Container Corporation of India Ltd — Q1 FY26

Container Corporation of India Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2CelrB3Ofx8 Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the container cooperation of India limited Q1 FY26 earnings conference call hosted by DAM capital. 0:13 13 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchstone phone. I now hand the conference over to Miss Bumika Nayer from DAM capital. Thank you and over to you ma'am. 0:39 39 seconds Um good morning everyone and a warm welcome to the Q1 FI26 earnings call of container corporation of India. We have 0:47 47 seconds the management today being represented by Mr. Sanjay Swarup, chairman and managing director. At this point, I'll hand over the floor to him for his 0:55 55 seconds initial remarks. Post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:01 1 minute, 1 second Uh good uh thank you Bumika. Uh good morning to you all. Uh I am joined by my uh directors director projects Mr. Ajit Kumar Panda uh director domestic Mr. 1:13 1 minute, 13 seconds Mohammad Ahazar Shams director international marketing and operations Mr. Vijay Kumar Singh director of 1:19 1 minute, 19 seconds finance Mr. Anurra Kapil and ED PED finance and company secretary and CFO 1:26 1 minute, 26 seconds Mr. Harish Chandra. So uh I'm glad to announce that board of directors has uh uh approved the dividend of rupees 1.60 1:35 1 minute, 35 seconds 60 that is 32% on share of rupees 5 par value uh that is because of the good 1:43 1 minute, 43 seconds performance given by the company throughput in Q1 uh of FY26 has been 1.29 29 million TUS which is 1:52 1 minute, 52 seconds all-time high for any Q1 in the company's history. Throughput growth has been excellent 11.3% in which XM's 2:00 2 minutes contribution is 12% and domestics contribution is uh 9%. And uh India's international trade merchandise trade 2:09 2 minutes, 9 seconds also uh has seen a growth of 2% in exim in exports which is uh 112.17 billion US 2:20 2 minutes, 20 seconds and 4% in imports which is 179.44 billion US in Q1. Domestic uh we saw a 2:28 2 minutes, 28 seconds subdued uh performance. There are primarily two reasons for this. First is the delay in supply of tank containers 2:36 2 minutes, 36 seconds via mass brace and uh we were banking on it and uh there has been some delay because for the first time they have 2:43 2 minutes, 43 seconds been uh manufacturing such containers and second is the low margin traffic that we have not picked up consciously 2:51 2 minutes, 51 seconds uh because basically our philosophy is to give good performance to uh good service to our customers while keeping the margins intact. 3:00 3 minutes We we saw a good increase in market share 200 basis points at JNPT and uh market share got was unchanged at Pipawa 3:10 3 minutes, 10 seconds port rail coefficient we saw saw increase at Mundra as well as Pipawa which is a good news for us rail freight 3:17 3 minutes, 17 seconds margin I'm glad to announce that despite uh increase of our market share we have not sacrificed the rail freight margin 3:24 3 minutes, 24 seconds and operating margin rail freight margin increased from 24.36% to 26.96%. 3:33 3 minutes, 33 seconds Operating margin increased from 28.58% to 29.81%. 3:39 3 minutes, 39 seconds And there is a growth in operating income 2.5% growth in pack 1%. It is uh 3:46 3 minutes, 46 seconds slightly less as compared to physical volumes. Uh there are basically three four reasons for this. First is the 3:54 3 minutes, 54 seconds volume discount data. It was reconciled in Q1 and there there there were some reconciliation uh figures for that. 4:02 4 minutes, 2 seconds Second is the increase in staff cost the it was due to the one-time award that we declared for good performance of our 4:10 4 minutes, 10 seconds staff which was uh reflected in this quarter's uh expenses. Third is the uh 4:17 4 minutes, 17 seconds lead decrease in lead in exam by around 4%. The basic reason for this is less demand in North India. North India ICDS 4:26 4 minutes, 26 seconds there was less demand of imports exports like Ludjana to Glacabad and Sidgul ICDS. So we saw uh below performance in 4:34 4 minutes, 34 seconds these ICDs. In Q1 of course now it has uh normalized in Q2. Then last reason is subdued demand in domestic which I already explained earlier. 4:45 4 minutes, 45 seconds We saw a very handsome increase in double stack reacts 11.2%. 4:50 4 minutes, 50 seconds We have done 1505 rates this quarter as compared to 1353 rates in last year same 4:57 4 minutes, 57 seconds quarter. We we are continuously increasing our infrastructure. In this quarter we have commissioned five highspeed rakes and we have procured 1,500 containers for our domestic use. 5:10 5 minutes, 10 seconds Capex achieved in Q1 is rupees 202.5 crores and our capex budget for this financial year remains intact at rupees 5:19 5 minutes, 19 seconds 860 crores. We will do a mid midyear review after Q2. Target for 2028 remains 5:26 5 minutes, 26 seconds same 100 terminals 500 plus rakes and more than 70,000 containers. Uh I'm glad 5:33 5 minutes, 33 seconds to announce there is excellent growth in Exim stream. It is likely to continue and will further increase. We'll see a 5:40 5 minutes, 40 seconds quantum jump with commissioning of WDFC up to G&P by December 2025. In domestic 5:48 5 minutes, 48 seconds after a muted Q1 now there is a very robust growth. We are observing in Q2 with excellent demand from eastern India 5:56 5 minutes, 56 seconds mainly GI bales traffic. Then our new terminal at Mori Rafleshwar in Gujarat also will give boost in business. Then 6:04 6 minutes, 4 seconds bulk cement in tank containers which is a new product and uh we are great to happy to announce that we have loaded 6:11 6 minutes, 11 seconds first rake on 30th June 2025 and industry has given a very positive respon response. We are going to get 6:19 6 minutes, 19 seconds another rate by bread in this month only and this will further uh contribute to our uh domestic traffic. Exports growth 6:28 6 minutes, 28 seconds uh has been good in auto parts 22% growth rise 12% growth and readyate 6:35 6 minutes, 35 seconds garments 14% growth imports there was a good growth in uh aluminium scrap 8% 6:41 6 minutes, 41 seconds stainless steel 17% growth we have commenced exim rail service from Hindustan zinc siding at Chandera to 6:49 6 minutes, 49 seconds Mudra port which is a new service we have started and uh there has been a good increase in direct port delivery movement also 6:57 6 minutes, 57 seconds almost 18% growth we have seen. Then there's a very good growth in imports at various ports that we have observed. Uh 7:05 7 minutes, 5 seconds overall there has been a 12% growth in imports in this quarter. Mundra saw a growth of 8.4%. J&P 19.3% 7:14 7 minutes, 14 seconds and Chennai 19.4% wiser port 29%. So there's a very good growth in imports that we have observed 7:22 7 minutes, 22 seconds in this quarter. And uh one another good thing is there has been substantial decline in empty running of uh uh flats 7:32 7 minutes, 32 seconds as well as empty containers both in domestic and exempt. Total de empty running uh cost decrease was 13.7%. 7:41 7 minutes, 41 seconds And which has uh contributed in a positive manner to our bottom line and I would like to inform another landmark 7:49 7 minutes, 49 seconds achievement that were achieved by the company. We signed an MOU with the RHS group of Dubai for end- to-end logistics 7:56 7 minutes, 56 seconds solution and containers of Concore are now moving across the shores of India. 8:02 8 minutes, 2 seconds Till now we were giving service only up to our ports but now they have crossed the ports and they are reaching Dubai 8:09 8 minutes, 9 seconds and we are able to give uh end toend service to our customers. Several containers have moved to Dubai, Sharah 8:16 8 minutes, 16 seconds and other parts of UAE and very soon we will be starting such service to other countries like Singapore also. Uh I 8:24 8 minutes, 24 seconds would like to mention again that uh we are in touch with big corporate houses Tata Jindal Vidanta JK LT food and they 8:34 8 minutes, 34 seconds have shown a positive attitude for giving more and more business to Concord. So uh mostly it will be in domestic. 8:42 8 minutes, 42 seconds So the outlook of uh company is very very very strong and positive and we hope that uh we will be showing very 8:50 8 minutes, 50 seconds good results in the coming quarters of this financial year. At this point I would like to keep the guidance unchanged at 13% in which exam will be 8:59 8 minutes, 59 seconds 10% and domestic will be 20%. So that's all opening remarks from my side. Now you can start your questions. 9:08 9 minutes, 8 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 9:17 9 minutes, 17 seconds telephone. If you wish to remove yourself from the question cube, you may press star and two. Participants are 9:25 9 minutes, 25 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 9:44 9 minutes, 44 seconds The first question is from the line of Disha Girya from Ashika Institutional Desk. Please go ahead. 9:53 9 minutes, 53 seconds Good morning. Uh I hope I'm audible. Yes, ma'am. You're able. 9:58 9 minutes, 58 seconds Uh so my first question is regarding the domestic volume and the domestic realization. 10:05 10 minutes, 5 seconds So what we have seen in the past is whenever there has been a volume thrust a volume increase the realization has gone down and that impacts your uh 10:13 10 minutes, 13 seconds revenue. So uh could you give us a competitive intensity of what the market dynamics is right now in the domestic 10:21 10 minutes, 21 seconds market and uh how we are going to take it forward because our topline decline is something that concerns me. 10:29 10 minutes, 29 seconds Yeah, as I informed you that uh domestic uh the growth was muted in the first 10:35 10 minutes, 35 seconds quarter and uh now uh the uh we are seeing very good growth in domestic and uh we are getting return traffic also. 10:45 10 minutes, 45 seconds So empty running is coming down and in Q1 also in domestic empty running in fact has come down by almost 12%. So 10:52 10 minutes, 52 seconds with the good management of uh demand we are quite hopeful that uh in the coming quarters we'll show a good performance in domestic. 11:03 11 minutes, 3 seconds Okay. Uh so my second question is regarding uh the bulk simming containers. Uh we already have one rake 11:11 11 minutes, 11 seconds from brake and you said that we are in process of receiving the another rake. 11:15 11 minutes, 15 seconds So if you could just give us some quantitative numbers on how the demand has been and how is it processing out in the market and uh what do you expect it 11:24 11 minutes, 24 seconds to contribute to the total uh volume for the full year? 11:28 11 minutes, 28 seconds See uh demand is enormous like uh we do around 14 to 15 million tons in domestic 11:36 11 minutes, 36 seconds every year. So demand is uh uh only bulk cement and tank containers can add same 11:44 11 minutes, 44 seconds volume uh every year. So uh hardly 9 to 10% is moving by rail. Everything is 11:51 11 minutes, 51 seconds moving by road. So this is a new product that we have launched. So uh because now the uh containers are getting 11:58 11 minutes, 58 seconds manufactured. So as soon as we start getting containers from we have uh apart from bedside we floated an open tender 12:06 12 minutes, 6 seconds and one private company is also manufacturing some containers for us. So from both the sources we will be getting but now because in this there's a 12:15 12 minutes, 15 seconds monsoon time now. So cement as you know construction activities are not uh carried out in this time. So cement uh 12:23 12 minutes, 23 seconds loading uh drops uh during the Q2 period also uh when monsoon will end in September. Then from Q3 onwards we can 12:32 12 minutes, 32 seconds see a very good growth in uh uh bulk cement loading and we will get containers from private uh uh vendor 12:39 12 minutes, 39 seconds also from which we have ordered. So Q2 of course uh bulk cement loading will not be much because of the monsoon and 12:47 12 minutes, 47 seconds from Q3 we can uh expect very good loading in bulk cement. 12:53 12 minutes, 53 seconds Okay sir. Uh so if I can ask one last question uh the employee cost you mentioned it's a oneoff for this period. 13:00 13 minutes Uh so going forward for the other quarters can we expect the normative range of employee cost how would that been in the past year? 13:08 13 minutes, 8 seconds See uh this was actually adoration that we announced an award but normally uh as I told you as as you are aware of course 13:17 13 minutes, 17 seconds that uh our employee cost is uh usually around 5% of our turnover. So we will be uh ending there on that uh number only. 13:29 13 minutes, 29 seconds Thank you. I'll join in the queue for other questions. 13:32 13 minutes, 32 seconds Thank you. Our next question is from the line of Miss Bumika Nyer from DAM Capital. Please go ahead. 13:41 13 minutes, 41 seconds Yes sir. Uh sir, first if you can just share the originating volumes for both exam and domestic. 13:48 13 minutes, 48 seconds Yeah, I I'll tell you. Uh originating volume for uh exam 53109 13:56 13 minutes, 56 seconds [Music] 13:59 13 minutes, 59 seconds domestic 121 624 and total 652 723. 14:07 14 minutes, 7 seconds Sure sir. Thank you. Um sir in terms of the uh you spoke about uh you know 14:14 14 minutes, 14 seconds one-time uh uh employee how much would that award be and which would have uh led to a higher employee cost this quarter? 14:23 14 minutes, 23 seconds We gave one month salary to them. You want number? 14:28 14 minutes, 28 seconds Yes sir. The onetime cost uh number around 18 cr rupees. Okay. Okay. 14:36 14 minutes, 36 seconds And you also spoke about uh you know volume discount that happened in the first quarter uh this time. Uh what so 14:44 14 minutes, 44 seconds what was that amount and uh you know how should we look at it going ahead? 14:50 14 minutes, 50 seconds See actually that was a that was as I told you that was a one time that was an uh you can say reconciliation kind of 14:58 14 minutes, 58 seconds thing that was done. So normally uh 15:07 15 minutes, 7 seconds So it will have around 1% impact you can say 1% of revenues. Yes. 15:14 15 minutes, 14 seconds Total revenue sir all put together right. Right. 15:19 15 minutes, 19 seconds Okay. So around so to I mean roughly for only for the quarter so about 200 uh 21 crores. 15:28 15 minutes, 28 seconds Yes 21 crores. 15:30 15 minutes, 30 seconds Okay. Okay. Understood. Understood. So the other thing was uh you spoke about lead distance is coming down because of 15:38 15 minutes, 38 seconds the demand being a little weak. Uh a can you give the lead distance and b you know how how is the demand now panning 15:46 15 minutes, 46 seconds out um in particularly you know in the month of July August how are you seeing the outlook in terms of uh the movement of uh volumes? 15:58 15 minutes, 58 seconds Yeah. Now the lead distance is uh uh for this quarter for exim it was 688 16:04 16 minutes, 4 seconds kilometers and domestic it was 1356 km total 792 kilmters. 16:11 16 minutes, 11 seconds So uh now the demand is very good as I told you in Q2. So this north India is 16:19 16 minutes, 19 seconds showing good demand and uh both imports exports as well as domestic domestic has picked up in Cuban. uh it was somehow 16:27 16 minutes, 27 seconds subdued. So it has picked up now and we are getting good uh volumes. 16:34 16 minutes, 34 seconds Okay. Okay. And in terms of uh you know the um you know uh export import uh you 16:42 16 minutes, 42 seconds know any uh improvement that you're seeing out there particularly given this whole uh trade related issues tariffs uh 16:49 16 minutes, 49 seconds are you seeing any slowdown per se that you're witnessing now uh in August September 16:57 16 minutes, 57 seconds see all I can tell you is that uh in Q1 we have posted a handsome growth of 12% in export import handling and uh till now we are able to maintain that. 17:09 17 minutes, 9 seconds So we are not seeing any impact. 17:13 17 minutes, 13 seconds Okay. Sure sir. I'll come back in the question queue. Thank you. Okay. 17:20 17 minutes, 20 seconds Thank you. Our next question is from the line of Priyanker Biswas from JM Financial. Please go ahead. 17:28 17 minutes, 28 seconds Uh thanks for sir for the opportunity. 17:30 17 minutes, 30 seconds Uh my question is uh C sir in uh last year 1Q the exam volume base was quite 17:38 17 minutes, 38 seconds low because it was if I recall uh something like uh 481,000 17:45 17 minutes, 45 seconds TUS on an originating basis. Uh and then in September we had a large increase as well and this rate was maintained in 17:53 17 minutes, 53 seconds September and December. So given that even on a weak base uh we were not able to deliver a very strong growth. So what 18:01 18 minutes, 1 second gives us the confidence that uh in the next two quarters we will have growth on a relatively high base. So that's my first question. 18:11 18 minutes, 11 seconds Uh as I told you uh in this quarter you are right it was around 4 lakh 81,000 18:19 18 minutes, 19 seconds last year in agreement originating but we are able to give 10.2% 2% growth in that and for Q2 I can tell you same growth is being maintained. 18:30 18 minutes, 30 seconds So what is the question exactly? I'm not able to understand. We are able to maintain that growth and uh we are there is a demand in import export both. So 18:39 18 minutes, 39 seconds what what exactly are you asking? I'm not able to understand. 18:42 18 minutes, 42 seconds You see I am asking that in September 2024 quarter uh your exam volumes 18:48 18 minutes, 48 seconds increased very sharply. So from 480,000 TUS on on handling basis uh on 18:56 18 minutes, 56 seconds originating basis to something like 550,000 TUS broadly. So that was a steep jump almost like 15% quarteronquarter 19:04 19 minutes, 4 seconds jump that you had last year. So can a similar level of growth happen QOQ this time as well? 19:13 19 minutes, 13 seconds See I am not an astrologer so I cannot predict what will happen in the remaining part of the year. All I can tell you is there are good indications 19:20 19 minutes, 20 seconds that there will be a very good growth in this financial year also. What will happen I don't know. I can only see the 19:28 19 minutes, 28 seconds market forces that are operating and what volumes we are getting because of our various policies. So it is giving us results. Even in this Q2 I'm telling you we are maintaining the growth of Q1. 19:41 19 minutes, 41 seconds Okay sir. And sir if I may uh add another question. uh can you uh just uh comment on the pricing landscape? So 19:49 19 minutes, 49 seconds what I'm essentially trying to see is uh like what is the how how does our 19:55 19 minutes, 55 seconds pricing stand let's say versus uh other CTOs on the same on same routes and what 20:03 20 minutes, 3 seconds is the comparable uh pricing for roads uh given that the diesel prices have been sort of stable if you can elaborate 20:12 20 minutes, 12 seconds on that. See uh pricing normally uh what we do is when we do pricing we take uh of course road rates into comparison uh 20:21 20 minutes, 21 seconds we don't see what our CTOs are offering because uh uh our service levels are completely different from them. Normally I don't I will not like to comment on 20:30 20 minutes, 30 seconds how they are pricing their products but the very proof that we are able to maintain 55 to 60% market share and uh 20:38 20 minutes, 38 seconds it proves that uh what whatever pricing whatever service levels we are able to maintain customers are using our 20:45 20 minutes, 45 seconds services what model they are following I cannot comment on that so sir if we benchmark against road so 20:53 20 minutes, 53 seconds uh like uh diesel prices I was saying was sort of being stable. So can you comment uh like uh how has the at least 21:02 21 minutes, 2 seconds wherever you have direct roads competition like uh what is the sort of differential we have visa vase uh roads 21:10 21 minutes, 10 seconds on a general basis uh and uh since you are also offering let's say first mile and last mile at uh several place 21:18 21 minutes, 18 seconds several places as well so on a total delivered basis I mean from doto customers so how how are how does our 21:26 21 minutes, 26 seconds offerings compare versus let's say a p roads as I already told you since we are able to attract traffic so that means we are 21:34 21 minutes, 34 seconds competitive more than that I cannot disclose in the conference call these are commercial decisions of the commercial decision of the company it 21:43 21 minutes, 43 seconds cannot be put in public domain uh thanks sir uh that was all from my side okay 21:50 21 minutes, 50 seconds thank you our next question is from the line of Achelare from Noama Please go ahead. 22:00 22 minutes Good morning sir. Thank you for the opportunity. Uh sir um uh I just wanted to check in in terms of the first mile 22:08 22 minutes, 8 seconds last mile what is the mix in one queue and how do you see it uh changing um you know and what kind of impact does it 22:17 22 minutes, 17 seconds have in terms of the uh uh you know profitability or uh profit contribution? 22:25 22 minutes, 25 seconds The first mile last mile we are able to do of a total volume 30 around 35% we 22:31 22 minutes, 31 seconds are able to do first mile last mile in Q1 also we are able to do 35%. Now we are going to scale up and we are not 22:41 22 minutes, 41 seconds looking per se at a very high profit margin on this segment but uh we are using it as a you can say marketing tool 22:50 22 minutes, 50 seconds to attract more and more business to our fold uh even with very less margin. We are uh aiming to attract more customers 22:59 22 minutes, 59 seconds so that we get uh more business and in turn uh more traffic on rail warehousing 23:06 23 minutes, 6 seconds and handling. So that will be our major uh sources of revenue not first mile last mile but of course it is a profitable business. We are not incurring any loss in that. 23:18 23 minutes, 18 seconds And is it fair to say that uh this uh first mile last mile revenue would be what uh 5 7% of the um uh you know 23:26 23 minutes, 26 seconds handling revenue total revenue. Would that be a fair assumption for the exam revenue? 23:31 23 minutes, 31 seconds Uh it would be even lesser than Yes. Yes. It is around 5% of total revenue. Yes, you are right. 23:39 23 minutes, 39 seconds Of uh total exam revenue you mean right sir? This is more for the exam you're talking about or you're talking about the 23:45 23 minutes, 45 seconds uh no I am talking about the uh total uh revenue it was around 98 cr rupees for 23:52 23 minutes, 52 seconds Q1 so it is uh almost uh for the total revenue I'm talking both the first mile last mile is for exam domestic both 24:02 24 minutes, 2 seconds right understood the second question I had uh sir in uh you know if I if I look at the segmental revenue what you have 24:10 24 minutes, 10 seconds given and the volume what you've given for the exam I get a realization of uh roughly uh around 26,000 24:20 24 minutes, 20 seconds uh so that's decline about 4% y any particular reason uh you know you did mention the lead distance 24:28 24 minutes, 28 seconds um uh the north cargo is that the only reason or you think there is an element of um the discounting part will also 24:36 24 minutes, 36 seconds play out in this uh realization uh aspect as well right sir the volume discount what you mentioned yeah 24:43 24 minutes, 43 seconds actually you have mentioned correctly lead is the only reason because of the 4% decline in lead and 24:52 24 minutes, 52 seconds less demand in north India that was the only reason for uh less realization and how about the volume discount uh 25:00 25 minutes reconciliation you mentioned that uh would have had an impact on the revenue and hence the realization right sir 25:07 25 minutes, 7 seconds volume discount volume discount on reconciliation of course will have some impact but major reason was the decrease in lead. 25:17 25 minutes, 17 seconds Understood. Understood. Sir, if you could help us uh you know with the market share uh uh for port wise and also the port mix sir. 25:27 25 minutes, 27 seconds Yes. Uh at JNPT uh our market share is uh 58.39%. 25:34 25 minutes, 34 seconds In Q1 last year it was 56.02%. 25:38 25 minutes, 38 seconds Mundra Mundra port uh it is 36% last year it was 38%. 25:44 25 minutes, 44 seconds Sipawa it was 49% same as last year and aggregate sir what do you have 25:51 25 minutes, 51 seconds overall India level overall India level yeah India level our market share exam domestic combined was 53.6%. 26:02 26 minutes, 2 seconds Sorry only exam sir if you if you could help with that. Only exam is 53.1%. 26:09 26 minutes, 9 seconds And the last year same quarter sir last year it was 55%. 26:15 26 minutes, 15 seconds Understood. Understood. And uh the port mix if you could sir. 26:21 26 minutes, 21 seconds Uh port mixed these concore volumes from ports. Yeah. Yeah. G&P contributed 35%. 26:28 26 minutes, 28 seconds Mundra 35.3%. Pipawa 8%. Visak 6%. Chennai 4.8%. 26:38 26 minutes, 38 seconds Uh Wala Padam 5%. Rest all were small like N 2% 20.1%. 26:46 26 minutes, 46 seconds Got it. And uh MT's cost if you could help us the absolute number for domestic exam sir. 26:53 26 minutes, 53 seconds Yeah. Uh it was do exam it was uh 27.69. 26:58 26 minutes, 58 seconds 69 crores domestic 65.64 64 crores total 93.32 crores 27:06 27 minutes, 6 seconds and these are sustainable uh given the way things are evolving have I understood right sir yes these are sustainable 27:13 27 minutes, 13 seconds perfect uh thank you I have more questions but I'll fall back in the queue sir thank you so much okay thank you our next question is from the 27:21 27 minutes, 21 seconds line of Anupam Gowami from BNK securities please go ahead 27:29 27 minutes, 29 seconds hello sir uh sir you mentioned about uh some volume discount in the Q1. uh how do we uh take the realization for the 27:37 27 minutes, 37 seconds rest of the quarter and given some uh demand being muted in the first quarter. 27:43 27 minutes, 43 seconds Are we seeing that pent-up demand coming in the 9 months? 27:48 27 minutes, 48 seconds The reconciliation was done only in this Q1 as I told you initially and now we are seeing good demand. There won't be 27:55 27 minutes, 55 seconds reconciliation now. So we can expect good numbers from uh Q2 onwards. 28:03 28 minutes, 3 seconds I'm sir um so clarifying sir we don't expect any much broader discounts in the 28:09 28 minutes, 9 seconds next Q2 onwards right sir. And then employee cost will also be extra cost that was award that was given and it was 28:18 28 minutes, 18 seconds only in this quarter that also will not be there in the coming quarters. So uh all these were one time things. 28:27 28 minutes, 27 seconds Okay. So, and uh double stacking now been increasing. Should we expect how much of the total volume uh if we can 28:36 28 minutes, 36 seconds get some unit economics in that how much of a margin improvement should follow in the next uh let's say in the coming years. 28:46 28 minutes, 46 seconds What exactly? I'm not able to understand your question. 28:50 28 minutes, 50 seconds Sir uh double stacking now that we are increasing where do we see that going and how much of a margin improvement can 28:58 28 minutes, 58 seconds follow double stack actually uh already every year we are going almost uh 20 to 25%. 29:06 29 minutes, 6 seconds This year also we are going 11.2% 2% growth we have seen. So now double stacking we'll see around this growth 29:13 29 minutes, 13 seconds only and uh from when the J&P comes on double stack by December then from Q4 of this financial year we can see some real growth in double stacking. 29:28 29 minutes, 28 seconds Okay sir. Okay. Uh so J&P do we don't see any further delay as of now? 29:35 29 minutes, 35 seconds No, no. I think uh it is going to be commissioned by December 25. Okay. Thank you. 29:43 29 minutes, 43 seconds Thank you. 29:45 29 minutes, 45 seconds Thank you. Our next question is from the line of Max Condia from Jeffre. Please go ahead. 29:55 29 minutes, 55 seconds Yeah. Hi, thanks for the opportunity that just here. Uh so sir my first question is if you can help us uh maybe 30:03 30 minutes, 3 seconds understand this volume discounting part a bit better. I mean what happened why was it given and uh how should we read it for the coming quarters although I 30:12 30 minutes, 12 seconds mean uh can you throw some color and what extent has of it has been reflected in the exam or the domestic segments that's one and two couple of bookkeeping 30:21 30 minutes, 21 seconds questions if you can help us with the lead distance and the effect margins for the last quarter that is 1K 25 please 30:29 30 minutes, 29 seconds as I told you uh we are seeing very good growth in ex Plus domestic also from this quarter 30:38 30 minutes, 38 seconds onwards we are seeing a good demand and good growth we are able to maintain. So this will uh increase our volumes and 30:47 30 minutes, 47 seconds which will be uh we will be able to achieve the guidance that I gave you at the start of financial year. So this will translate into good financial numbers also in the coming quarters. 30:58 30 minutes, 58 seconds And lead distance is uh I told you it was uh 792 kilometers for this quarter for the 31:06 31 minutes, 6 seconds company. What other bookkeeping question do you want sir? Sir, I was asking for the last 1 QFI 25 last quarter the lead distance 31:14 31 minutes, 14 seconds and live fate margin rail freight margin for the last quarter not 1q26 but 1Q 25 it was rail freight margin was 24.36%. 31:29 31 minutes, 29 seconds This this year it is 26.96%. 31:32 31 minutes, 32 seconds Sure sir sir uh I mean just uh to understand at volume reconciliation part I mean uh what was the reason why it was 31:40 31 minutes, 40 seconds given do I mean is it like an rise in competitive intensity and therefore you have to provide discounts or uh what exactly happened if you can help us 31:48 31 minutes, 48 seconds understand that better please sorry it was a little unclear for me this volume discount reconciliation is normally that we pay to our shipping 31:57 31 minutes, 57 seconds lines and our customers to uh that's a incentive kind of scheme If they give more volume they get more discount. So 32:05 32 minutes, 5 seconds these numbers uh are calculated and at the end of the financial year sometimes uh it uh spilled over to the next 32:13 32 minutes, 13 seconds quarter for making payments to them reconciliation takes some time and uh that is the only reason. So are you 32:20 32 minutes, 20 seconds saying that these are actually discounts given in the last financial year but are book reflected now is that the way to look at 32:28 32 minutes, 28 seconds actually these are the discounts uh which were for the volumes offered in the last financial year. I would like to put it in that way. 32:37 32 minutes, 37 seconds Okay. And I mean the reason I'm hoping that on this realization part and the discount part is because some one of your smaller peers also reflected a 32:44 32 minutes, 44 seconds decline in realization. So just trying to understand if at an industry level you are seeing a pricing aggression kind of thing. 32:52 32 minutes, 52 seconds No no it is it is not that it it happens every time. Uh reconciliation takes some time. You are you are very well 32:59 32 minutes, 59 seconds conversant in finance. So you know these things actually there is no change in our discount policy. Whatever discount 33:08 33 minutes, 8 seconds has been given the figures were being reconciled with the customers. After reconciliation their bills are settled. 33:17 33 minutes, 17 seconds So that takes little time. So that happened. There has been no change in volume discount policy. The policy remains the same. So we don't expect any adverse effect this year. 33:29 33 minutes, 29 seconds Okay. Sir uh can you speak a little bit about the outlook on the you did speak that exempl growth is good but do you 33:37 33 minutes, 37 seconds see any challenge amidst whatever is happening on the tariffs tariff side globally and all that. So what is your reading on that side? If you have can throw some color please. 33:47 33 minutes, 47 seconds Till now uh we have not experienced any effect on our volumes as a result of tariffs. Uh but we should be very 33:56 33 minutes, 56 seconds optimistic. I can only say that if one door is closed there are several other doors which can be opened. 34:03 34 minutes, 3 seconds I think you will understand. 34:06 34 minutes, 6 seconds Sure sir. Thank you very much and all the best. 34:10 34 minutes, 10 seconds Okay. Thank you. Thank you. Our next question is from the line of Kupa Shankar from Aendes Park. Please go ahead. 34:19 34 minutes, 19 seconds Uh good afternoon sir and uh thank you for the opportunity. Uh my first question will be on the land license fee. Uh just wanted to get a sense 34:28 34 minutes, 28 seconds around uh any any uh decisions taken with respect to surrendering of uh some of the unused land and uh reducing this 34:35 34 minutes, 35 seconds LLF uh cost which we were contemplating last year. So any thoughts around that? 34:43 34 minutes, 43 seconds That is a as I told my earlier conference calls also that is a continuous exercise being done by our company that wherever we find that land 34:52 34 minutes, 52 seconds is surplus or if we come up with a terminal near the uh existing facility 34:59 34 minutes, 59 seconds or which is kept into the same interland then we immediately surrender the land. 35:03 35 minutes, 3 seconds So that process is continuous like in Japur we have a terminal at Bhagati Koti now we are m coming up with a new 35:12 35 minutes, 12 seconds terminal at Salabas. So we will surrender railway land at Bhakti Koti and we will have our own uh terminal at Salabas. So this is a continuous 35:20 35 minutes, 20 seconds exercise that we are undertaking. So that is why you can see that despite the formula of 7% growth in LLF every year 35:29 35 minutes, 29 seconds we are able to maintain the same uh number that we are paying to this is the only reason 35:38 35 minutes, 38 seconds uh my second question would be domestic side of things um uh while I do understand that there are certain 35:46 35 minutes, 46 seconds challenges with respect to volume growth uh coming in the first quarter and we are quite optimistic about the second 35:53 35 minutes, 53 seconds half. Uh the the 20% difference what you have given puts a lot of uh pressure on 36:01 36 minutes, 1 second achieving in the second half. So just want to get some more sense that um you know are there any other efforts uh you 36:10 36 minutes, 10 seconds are trying to uh trying to incorporate for example catering beyond cement into 36:16 36 minutes, 16 seconds or so on uh to deliver 20% growth uh okay domestic 36:24 36 minutes, 24 seconds uh my I will request my director domestic he will take this question 36:31 36 minutes, 31 seconds actually as uh I mean our CMD underlined that the growth in the domestic has been subdued. So there have been reasons to 36:39 36 minutes, 39 seconds it you know that one was that we have been banking on the supply of tank container for cement. You know cement 36:48 36 minutes, 48 seconds movement of cement in loose is having a very mean great demand you know around 70 to 80 million of loose cement in 36:56 36 minutes, 56 seconds moving in the balka the thousand container uh order we have given five 500 to bra and then 500 to in the open 37:05 37 minutes, 5 seconds market. First rakes we have got that got delayed basically and the second rate we are going to get in this month only. 37:13 37 minutes, 13 seconds These are the two rates and the 500 tank container orders we have given to Bakan fabricator a company in Ahmedabad. They 37:20 37 minutes, 20 seconds have I mean assured us that within two to three month they shall be starting supply of their container the first rate we shall be getting within 3 months. So 37:29 37 minutes, 29 seconds I think combinedly this is one aspect where we are going to get the traffic and you know that there is no d of the demand with respect to movement of bulk 37:38 37 minutes, 38 seconds cement in tank containers. The second is the movement of liquid cargo like uh when uh plastic soda, benzene and all 37:47 37 minutes, 47 seconds those we have been in talk to customers and uh we are likely to get additional traffic with the movement of liquid tank 37:56 37 minutes, 56 seconds liquid in the tank containers and then we have been basically tying trying to tie with the with with the big corporate 38:03 38 minutes, 3 seconds houses for uh offering traffic directly to container corporation. Our CMD has met the top bosses in JK and sir had a 38:12 38 minutes, 12 seconds meeting with Mr. in Chanekran also have the Tata group some few days back and uh 38:19 38 minutes, 19 seconds had a meeting with CMD sale also. So I think to boost the domestic traffic and 38:25 38 minutes, 25 seconds then uh get and then ensure a growth whatever guidance has given. So I think we are on the line and to cater this 38:34 38 minutes, 34 seconds traffic we have given a,40 ft open top containers for carrying various steel products. So I think these two three 38:42 38 minutes, 42 seconds initiatives like bul cement and then liquid cargo and the association with the top growth and the 40 ft open top 38:51 38 minutes, 51 seconds container for steel movement. I think these combined uh together we are going to get a good traffic in the domestic I 38:58 38 minutes, 58 seconds think starting from the mid of the second quarter and then subsequently third and fourth quarter. 39:05 39 minutes, 5 seconds Understood. Thank you for that detailed explanation. Uh one last question if I may. Um on the exam side of things uh 39:13 39 minutes, 13 seconds sir you did mention that the real coefficient has increased ina uh just wanted to get a sense you know 39:21 39 minutes, 21 seconds what has uh led to this improvement uh um in this quarter and uh the extent of 39:29 39 minutes, 29 seconds sustainance of uh this improvement going ahead. uh uh while you did mention that J&P leg will further improve the rail 39:36 39 minutes, 36 seconds coefficient levels but just wanted to get a sense on uh what is driving this improvement in Mundra and Pawa 39:44 39 minutes, 44 seconds actually is getting more traffic for ICD so that's a healthy trend I should say at Mundra around 2% and tipa it is 39:54 39 minutes, 54 seconds around 3% we have seen a growth in Q1 which is a good trend and uh that means uh more and more businesses coming on 40:03 40 minutes, 3 seconds rail which is good for the country and it's a green mode of transport so we have to encourage more and more movement 40:10 40 minutes, 10 seconds on rail all right uh thank you for answering my questions and all the question 40:20 40 minutes, 20 seconds thank you our next question is from the line of Adita Monga from Kuk securities please go ahead 40:29 40 minutes, 29 seconds yeah thank you for the opportunity Um just a clarification to start with. Um from what I could recall, you you you 40:37 40 minutes, 37 seconds gained 200 basis points of exam market share in JNPD and you lost 200 basis points of exam market share in Mundra 40:45 40 minutes, 45 seconds and both these are kind of equally relevant in your port mix. Uh uh how come have you lost 200 basis points 40:53 40 minutes, 53 seconds overall in margins? Is it just a growth differential between Mundra and everything else or am I missing something over here in margins? 41:04 41 minutes, 4 seconds No, no. Um I'm just saying in market share. So apologies for the confusion. 41:09 41 minutes, 9 seconds It's market share not margins. Yeah. So just that you you won as much in J&P incrementally as you lost in Mundra and 41:18 41 minutes, 18 seconds both these are equal heavyweights in your port revenue mix. And uh how come you've lost 200 basis points on overall 41:26 41 minutes, 26 seconds margins? I could not um get it very well. 41:29 41 minutes, 29 seconds So now the thing is that I as I told you in my opening uh address uh there was a subdued demand in North India uh in our 41:38 41 minutes, 38 seconds ICDS like uh Touglakabad, Dadri, Gujana and Pantagar and primarily the Mundra uh 41:47 41 minutes, 47 seconds traffic is being uh you know catered by North India ICDS. So this uh subdued demand in north India directly reflected 41:55 41 minutes, 55 seconds in Mundra volumes. So that is the reason of 200 basis points drop at Mudra and 42:02 42 minutes, 2 seconds JNPT is primarily catering to areas like uh uh this Hyderabad, Nagpur, Indor, 42:11 42 minutes, 11 seconds Bopal. So these ICDs have done extremely well and uh both in imports and export terms. So that is why we are seeing a 42:20 42 minutes, 20 seconds good growth in JNPT, Ankleshwar also, Bodha also all these ICDs of uh central India I should say and South some ICDS 42:30 42 minutes, 30 seconds uh they have shown a very good growth trend. So that is why J&P saw a good growth of uh 200 basis points and Mumbra 42:38 42 minutes, 38 seconds we lost 200 basis points because of less demand which is now now market share right 42:46 42 minutes, 46 seconds this is market share right so you lost market share in MRA because someone else gained market share right not because of the yes yes someone someone has gained 42:55 42 minutes, 55 seconds market share because in their ICDS they've got more uh uh containers and we somehow could not get in our ICP. 43:05 43 minutes, 5 seconds Sure. Just a related question as in um in Mundra your market share obviously. 43:09 43 minutes, 9 seconds So in JNPT you have been able to reverse the market share trend but in Mundra um that has not happened over the last 2 43:16 43 minutes, 16 seconds three years. Um any any specific kind of thought process on on how as in any learnings from J&PD can we reverse the 43:25 43 minutes, 25 seconds trend in Mundra incrementally and how to go about it? 43:29 43 minutes, 29 seconds See uh all the markets are not same. Uh some on some uh segments there is very 43:36 43 minutes, 36 seconds low uh margin uh movements also which consciously we are not picking up uh uh low margin business. It's not the policy 43:45 43 minutes, 45 seconds of the company to pick up any margin business. So uh that is the only reason as far as learnings are concerned. 43:51 43 minutes, 51 seconds Definitely we keep on uh keep track of our various customers various ICDs. We do threadbear detailed discussions and 43:59 43 minutes, 59 seconds wherever course corrections are required we are taking that course correction. 44:05 44 minutes, 5 seconds Understood. Uh on the second question is more on the rails rate margin. Um as in obviously it's handsomely improved. Uh 44:13 44 minutes, 13 seconds um um what are the reasons driving the same and and and from here on to go up from 27% as in what else can happen? 44:23 44 minutes, 23 seconds See the uh two three reasons are there. 44:25 44 minutes, 25 seconds Uh first is the uh reduction in uh empty running cost which I have already explained and due to the excellent 44:33 44 minutes, 33 seconds planning of our operations team. Then double stacking has also increased which has also contributed to uh the bottom 44:40 44 minutes, 40 seconds line in real margins. Then uh we are able to do uh related thing is that we are able to do both side movement in uh 44:49 44 minutes, 49 seconds domestic which is also increasing and uh in exam also we are getting imports exports both. So this is uh these are 44:58 44 minutes, 58 seconds the various factors that contribute to improvement in rate fair margin and 27% rafford margin is very good I should say 45:06 45 minutes, 6 seconds and uh let us hope that we will able to maintain this. 45:11 45 minutes, 11 seconds Sure. I mean just a related question as in we've seen real freight margins go up. Obviously there's a do domestic component. I'm assuming there's an exam 45:17 45 minutes, 17 seconds component as well. Uh but then we have lost market share on the exam side and does the company think through uh or or 45:25 45 minutes, 25 seconds see merit in using the pricing angle in some form to retain or regain back market share on an overall basis in exam. 45:34 45 minutes, 34 seconds Yeah, actually we keep on working uh we keep uh working on that and uh we are doing strategically uh where to uh 45:43 45 minutes, 43 seconds trigger with where to play with our uh rail frees and tariffs and all. So and where where we can give discounts to get 45:51 45 minutes, 51 seconds more volumes that is a continuous exercise that we are doing and uh uh but uh we don't drastically reduce our 45:59 45 minutes, 59 seconds margins to grain volumes. We we try to have enter into a contract with big players like I told you big corporate 46:07 46 minutes, 7 seconds houses and then uh based on the some uh signing of some contract or some agreement with them. We give them some special rates or special discounts. 46:16 46 minutes, 16 seconds These are the policies that we adopt to gain our volumes randomly. We will not uh bring down our tariff so that uh we 46:24 46 minutes, 24 seconds can get more volumes. We don't work on that philosophy. 46:30 46 minutes, 30 seconds Maybe just a last question from my side and then then I'll fall back into the queue. Um on the domestic side of things uh has the market shares shown any 46:38 46 minutes, 38 seconds change um over the last one year and if so what are the reasons if there is any uh meaningful change that has happened 46:45 46 minutes, 45 seconds on a yi basis in the domestic side of things domestic actually we saw a drop in our market share which was a very big 46:54 46 minutes, 54 seconds drop and the reason uh as I told my in my opening remarks uh that low margin traffic consciously we have not picked 47:04 47 minutes, 4 seconds in domestic and uh we we are facing intense competition from BCTOS and uh 47:11 47 minutes, 11 seconds because of the policy that we will not pick up the low margin business somehow market share has dropped. 47:18 47 minutes, 18 seconds I'm sorry I missed a number. If you could just repeat the fall and is it the same competitor in Exim that is hurting you on domestic those final things. 47:26 47 minutes, 26 seconds Thank you so much. Yeah. 47:28 47 minutes, 28 seconds number is last year it was 57.7% this year is a 55%. And uh I will not like to 47:35 47 minutes, 35 seconds take the name of competitors that will not be fair. Got it. Thank you so much. Thank you. 47:43 47 minutes, 43 seconds Thank you. Our next follow-up question is from the line of Achal Lohari from Noama. Please go ahead. 47:53 47 minutes, 53 seconds Uh sir um just a small clarification. So you said um the market share in uh 48:00 48 minutes Mundra actually dropped and as much we have gained in chain PT uh and uh the mix is similar. So how 48:09 48 minutes, 9 seconds come we dropped as much at the overall uh uh exam uh market share sir? 48:19 48 minutes, 19 seconds Okay. uh exam market share overall it comprises of pan India volume apart from G&P and Mudra because GNP and Mudra 48:28 48 minutes, 28 seconds contribute combined 70% of our total exim so ref% is also there so that also 48:36 48 minutes, 36 seconds contributes to uh market share okay no what I was saying is that if I 48:45 48 minutes, 45 seconds look at the uh market share um it's stable like pip mundra pip jp 48:52 48 minutes, 52 seconds together would be the largest proportion so is the drop in the non- west coast port that substantial which is driving 49:01 49 minutes, 1 second driving this market share drop at the aggregate level so that analysis we have not carried out it's a good suggestion we'll carry out 49:09 49 minutes, 9 seconds the analysis and get back to you sure sir uh sir one more question if you could help us with uh just a ballpark 49:16 49 minutes, 16 seconds number of the j&P total whatever 9 million TU how much would be destined for north uh uh you know which is which 49:25 49 minutes, 25 seconds is in and around EFC could that be at 2 million 3 million or a million TU there 49:32 49 minutes, 32 seconds about uh this question also I cannot reply now I don't have the data with me right now 49:39 49 minutes, 39 seconds but uh we can reply to you separately sure sir uh and um any any quantification you 49:49 49 minutes, 49 seconds could do with respect to the benefit of the double stacking like you know what kind of saving we would have had uh theoretically out of this double 49:57 49 minutes, 57 seconds stacking volume let's say for the quarter uh actually we had taken out this figure several years back at that time it was 50:06 50 minutes, 6 seconds uh around five lakh rupees for every one double stack train that was handled but we will have to recalculate in the 50:13 50 minutes, 13 seconds present context understood and just last question for LLF What is that number we should work with? 50:20 50 minutes, 20 seconds Like this 110 cr is a sustainable number. So should we work with 440 or should we work with 370? Like you said 50:28 50 minutes, 28 seconds we looking at the same cost of last year. 50:32 50 minutes, 32 seconds Uh I think between 370 and 400 should be a good number. Understood. Understood. 50:41 50 minutes, 41 seconds Um great s those were my questions. Thank you so much. 50:45 50 minutes, 45 seconds Thank you. Our next question is from the line of Ankita Sha from Lara Capital. Please go ahead. 50:53 50 minutes, 53 seconds Uh yeah, thank you. U so the new terminal additions that you are doing uh is this on the uh exam side or domestic side? 51:02 51 minutes, 2 seconds Normally uh now the new terminals that we are creating are all multimodal logistic parts. So they will have both exam and domestic facility. To start 51:11 51 minutes, 11 seconds with it will have only domestic because exam customs notification takes some time. So but eventually it will have both exam plus domestic. 51:20 51 minutes, 20 seconds So our current terminals it is around I think around 60 terminals. Are they fully utilized? 51:28 51 minutes, 28 seconds We have total 66 terminals. So uh yes they are all utilized 100%. 51:38 51 minutes, 38 seconds Oh, that is different figure for different terminals. That detail I cannot give you in this conference call. We can give you separately. 51:46 51 minutes, 46 seconds Got it. Got it. And sir, what is the thought process behind going overseas uh market? 51:54 51 minutes, 54 seconds Thought process is that we want to give uh end to end uh service to our customers from their doorstep up to the 52:02 52 minutes, 2 seconds doorstep of their final consigne. So we were able to give service only up to Indian ports. Now we are giving the 52:09 52 minutes, 9 seconds service right up to the final destination. So that is the basic philosophy of our will be. So what kind of services this will include? 52:18 52 minutes, 18 seconds This will include uh ocean uh uh transportation on ships from uh Indian 52:25 52 minutes, 25 seconds ports to foreign ports and from there to the final destination. 52:32 52 minutes, 32 seconds So you tie up with shipping lines for uh the ocean movement or or you'll you'll 52:39 52 minutes, 39 seconds deploy your own ships and what about as I mentioned in the my opening remarks we have tie up tied up with one RHS 52:48 52 minutes, 48 seconds group of Dubai who is an NVOCC and a big operator in Dubai. So he is taking care 52:54 52 minutes, 54 seconds of movement from uh Indian ports up to Dubai and last mile transportation up to the final destination. 53:02 53 minutes, 2 seconds He is not a shipping line. Okay. Okay. Got it. 53:08 53 minutes, 8 seconds Got it. Okay. Okay. That's it. Thank you, sir. 53:12 53 minutes, 12 seconds Thank you. Our next question is from the line of Pulkit Putney from Goldman Sachs. Please go ahead. 53:21 53 minutes, 21 seconds Uh sir thank you for taking my question. 53:23 53 minutes, 23 seconds answer just one question while a lot has been said for the last few years about JNPT connecting uh to DFC and giving 53:31 53 minutes, 31 seconds huge volumes one uh what is our preparedness all these large container orders that we've placed is that with 53:40 53 minutes, 40 seconds the idea that the volumes will come to us plus is there any rough calculation on what level of volume growth uh would 53:49 53 minutes, 49 seconds come to just not you but uh but rail operators in general after DFC connects because I'm sure when you are placing 53:57 53 minutes, 57 seconds these orders you are doing some calculation on what kind of growth you are likely to get. So just some qualitative guidance would be good 54:05 54 minutes, 5 seconds enough. I'm not asking for actual numbers. 54:09 54 minutes, 9 seconds See now the thing is that uh we are we are fully prepared when TFC connection is done to J. Right now we have four 54:18 54 minutes, 18 seconds terminals already on DFC that is Dad, Katwas, Suruk Ganch and Wama and fifth 54:25 54 minutes, 25 seconds terminal is coming up at Charodi. So we are fully geared up to handle at our terminals. Secondly, we have sufficient 54:33 54 minutes, 33 seconds number of rolling stock. Uh we are already having 394 rakes at the end of this quarter and another three years we 54:42 54 minutes, 42 seconds will be 500 plus rakes. So as far as rolling stop is concerned, as far as terminals are concerned, we are fully 54:49 54 minutes, 49 seconds geared up and uh then uh we will be running timetable trains now from Dadri to JNPT once it is 54:58 54 minutes, 58 seconds connected in collaboration with Indian railways. So it will uh result in lot of cargo shifting from road to rail as we 55:06 55 minutes, 6 seconds have seen in Mudra and they will be all double stack trains. So all I can give you a number is as per the national rail 55:14 55 minutes, 14 seconds plan uh the rail coefficient at present is 18 to 20%. So this will move to 35 to 40%. 55:24 55 minutes, 24 seconds Once uh DFC gets connected to GMPT but that these are the figures in national rail plan and uh of course it will not 55:32 55 minutes, 32 seconds happen overnight. It will take some time to materialize. Suppose by December uh 55:38 55 minutes, 38 seconds 2025 the DFC gets connected to uh GNPT then it will take some uh 7 8 months or 55:45 55 minutes, 45 seconds maybe one year to stabilize this uh volume. 55:51 55 minutes, 51 seconds [Music] 55:58 55 minutes, 58 seconds I hope I have clarified your question. Yeah. Yes sir. That's useful. Thank you. 56:04 56 minutes, 4 seconds Thank you. Our next question is from the line of Anupam Gowami from BNK securities. Please go ahead. 56:13 56 minutes, 13 seconds Uh hi sir sir uh when we saw the d mundra and pip connecting to rail how 56:20 56 minutes, 20 seconds much there the rail coefficient increase and how confident are we in the J&P BSC connecting connecting and rail 56:28 56 minutes, 28 seconds coefficient increasing to that level because I feel mundra we did not see much of a coefficient increase what 56:36 56 minutes, 36 seconds would lead to here sir see there are various reasons Mundra also So uh this quarter we have seen 56:44 56 minutes, 44 seconds increase for Tava also we have seen increase. So maybe uh there's a different dynamics which plays like uh 56:51 56 minutes, 51 seconds some consignees want that they uh they want to destss and use other modes of transport 56:59 56 minutes, 59 seconds shipping lines are also there. So uh these things are there but uh I I can say with confidence that because DFC is 57:06 57 minutes, 6 seconds going right up to GNP whereas in Mundra Pipawa it is feeder roots. So there is lot of difference in that and uh in if 57:14 57 minutes, 14 seconds main DFC is going then u it has the capacity to carry 25 ton axel load 57:20 57 minutes, 20 seconds wagons also which uh which leverage we are not getting at Mundra Pipawa because Indian railway track is not fit for 57:27 57 minutes, 27 seconds that. So double stacking will be much more in J&P. So you cannot compare the two uh PS. 57:37 57 minutes, 37 seconds Okay. So just one last question. uh when we saw tariffs now been uh there's an 57:43 57 minutes, 43 seconds uncertainty in US will that uh somehow slow the growth in ex in India if some 57:50 57 minutes, 50 seconds adverse uh decision is taken there and at the same time we we have lost some market share in domestic how confident 57:59 57 minutes, 59 seconds are we to maintain the guidance uh in volume terms what we uh given earlier 58:07 58 minutes, 7 seconds uh uh till now we have not seen any impact of the tariffs uh on our volumes in Q2 also and uh as I told you earlier 58:17 58 minutes, 17 seconds if one door is closed there are several other doors which can be opened India is a very big economy and uh it's a very 58:24 58 minutes, 24 seconds big market it has got excellent growth prospects so it cannot be ignored in the world trade all or I can only mention 58:32 58 minutes, 32 seconds this much and uh as far as the domestic volumes are concerned my director domestic has already explained in detail 58:39 58 minutes, 39 seconds that we are very confident of achieving the guidance both in exam and domestic. 58:46 58 minutes, 46 seconds Okay sir. Thank you I'll turn I think. Thank you. 58:53 58 minutes, 53 seconds This should be our last question I think. Okay sir. 58:58 58 minutes, 58 seconds Thank you ladies and gentlemen. This was the last question for today and I now hand the conference over to Miss Bumi Gayar from Dam Capital. Over to you ma'am. 59:09 59 minutes, 9 seconds Yes sir. Um thank you very much uh for giving us an opportunity to host the call and all the participants as well for being on the call. Thank you very much sir. 59:18 59 minutes, 18 seconds Thank you. 59:21 59 minutes, 21 seconds Thank you on behalf of DAM Capital. That concludes this conference. Thank you for joining us and you may now disconnect.