Container Corporation of India Ltd — Q2 FY26

Container Corporation of India Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=H_GESxmwy6I Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Container Corporation of India Limited earnings call Q2 FI26 0:09 9 seconds hosted by DAM Capital. As a reminder, all participant lines will be in the listenonly mode and there'll be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:24 24 seconds operator by pressing start then zero on your Touchstone phone. Please note that this conference is being recorded. I now 0:32 32 seconds hand the conference over to Miss Bumika Naya. Thank you and over to you ma'am. 0:38 38 seconds Yeah, thanks. Uh good morning everyone and a warm welcome to the Q2 FI26 earnings call of container corporation 0:44 44 seconds of India. We have the management being represented by Mr. Sanjay Swarup, chairman and managing director. At this point I'll hand over the floor to him 0:53 53 seconds for his initial remarks post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:00 1 minute Yeah, good morning uh Bumika. Uh I am joined by my uh uh directors uh Mr. Ajit Kumar Panda director projects and 1:09 1 minute, 9 seconds services, Mr. Mohammad Aash Shams, director domestic division uh Mr. Vijay Kumar Singh uh director international marketing and operations and uh Mr. 1:21 1 minute, 21 seconds Hanurak Kapil, director of finance, Mr. 1:24 1 minute, 24 seconds Harish Chandra, principal executive director of finance and CFO of the company. I would like to make initial remarks and then we can proceed with 1:32 1 minute, 32 seconds question answers. At the outset, I am uh glad to announce the dividend uh approved by board of directors rupees 1:40 1 minute, 40 seconds 2.6 on a share of uh par value rupees 5. Uh that makes a total dividend this year of 1:49 1 minute, 49 seconds rupees 4.20 20 which is 84% of the par value of share and the performance of 1:56 1 minute, 56 seconds the company in Q2 has been the ever highest throughput of 1.44 44 million TUS, ever highest operating income and 2:04 2 minutes, 4 seconds ever highest pack in the history of the company in any quarter. We have achieved throughput of 2.73 million TUS in first 2:13 2 minutes, 13 seconds half of FY26. Throughput growth has been 11% year-on-year basis in which XM is 2:20 2 minutes, 20 seconds 10.2% domestic is 13% and in the India's international trade also merchandise 2:28 2 minutes, 28 seconds trade has increased by 3%. in first half of this financial year and total export was uh $220.1 2:36 2 minutes, 36 seconds billion US which is 3% increase imports was uh uh 375.1 billion US which is 4.5% 2:45 2 minutes, 45 seconds increase in the first half of this financial year domestic demand domestic uh you know throughput has been slightly 2:52 2 minutes, 52 seconds less as per our expectations the main reasons were the uh less demand in cement due to monsoon 3:00 3 minutes which is now picking up. Then uh Gunny bales also there was less demand and tiles traffic also there was less demand. Now uh demand is picked up and we are having good loading in domestic. 3:10 3 minutes, 10 seconds Apart from that 10 container supply we had given orders for 1,000 containers. 3:15 3 minutes, 15 seconds We have already got 200 containers and supply is now uh uh being smooth and we will be we will be getting good uh 3:24 3 minutes, 24 seconds supply of tank containers which will help us in ramp up our loading in domestic uh streams. Market share uh 3:33 3 minutes, 33 seconds there has been increase at JNPT 178 basis points and decrease at Mundra 3:39 3 minutes, 39 seconds 261 basis points increase at Pipawa 178 basis points. The good thing is that we have increased the market share at ports 3:48 3 minutes, 48 seconds and uh at the same time we have increased our margin also. So rail freight margin has increased from 26.17% to 27.80%. 3:59 3 minutes, 59 seconds Operating margin has increased from 30.47% to 31.44%. 4:05 4 minutes, 5 seconds So margin has also increased and market share has also increased. Growth in operating income for the first half is 2.7%. 4:13 4 minutes, 13 seconds growth in PAD is 1.3%. 4:16 4 minutes, 16 seconds And uh this growth would have been more but uh because of two reasons uh it it is it is slightly you know not in 4:24 4 minutes, 24 seconds conformity with the physical volume growth. First reason is the subdued demand in domestic streams uh for the first half of financial year and second 4:33 4 minutes, 33 seconds reason is the decrease in exim lead by 2.5% due to less demand in north India ICDS. 4:41 4 minutes, 41 seconds Then there has been a good growth in double stack handling almost 7.4% growth. Last year we have handled 3083 4:49 4 minutes, 49 seconds double stack trains. This year it is 3312 in the same year-on-year basis. 4:55 4 minutes, 55 seconds Then uh my operations team has performed excellently and they have uh planned the rakes in a rake movement and loading in 5:04 5 minutes, 4 seconds a very nice manner which has resulted in reduction in empty running of rakes uh rakes and containers. Exim empty running 5:13 5 minutes, 13 seconds is down by 18% domestic it is down by 6.7%. So overall it is 10.2% on year 5:21 5 minutes, 21 seconds basis. We are quite optimistic of the demand in future which is now uh driving 5:28 5 minutes, 28 seconds the uh infrastructure additions also in the first half we have commissioned 21 rakes new rakes highspeed rakes and 5:37 5 minutes, 37 seconds which takes us total count to around 410 rags we have procured 3,000 containers which takes our total count to around 5:45 5 minutes, 45 seconds 56,000 containers uh fleet for concent 5:52 5 minutes, 52 seconds rupees 420.35 crores as against a budget of rupees 860 crores. Board of directors have deliberated and most probably we 6:00 6 minutes will be increasing the budget because we have to increase uh more infrastructure spending. Target for uh infrastructure 6:07 6 minutes, 7 seconds for 2028 remains the same. 100 terminals, 500 plus rakes and 70,000 containers for Concore. Uh in Exim we 6:17 6 minutes, 17 seconds are experiencing excellent growth which is likely to continue. WDSP connectivity to JNPT is likely by March 2026. 6:26 6 minutes, 26 seconds uh initially it was uh December 2025 but it has been pushed uh by some 6:33 6 minutes, 33 seconds export growth for the first half is very good in rice almost 41% growth auto 6:39 6 minutes, 39 seconds parts 18% growth meat that is buffalo meat refer which goes in reer containers we have seen 18% growth and aluminium 6:48 6 minutes, 48 seconds ingots 13% growth imports growth is quite good in solar panel there's a glass items which is a component in 6:55 6 minutes, 55 seconds solar panel it is we have seen a five times growth in imports in this particular commodity raw cotton we have 7:02 7 minutes, 2 seconds seen 100% growth and auto parts we have seen 46% growth in first part of financial year we have commenced new 7:10 7 minutes, 10 seconds exil refer road come rail service from our ICD at BDI to Mudraur via Tadri DPD 7:18 7 minutes, 18 seconds movements uh will get a further boost which will increase our volumes and we have come up with a new liberalized policy of DPD which will further bring 7:27 7 minutes, 27 seconds us more business and more revenue. DPE movement from our uh terminal at Kimi has also uh grown manifold. In last year 7:36 7 minutes, 36 seconds it was nil. This year till now we have moved 275 TUS from Kami to Mudra port. 7:43 7 minutes, 43 seconds Uh growth in imports has also been uh quite good at all the ports. J&P 17.5% 7:49 7 minutes, 49 seconds growth Mundra 2% and Chennai port 15% Vishaka Patnham port around 6% growth is 7:56 7 minutes, 56 seconds there. In domestic we have achieved a big breakthrough by signing MUS with two giants in cement sector. First is Ultr 8:04 8 minutes, 4 seconds tech cement and second is Adani cement for movement of bulk cement in tank containers. So this will be a very big 8:11 8 minutes, 11 seconds driver of domestic streams in the coming months. 8:15 8 minutes, 15 seconds Gunny bails and cement demand are showing very good growth signs from Q3 onwards. 8:22 8 minutes, 22 seconds Concor has been an integral part of new initiatives of end-to-end logistics launched by Indian railways. Three initiatives have been launched by 8:30 8 minutes, 30 seconds honorable minister of railways for which concour is an integral part. First is the assured transit time train from 8:38 8 minutes, 38 seconds Delhi to Kolkata which is being well patronized by trade and it is moving to P uh it is almost uh 80% occupancy is 8:46 8 minutes, 46 seconds there and by this month end we will have 100% occupancy of this assure transit team. This is a big hit with the trade. 8:53 8 minutes, 53 seconds Second is management of Sony goodshed in Lucknau division. We are developing this goodshed into an integrated logistics 9:01 9 minutes, 1 second hub which is be which will be a new you know line of business for the company. 9:06 9 minutes, 6 seconds This is has been given on pilot basis by Indian railways to Concord for four years and we will be uh demonstrating 9:13 9 minutes, 13 seconds the uh positive impact of this move and Indian railways is quite inclined to give us more good share to Concord for 9:21 9 minutes, 21 seconds developing uh in integrated logistics hub where we will be giving uh warehousing and logistics solutions to 9:29 9 minutes, 29 seconds customers and uh this is a this is a very big uh step for end to-end logistics by Indian railways and third 9:37 9 minutes, 37 seconds the parcel service from Mumbai to Kolkata in which we are giving first mile last mile solutions also this is again a very big hit with the trade and 9:46 9 minutes, 46 seconds mind you these businesses are very high margin businesses which will be uh very keenly watched by all the investors in 9:54 9 minutes, 54 seconds the coming months then uh guidance I would like to uh keep them unchanged at 13% exim 10% domestic 20% we are quite 10:03 10 minutes, 3 seconds optimistic and positive that we will achieve this guidance. Lastly, I will like to tell the uh all the investors 10:11 10 minutes, 11 seconds that we are securing the future of the company in a very nice way for long-term business growth. First is we have signed 10:18 10 minutes, 18 seconds MOU with Vadan port where they have appointed us common rail operator on nomination basis. We'll be designing the 10:26 10 minutes, 26 seconds railard, managing the railard, everything rail operations at new Vadwan port which is coming on north of JNPT 10:32 10 minutes, 32 seconds and it will be on DFC. It's a port of the future. It will be commissioned by 2030. Concor has become an integral part of Vadwan port by signing this MOU. 10:43 10 minutes, 43 seconds Second, we have signed MOU with a Bhagavag port private limited. We will be operating the container terminals at Bhagavaga port which is again a port of 10:51 10 minutes, 51 seconds the future. It is the nearest port for NCR area and very well connected by rail. 10:58 10 minutes, 58 seconds Third is we have made serious foray into shipping sector. Now our containers have crossed the shores of India. They are 11:06 11 minutes, 6 seconds moving into Middle East. We have signed an MOU with a Dubai based company. 11:10 11 minutes, 10 seconds Already 200 containers have gone to uh Middle East and most of them have come back loaded. So we are getting both way 11:18 11 minutes, 18 seconds loaded direction loaded traffic which is a very big boost to our business. We are in talks with uh some companies in Far 11:25 11 minutes, 25 seconds East and we will be very soon starting our Far East services also. This is also a very high margin business. We are getting more than 30% margin on every 11:34 11 minutes, 34 seconds container. So this is also this will be also a growth area as far as our top line and bottom line are concerned and 11:42 11 minutes, 42 seconds in future we hope that uh we will expand it exponentially. So this is the opening remarks from my side. Now you can ask your questions please. 11:52 11 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 12:00 12 minutes star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 12:09 12 minutes, 9 seconds requested to use handsets while asking a question. 12:13 12 minutes, 13 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 12:19 12 minutes, 19 seconds The first question comes from the line of Disha from Ashika Institutional. Please go ahead. 12:28 12 minutes, 28 seconds Hello. Uh hi sir, thank you for giving me the opportunity. Uh you did mention a lot of initiatives and a lot of MUS that 12:36 12 minutes, 36 seconds would help fuel the growth of Encore for the future. But uh my question is regarding FI26 that uh a 10% volume 12:44 12 minutes, 44 seconds growth in XIM uh and a 20% volume growth in uh domestic how will you be able to fulfill it? If you could just help us uh 12:53 12 minutes, 53 seconds understand it in quantitative terms because uh for these growth rates to be fulfilled uh we would need a minimum of 13:02 13 minutes, 2 seconds uh low singledigit growth uh going forward for the quarteron quarter. So that's what I wanted to understand 13:11 13 minutes, 11 seconds the uh if you uh if you are observing it closely in the first half of financial year already we have achieved 10.2% 2% 13:19 13 minutes, 19 seconds growth in exim. So as I mentioned to you uh this growth is likely to continue and maybe it will further increase now that 13:25 13 minutes, 25 seconds busy season has picked up and uh we are getting good volumes in imports as well as exports. So exam I am quite 13:33 13 minutes, 33 seconds optimistic that it may exceed my guidance also I gave the guidance of 10% already 10.2% we are achieving I am 13:40 13 minutes, 40 seconds hopeful we will exceed this guidance. As far as domestic is concerned I gave the guidance of 20%. And uh in the first 13:47 13 minutes, 47 seconds half we have achieved 13%. So there is a lack and uh in almost in for the second half we will have to go for 26 to 27% of 13:55 13 minutes, 55 seconds growth in domestic to maintain the to end the year with 20% growth. So uh we are working on it as I told you we have 14:04 14 minutes, 4 seconds good demand in bulk cement. We have signed mus with alt tech cement as well adani cement and then we are getting good demand in gy bales. we have good 14:12 14 minutes, 12 seconds demand in tiles traffic. So all these will be drivers for growth in domestic. 14:16 14 minutes, 16 seconds So I'm quite optimistic that uh we will be able to able to end the year with 20% growth in domestic also. 14:24 14 minutes, 24 seconds For domestic could you help us kindly understand uh it in quantitative terms if any numbers you can throw in like how much volume boost you are expecting from 14:33 14 minutes, 33 seconds use with Adani and Ultra Tech and how much from Gani Bales. 14:37 14 minutes, 37 seconds At this moment uh it will be difficult to tell the numbers to you but uh we have made our internal calculations and we are quite optimistic to achieve the target. 14:47 14 minutes, 47 seconds All right. Uh so my second question is regarding the average revenue per TEU. 14:52 14 minutes, 52 seconds Uh while volumes have been increasing our uh realizations have been going down since the past four five quarters on a 14:59 14 minutes, 59 seconds minimum basis which kind of impacts our revenue. Uh should we assume that for the domestic business uh uh 14,000 15:08 15 minutes, 8 seconds approximately uh uh sorry for the exam business 14,000 and for the domestic business around 22,000 uh per tu to be 15:16 15 minutes, 16 seconds the average uh realization that we are looking forward for if you see in exam uh it is not 14,000 15:24 15 minutes, 24 seconds it is in the range of 27,000 per tu if you see the originating volume as I explained exim there is uh drop of lead by 2.5%. 15:35 15 minutes, 35 seconds So this is the basic reason for drop in realization. It is not 14,000. Kindly correct your numbers. Sure. 15:43 15 minutes, 43 seconds Yes. 15:44 15 minutes, 44 seconds And uh for domestic sir domestic it is in the range of 57,000 to 58,000. So there is a slightly uh in 15:53 15 minutes, 53 seconds domestic sorry in domestic it is increased from 56,000 to 57,000. So there is a growth in uh realization per tu. What is what exactly is your 16:02 16 minutes, 2 seconds question? There's no drop in domestic relation per you. 16:07 16 minutes, 7 seconds So I am looking it at in terms of total volumes handled. So that is where I'm trying to understand. 16:13 16 minutes, 13 seconds Finally divide by originating volume not by handling. All right. So understood. Thank you. 16:22 16 minutes, 22 seconds Thank you. The next question comes from the line of Bumika Nay from Dam Capital. Please go ahead. 16:30 16 minutes, 30 seconds Yes sir. Um sir could you first just share the originating volume numbers for this quarter? 16:36 16 minutes, 36 seconds Yeah I answered you uh for this quarter uh originating volume in uh exim is uh 16:45 16 minutes, 45 seconds 5861 use domestic 135440 16:53 16 minutes, 53 seconds total it is 721451 to use. Okay sir. Uh when you give your guidance for the 10% growth in exam and 17:03 17 minutes, 3 seconds 20% in domestic is that on handling or on originating basis? It is on handling. 17:10 17 minutes, 10 seconds Okay. So how should we look at you know because the profitability everything is pretty much on the originating basis. 17:17 17 minutes, 17 seconds How should we look at the originating volume growth for both these segments for the year? 17:22 17 minutes, 22 seconds Uh normally uh all of you are very seasoned people. So you already know that uh from handling very easily you 17:30 17 minutes, 30 seconds can derive originating it is almost 65% of uh handling sure roughly roughly if you see ballpark it 17:38 17 minutes, 38 seconds is 65% of uh handling originating okay 17:46 17 minutes, 46 seconds yes sir yes sir sir in terms of exam um you know you did mention there's been some improvement in ports etc um if you 17:54 17 minutes, 54 seconds can talk about uh you know how are you seeing the outlook in terms of the shipping lines and uptick in the volumes from both export import perspective and 18:03 18 minutes, 3 seconds then within that how is the rail coefficient also kind of playing out at all the three ports um particularly once 18:10 18 minutes, 10 seconds the uh DFC is operational how do you see that further improving if you can just give some qualitative comment on that 18:18 18 minutes, 18 seconds see uh rail coefficient is seeing increase in all the three main container ports uh J&P also it has increased inreed from 15.68% to 15.83%. 18:30 18 minutes, 30 seconds Mundra it has increased from 23.82% to 24.9%. 18:34 18 minutes, 34 seconds Pipawa it has increased from 57.42% to 58.14%. 18:39 18 minutes, 39 seconds So all the ports are showing a growth in rail coefficient. So in and when DFC comes then uh definitely there will be 18:47 18 minutes, 47 seconds further boost in uh real coefficient at JNPT and uh which is at present it is in the range of 16%. I am hoping that uh 18:56 18 minutes, 56 seconds overnight of course that miracle will not happen. It will take at least one year time. It will double up in one year. I'm quite uh sure of that. 19:06 19 minutes, 6 seconds Right. And will that drive more double stacking and uh you know more balance of trade in your opinion which will help 19:14 19 minutes, 14 seconds further in terms of the uh margin improvement or do you think there will be enough competition from road and other operators which will restrict and 19:22 19 minutes, 22 seconds will will restrict the margin profile and we may need to pass it on to the customers the benefits of the efficiency improvements. 19:30 19 minutes, 30 seconds See uh uh you are right uh double stacking will further get a boost when DSP is connected to JNPT and secondly uh 19:39 19 minutes, 39 seconds we will be able to run assured transit train also from NCR area to J&P maybe in 24 25 hours train will be reaching Nasha 19:49 19 minutes, 49 seconds which is at present constraint because of the line capacity in various sections and uh this will give a very big boost 19:56 19 minutes, 56 seconds and in double stacking in the upper deck normally it is light carbon is carried and light cargo at present is economical 20:03 20 minutes, 3 seconds to move by role. So when double stack comes then uh upper deck we have to pay less hol charges. So we will share the 20:10 20 minutes, 10 seconds benefits or uh as I had mentioned earlier also we don't sacrifice our margins. Whatever savings we are doing 20:19 20 minutes, 19 seconds part of that saving we will share with our customers so that uh it becomes very economical to them to move by train and 20:27 20 minutes, 27 seconds it it becomes a transit assurance kind of thing will also be there. So all basically transit assurance and cost these are the two things in logistics 20:35 20 minutes, 35 seconds which are extremely important for a trader. 20:40 20 minutes, 40 seconds Yeah. Uh that helps us. So can you just share the uh lead distances and also the empty running charges? 20:48 20 minutes, 48 seconds Yes. Uh lead distances uh were uh 687 kilometers in exim and 1326 kilometers 20:56 20 minutes, 56 seconds in domestic. Total it is 785 kilometers for this first half. I'm telling you the figures for first half of this financial 21:04 21 minutes, 4 seconds year. Uh similarly empty empty running uh is uh for exim first half it is 52 21:11 21 minutes, 11 seconds crores and domestic it is 132.53 crores total it is 184.53 crores last year it 21:20 21 minutes, 20 seconds was exim 63.47 crores domestic 142 crores total 205.47 47 crores. 21:29 21 minutes, 29 seconds Okay sir, this helps. I'll come back in the question queue. Thank you so much. 21:33 21 minutes, 33 seconds Okay, thank you. The next question comes from the line of MKkesh Sha from Aendes Park. 21:45 21 minutes, 45 seconds Please go ahead. 21:47 21 minutes, 47 seconds Yes sir. Uh thank you for the opportunity. This is MKkesh Shara here. 21:51 21 minutes, 51 seconds Um sir, the first question is on market shares. you had alluded that there's some improvement in market share. So could you kind of give the number uh for 21:59 21 minutes, 59 seconds examin market share uh currently for you? I had mentioned that we have increased our market share at ports but 22:07 22 minutes, 7 seconds overall market share uh we have seen a slight dip uh in uh exim it has dropped for first half of the financial year it 22:16 22 minutes, 16 seconds has dropped from 55.9% to 54.1% in domestic it has dropped from 58% to 22:23 22 minutes, 23 seconds 55.7% and total it has dropped from 56.5% to 54.5% almost 200 basis points it has dropped in total. 22:35 22 minutes, 35 seconds Okay. So, this is again only because you're uh kind of not taking the lower margin and the shorter listed uh lead distance businesses or is there some 22:44 22 minutes, 44 seconds competitive intensity change that we are seeing in terms of pricing or or services offered by others? 22:50 22 minutes, 50 seconds Basic reason is that we have consciously decided not to pick up low margins business and which are uh low lead also. 22:57 22 minutes, 57 seconds And second thing is there's a less demand in domestic. So now we are hoping to recover it. And uh then one more 23:06 23 minutes, 6 seconds thing is that uh we were actually uh one commodity waste paper in North India 23:12 23 minutes, 12 seconds which is coming from that we were uh we had actually our competitors had given some competitive rates and it was it has 23:21 23 minutes, 21 seconds moved from us that is the reason for decrease in market share at Mundra. So now we have uh done our uh work uh and 23:28 23 minutes, 28 seconds uh we have offered good rates to customers and it is likely to come back to us now. 23:34 23 minutes, 34 seconds Got it. Got it. And in one of the comments you had mentioned about this assured transit trains that you'll start to Navasha obviously once DFC 23:42 23 minutes, 42 seconds connectivity comes. Uh but currently are you not doing this already for say Munda or Pipa ports from NCR because a large 23:50 23 minutes, 50 seconds part of that is already connected on the DFC? 23:54 23 minutes, 54 seconds Yes, of course we are doing for Mundra port. Uh in my earlier conference calls, I have already told you it is it is a very big hit freight express trains from 24:02 24 minutes, 2 seconds our mega MMLP at Gadri. We are running uh trains to Mudraur and which has 24:10 24 minutes, 10 seconds helped us to shift lot of cargo from road to rail. 24:14 24 minutes, 14 seconds Sir any sense you can give us u u maybe just u approximately what proportion of u u you know volumes we are moving on 24:22 24 minutes, 22 seconds these assured timetable kind of trains uh in this route just to kind of help us understand you know how much more 24:30 24 minutes, 30 seconds improvement can come once you start offering more of this service uh uh you mean shift in volume from road 24:37 24 minutes, 37 seconds to rail that is almost uh 12 to 15% shift is there in from road to rail Okay. But um you'll also I mean um uh 24:46 24 minutes, 46 seconds you'll also be offering the non uh assured uh services uh right now sir on this route the non- timetable 24:53 24 minutes, 53 seconds that number I don't have with me right now. I can view you later on here. Understood. 25:01 25 minutes, 1 second All right sir. Thank you. I'll get back. 25:06 25 minutes, 6 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Achal from Noama. 25:18 25 minutes, 18 seconds Please go ahead. 25:22 25 minutes, 22 seconds Good morning sir. Thank you for the opportunity. Uh sir uh if you could give us some sense about the opportunity size for the bulk cement. I'm not uh seeking 25:32 25 minutes, 32 seconds for the volume guidance on that but just an opportunity. How large is this and currently it is moved by road uh or by 25:40 25 minutes, 40 seconds Indian railways if you could clarify that uh and what is the cost-saving proposition to the customer uh when they are shifting to the tank containers. 25:50 25 minutes, 50 seconds Yeah, it's a very big uh growth area and I can only say that very less is moving by rail uh most of the uh quantity is 26:00 26 minutes moving by road only and my director domestic Mr. Azar Shams will give all the details. I will pass on the phone to him. 26:09 26 minutes, 9 seconds Hello, I am Mohammad Azar Sham, director domestic. 26:13 26 minutes, 13 seconds With respect to bulk cement whatever you raise the question as of now you know that uh in total the total production 26:21 26 minutes, 21 seconds cement in India is around 400 400 million tons. Out of this 400 million t cement production 70 million t is being 26:30 26 minutes, 30 seconds moved by road that is in bulk condition out of this 70 million tons railway is moving 7 million t only 10% of the b 26:39 26 minutes, 39 seconds cement is being moved as of now by Indian railways in their specialized wagon we call it DCCW and DCFC okay to 26:49 26 minutes, 49 seconds the remaining 63 million is moving by bulkar on road we all have been saying on road that bulkyman going on bulkars. 26:57 26 minutes, 57 seconds So we want to tap this gap of 63 million t whatever is being moved by the bulkars because the containers offer very 27:05 27 minutes, 5 seconds doortodoor service. For example in one bular 35 to 40 t cargo is going and in one train of 90 container we are moving 27:14 27 minutes, 14 seconds around 2,500 t and keeping in view the infrastructure project and development and the focus of the government on 27:22 27 minutes, 22 seconds different infrastructure projects. The demand of the bulk cement has increased like anything. We have been in touch 27:28 27 minutes, 28 seconds with ultra tech and any our cmders and the line. So this mean moment of bulk 27:35 27 minutes, 35 seconds cement is just to multiply. So to get those business and the sky is the limit you know that 63 million turn is a huge 27:43 27 minutes, 43 seconds quantity and if we start getting 1 million 2 million or 3 million the only constraint is availability of the tank 27:51 27 minutes, 51 seconds container. As of now we can't import the tank container from China. So as 27:59 27 minutes, 59 seconds Bharat initiative of government of India we have given thousand container orders to Indian companies 500 to brew and then 28:07 28 minutes, 7 seconds 500 to the open market that is basant in container manufacturer in Ahmedabad. So out of 500 orders given to DWE that is a 28:16 28 minutes, 16 seconds railway PSU we have got 200 container which we are moving in three circuits from Hyderabad area and the five 28:25 28 minutes, 25 seconds container order whatever we gave to Basant manufacturer. So they are likely to start giving us deliveries by mid of 28:32 28 minutes, 32 seconds December. So as soon as we get the container the constraint only is the availability of the container. As soon 28:39 28 minutes, 39 seconds as we get the container, we are having agreement in place, cargo is available, we will start immediately moving the cargo. So the limiting factor is 28:48 28 minutes, 48 seconds availability of the container on which we are focusing on just uh ensuring that how quickly we can get those containers. 28:59 28 minutes, 59 seconds Uh just to clarify uh uh you know in terms of the profitability of this uh uh 29:07 29 minutes, 7 seconds uh tank container will be similar or it could be better than the existing uh margin. Peru actually it will be certainly I mean uh 29:16 29 minutes, 16 seconds the our margin will increase because as of now we are not moving much of cement we are moving just batch cement that is 250 containers with whatever we are 29:25 29 minutes, 25 seconds allowed. So in that our margins are you know very limited but with bulk uh whatever three stream we are running 29:34 29 minutes, 34 seconds from I mean as of now our margins are there certainly on the higher side and which are likely to increase you know 29:42 29 minutes, 42 seconds the agreement whatever we have entered with ultra tech so that is the quantity is around one lakh ton per month so and 29:49 29 minutes, 49 seconds similar with adani and other party so our margin in this bulk cement will certainly be higher side as compared to our existing margin in domestic. 30:01 30 minutes, 1 second Got it. The second question uh sir if you could help us with the uh port mix please and the port wise market share please. 30:09 30 minutes, 9 seconds Okay. Yeah it is uh J&P it is 35.5%. 30:16 30 minutes, 16 seconds Mundraur 35 quarter or first half. Sorry sir I'm interjecting. Uh this is for the quarter or first half. You see it's for the first half actually. 30:23 30 minutes, 23 seconds First half. Okay. 35.5 J&P Mundra 35.3%. Pipawa 8.18%. 30:32 30 minutes, 32 seconds Vishakapatnam 5.3%. Chennai 4.5%. Balar padam 5.3%. 30:40 30 minutes, 40 seconds Eno 2.1%. Tupali 1.6%. And tutti 1%. 30:50 30 minutes, 50 seconds And if you could uh help us with the uh market share as well. Uh market share at ports. 30:58 30 minutes, 58 seconds Ports. Yes sir. 31:00 31 minutes Market share at ports uh at JNPT it has increased from 57.5% to 59.4%. 31:08 31 minutes, 8 seconds Mundra port it has decreased from 38.8% to 36.2%. 31:14 31 minutes, 14 seconds Pawa port it has increased from 48% to 50%. 31:21 31 minutes, 21 seconds So two out of these three large ports have seen a uh market share expansion yet you said the market share has actually come off. If you could uh 31:30 31 minutes, 30 seconds clarify uh that's okay to have shown increase but Mundra port we are down is a major 31:38 31 minutes, 38 seconds contributor almost you have seen uh onethird of our through Mundra port Mundra port our market share has come 31:45 31 minutes, 45 seconds down and at uh other places also uh J&P there was there is a growth in market 31:52 31 minutes, 52 seconds share but we could have managed more because of the low margin things we are So all these has contributed in uh less 32:00 32 minutes uh slight dip in market share for us in ex. 32:06 32 minutes, 6 seconds Got it. And just last question uh with respect to J&P whatever 8 to 9 million TU gets handled how much is actually 32:13 32 minutes, 13 seconds going to north at this stage sir according to you J&P is not uh sending I don't have the 32:20 32 minutes, 20 seconds numbers with me right now but uh it's not much is coming to north it is catering to 32:29 32 minutes, 29 seconds you know Maharashtra area and lot of volume is going there and apart from that lot of volume is going to Hyderabad 32:36 32 minutes, 36 seconds AD area and uh it is we have an ID there in Hyderabad and it is getting good exports from Bangalore also for mainline 32:45 32 minutes, 45 seconds vessels going to west countries. So by Bangalore we are running uh as three services in a week which are very well 32:53 32 minutes, 53 seconds patronized by trade or J&P. So uh north India of course uh uh lot of volumes are 33:01 33 minutes, 1 second not coming mostly it is catered by Mundraur but let's say we'll change the scenario and that would be because of the 33:09 33 minutes, 9 seconds timetable because of the cost proposition because from a time perspective it will be a little longer distance right hir 33:17 33 minutes, 17 seconds yeah as I told you uh transit time and cost are the two main factors which determine the uh you know choice of the trader. ers uh what port they will use. 33:28 33 minutes, 28 seconds So both these things will be quite positive for NPT. 33:35 33 minutes, 35 seconds Got it. Uh thank you. I'll fall back in the queue for further questions. Thank you. 33:41 33 minutes, 41 seconds Thank you. The next question comes from the line of Krishna Nu Saha from Quantum AMC. Please go ahead. 33:49 33 minutes, 49 seconds Yeah, thanks for taking my question. 33:52 33 minutes, 52 seconds Just uh quickly just from the uh container tanks for cement just 33:59 33 minutes, 59 seconds understand one tank can take in how many like suppose they're going as you said they are going by trucks so one tank 34:06 34 minutes, 6 seconds container takes how many trucks or is it like same amount of quantity volume 34:13 34 minutes, 13 seconds one tank container can have 31 tons of cargo truck 35 truck can carry 35 34:20 34 minutes, 20 seconds same This is just a clarification and and just to understand on the real state just one minute. 34:28 34 minutes, 28 seconds No actually the USB of tank container is in the nunic and this can directly go to the project site 34:35 34 minutes, 35 seconds and then RMC plants it is not the case with the bulkar whatever the cement is being moved in those kind of arrangement. Okay. So that is a hit 34:44 34 minutes, 44 seconds because USP it is very handy. You can take the tank container to whatever place you want. Suppose 31 tons mean 34:52 34 minutes, 52 seconds cement is there. So you can upload 15 t at one location, 10 ton at other locations and then similarly you can 34:59 34 minutes, 59 seconds serve the industry or the project. This is not a flexibility with respect to bulk and 35:06 35 minutes, 6 seconds and then and one more point which I would like to underline that in containers we are giving free time and 35:13 35 minutes, 13 seconds they can around 20 to 30 days and cement manufacturer can store our remain they going to keep their cement in tank 35:21 35 minutes, 21 seconds containers for 20 to 30 days. So that save the unloading and then they are housing kind of an arrangement. So this is again a very big plus. 35:30 35 minutes, 30 seconds This is a very big plus because it it eliminates the uh requirement of secondary warehousing by the consumer. 35:37 35 minutes, 37 seconds So he can use container as warehouse and as director domestic has explained after free time we charge very nominal rate 35:45 35 minutes, 45 seconds from the customer and he can use uh like suppose 31 ton cargo is there he wants to use 15 ton 35:53 35 minutes, 53 seconds today and he wants to use rest of the cargo after 15 days he can keep the container with him and pay the nominal charges to us. So this will eliminate 36:01 36 minutes, 1 second the uh otherwise he will have to hire another warehouse to keep the cargo right. So that way it is very beneficial and uh uh traders are and customers are 36:11 36 minutes, 11 seconds very happy with this kind of arrangement. 36:13 36 minutes, 13 seconds I see and in spite of giving 30 days 20 days uh free time we are still above the company margins for this this business. 36:22 36 minutes, 22 seconds Yeah. Yeah. That we have that that care we have taken uh it will be good margins for the company 36:30 36 minutes, 30 seconds and um on this uh this cement tankers are not funible. They can only be used for cement. That's that's that's the understanding just from my knowledge. 36:38 36 minutes, 38 seconds You can use fly ash can also be transmitted food. 36:44 36 minutes, 44 seconds No no actually with these cement tank container we have experimented with fly ash also and we have experimented with 36:50 36 minutes, 50 seconds aluminina powder also. So our focus is first move the cement I can tell we will try to get both way traffic either 36:58 36 minutes, 58 seconds aluminina powder or fly ash demand of fly in the cement industry. Okay. So the whole value chain. Yeah. 37:05 37 minutes, 5 seconds Right. Thanks. Thanks. That's for clarification. Just for the rail freight, uh if I might ask for my knowledge, this is the first quarter. If 37:12 37 minutes, 12 seconds I divide it by the handling volume, it just basic mathematics, it it is 8,700 roughly. This is the lowest I've seen in 37:19 37 minutes, 19 seconds the last uh whatever quarters and going back to the years. So with the double tracking coming in and uh things getting 37:28 37 minutes, 28 seconds better for us, how do you see the rail freight part you moving for us? uh you can give some direction on that if it'll helpful and the LLF do you think this is 37:37 37 minutes, 37 seconds a rate quarterly rate which is there 1,00 sorry 100 110 crores is the rates 37:44 37 minutes, 44 seconds per quarter will it stay out there or it can improve or increase as we expand more so just on the cost side please if you can help me thank you 37:53 37 minutes, 53 seconds uh now uh I will suggest you uh use the originating volumes and not the ending volumes they not the proper indicator 38:00 38 minutes so uh for your kind information rail margin in fact has increased year on year. Uh for first half of less last 38:09 38 minutes, 9 seconds financial year it was 26.17% and now it has become 28 uh sorry it has become 27.80%. 38:18 38 minutes, 18 seconds So there has been a good increase in rail fade margin uh on yearon-year basis. Now uh what was your second 38:25 38 minutes, 25 seconds question? No my first question on the handling sorry the handling will fade with the cost the holage cost. So the 38:32 38 minutes, 32 seconds hollage cost which I saw is on the lowest side. So you clarified you should divide the originality for you. I will do anything. 38:40 38 minutes, 40 seconds Yeah. And the second question on the LS which is running at 110 crores per month. Uh is that a number I can take for the next two three years or you 38:48 38 minutes, 48 seconds should see some increasing also. The uh LLF as you know it is increasing 7% 38:55 38 minutes, 55 seconds every year and our LLF is in the range of 400 to 420 crores every year. So in this year also you may be seeing a 39:04 39 minutes, 4 seconds increase in LLF for this particular quarter from 66 crores to 105 crores. 39:10 39 minutes, 10 seconds But if you see on yearly basis uh every quarter of 100 105 cr is a quite an uh 39:16 39 minutes, 16 seconds you know nominal figure and uh our LLF payout uh is going to remain intact 39:23 39 minutes, 23 seconds because every year we have to increase it by 7% but at the same time we are surrendering some uh terminals by not by 39:32 39 minutes, 32 seconds losing any business but we are coming up with our terminals at those locations. 39:36 39 minutes, 36 seconds So we are surrendering the railway land like suppose for example in Jpur. 39:41 39 minutes, 41 seconds Jhothpur we have a terminal at Bhagati Koti and we are coming up with another terminal at Salawas. We have purchased the land uh from state government and we 39:50 39 minutes, 50 seconds are going to start in this financial year only. Then we will be bringing double stack trains at our present 39:58 39 minutes, 58 seconds terminal which is on railway land. We cannot bring double stack trains. So uh in the new terminal at Salawas we will 40:05 40 minutes, 5 seconds be will we will be bringing double stack trains also this will bring further boost to our business. So when we as 40:12 40 minutes, 12 seconds soon as we commission the Salawas and traffic is started we will surrender the railway terminal. So that will be saving 40:18 40 minutes, 18 seconds for us but uh 7% also there so it will be in the same range only it will remain. 40:26 40 minutes, 26 seconds Okay. Thank you very much for your time. Thank you sir. 40:30 40 minutes, 30 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question 40:38 40 minutes, 38 seconds comes from the line of Jam Sha from Aquarius Securities. Please go ahead. 40:44 40 minutes, 44 seconds Uh thank you for the opportunity sir. Uh sir just one question from my side. Uh when I look at the depreciation number for this particular quarter it has gone 40:52 40 minutes, 52 seconds down. Uh of course there has been a some impact of the LNG truck useful life. We have increased from 8 to 15 years. Other than that is there any oneoff or 41:00 41 minutes anything in this quarter or is the is this the normal run rate we can take into account because our capex is already there then why it would have reduced 41:10 41 minutes, 10 seconds depreciation uh my CFO I will request him to take this question you have rightly said you know depreciation we have changed the rate 41:18 41 minutes, 18 seconds for LNG trucks which has some impact in this quarter and in the last quarter there was you know some capitalization 41:26 41 minutes, 26 seconds which was done retrospectively for one of our DR site which was commissioned. Uh so there was some 41:33 41 minutes, 33 seconds little uh depreciation on that account that's why last quarter it was higher now it is balanced in this quarter. So that's why you can see in the first quarter there is a little higher depreciation which is appearing. 41:45 41 minutes, 45 seconds Got it. Got it. So thank you so much. 41:46 41 minutes, 46 seconds That's thank you. The next question comes from the line of Ka from Jeffrey's group. 41:56 41 minutes, 56 seconds Please go ahead. 41:58 41 minutes, 58 seconds Yeah. Hi sir, thanks for the opportunity. So uh a strategy question, a couple of big equipping questions. So first thing I mean if you were to look 42:05 42 minutes, 5 seconds at it from a company strategy standpoint, I don't know we understand that the competitive interest obviously is rising. So what would your preference 42:13 42 minutes, 13 seconds be for volumes visa v margins? What is what will be your first priority? If I may understand your thought process on that please. 42:20 42 minutes, 20 seconds As I already explained in the earlier calls also we will increase volumes at the same time we will not sacrifice our margins. So that is the company's 42:29 42 minutes, 29 seconds strategy for so many years and it will continue and whatever savings we receive we get that we will share with our 42:37 42 minutes, 37 seconds customers. So that has that I demonstrated in the in my opening address also that we have increased our 42:44 42 minutes, 44 seconds share at ports without sacrificing our margins. In fact our margins have also increased. So our share is also increasing, margin is also increasing. 42:52 42 minutes, 52 seconds So that will be the strategy of the company which will remain in future. 42:59 42 minutes, 59 seconds Okay. Fine sir. Okay. Then a couple of uh other questions sir. I mean firstly if I look at the emptying cost items 43:06 43 minutes, 6 seconds specific to the quarter the domestic seems to have run ahead of you know the volume growth. I mean what is happening here? If you can help us understand a bit better there please. 43:17 43 minutes, 17 seconds Yeah, domestic uh domestic uh empty running has also come down. What is exactly is your question? I'm not able to understand. 43:25 43 minutes, 25 seconds Domestic last year it was 67 cr. This year it is uh 66 cr. It is less. 43:35 43 minutes, 35 seconds Okay then maybe something wrong with my math. So fine sir that's yeah domestic also domestic also it has reduced exam also it has reduced. 43:43 43 minutes, 43 seconds Okay. Uh sir lastly if I may ask you you know what percent of your volumes come from Dadri and Tuklakabad I mean what would that what were the volumes from 43:50 43 minutes, 50 seconds Dad and Tlab in FI25 maybe see Dadri and Touglakabad combined uh total volume you are asking of the 43:59 43 minutes, 59 seconds company yeah sir in terms total volume will be I think uh 44:08 44 minutes, 8 seconds 7 8% 7 to 8% Okay. 78% of total volumes. Understood, sir. 44:15 44 minutes, 15 seconds No, not 78. 7 to 8. Is it seven or seven or eight? 44:21 44 minutes, 21 seconds 7 to 8%. You are speaking in terms of originating volumes only, right? Sir, I mean, no, I speak in terms of handling volumes. 44:28 44 minutes, 28 seconds In terms of handling volumes. Okay. 44:31 44 minutes, 31 seconds Understood, sir. Thank you and all the best. 44:35 44 minutes, 35 seconds Thank you. The next question comes from the line of Nilo Topal Sahu from JM Financials. Please go ahead. 44:44 44 minutes, 44 seconds Hi sir, good morning. Um, am I audible? 44:48 44 minutes, 48 seconds Yeah, congratulations on a good set of numbers. Uh, I wanted to check on uh the profitability levels especially on the 44:55 44 minutes, 55 seconds exam front have been quite good this quarter. Uh, the real margin also we have seen a significant improvement. So wanted to understand what is driving 45:04 45 minutes, 4 seconds this thing and is it like sustainable for the year and probably you could give an outlook for the medium term. 45:12 45 minutes, 12 seconds See uh in exam uh as I told you the operations my operations team has done a very good job and uh they have planned 45:20 45 minutes, 20 seconds the movement in such a manner that uh empty running is minimized and uh it is uh there's a saving of around 18% year 45:28 45 minutes, 28 seconds on year for the first half of the financial year in exim itself. So 18% saving is a huge uh saving and uh double 45:36 45 minutes, 36 seconds stack has also helped us our double stack has grown by 7.4% 4% in the first 45:42 45 minutes, 42 seconds half. So I should say better planning by uh our team has resulted in uh very good margins in exam. 45:54 45 minutes, 54 seconds All right. Thank you. 45:55 45 minutes, 55 seconds That is Thank you. A reminder to all the 46:03 46 minutes, 3 seconds participants that you may press star and one to ask a question. 46:12 46 minutes, 12 seconds A reminder to all the participants that you may press star and one to ask a question. 46:30 46 minutes, 30 seconds The next question comes from the line of Bumika Nayer from Dam Capital. Please go ahead. 46:37 46 minutes, 37 seconds Yes sir. Sir, uh just wanted to ask on this double stack. Um you know if I see uh our double stack numbers are broadly 46:45 46 minutes, 45 seconds now kind of uh you know stabilizing around that 1500 to 18800 uh rigs on a quarterly basis. Um is it that as of now 46:54 46 minutes, 54 seconds we've kind of reached the peak uh capabilities or abilities to kind of double stack given uh the market environment and now the next improvement 47:03 47 minutes, 3 seconds in double stack will only happen once a DFC is operational or better improvement in infrastructure per se. 47:10 47 minutes, 10 seconds Yeah, you are absolutely right. Uh next growth in quantum jump in double stack will come when DFC is connected to J&P. 47:18 47 minutes, 18 seconds As far as Mudra is concerned uh you can say that uh it will be growth will be like this only and not much 47:26 47 minutes, 26 seconds growth we can expect now in double stack till the J&P is connected to DFC. You're absolutely right 47:40 47 minutes, 40 seconds Miss Bumika do you have any further questions? 47:42 47 minutes, 42 seconds Yes sorry I was on mute. Uh so between export and import um you know how is the 47:50 47 minutes, 50 seconds trends in terms of the outlook is there more is it more balanced or um you know are you seeing imbalance continuing in 47:57 47 minutes, 57 seconds terms of the outlook per se if you see on pan India basis I should say it is almost balanced 48:05 48 minutes, 5 seconds but for our key ports like JPT Mundra which is bulk of our volumes 48:13 48 minutes, 13 seconds Mundra is always export heavy and pipawa it is almost balanced and nawasha is import heavy. It is a normal trend. So that is still continues. 48:25 48 minutes, 25 seconds Okay. And in domestic as we do more of these bulk containers for cement etc. 48:32 48 minutes, 32 seconds will the empty running tend to see an increase out here because of that because of the imbalance? The empty running also will be there. 48:41 48 minutes, 41 seconds You are right. But uh we are trying as director domestic already explained we are trying to get business on empty 48:47 48 minutes, 47 seconds direction also because apart from cement we are examining other products like fly ash and aluminina and if we are able to 48:56 48 minutes, 56 seconds tap that then we will bring down the empty running and in empty direction railway gives us some discount also we are availing of that facility. 49:06 49 minutes, 6 seconds Okay. Okay. Okay sir. I'll come back in the question. Thank you so much. 49:11 49 minutes, 11 seconds Okay, thank you. The next question comes from 49:19 49 minutes, 19 seconds the line of Sumit Kashor from Access Capital. Please go ahead. 49:24 49 minutes, 24 seconds Uh good afternoon sir. Uh in your opening remarks you had uh mentioned medium-term growth focus areas of uh 49:32 49 minutes, 32 seconds your shipping sector 4A. Uh you mentioned the Bhavmear container terminal. uh so what exactly will be 49:39 49 minutes, 39 seconds concourse's role there and uh you mentioned good sheds that you are taking over from railways to develop these uh 49:45 49 minutes, 45 seconds logistic sheds so over the next two to three years what kind of revenue uh potential do you see from each of these 49:53 49 minutes, 53 seconds areas um uh if you could uh uh you know deliberate on this thank you yeah uh uh good question uh as far as 50:02 50 minutes, 2 seconds shipping sector is concerned already we have started moving and uh it is fetching us good margins because it is 50:09 50 minutes, 9 seconds both ssided loaded movement and uh almost it is more than upward of 30% margin per container we are getting in 50:16 50 minutes, 16 seconds shipping. So at present I'm not able to give any numbers to this because I don't have with me and uh they will be 50:23 50 minutes, 23 seconds insignificant as far as the total uh numbers are concerned because it's a very very small number but we have made 50:31 50 minutes, 31 seconds the beginning and there is good demand from trade and we have got good fleet of containers 40 ft containers are also arriving and 20 ft already we have a 50:39 50 minutes, 39 seconds good fleet of containers and far service also we are starting so this is a forward integration for our customers our customers have welcomed this 50:48 50 minutes, 48 seconds initiative of the company and they are giving us more and more business. Then second initiative that we have taken is Bahavagar port. We have signed MOU. We 50:56 50 minutes, 56 seconds have experience for port operations and we are minority partner at uh one of the terminals at Nawasha which is called 51:05 51 minutes, 5 seconds GTI. We are running it in partnership with ABM terminals. And second is the terminal at Walar Padam that we are 51:13 51 minutes, 13 seconds running in partnership with DP world. At both the places we are junior partners but at Bhavnagar we will be senior partners. So we have signed an MOU with 51:22 51 minutes, 22 seconds them where we will be operating the terminal container terminal. We will be designing the terminal and then 51:29 51 minutes, 29 seconds operating the terminal also. So we we will have a consortium with a leading uh international port operator. We are in 51:37 51 minutes, 37 seconds talks with some port operators on this subject and very soon we will tie up the deal with them. But this uh terminal 51:44 51 minutes, 44 seconds will be functional from 2030 only. So before that uh we will be doing all the necessary work. We'll be uh placing the 51:53 51 minutes, 53 seconds trains and all and uh rail line will be laid. So all these will be ready and 2030 this uh port will start 52:01 52 minutes, 1 second functioning. Third is the good shed initiative. Indian railways has given one good ship in near Laknau which is 52:10 52 minutes, 10 seconds called Sonic on trial basis to Concord for 2 years extended by another two years at a total four years period to 52:18 52 minutes, 18 seconds develop the good shed into integrated logistics hub where we give warehousing facility to our customers. Then we give 52:26 52 minutes, 26 seconds first mileile last mile services to them. So everything we will do for the customer. So we are developing that also 52:34 52 minutes, 34 seconds on a pilot basis once uh we send the report to railways after one year that what all we have done what facilities we 52:42 52 minutes, 42 seconds have developed how much traffic we have increased then railway board will decide it and analyze it and take a decision 52:51 52 minutes, 51 seconds and uh they are very keen to give more good shed also to concier after seeing the result of this 52:58 52 minutes, 58 seconds particular uh good shed. So and this is also a very high margin business in which uh and altogether a new area for 53:06 53 minutes, 6 seconds us and it's a high margin business where we will be giving end logistics to the customers uh who are bringing their 53:14 53 minutes, 14 seconds cargo to Indian railway rigs. So this is a diversification I should say and uh 53:21 53 minutes, 21 seconds railway has taken initiative for end to end logistics for which they have entrusted concord. 53:29 53 minutes, 29 seconds Okay. So just one followup what is the size of the Bhagavagar uh container terminal that you are planning in terms of whatever to use and uh uh what kind 53:38 53 minutes, 38 seconds of capeex would be required for the terminal and the railway line that you mentioned uh they have a uh birth of around in 53:47 53 minutes, 47 seconds their phase one actually they have two phases in phase one uh I think around 700 to 800 m birth uh will be there so 53:57 53 minutes, 57 seconds and uh uh how much land I I don't remember the number and capeex also we are working out actually we have not 54:04 54 minutes, 4 seconds finalized how much capeex we'll be spending there so rough numbers are available but they will not be of much use to you so once we work out the capex 54:12 54 minutes, 12 seconds numbers we will definitely share it with you sure thank you so much and wish you all the best I think this should be the last question 54:20 54 minutes, 20 seconds now uh sir there are two more questions 54:29 54 minutes, 29 seconds Thank you. The next question comes from the line of Achel from Noama Wealth Management. Please go ahead. 54:37 54 minutes, 37 seconds Yeah, thank you for the follow-up opportunity sir. Um uh sir, first uh on the contingent liability in the annual report uh page 446 you know the 54:47 54 minutes, 47 seconds contingent liability has gone up from 1377 crores to 2120 crores. Uh can can you help us understand what does this 54:55 54 minutes, 55 seconds pertain to? Sir, is it pertaining to the LLF? Is it pertaining to something else? 55:00 55 minutes Sir, I'm very sure it will not be LLF. Uh my CFO can attempt otherwise we'll get back to you. 55:08 55 minutes, 8 seconds You are talking about the last year contingent liabilities which we discuss 55:19 55 minutes, 19 seconds custom bonds and all that. So it may be on account of that the details I'll have to see but it is mainly caront continue 55:26 55 minutes, 26 seconds liabilities are related to these uh elements only exact numbers we will share with you it's difficult to tell now right because in the in the notes it's 55:36 55 minutes, 36 seconds mentioned that uh one of the uh sentences is amount of contingent liability including LLF demand from 55:43 55 minutes, 43 seconds railways for few terminals uh so that that's why the the question the sometime for some terminal They 55:51 55 minutes, 51 seconds might have raised a demand which you know we are contesting that may have been included in that but that's not an actual liability which is payable you 55:59 55 minutes, 59 seconds know that like like for some terminal they might have raised some demand which we are contesting so it could be on that account but major 56:07 56 minutes, 7 seconds continuing liabilities are related to claims and uh you know yeah okay got it sure uh just a clarification on 56:16 56 minutes, 16 seconds the market share if you could uh give us the uh once again sir 1 Market share for exam domestic and the total basis 56:24 56 minutes, 24 seconds exe it is 54.1% domestic 55.7% total 54.6%. 56:31 56 minutes, 31 seconds For this last year same time yes sir and last year how was the number? 56:35 56 minutes, 35 seconds Yeah last year exam 55.9% domestic 58% total 56.5%. 56:42 56 minutes, 42 seconds Got this is very helpful. So thank you and wish you all the Thank you. 56:47 56 minutes, 47 seconds Thank you. The next question comes from the line of Krishna Nu Saha from Quantum AMC. Please go ahead. 56:56 56 minutes, 56 seconds Yeah, thanks again. Just validation how much is value we target of having value added services which is high margin 57:03 57 minutes, 3 seconds business for us. Uh so what is the portion of that uh the percentage of revenue right now? 57:10 57 minutes, 10 seconds Hello at present I don't have the numbers for that. We will get back to you. Oh thank you. Thank you. 57:18 57 minutes, 18 seconds Thank you sir. There's one last question. Would you like to take it? Yes, please. I will take it. 57:26 57 minutes, 26 seconds Thank you. The next question is from the line of Amish Kenani from No Wise Co. Please go ahead. 57:35 57 minutes, 35 seconds Yeah. Uh hi sir sir. Sir the same question that you had uh answered for the Bhawagar. Uh you know I had a question on this Vadwan port. It's a 57:42 57 minutes, 42 seconds it's a very very large port that is emerging out of Maharashtra and JNPT is the operator whatever little we understand if you can give us some sense 57:50 57 minutes, 50 seconds of you know both bhagar and you know vadwan port put together uh beyond 230 it's a very long uh short uh you know uh 57:59 57 minutes, 59 seconds vision horizon but both these together does it uh uh you know change that for a 58:06 58 minutes, 6 seconds longse two points put together does it increase our long-term growth potential? Whatever 58:15 58 minutes, 15 seconds initial thoughts of yours that will be helpful. Thanks. Yeah, definitely it will increase our uh growth potential for the company and uh port operations 58:23 58 minutes, 23 seconds is a very uh interesting field for the company and Vadwan port as you know it is the port of the future designed for 58:31 58 minutes, 31 seconds around 24 million to use handling and uh we will be bidding for uh terminals also very soon bids will come out when they 58:40 58 minutes, 40 seconds will be you know going for bids for terminal operations. We are in talk with uh very 58:48 58 minutes, 48 seconds big reputed players uh port operators international port oper operators we are in advanced stage of talks and they are 58:54 58 minutes, 54 seconds very keen to partner with conc uh as far as the common rail operator 59:02 59 minutes, 2 seconds for which we have already signed with vadwan board that is a common rail operator they have given on nomination to concore they have not invited any 59:10 59 minutes, 10 seconds bids for that they thought is a big player in railbased logic istics. So they have chosen Concord and given it to 59:18 59 minutes, 18 seconds us. So for that we will be designing the railway yard for Vadwan port which will be for receipt and dispatch of trains. 59:26 59 minutes, 26 seconds Then we will be uh after the design and commissioning we will be executing we will be operating the railard also and 59:35 59 minutes, 35 seconds which will be responsible for removal and placement of rakes various rakes for Vadwan port. So that will be a very big business for actually it's a futuristic 59:44 59 minutes, 44 seconds port modern port and 2030 is not very far already 2026 is going to start. So we are ready to take up these 59:52 59 minutes, 52 seconds challenges. These are the challenges and they are the you know bright spots for the company for the future. company has 59:59 59 minutes, 59 seconds got a great future I should say and all these initiatives will help us to propel our revenues and we are in logistics 1:00:07 1 hour, 7 seconds sector not only confined to rail based container logistics this is demonstrated employee by giving uh good shared 1:00:16 1 hour, 16 seconds operations also to us by Indian railways port operations we are going shipping also we are going so we are not confined 1:00:23 1 hour, 23 seconds to one particular stream of business we are expanding uh to various fields of logistics so that we give maximum 1:00:31 1 hour, 31 seconds satisfaction to our customers and increase our business. Thanks a lot. Very reassuring to hear. 1:00:38 1 hour, 38 seconds We'll wait for some capex and you know potential volumes uh numbers emerging maybe by end of the year or whatever. Yeah. Thanks a lot sir and all the best. 1:00:47 1 hour, 47 seconds Thank you. 1:00:48 1 hour, 48 seconds Thank you. As there are no further questions from the line of participants, I now hand the conference over to the management for closing comments. 1:00:58 1 hour, 58 seconds I just want to say that we are standing on very strong fundamentals. We have a huge infrastructure which we are 1:01:05 1 hour, 1 minute, 5 seconds expanding. Ambitious capex plans are there and already I have uh for futuristic growth for long-term growth 1:01:13 1 hour, 1 minute, 13 seconds also I have shared my vision with all of you. So I should say that company is on a great path for progress and we will 1:01:22 1 hour, 1 minute, 22 seconds have uh lots to come in the near future and in distant future also short-term long-term both company has got a very 1:01:30 1 hour, 1 minute, 30 seconds bright uh you know outlook and very bright future we have good connect with customers which is helping us in a very 1:01:36 1 hour, 1 minute, 36 seconds big way. Thank you on behalf of DAM Capital Advisor that concludes this conference. Thank you for 1:01:45 1 hour, 1 minute, 45 seconds joining us and you may now disconnect your lines. Thank you.