should we think about the mares margins 43:14 43 minutes, 14 seconds going forward in the new capacity uh rampups and what will be the aid per t during the quarter? 43:23 43 minutes, 23 seconds Yeah. So in terms of margins, uh we have paid a lot of attention to growing uh margins over the last two three 43:32 43 minutes, 32 seconds financial years and we are starting to see the benefits of that. Some of this takes a little time to actually uh put in but over the last six quarters if you 43:41 43 minutes, 41 seconds were to see the trajectory for a patio has constantly been on an upward trajectory. We have reached close to 43:47 43 minutes, 47 seconds 2,400 levels and we believe this is uh the right level to operate uh what we have because we also need to be 43:56 43 minutes, 56 seconds competitive in terms of pricing and then there is competition and there are other operators also in the market that we 44:03 44 minutes, 3 seconds operate and therefore we'll be happy if we can maintain uh the current EITA levels in terms of EIA growth in the 44:10 44 minutes, 10 seconds coming uh quarters and months whenever there is capacity addition which could be in the form of additional capacity whenever we get into the Mundra project 44:19 44 minutes, 19 seconds which is somewhat away or when we have Faruk Naga that those are the times in which you will see step jumps in uh 44:28 44 minutes, 28 seconds margins and like we were answering in a response to an earlier question the Faruk Naga facility is is a rail length 44:35 44 minutes, 35 seconds facility and therefore there is a portion of rail margins which will come into uh the the ATL uh oper operations. 44:43 44 minutes, 43 seconds So we expect a significant jump around that time but that clearly falls into uh April 27 onwards. So it's a good one 44:52 44 minutes, 52 seconds financial year away. Uh so we we can talk about it closer closer to closer to the launch of Farutnaga. 45:01 45 minutes, 1 second As of now the current levels we'll be happy to maintain uh continuing to give best services to our customers and remaining competitive and increasing market shares wherever possible. 45:13 45 minutes, 13 seconds Yes. Um understood sir. My last question like what will be the like aida for tu during the quarter? 45:24 45 minutes, 24 seconds So you are talking about this current quarter. Yeah current quarter. 45:29 45 minutes, 29 seconds Current quarter eida per tu which we have reported is 2412. Okay. 45:38 45 minutes, 38 seconds Understood sir. Okay sir. Thank you so much and all the best for uh uh next quarter. 45:44 45 minutes, 44 seconds Thank you. Thank you very much. Thank you. We have a follow-up question. 45:50 45 minutes, 50 seconds It's from Din of Dash Yaviri with Crown Capital. Please go ahead. 45:57 45 minutes, 57 seconds Hello. Uh yeah, hi. Thank for me again sir. Uh so just wanted to clarify one thing kind of uh so in terms of our when 46:07 46 minutes, 7 seconds we are adding you know the capacity of uh Zo JMP right now which is a significant you know addition then uh 46:16 46 minutes, 16 seconds why are we saying only six to 7% growth right because for half of the year we didn't have JNPT with us so ideally we 46:24 46 minutes, 24 seconds should at least be able to grow around you know 10 13 12 13% at least right because that itself will be available 46:32 46 minutes, 32 seconds for the full year, right? So, just wanted to, you know, get your own thoughts, your thoughts about that. 46:39 46 minutes, 39 seconds So, in terms of uh announcements and what we share in our earnings call, we do not want to kind of give a long-term 46:46 46 minutes, 46 seconds guidance on the volumes. We would just like our track record to speak for itself. And that's a approach that we 46:54 46 minutes, 54 seconds have been maintaining in all these calls over the past many quarters. So if you were to look at how volumes have picked up, I think that gives a very clear 47:02 47 minutes, 2 seconds indication of the trajectory that we have and bases our track record. I would kind of allow us to kind of keeping give 47:10 47 minutes, 10 seconds us the opportunity to update these numbers as we meet you in the in the coming quarters. As of now we I hold on to what I say what we had said earlier. 47:20 47 minutes, 20 seconds There is a certain market growth that we anticipate which is in the range of 6 to 8%. Our goal, aspiration and our track record has been to grow slightly faster than the market wherever possible. 47:30 47 minutes, 30 seconds Keeping an eye on volumes, keeping an eye on EIT and that approach is what we will continue to adopt because that we believe will deliver a healthy business for for all stakeholders. 47:44 47 minutes, 44 seconds Okay. Okay. Fair enough. Yeah, that was my only question. 47:56 47 minutes, 56 seconds Thank you. As there are no further questions from the participants, I now the conference over to Mr. Suresh Kumar for closing comments. 48:05 48 minutes, 5 seconds Thank you. Thank you. And uh thank you to everyone for all your questions. Uh some of your questions make us also uh 48:12 48 minutes, 12 seconds reflect and think a little more about the business that we are doing and it helps us in terms of planning ahead. I wish to assure you that uh me and my 48:21 48 minutes, 21 seconds team are completely uh committed to driving the trajectory of our business results in a positive direction in the 48:29 48 minutes, 29 seconds coming quarters. The expansion that we have done in the in in the past quarters is starting to bear fruit and with the customer confidence which is there for 48:37 48 minutes, 37 seconds Alago terminals as a brand and for Alago group overall, we expect to continue to maintain the momentum in the coming quarters. So thank you very much for 48:46 48 minutes, 46 seconds your interest in Alaga terminals and looking forward to talking to you during u other interactions and the next quarter results. Thank you very much. 48:58 48 minutes, 58 seconds Thank you on behalf of All Cargo Terminals Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.