Container Corporation of India Ltd — Q3 FY26

Container Corporation of India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2H1TQS3tJ6Y Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Container Corporation of India Limited Q3 FY26 earnings 0:07 7 seconds conference call hosted by DAM Capital Advisor Limited. As a reminder, all participant lines will be in the listenon only mode and there will be an 0:15 15 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:23 23 seconds operator by pressing star then zero on your Touchstone phone. Please note that this conference is being recorded. I now 0:30 30 seconds hand the conference over to Mr. Kunal Sha from DAM Capital. Thank you and over to you sir. 0:37 37 seconds Yeah. Hi everyone. Uh welcome to the 3QF6 earnings call of container corporation of India. Uh we have the management being represented by Mrs. 0:46 46 seconds Sanjay Swup uh chairman and managing director. At this point, I'd like to hand over the call to the management for their opening remarks post which we can 0:55 55 seconds take up the Q&A. Thanks and over to you sir. 1:00 1 minute Good morning uh to all of you. Uh I am Sanja Surup CMD of container corporation. I am joined by my uh 1:08 1 minute, 8 seconds directors Shri Ajit Kumar Panda director projects and services. Mr. Vijay Kumar Singh director international marketing 1:15 1 minute, 15 seconds and operations Mr. Mohammad Oash Shams director domestics and m and Mr. Harish Chandra uh principal executive director 1:24 1 minute, 24 seconds finance company secretary and CFO so I would like to give some opening remarks after that uh we can go for question 1:32 1 minute, 32 seconds answer session at the outset I am uh glad to announce that board of directors have approved a 1:40 1 minute, 40 seconds dividend of rupees 3.4 4 on share of uh 5 rupees par value that is 68% in its meeting uh concluded 1:49 1 minute, 49 seconds yesterday. So till now the total dividend for this uh FY uh that uh has been given to shareholders is rupees 1:58 1 minute, 58 seconds 7.60 uh which is 152%. 2:02 2 minutes, 2 seconds Uh second point is the throughput throughput uh we have achieved uh a throughput of 4.15 million tus in the 2:11 2 minutes, 11 seconds period ending December uh 2025 which is ever highest in company's history throughut growth has been uh around 11%. 2:20 2 minutes, 20 seconds In which uh has increased by 10% and domestic has shown a growth of 13%. And 2:27 2 minutes, 27 seconds it's it quite aligns with the uh in fact it is better than the India's international trade merchandise growth also in which exports have shown a 2:35 2 minutes, 35 seconds growth of 2.4% which is uh 330.3 billion US and imports have uh shown a 2:44 2 minutes, 44 seconds growth of 6% at 578.6 billion US for the first 9 months of this financial year. uh domestic there 2:53 2 minutes, 53 seconds has been a uh less growth as we has projected uh we had projected 20% growth whereas we have achieved around 13%. The 3:02 3 minutes, 2 seconds primary reasons for this is that uh we have not picked up the low margin business in domestics. Second is that uh 3:09 3 minutes, 9 seconds the tank containers which we were thinking that in Q3 we will get a good supply but somehow it got delayed during 3:16 3 minutes, 16 seconds manufacturing and now in Q4 we are getting uh uh supply of tank containers and uh domestic uh loading is picking up 3:23 3 minutes, 23 seconds now and there has been less demand of van bales also because of the disturbances in Bangladesh. 3:32 3 minutes, 32 seconds Uh as far as market share is concerned uh we increased our market share at JNPT by 186 basis points and at the power by 3:40 3 minutes, 40 seconds 93 basis points and Mundra our market share went down by 232 basis points and 3:48 3 minutes, 48 seconds uh the good thing is that we increased the market share without sacrificing our margins. Rise rail fat margin increased 3:55 3 minutes, 55 seconds by around 200 basis points from 25.7% to 27.7%. 4:02 4 minutes, 2 seconds And operating margin also increased by around 100 basis points from 30.2% to 31.2%. 4:09 4 minutes, 9 seconds Operating income has shown a good growth of 3.3%. 4:13 4 minutes, 13 seconds Profit before depreciation has shown a growth of 1.8% for the period ending. 4:18 4 minutes, 18 seconds And uh if we see for the Q3 the profit before depreciation has increased by 7.6%. 4:25 4 minutes, 25 seconds There has been a uh flattish performance of PAT uh due to the uh depreciation uh 4:32 4 minutes, 32 seconds which was uh high by around uh 68 crores uh in this quarter. The reason for that is because in last financial year we had 4:41 4 minutes, 41 seconds uh done some correction for life of wagons. Because of that the depreciation was less in last financial year. So that 4:48 4 minutes, 48 seconds has been now uh at par and uh because of that effect we are seeing a dip in pet where profit before deposition is showing a very healthy growth. 4:59 4 minutes, 59 seconds [clears throat] 5:01 5 minutes, 1 second uh reason for uh less pet are uh some other reasons are also there like there are subdued demand in domestic streams 5:09 5 minutes, 9 seconds and second is the decrease in exam lead by 2% due to less demand in north India and uh deposition I have already 5:17 5 minutes, 17 seconds explained to you LLF also in this quarter LLF is showing increase of 5:24 5 minutes, 24 seconds around 23% and which is in line with the total LLF that we pay to railways around uh 450 K rupees every year. Last year 5:33 5 minutes, 33 seconds there was some reversals. Uh because of that uh the LLF uh in this quarter was 89 crores. It is now in in this 5:41 5 minutes, 41 seconds financial year it is corrected to 110.7 KES which is the actual LLF we will paying to railways. Now uh there has 5:50 5 minutes, 50 seconds been growth in uh double stack rates also growth of 7% in this uh uh financial year till now from 4608 rates 5:59 5 minutes, 59 seconds to 493 rates which is a quite a healthy growth and reduction in empty running of rates has is also quite substantial in 6:07 6 minutes, 7 seconds exam it is 21% domestic it is 8.5% total 12%. So both these factors uh growth in 6:15 6 minutes, 15 seconds double stack reduction in empty rags have made a positive contribution to the company's bottom line. uh we have we are 6:23 6 minutes, 23 seconds continuously upgrading our infrastructure as I have been telling in previous calls also uh in this financial year till now we have commissioned 31 6:31 6 minutes, 31 seconds highspeed rakes which is which is also a all-time high for the company and uh now we are having a robust fleet of 413 6:40 6 minutes, 40 seconds rakes uh in our uh you know kitty and we are procured we have procured around 3,800 containers in this financial year 6:48 6 minutes, 48 seconds till now so total container fleet stands at around 57,000 containers of our own ownership. 6:57 6 minutes, 57 seconds Uh seeing the robust demand in the market which I will be just telling you uh a short while from now the board of 7:05 7 minutes, 5 seconds directors have yesterday enhanced the capeex budget for this financial year by 23% from 860 cr rupes to 1,60 cr rupes. 7:16 7 minutes, 16 seconds Till now in this financial year we have already spent 717 cr rupes on capex. So we are uh on track and we are uh 7:25 7 minutes, 25 seconds procuring infrastructure building of infrastructure seeing the robust demand in the market. Uh now I would like to 7:33 7 minutes, 33 seconds tell about the two streams exam and domestic. Exim is showing excellent growth in this financial year. Exim 7:40 7 minutes, 40 seconds alone is likely to cross a turnover turnover of rupees 60 billion uh revenue which will be all-time high for XM 7:48 7 minutes, 48 seconds stream. It's a very handsome growth and it like it is likely to increase in the coming months uh which I will be explaining a short while from now. 7:57 7 minutes, 57 seconds Western DFC connectivity is expected by March 2026 to J&P. It will give a very 8:03 8 minutes, 3 seconds big boost to exim business. Export growth till now we have experienced around 23% growth in aluminium ingots 8:11 8 minutes, 11 seconds 22% growth in meat 14% growth in auto parts and very good growth in rape seed 8:18 8 minutes, 18 seconds meal and rice imports uh also we have experienced a growth of four times growth in glass items which are used in 8:25 8 minutes, 25 seconds solar panel 69% growth in raw cotton 29% growth in auto parts 22% growth in 8:32 8 minutes, 32 seconds furnitureures we have rolled out a liberalized policy for cavatage movement and DPD and uh 8:40 8 minutes, 40 seconds this is uh uh you know make likely to make a very big contribution in volumes in the coming months already we are 8:47 8 minutes, 47 seconds seeing the impact in exam there is a healthy growth in uh of 7.5% on pan India basis in imports out of which uh 8:56 8 minutes, 56 seconds J&P has shown a growth of 17% Mundra has shown a growth of 8.4% 4% for us. 9:01 9 minutes, 1 second Chennai has shown a growth of 14% and Vishaka Patnham has shown a growth of 28%. 9:08 9 minutes, 8 seconds Uh and there's a healthy growth of 7% in exports also for Concore in the in this financial year. Now we come to domestic. 9:17 9 minutes, 17 seconds In domestic there is a uh bulk payment in tank containers which is likely to drive growth in the coming months in a 9:24 9 minutes, 24 seconds big way. Then talks are in advanced stage with measronet limited for ethane propane loading uh on long-term basis 9:33 9 minutes, 33 seconds long-term agreement we are going to sign with this company at the age loading at the age and uh also talks are advanced 9:40 9 minutes, 40 seconds stage with g gas authority for their PTA business from uh Mangalore port so and 9:48 9 minutes, 48 seconds the end to end logistics train that we are running from uh Delhi to Kolkata via Agra and Kpur that has been a huge 9:56 9 minutes, 56 seconds success and we are getting very good business on this end to end uh train also uh at this juncture I would like to 10:03 10 minutes, 3 seconds keep my guidance for 13% that is 10% exam 20% domestic unchanged we are confident that by the end of financial 10:12 10 minutes, 12 seconds year we will be able to meet this guidance now I would like to give a brief snapshot uh what what are the future of 10:20 10 minutes, 20 seconds confer in the next three years going forward so the exim which will be uh as 10:27 10 minutes, 27 seconds per our calculations and predictions by FY29 uh every year exam will show growth of 10:34 10 minutes, 34 seconds more than 15% perm. So for 3 years we can see backto-back growth of 15% and primary drivers will be western DFC by 10:43 10 minutes, 43 seconds March 2026. Second is assured transit time frames that we will be running between JNPA and NCR on our mega 10:51 10 minutes, 51 seconds terminal at Zadri and at Kadwas. And uh next is the double stacks. We will be bringing uh I'm glad to announce you 10:59 10 minutes, 59 seconds that we will be bringing Jpur on double stack map very soon in this financial year only. Uh we are going to commission 11:06 11 minutes, 6 seconds a new terminal from where we we are we will be running double stack trains uh between Jorpur and ports. Second is 11:14 11 minutes, 14 seconds Ahmedabad also we are going to bring double stack business very soon. Uh at present our terminal is not able to handle double stack because of that uh 11:23 11 minutes, 23 seconds we are uh you know not able to get that much business and once we develop a new terminal we are developing near San in 11:31 11 minutes, 31 seconds which will be capable of handling double stack rigs and it will be also on TFC that will also give big boost to our 11:38 11 minutes, 38 seconds traffic at Ahmedabad. We have already commissioned uh few terminals and at Mandalgard, Jajpur, Kakola and from 11:47 11 minutes, 47 seconds which we are expecting good traffic in the coming 3 years. And then next is the Nepal traffic that we are uh catering 11:55 11 minutes, 55 seconds from our uh facility at Vishaka and Kolkata also. So Nepal traffic we 12:02 12 minutes, 2 seconds are running at present to Bir Gun and now very soon we will be starting at [clears throat] Rakal and Birat Nagar 12:09 12 minutes, 9 seconds also. So this will give further uh boost to our exam business as well as domestic business till FY29. 12:17 12 minutes, 17 seconds We are uh having a tie up by year contracts with major all major shipping lines like MS, MSC, CMS, GM, hepo etc. 12:27 12 minutes, 27 seconds This these are also going to positively contribute. And next big thing is the shipping sector in which uh already we 12:34 12 minutes, 34 seconds are uh we have made our presence felt in uh middle east and we have finalized a contract with 12:42 12 minutes, 42 seconds another agency for far east. So far east also we will be starting the services already one container we have sent. So middle east plus far east the short 12:50 12 minutes, 50 seconds voyages we will see for few years and then we will go for longer voyages. So these will be the major contributors for 12:57 12 minutes, 57 seconds more than 15% growth in ex. Now let me come to domestic. Domestic there is a huge potential. Untapped market is there 13:06 13 minutes, 6 seconds and we are expecting more than 20% growth every year for the next 3 years in which uh bulk cement in tank 13:13 13 minutes, 13 seconds containers will be a primary contributor. Uh we have already signed agreement with Ultrate Tech, with Adani, with my home cement, with JK and with 13:22 13 minutes, 22 seconds other parties and they are expected to give very good business to us in bulk cement and we have also tied up with big 13:30 13 minutes, 30 seconds corporate customers like Vanta, Gindel, Tata, Gale, Petrolet already I have told you. So all these sectors will give very 13:37 13 minutes, 37 seconds good growth in domestic of more than 20% for next three years. So by FY29 I am projecting a top line of Rs 15,000 cr 13:47 13 minutes, 47 seconds rupees for the company which is quite achievable and 10 million to use handling group and 75 million tons of 13:54 13 minutes, 54 seconds cargo containerized cargo. These three projections I'm making for FY29 and uh board of directors has appreciated these 14:03 14 minutes, 3 seconds projections and that was the reason for enhancing the capital budget so that we are moving equipments with us to meet 14:11 14 minutes, 11 seconds these targets and uh let me assure you capex will be around the same lines for next 3 years also we are in expansion 14:19 14 minutes, 19 seconds mode because there is lot of demand in the market and we are going to tap all the demand and bring more and more 14:26 14 minutes, 26 seconds business to our company. So these were my opening remarks. Now uh we can start the question and answer session. 14:36 14 minutes, 36 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 14:44 14 minutes, 44 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 14:52 14 minutes, 52 seconds question. Ladies and gentlemen, we will wait for a moment while the question cube assembles. 14:58 14 minutes, 58 seconds The first question is from the line of Pulkit Partney from Goldman Sachs. Please go ahead. 15:05 15 minutes, 5 seconds Uh sir, my question is uh uh you've been giving guidance on volumes and as you rightly highlighted you're not too far 15:13 15 minutes, 13 seconds from that but on the revenue front we are significantly lower. We barely do miss singledigit revenue this year based 15:19 15 minutes, 19 seconds on how we are tracking. So uh just wanted to understand what's really happening on realization because it's 15:26 15 minutes, 26 seconds not only domestic but even on the exam side our realizations have been fairly muted uh this year and in your 15:34 15 minutes, 34 seconds expectation because you are guiding for a pretty robust number even for the next 3 years. Uh what is the assumption of of 15:42 15 minutes, 42 seconds realization increase that you have taken? 15:46 15 minutes, 46 seconds See uh exam there is a realization is not commensurate with physical. The 15:53 15 minutes, 53 seconds reason is the you are seeing the uh uh this throughput growth and you are correlating it with the uh revenue 16:02 16 minutes, 2 seconds growth. Actually you should see originating numbers for that purpose. 16:06 16 minutes, 6 seconds And second thing is uh tonnage is not the correct parameter for uh correlating with revenue. Actually it is NTKM net 10 16:15 16 minutes, 15 seconds kilometers that is the basic parameter you should be focusing because uh the revenue is a function of two things 16:22 16 minutes, 22 seconds tonnage and distance lead. So if you see tonnage increases but lead comes down so 16:29 16 minutes, 29 seconds that has an effect on NTKM. So correct parameter to correlate uh loading with the revenue will be NTKM in my opinion. 16:37 16 minutes, 37 seconds So as I already told in my opening remarks the lead of XM has gone down by 2% due to less demand in North India. 16:45 16 minutes, 45 seconds This is a primary contributor for uh uh less realization as you call but as far as we are concerned we got a good 16:53 16 minutes, 53 seconds realization in exil as compared to last year. Okay. It is not commensurate with the physical volume that reason already I told you. Now for the next 3 years uh 17:02 17 minutes, 2 seconds top line of 15,000 K that I have told is quite achievable because in uh when DFC 17:09 17 minutes, 9 seconds comes we are quite uh optimistic that we will be able to run a short transit train on that which will be bringing a 17:16 17 minutes, 16 seconds long lead traffic because it is 1,500 km from NCR to JNPa and uh it will give a good revenue also and light cargo which 17:25 17 minutes, 25 seconds is at present moving by road it will come on rail because there will be transit assurance there will be cost benefits. So, uh the growth that we will 17:34 17 minutes, 34 seconds be getting will be excellent in terms of physical volumes as well as revenue. 17:41 17 minutes, 41 seconds So, can I take the liberty of asking one more question? Yeah, sure. 17:46 17 minutes, 46 seconds Yeah. Sir uh if I look at the last 3 years while I understand the full connection of DFC to JNPT has been completed and the impact will come 17:54 17 minutes, 54 seconds through but few ports in Gujarat, Mundra, Pipab have been connected to DFC for a while now and uh the impact of 18:03 18 minutes, 3 seconds that have not really reflected. If you could just help us sort of solve this a little bit. What is the reason that just J&PD connection would be such a big game changer for Concord in terms of volume? 18:16 18 minutes, 16 seconds Now the thing is that Gujarat ports like Mundra and Pipawa which have been connected they are actually strictly 18:22 18 minutes, 22 seconds speaking not on DFC they are connected till Palanur there is a station DFC is there after that there is a feeder route 18:30 18 minutes, 30 seconds for Mundra and Tripawa so feeder route actually is not a DFC it's a Indian railways route so while the connection 18:38 18 minutes, 38 seconds with JNPA is different JNPA DFC will be going up to JNPA so only freight trains fast moving container trains will be 18:46 18 minutes, 46 seconds moving on this circuit whereas on that route uh goods train passenger train everything moves on freed route because it is Indian railways route. So that is 18:54 18 minutes, 54 seconds the difference and second thing is that uh which is very important for you to understand is that 25 ton excel load 19:01 19 minutes, 1 second wagon that is high capacity wagons that we are procuring BLCS and BLSS these are the two wagons type of wagons which are 19:09 19 minutes, 9 seconds having a 25 ton excel load that means they can carry a payload of 80 tons. So that cannot move on Indian railways 19:17 19 minutes, 17 seconds route and it cannot uh have a payload of 80 tons. So that restriction is there whereas on DFC a 80 ton payload can 19:25 19 minutes, 25 seconds move. So it will improve the double stacking if I can [clears throat] carry more load on that wagon on DFC because J&P is pure DFC. There's no fether. So 19:35 19 minutes, 35 seconds that advantage will be the second advantage. So these two advantage uh we'll see a distinct uh shift of traffic from road to rail. 19:43 19 minutes, 43 seconds Okay. So lastly, which quarter should we see the impact of DFC come through for us? Well, it will be starting from next 19:50 19 minutes, 50 seconds financial year. So, I'm not an astrologer. I cannot predict that which quarter you will see the impact. But definitely from Q1 of next, that's why we should start seeing some difference. 20:00 20 minutes Fair point. Thank you so much for taking those questions. Thank you. 20:04 20 minutes, 4 seconds Thank you. The next question is from the line of Jan Sha from Aquarius Securities. Please go ahead. 20:13 20 minutes, 13 seconds Yeah, thanks for the opportunity. I also just wanted one clarification. The volume road guidance that we have given for the five years timeline four year 20:20 20 minutes, 20 seconds timeline is it on the part or is it on the originating part? 20:25 20 minutes, 25 seconds I have given only for 3 years time and I have given you yeah if you have listened carefully uh first is 10 million TUS which is on 20:33 20 minutes, 33 seconds handling throughput. Second is 75 million tons which is on cargo movement containerized cargo. Third is on rupes 20:41 20 minutes, 41 seconds 15,000 crores which is on top line of revenue. 20:45 20 minutes, 45 seconds Uh got it sir if you can just provide me the visualating volume for this particular quarter. For this particular quarter Q3. 20:52 20 minutes, 52 seconds Yeah. For exam number six. 20:55 20 minutes, 55 seconds Okay. Uh originating volume for this quarter is uh exam it is uh 21:02 21 minutes, 2 seconds 564 324 TUS. Domestic 12817 TUS and uh total is 685141TUS. 21:15 21 minutes, 15 seconds So I just wanted to understand one thing as you are highlighting clearly that we should be looking at the originating volume and net 10 kilometers for revenue part and all those things. Why we are 21:24 21 minutes, 24 seconds not publishing the originating kilometers in the press released after the quarter ends and why we are only focusing on the handling volumes because whenever we are asking the question on 21:31 21 minutes, 31 seconds the realization the first point is always on the uh that we should be looking at the originating volume and why we are shying away in giving the originating volume growth and of course 21:40 21 minutes, 40 seconds on the originating volume growth what could be the market share that we have witnessed over 9 months and for this particular quarter. 21:47 21 minutes, 47 seconds Okay we will I have noted your request we will see. Yeah. 21:51 21 minutes, 51 seconds And sir, what would be the market share for this particular quarter and for the 9 months at the all India level? 21:57 21 minutes, 57 seconds I don't have market share with me right now for this particular quarter. For 9 month period I can give you the market 22:03 22 minutes, 3 seconds share. For exam it is 53.8% and domestic it is 55.88%. Total is 54.35%. 22:12 22 minutes, 12 seconds And what could be the comparison for last 9 months? 22:17 22 minutes, 17 seconds Last 9 months of FI25. Yeah. 9 months of It is yes exam it is 55.28% domestic 58.03%. 22:26 22 minutes, 26 seconds Total is 56.05%. 22:29 22 minutes, 29 seconds Yeah. So sir my question would be on this that of course we are near to our target in terms of exing volume guidance. We are little bit away from our domestic volume guidance and there 22:37 22 minutes, 37 seconds has been reasons but why we are not taking any major steps to make sure that our market share doesn't fall. We were at 75% few years and 15 years back now 22:45 22 minutes, 45 seconds we are at 53 54%. So what kind of things which has happened over last decade which has resulted in this kind of market share d for us and what kind of 22:54 22 minutes, 54 seconds market share we are expecting with this 15 uh this kind of 15,000 revenue that we are expecting our market share is constant in that case we are increasing it or we are thinking that it might 23:03 23 minutes, 3 seconds reduce further from here on see uh fall in market share in every conference I am giving you the details 23:10 23 minutes, 10 seconds reasons are uh pretty obvious we are not picking up the low margin business because we believe in giving good service to our customers while retaining 23:18 23 minutes, 18 seconds our margins. That is the primary primary reason. To uh arrest this uh decline in market share and [clears throat] to 23:26 23 minutes, 26 seconds increase our market share the uh our company has taken lot of steps like we are focusing on multimodal logistic 23:33 23 minutes, 33 seconds parts. We are focusing on first mile last mile transportation. So the projection that I have given for FY29 definitely it is going to increase our 23:42 23 minutes, 42 seconds market share and take it between 65 to 70%. 23:46 23 minutes, 46 seconds Uh sorry sir if you uh if the comment of us is that we are not taking low margin contraction this time but if you see a margin precoid it used to be 25 26% 23:55 23 minutes, 55 seconds excluding uh you can say other income parts whereas as of now it is ranging in between 21 22% of course there has been an impact of but apart from that despite 24:04 24 minutes, 4 seconds having DC getting operational to a larger extent we are doing double sticking on all these parts we are doing so much of kex our margin has really not 24:12 24 minutes, 12 seconds improved of course our revenue growth has been slow but on the margin part also So if you are not taking low margin contract there has to be some you can say compensatory impact on the margin 24:21 24 minutes, 21 seconds but which has not been reflective over last so many quarters. 24:24 24 minutes, 24 seconds See if you if you compare pre-COVID and uh uh because the there was a change in uh LLF payment to railway 24:34 24 minutes, 34 seconds excluding for the market. 24:37 24 minutes, 37 seconds Yes. Four times it increased from 100 crores to 400 crores 400 and as far as the emitter margins are concerned I have the numbers with me for 24:46 24 minutes, 46 seconds Q3 of this financial year we have achieved AITA margin of rupes 601 crores. If you take other income also 24:53 24 minutes, 53 seconds which is 25.1% and last Q3 uh last financial year it was 24.2%. So there there has been an 25:01 25 minutes, 1 second improvement of around 100 basis points and I don't know from where you are getting the numbers it is there is an improvement of margin similarly for the 25:09 25 minutes, 9 seconds period ending this financially is this December uh we are having a margin of 25:16 25 minutes, 16 seconds 1785.8 cr rupees which is 25.2% 2% and last financial year it was rupes 1753.7 25:23 25 minutes, 23 seconds crores which is 25.4% so it is percent wise it is exactly the same whereas money wise it increased so in fact we 25:31 25 minutes, 31 seconds have improved our margins you please correct from the English point of view we don't take other income into the margin part if we exclude the other income our 25:40 25 minutes, 40 seconds margin was 22.2% 2% whereas this time it's 22%. If we are not I will request you to I will request you to discuss it separately. 25:48 25 minutes, 48 seconds Sure. Okay. Thank you. 25:51 25 minutes, 51 seconds Thank you. The next question is from the line of Sumit Kish from Access Securities. Please go ahead. 25:59 25 minutes, 59 seconds Uh thanks for the opportunity. Uh uh Mr. 26:03 26 minutes, 3 seconds uh we have been talking about bulk payment in time containers for quite some time now. So what is the total 26:10 26 minutes, 10 seconds number of uh uh tank containers that that we have uh presently uh and what do you expect by the end of the financial 26:19 26 minutes, 19 seconds year and if you were to utilize those tank containers you know uh uh reasonably well what kind of volumes 26:27 26 minutes, 27 seconds would you be able to handle in a water that's my first question see now uh uh we have as of now 300 tank 26:37 26 minutes, 37 seconds containers of our own ownership. Apart from that uh one of our uh customer has also pro procured 200 tank containers 26:46 26 minutes, 46 seconds for which we have signed an agreement and he is using our services. So if we add these two numbers 500 tank containers are already there in our 26:54 26 minutes, 54 seconds circuit uh of uh bulk cement but 10 containers. Now uh we are getting uh 100 containers around one rake every month. 27:04 27 minutes, 4 seconds So we expect that by the end of financial year uh one rake in February one rake in March 200 more containers we 27:11 27 minutes, 11 seconds will get and after that every month we will be getting 100 containers. So uh it depends on the actually 27:19 27 minutes, 19 seconds lead uh like uh it depend the lead is between 700 to 1,000 kilometers from origin point to destination point and 27:27 27 minutes, 27 seconds turn around we are now improving with every movement because it's a new product. So in d stuffing uh at some 27:35 27 minutes, 35 seconds places some time is being taken. We are in touch with our customers. We are improving that and uh we hope that uh 27:42 27 minutes, 42 seconds very good impact will be visible in Q1 of next financial year. 27:48 27 minutes, 48 seconds So the uh what I'm trying to if you quantify this let us say you have four rakes also and those ras make uh let us 27:56 27 minutes, 56 seconds say for argument sake 10. I mean we are still talking about what uh uh uh uh you know 4 into 10 into some uh two 300 28:04 28 minutes, 4 seconds containers. So uh uh that would be how much uh as a percentage of your existing 28:11 28 minutes, 11 seconds quarterly volumes in domestic is it going to make a meaningful difference when you are doing already something like uh uh uh uh you know uh uh uh 28:20 28 minutes, 20 seconds 350,000 plus uh tus in a in a in a quarter in domestic. 28:27 28 minutes, 27 seconds So at this moment of time I don't have the numbers with me. I will provide you later on. 28:32 28 minutes, 32 seconds Sure. Uh so my second question is you mentioned in response to the first question that a net turn kilometer uh uh 28:40 28 minutes, 40 seconds would be the right parameter. Could you provide us some sense of what have you done in the 9 month FI26 period uh in 28:48 28 minutes, 48 seconds net and kilometer kilometer terms in exam and domestic and please provide them on a recording basis so that we can 28:55 28 minutes, 55 seconds analyze your company properly so I have noted your request we will definitely act on that 29:03 29 minutes, 3 seconds and last question is that of the 15 uh% and you've given a guidance of 20% on three years for domestic uh the first 9 29:12 29 minutes, 12 seconds months is 13%. what is so extraordinary that is going to happen in the fourth quarter that you'll get to 20% growth 29:19 29 minutes, 19 seconds which will imply a very high growth for the fourth quarter and and finally on volumes for the 15% guidance for exemp 29:26 29 minutes, 26 seconds uh and 20% for domestic over the next 3 years for exemp in particular how much is the dividend you are expecting 29:34 29 minutes, 34 seconds because of DFC commissioning if you were to segregate the benefit of DFC in that 15% we like to understand how much is 29:41 29 minutes, 41 seconds going to be just DFC XT commissioning up to GMPT. Thank you. 29:46 29 minutes, 46 seconds See, uh as far as the first question is concerned in domestic uh we are going to we are getting good uh loading now in 29:54 29 minutes, 54 seconds all the uh factors like cement is there and tiles are there and other merchandise is there. So based on that we are quite optimistic of achieving the 30:03 30 minutes, 3 seconds target that we gave at the start of initial year. Now as far as the exam 15 more than 15% growth is there we have 30:10 30 minutes, 10 seconds the numbers with us of different uh you know parameters that I told you but at this stage we cannot disclose those numbers to you. 30:21 30 minutes, 21 seconds Sure. Thank you. Wish best. 30:25 30 minutes, 25 seconds Thank you. A reminder to all participants you may press star and one to ask a question. 30:32 30 minutes, 32 seconds The next question is from the line of Priyanka Bitwas from JM Financial. 30:38 30 minutes, 38 seconds Uh thanks sir for the opportunity. Uh am I audible? Hello. Yes. Yes, you are. 30:44 30 minutes, 44 seconds Yes. Yes. Uh thank you. Uh sir, what I I would like to ask more about the long-term guidance. So you said 10 30:51 30 minutes, 51 seconds million TUS on handling. Uh this what we should expect in uh let's say FY29. 30:58 30 minutes, 58 seconds [snorts] Now can we get a similar assessment like in that should we assume that the originating also grows at the 31:06 31 minutes, 6 seconds same level or should we assume like the originating grows at a lower level like what is your underlying assumption for it? 31:13 31 minutes, 13 seconds See uh originating definitely will grow then only we will get more handling volumes. Orenating will uh same levels 31:22 31 minutes, 22 seconds or would it be somewhere lower or higher? Try to assess that it will be on the similar lines of course. 31:30 31 minutes, 30 seconds Okay. Uh as similarly like uh I like uh the leads 31:37 31 minutes, 37 seconds because as you rightly said NTKM should be the parameter we should watch at. So in that what you are building is there a 31:45 31 minutes, 45 seconds lead improvement because uh let's say we are connecting to J&P and consequently the leads improve or uh are we saying 31:53 31 minutes, 53 seconds this uh uh 150 uh billion rupees uh revenue based on a lease which is similar to today's level. So trying to uh assess that as well. 32:06 32 minutes, 6 seconds See definitely there will be improvement in le because J&P as I mentioned in my earlier uh answer is 1,500 kilometers 32:14 32 minutes, 14 seconds from NCR to JMP. So and exim the average lead in this financial year till now has 32:21 32 minutes, 21 seconds been uh 693 km. So if we get lot of business of 1,500 kilometers definitely it will have a positive impact on lead. 32:31 32 minutes, 31 seconds So lead will definitely improve. 32:34 32 minutes, 34 seconds So can the lead be something like a 800 kilometers odd or something like based on like let's say the increased JPT uh 32:42 32 minutes, 42 seconds that is how let's say the mix improves would it be a right assessment I will not be uh making any speculation 32:49 32 minutes, 49 seconds at this moment we all are will be present so we can see what is the lead that we achieve it will gradually increase 32:58 32 minutes, 58 seconds sir if I can just squeeze one more question in uh while you gave the movement of market shares uh in the m in 33:07 33 minutes, 7 seconds the key boards that is there would you uh kindly share the rail coefficient uh in each of these sports and what it was 33:16 33 minutes, 16 seconds let's say for the 9 month period last year uh that will help yes I can tell you for three ports J&P 33:24 33 minutes, 24 seconds it is 15.57% in this FY last year it was 15.7% 33:31 33 minutes, 31 seconds in Mundraur Last year it was 23.9%. This year it is 24.5%. 33:39 33 minutes, 39 seconds In pipawa port last year it was 57.7%. This year it is 57%. 33:46 33 minutes, 46 seconds Real as [clears throat] and would you be able to provide like since you gave the market share movements what 33:55 33 minutes, 55 seconds it would be in absolute terms uh like let's say J&P movement that's my last question. 34:02 34 minutes, 2 seconds NPT last year it was 58% market share of Conqua this year it is 50%. 34:08 34 minutes, 8 seconds Mundra last year it was 38%. This year it is 36%. 34:13 34 minutes, 13 seconds Pipawa last year it was 48%. This year it is 49%. 34:19 34 minutes, 19 seconds Thank you so much sir and I wish you all the best. Thank you. 34:25 34 minutes, 25 seconds Thank you. The next question is from the line of MKkesh Sarah from Aventers Park. Please go ahead. 34:33 34 minutes, 33 seconds Yes sir. Thank you for the opportunity. 34:34 34 minutes, 34 seconds Uh my first question is on uh the JNPT connectivity uh of the FC. uh currently could you give [clears throat] us some 34:42 34 minutes, 42 seconds sense on the opportunity size um say either in tonnage or in number of containers uh or number of you know 34:50 34 minutes, 50 seconds container equivalence basically um on the uh shipment that's happening by road this light cargo that you mentioned 34:57 34 minutes, 57 seconds between say the northern and JT which eventually can shift to rail see that is a market intelligence 35:04 35 minutes, 4 seconds information that I cannot share on this platform um just the opportunity size I mean u 35:13 35 minutes, 13 seconds the reason I'm asking this question is there was an understanding that a lot of the caros already moved to the ports in Gujarat and uh secondly a lot of J&P 35:23 35 minutes, 23 seconds what is catering to now is more central India and and maybe Andhra Pradesh that kind of a of a market so just trying to assess is there a large market from the 35:31 35 minutes, 31 seconds northern interp which is uh moving by road uh because all these years this is what we have been understanding that that cargo has already shifted to other ports. 35:41 35 minutes, 41 seconds See uh whatever you have mentioned uh is partially correct. It has shifted. It was shift it has shifted but now it can 35:49 35 minutes, 49 seconds come back also if there is efficiency in movement and shipping is a uh everchanging process and if you see 35:56 35 minutes, 56 seconds suppose a ship calls at J&P first and five days 3 days it goes to Mundra and in those 3 days the cargo already comes 36:04 36 minutes, 4 seconds to NCR. So as a consign what will you prefer? What will be your preference? 36:10 36 minutes, 10 seconds Don't you prefer that before the ship goes to Mundra my container comes to my factory. 36:14 36 minutes, 14 seconds So those efficiencies if those efficiencies are available lot of car can shift back to J&P. I'm telling you the situation which can happen. 36:24 36 minutes, 24 seconds Mhm. Sure. Sure. Got it. And uh also uh we have Varnama as a as a large trans shipment hub where know we are taking a 36:33 36 minutes, 33 seconds lot of the double stacking cargo as close as possible to J&P. So uh in some form aren't we already uh catering to that possible demand uh that will come up because of the DFC connectivity? 36:45 36 minutes, 45 seconds See wama we started giving facility to our double stack to our NCR customers. 36:52 36 minutes, 52 seconds But wama we cannot run assured assured transit time train. As a short transit time train we can run only to J&P 36:58 36 minutes, 58 seconds because uh double stacking and then you know changing it to single stack assure transit we cannot give to our customers 37:06 37 minutes, 6 seconds that we can give only if we have direct connectivity to JP. 37:11 37 minutes, 11 seconds Got it. Got it. And just lastly because you had kind of outlined the cape uh plan going up uh would you be able to 37:19 37 minutes, 19 seconds give some break up of how much on loading stock and how much on land for MMLPS? 37:25 37 minutes, 25 seconds Why do you want that? You don't give such information. 37:30 37 minutes, 30 seconds Uh it just helps us understand u uh the the gestation period sir. Uh I mean if if you're if there's lot of investment on land probably the benefits of that 37:38 37 minutes, 38 seconds would be slightly back in. So just want to understand that. See infrastructure projects are long distation period projects. You cannot expect suppose I 37:47 37 minutes, 47 seconds created MMLP today from tomorrow I will start getting profits. So it takes some time right normally we share such information. 37:57 37 minutes, 57 seconds Got it. Got it. Thank you. Thanks a lot for this. I'll get back. 38:01 38 minutes, 1 second Thank you. A reminder to all participants you may press star and one to ask a question. 38:08 38 minutes, 8 seconds The next question is from the line of SE Shetty from HSBC. Please go ahead. 38:15 38 minutes, 15 seconds Hello. Uh am I audible? Yes. Yes, please. 38:19 38 minutes, 19 seconds Uh hi, good afternoon sir. Uh sir, my first question is on the growth guidance that you have given. Uh can you outline 38:26 38 minutes, 26 seconds like the key factors driving both XIM and domestic? Uh that would be first question. 38:33 38 minutes, 33 seconds Uh see Mr. Shetty already I told in detail the growth uh drivers when I was 38:41 38 minutes, 41 seconds mentioning the guidance but for your benefit I will again I will repeat it. Thank you sir. 38:47 38 minutes, 47 seconds For exam growth uh driving factors will be the commissioning of western DFC up to J&P by March 2026 38:55 38 minutes, 55 seconds and assured transit time train services between JNPa and NCR that we will be running. Third is the double stack 39:03 39 minutes, 3 seconds trains to Jodpur. We will bringing Jhothpur on double stack map by this in this financial year only. Fourth is 39:11 39 minutes, 11 seconds double stack trains to Ahmedabad area where we are commissioning a terminal which will be able to handle double stack trains. Next is the very good 39:20 39 minutes, 20 seconds traffic we are hoping from our new terminals Jajpur, Kadakola and Mandalgar and Paradep also which we have 39:29 39 minutes, 29 seconds commissioned recently. We have got customs notification for few of them. So we will get good exam business at these terminals. Then there is a very good 39:37 39 minutes, 37 seconds potential for Nepal traffic that we will be getting that already we are getting a good business for Nepal from Vishaka 39:45 39 minutes, 45 seconds Patnam and some from Kolkata. So we are going to start facility at ratsol very soon and birat nagar also customs has 39:53 39 minutes, 53 seconds issued a notification and we are going to generate good business for Nepal at all the three places then we I told that 40:01 40 minutes, 1 second we are having a tie up with all major shipping lines like MSC MA he etc. Then shipping sector we are already we have 40:10 40 minutes, 10 seconds started sending our containers to Middle East and Far East also very soon we are going to start we will consolidate these two sectors which are going to give us 40:19 40 minutes, 19 seconds good business good volumes and good profit also. These are the uh main factors which will drive the growth in 40:27 40 minutes, 27 seconds AIM. As far as domestic is concerned, the primary will be the bulk cement in tank containers which for which we have 40:35 40 minutes, 35 seconds already signed agreement with big players like Ultra Tech cement, Adani cement, my home cement and JK apart from 40:42 40 minutes, 42 seconds few others. Then we have tied up with big corporate customers like Vanta, Jindal, Tata and gas authority and 40:50 40 minutes, 50 seconds Petronet. We are going to sign agreements. So these will be the additional growth drivers and normal business will continue. So all these 40:59 40 minutes, 59 seconds factors will give a growth of more than 20% in domestic. I hope you are satisfied. 41:05 41 minutes, 5 seconds Yes. Yes. Thank you sir for the detail answer and sir my second and last question is uh sir even though there is improvement in aa margin uh if we see 41:13 41 minutes, 13 seconds the segmental margins there has been decline both in XM and domestic uh is it just attributed to depreciation or is there some other factor as well? That would be my last question. Thank you. 41:23 41 minutes, 23 seconds Yeah, actually primary reason is depreciation only. And one more thing is the land license fees that I mentioned in my opening remarks. Uh in previous 41:33 41 minutes, 33 seconds years we were uh we had done some reversals and some adjustments and whatever land fee we have shown this 41:40 41 minutes, 40 seconds year is actual. Normally you may be observing that we pay around 450 cr rupees to railways. So up to Q3 already 41:48 41 minutes, 48 seconds we have paid 327 crores which is in line with those calculations. Thank you sir. 41:57 41 minutes, 57 seconds Thank you. 41:58 41 minutes, 58 seconds Thank you. The next question is from the line of Ankit Sha from Ara Capital. Please go ahead. 42:08 42 minutes, 8 seconds Hi thank you for the opportunity sir. Uh this is on the guidance. So in case assume a risk of you know DSC getting 42:17 42 minutes, 17 seconds delayed further then in in that scenario how much the growth guidance of 15% 42:25 42 minutes, 25 seconds growth on the exempt side and uh you know similarly on growth on the domestic side how much would that get lower in 42:34 42 minutes, 34 seconds case if there is further delay in DFC that could have that's the contingency risk that I was looking 42:43 42 minutes, 43 seconds See uh actually I have spoken to [clears throat] very senior officers of DFC myself now and they have assured me 42:51 42 minutes, 51 seconds maybe before 31st March maybe by February they will be able to commission connection to JNPA. So I have no reasons 42:59 42 minutes, 59 seconds to disbelieve that it will be extended beyond 31st March. I am very very confident and it will be a pleasant surprise to us also and to the trade 43:07 43 minutes, 7 seconds also that DST is commissioned before 31st March. 43:13 43 minutes, 13 seconds Okay. And [clears throat] u the increase in capeex number that you've mentioned from 860 to,000 crores. This is for FI26 or from 27 onwards? 43:25 43 minutes, 25 seconds It is for FY26 that BOD has yesterday revised the by 23% uh increase they have approved for FY27. 43:36 43 minutes, 36 seconds I will be telling about capeex in my conference call at the end of Q4 results. Okay. 43:42 43 minutes, 42 seconds And what is this incremental amount for going? 43:46 43 minutes, 46 seconds This is primarily Yeah, primarily for containers and rolling stock. 43:52 43 minutes, 52 seconds Okay. And so we were also planning increase in terminals. Uh I think 10 new terminals we were planning to uh add this year. So are we on track for that? 44:02 44 minutes, 2 seconds Yes. Yes, we are on track. Already we have commissioned two terminals in this financial year and more terminals we are going to commission and they are in 44:09 44 minutes, 9 seconds advanced stage. So we are quite on track. 44:14 44 minutes, 14 seconds Okay. So this 10 will come over a period of time not in FI26 itself. 44:19 44 minutes, 19 seconds Yes. Yes. They will come over a period of time not not all in FI26. Okay. 44:28 44 minutes, 28 seconds Thank you. 44:30 44 minutes, 30 seconds Thank you. A reminder to all participants, you may press star and one to ask a question. 44:42 44 minutes, 42 seconds As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. 44:50 44 minutes, 50 seconds So, uh uh I don't have much to tell already. I have told you the company is standing on very strong fundamentals and 44:57 44 minutes, 57 seconds we are uh increasing our capeex spend creating more and more infrastructure. 45:02 45 minutes, 2 seconds So we are quite confident that uh we are going to be on a very high growth path from now onwards and we can see the results in a positive manner very soon. 45:14 45 minutes, 14 seconds Thank you. 45:16 45 minutes, 16 seconds Thank you on behalf of Dam Capital Advisor Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.