Gujarat Pipavav Port Limited — Q3 FY26

Gujarat Pipavav Port Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JL0jKUGk40s Published: 3 months ago

0:01 1 second everyone and uh welcome to Q3 FY26 call of Port Limited. 0:11 11 seconds I'm Manishadri and we have Girishan managing director and Santo CFO call. 0:21 21 seconds We'll have opening remarks from Girish and then we'll take it forward for the Q&A. Over to you Gish. 0:30 30 seconds Thank you Manish. 0:32 32 seconds Uh the company delivered a strong financial performance this quarter as well. The EBIT was higher by 18% quarteron quarter. 0:41 41 seconds This was driven largely by an increase in rural volumes by about 39. 0:57 57 seconds Let me start again. Uh the company delivered a strong financial performance uh this quarter. Uh again EBIT was higher by 18% quarteron quarter. This 1:05 1 minute, 5 seconds was driven uh by a 39% increase in rural volumes which were highest ever in the 1:11 1 minute, 11 seconds quarter 62,000 plus cars. Also dry bulk volume continued it strong growth and was 25% higher. Liquids and containers 1:21 1 minute, 21 seconds were broadly flattish. Uh containers however has shown a growth of approximately seven quarters visa v the previous quarter. 1:31 1 minute, 31 seconds I will now talk about the 9-month uh result for this year. YTD overall YTD results are also strong with EBIT higher 1:39 1 minute, 39 seconds by 18% over previous year driven by 40% growth in ro volumes 45% growth in dry 1:47 1 minute, 47 seconds bulk and 13% growth in the liquid business. Our IITa margins for the 9-month period uh is 58% which is higher 1:55 1 minute, 55 seconds by 100 basis points over the previous year. This quarter as per the new labor laws we took a graduity pro provision of 2:04 2 minutes, 4 seconds approximately 4.8 crores uh which fits in the extraordinary items. Uh I will pause here and we'll open for questions. 2:17 2 minutes, 17 seconds Thank you Gish. 2:19 2 minutes, 19 seconds Uh before I start the Q&A I will request everyone to remain on mute only when you have to ask the questions you can unmute yourself. Thank you. 2:30 2 minutes, 30 seconds Good morning. Please go ahead. Uh thank you Manish. I hope I'm coming through well. Yes. 2:37 2 minutes, 37 seconds Great. Thanks. Uh thank you Gish. Uh my first question is on the outlook for container volumes. Uh when do you expect to see growth again for this segment? 2:47 2 minutes, 47 seconds We've seen several quarters of year-on-year decline so far and uh so what will uh be the turnaround when when will be the turnaround likely and and what will be the key drivers for that? 2:57 2 minutes, 57 seconds And in the same context uh we've seen some India Middle East services uh to the Mediterranean returning via the Red 3:05 3 minutes, 5 seconds Sea. So do you see any positive or negative impact from this development? 3:09 3 minutes, 9 seconds So this is the first question on the container outlook. Do you want me to go through the rest of the questions or should we take it one by one? 3:15 3 minutes, 15 seconds Let me answer this question and then you know if it's okay with you uh yeah of course please go ahead. Thank you. So, so essentially a again there 3:23 3 minutes, 23 seconds are some green shoots this quarter where we grew 7% of uh previous quarter but again I will wait for some more data 3:31 3 minutes, 31 seconds points to say that this is a bit more structural in nature. However, we are clearly seeing some positives. Uh a as 3:38 3 minutes, 38 seconds you rightly pointed out shipping lines have started albeit slowly uh the transit through the uh sewish canal 3:47 3 minutes, 47 seconds which augers well because that releases capacity in the system which was one of the reasons why uh some of the tonnages 3:55 3 minutes, 55 seconds were pulled out of the services that were calling us uh and had negatively impacted us. So that is uh positive. uh 4:03 4 minutes, 3 seconds last quarter uh uh numbers along with previous quarter numbers were also impacted higher tariffs uh in the 4:12 4 minutes, 12 seconds US uh on especially the textile and government sector. I think that is now getting behind us. So I'm hopeful that 4:19 4 minutes, 19 seconds some of those volumes will uh come mech which is a a flagship service of mask uh 4:27 4 minutes, 27 seconds for uh the the east coast uh and starts passing through the s creates a much better product 4:35 4 minutes, 35 seconds for customers. So I I do expect that product to increase as we move forward. 4:42 4 minutes, 42 seconds So there are some structural positives uh that have happened um in the market. 4:48 4 minutes, 48 seconds There is one quarter data point to suggest that there is a little bit of growth. But I think it'll be great if uh 4:56 4 minutes, 56 seconds the right thing will be to just wait for this quarter as well in terms of performance on on the container sector to see how uh things materialize. 5:05 5 minutes, 5 seconds Uh just a clarification the 7% quarteronquarter growth which you're saying right. uh it is also possible that this is because of seasonality um 5:13 5 minutes, 13 seconds that the third quarter or the quarter so this is uh this is not seasonality that this is certainly uh certain areas 5:20 5 minutes, 20 seconds and specifically on the mass services that we have grown our volumes uh overall on year I mean Jan to December if I were 5:29 5 minutes, 29 seconds to look at that uh time frame mass grew its volumes by 15% uh and this is through some structural initiatives that 5:37 5 minutes, 37 seconds we have uh done with mask over the last two quarters which have started to show some results. But uh let's wait for one 5:44 5 minutes, 44 seconds more quarter. But I I'm seeing uh positive uh let's say momentum uh uh if you will 5:52 5 minutes, 52 seconds on the container growth also the you know some of the good newses around the you know red sea opening up so opening up uh should definitely benefit us. 6:02 6 minutes, 2 seconds Okay. So Jan to December there is 15% right 15%. Just for Musk I'm saying. Okay. 6:08 6 minutes, 8 seconds This is for Musk. Okay. Okay. And then these are Okay. Fine. Uh that makes sense. Uh it's very clear. Uh my next question is is on the operating expenses development during the quarter, right? 6:18 6 minutes, 18 seconds Um this outpaced uh revenue growth both yearon year and also on the quarteronquarter basis. Uh historically you've guided that whenever fertilizer 6:26 6 minutes, 26 seconds volumes increase that tends to suppress the margins because it's uh more uh operating expensive intensive. uh but 6:34 6 minutes, 34 seconds this quarter we saw that sequentially uh year on year of course uh there was a significant jump 25% overall dry bulk volumes but when we see sequentially the 6:43 6 minutes, 43 seconds fertilizer volumes did decline but we did not see any benefit uh in the in the opex so what exactly is happening there could you help us understand what is the 6:50 6 minutes, 50 seconds true run rate over there so yeah so so on on so you are basically comparing 6:59 6 minutes, 59 seconds it with the immediate previous right I mean either way whether you look at it uh when we look at the difference between AITA to revenue right the 7:08 7 minutes, 8 seconds overall opex uh when you look at it year-on-year also it has outpaced the revenue growth and when you look at it quarter on quarter also it has uh like 7:16 7 minutes, 16 seconds outpaced yeah so so basically if I just compare it first with the previous uh you know previous quarter right then of course 7:24 7 minutes, 24 seconds there's some catch up which has been done on certain maintenance activities which has been done u these are more of preventive nature also some uh addition 7:33 7 minutes, 33 seconds spend in our CSR activities which were conducted during the quarter. So those are the key drivers. uh otherwise if I 7:41 7 minutes, 41 seconds really look at my operating expenses in comparison with the immediate previous quarter in line with the bulk volume they have been lower actually uh sort of 7:50 7 minutes, 50 seconds lower as compared to the previous quarter and if you compare it with the same quarter last year uh the main of 7:57 7 minutes, 57 seconds course one is the operating expenses because of the volumes and second is the increments which happens on the employee benefits uh cost. 8:08 8 minutes, 8 seconds Okay. Okay. Uh that that makes sense. Um and my uh next question is the final question which I have is is about the 8:16 8 minutes, 16 seconds realizations for the quarter. If you could provide some guidance on that and also um uh I saw a notification on your website that there has been some rate 8:24 8 minutes, 24 seconds hike since the 1st of Jan. So if you could help us understand how much of this will pass through uh in terms of actual uh realiz or average realizations 8:33 8 minutes, 33 seconds uh and will it be across cargos or is it specifically for containers? 8:39 8 minutes, 39 seconds Yeah. So first uh I'll take the question for the realization. The realizations for the current quarter has been maintained. So no major change as compared to the previous quarter. So for 8:47 8 minutes, 47 seconds container it is in the range of 9,500 to 10,500 rupees per 8:52 8 minutes, 52 seconds bulk to 650 rupees per metric t and for liquid it is in the range of 550 to 600 9:00 9 minutes per metric t. So no major uh change as such in the realization. uh on CS we 9:08 9 minutes, 8 seconds taken a tariff increase um of course is mainly on on container also on our marine services uh which 9:16 9 minutes, 16 seconds applicable across all the business streams. So uh this increase in general has been taken in the range of around 9:22 9 minutes, 22 seconds 5%. Uh will get passed on uh to the customer based on our arrangement with them. So typically what we seen on the 9:31 9 minutes, 31 seconds top line it should have an impact of around 3 to 4% is what our expectation. 9:36 9 minutes, 36 seconds Okay. Okay. Uh that is helpful and and then any updates or any developments on the concession renewal. That will be my last question. 9:44 9 minutes, 44 seconds Yeah. So we continue to engage with the Gujarat Maritime Board. I think uh things are moving in the right direction. Uh again there's no specific 9:52 9 minutes, 52 seconds update beyond what we said last time but uh the engagement continues. The positive engagement continues. There's no red flags. 10:01 10 minutes, 1 second Okay. Thank you very much and and uh all the best for the future quarters. Thank you. 10:07 10 minutes, 7 seconds Thank you Mr. Besh Min. Please go ahead with your questions. 10:12 10 minutes, 12 seconds Uh congratulations on great set of numbers and thank you for this opportunity. Uh so so the question around uh the concession was just asked 10:21 10 minutes, 21 seconds and you have answered and and it was in fact uh I I suppose because we have that plans for almost 17,000 cr investment 10:31 10 minutes, 31 seconds and and I suppose that is uh contingent on on on the extension right I mean that's that's the understanding right 10:41 10 minutes, 41 seconds sorry the investment of 17,000 crores is concession extension of Sure. 10:48 10 minutes, 48 seconds Okay. Understood. And and again, we'll wait for the um positive announcement whenever that happens. But we are almost 10:55 10 minutes, 55 seconds in 2026 and it's ending in uh 2028 or so. So anyway, we'll see on that. Uh sec 11:03 11 minutes, 3 seconds my question now is on the uhc contract for the offshore supply base and that's a significant win. So I just want to uh 11:12 11 minutes, 12 seconds just want your help in terms of quantifying the expected revenue that we have uh over the let's say a year in terms of timeline and then are you in 11:21 11 minutes, 21 seconds talks with any other upstream energy player in terms of similar uh in terms of utilizing the liquid as well as 11:28 11 minutes, 28 seconds specialized cargo facilities that we have. 11:31 11 minutes, 31 seconds No we will not be able to talk about uh you know ongoing commercial discussions with any other customers. U so sorry about that. Also in terms of revenue 11:40 11 minutes, 40 seconds etc. we are not giving any guidance to a single customer. Um you know we do not intend to give any guidance on specific customer uh revenue stream. 11:49 11 minutes, 49 seconds Sure fine appreciate that. and and again link with that I mean what's the progress in terms of our liquid uh jetty 11:56 11 minutes, 56 seconds construction and and is the same timeline in terms of uh December 2027 we are targeting or any 12:04 12 minutes, 4 seconds no no December 2026 sorry December yeah yeah sorry December 2026 correct yeah yeah on track for December 2026 12:13 12 minutes, 13 seconds perfect thank you on that and and last question again repeating but u GPPPL we 12:20 12 minutes, 20 seconds have historically maintain almost 100% dividend payout ratio. Assuming that everything goes on and we continue to uh 12:28 12 minutes, 28 seconds you know have the plans for spending that 17,000 cr investment plan uh as shareholders do we expect any shift in 12:36 12 minutes, 36 seconds terms of capital allocation or uh so you know uh it's not it's not right for me to comment. It is for the board to recommend to the AGM and the AGM to 12:44 12 minutes, 44 seconds prove. So it's it's really not my place to comment honestly. 12:50 12 minutes, 50 seconds Fine. Oh, I appreciate this. Uh, thank you and again excited about the future. Uh, best wishes for upcoming quarters. 12:57 12 minutes, 57 seconds Thank you. 13:00 13 minutes Thank you, Mr. Manardia. Please go ahead questions. 13:08 13 minutes, 8 seconds Hi sir, congratulations on a good set and thanks for the opportunity. Uh, I have a couple of questions for you. 13:13 13 minutes, 13 seconds First uh on the liquid side uh the Kla Gorapur pipeline I believe it was delayed earlier. Just curious on whether 13:22 13 minutes, 22 seconds there's an update on that and what time it should go live. Uh do you want me to go one by one or uh let me ask you this question uh and then 13:30 13 minutes, 30 seconds we can do one by one please. So we expect anywhere between March and June this year for the KGP KGP to kind of connect to us. 13:39 13 minutes, 39 seconds Right. Perfect. Thank you. Uh so second question I have a slightly bookkeeping question here on the liquid side again. 13:45 13 minutes, 45 seconds Uh what should be the depreciation number you should expect for the full year 27 once it's commissioned? 13:52 13 minutes, 52 seconds So depreciation of the jetty. 13:54 13 minutes, 54 seconds Yes of the uh jetty of the capex that we are putting in. 13:58 13 minutes, 58 seconds I'm really sorry I don't have that number uh with me. 14:03 14 minutes, 3 seconds Okay understood. No problem sir. Uh just a couple more. uh on container volumes. 14:08 14 minutes, 8 seconds I know you said uh you want to wait for a bit, but just curious how we're thinking about that in the context of all the deals that have happened plus 14:16 14 minutes, 16 seconds the freight markets normalizing a little bit. If you could give me some color on that, that'd be great. 14:22 14 minutes, 22 seconds No, I mean it's the same right what I talked about. uh I mean with with some of the positive news on the uh free 14:29 14 minutes, 29 seconds trade agreements, bilateral agreements uh it augers well especially on the government and textile sector which kind 14:36 14 minutes, 36 seconds of started to see a decline clearly. Um so so and the Red Sea so opening up 14:42 14 minutes, 42 seconds capacity uh coming back um you know we do believe uh that uh you know things will definitely improve on the container 14:51 14 minutes, 51 seconds side but again I I really want to wait for you know Jan Feb March quarter uh to to really then say you know things are moving structurally forward. 15:02 15 minutes, 2 seconds Right. Understood sir. Thank you for all your answers. 15:06 15 minutes, 6 seconds Thank you. Uh Nope. Please go ahead with your questions. 15:12 15 minutes, 12 seconds Uh hi sir, thank you for the opportunity and good evening. Uh I have two questions. First is uh can you provide some outlook on fertilizer volumes? How 15:21 15 minutes, 21 seconds they have been trending for this quarter and how do you see them panning out for say FI27? 15:29 15 minutes, 29 seconds Yeah. So maybe okay so so unfortunately I suppose this quarter also was a was a really good 15:37 15 minutes, 37 seconds quarter for us because if you look at uh in terms of volume then we had done around 629,000 metric ton in the current 15:45 15 minutes, 45 seconds quarter on the on the fertilizer uh side. So two backto-back good quarters. 15:52 15 minutes, 52 seconds However, this also means that uh there's some stocking which has been done now. 15:56 15 minutes, 56 seconds So we should see some dip and then we also expect close to the monsoon again it picks up. 16:01 16 minutes, 1 second So roughly for the last I mean if if I just look at the 3 month period the fertilizer overall volumes will be close to about 1.6 1.7 million tons. 16:12 16 minutes, 12 seconds Uh usually Jan March is a is a lean quarter for fertilizers and then it starts to pick up as monsoon starts. So April, May, June, July, August, 16:20 16 minutes, 20 seconds September is usually the biggest quarters you know as we move forward. So I mean we will still maintain about 1 and a half million to 2 million tons of 16:29 16 minutes, 29 seconds fertilizer but again let me give the overall outlook for that full financial year when we talk next time with the full financial year results. 16:40 16 minutes, 40 seconds Uh thank you sir. Uh and my second question uh was when do you expect your rural capacity expansion to come up and 16:47 16 minutes, 47 seconds how do you see volumes panning out uh next year? 16:51 16 minutes, 51 seconds Okay I'm sorry which capacity expansion are you talking about? the RO uh uh the capacity expansion on Roro volumes. 17:03 17 minutes, 3 seconds So on the RORO side essentially uh we are now building a new staging uh area which expands our capacity. Uh we 17:12 17 minutes, 12 seconds expect half it's a 60,000 square meter expansion. 17:17 17 minutes, 17 seconds um within March we believe u we should be closing about 30,000 and the rest of 17:23 17 minutes, 23 seconds the 30,000 uh between May and June uh that should give us uh additional capacity uh you know from an expansion 17:31 17 minutes, 31 seconds perspective but uh nevertheless this capacity is not impeding on any volumes today we are able to find space uh in 17:40 17 minutes, 40 seconds the uh within the port premises as and when needed to ensure that we are able to handle all uh cargos or all car 17:48 17 minutes, 48 seconds volumes even today. So, so I mean that's just for our future uh benefit but in 17:55 17 minutes, 55 seconds general at least at this point in time we have enough and more capacity on uh handling uh the cars go. 18:02 18 minutes, 2 seconds So so what is our what is our capacity now and what will it be after expansion in June? 18:08 18 minutes, 8 seconds Yeah. So I mean the on the car side u you know essentially the calculation is 18:15 18 minutes, 15 seconds a little bit different right so it depends on how many dwell days the car stands etc etc but we believe we are in 18:23 18 minutes, 23 seconds a position to handle anywhere between 250 to 300,000 cars today and we will go up to about 400 to 450,000 cars uh in 18:31 18 minutes, 31 seconds June Got it sir and do we have any exposure to South Africa they have in considering 18:38 18 minutes, 38 seconds implementing a a duty on uh exports of cars out of India. 18:44 18 minutes, 44 seconds Yeah, that you will have to ask the exporters. I will not be able to comment. Okay, sure. So, those were my questions. 18:50 18 minutes, 50 seconds Thank you. 18:59 18 minutes, 59 seconds Okay, please. 19:07 19 minutes, 7 seconds Mr. Parasher Jatin Parasa 19:17 19 minutes, 17 seconds maybe Mr. You can go ahead Mr. 19:32 19 minutes, 32 seconds We can't hear you. Yeah. Okay. 19:44 19 minutes, 44 seconds You can go ahead. Uh thanks uh Manish for the opportunity. I I hope I'm audible to you all. 19:52 19 minutes, 52 seconds Yes. Yes. Great. U um few questions from my side. 19:58 19 minutes, 58 seconds uh a what is the exposure on the container side to US and Europe and should one be thinking through the 20:06 20 minutes, 6 seconds recent change in course in both these geographies as being positive for the company 20:15 20 minutes, 15 seconds no essentially I think u it's difficult to say right so but it's anywhere in the region of 15 to 25% 20:25 20 minutes, 25 seconds in general I would argue might assume it is for the combined exposure to Europe and US that you're 20:33 20 minutes, 33 seconds seeing this number or Yeah. Okay. Okay. Understood. 20:37 20 minutes, 37 seconds Uh on uh the container pricing fund which is a 5% increase. How much is kind of linked up to cost increases that the 20:46 20 minutes, 46 seconds company foresees and how much is potentially a catch up in pricing given the meaningful difference let's say versus a monra that already exists here? 20:55 20 minutes, 55 seconds No. No. So, so this is not how we look at our pricing. So, our pricing is more dependent on market and uh you know uh nothing else. So, it's very difficult 21:03 21 minutes, 3 seconds for us to uh attribute increases to cost etc etc. So, I mean that's not how we 21:09 21 minutes, 9 seconds will look at it. It's a 5% increase we as as Santosa alluded 3 to 4% usually flows through. 21:21 21 minutes, 21 seconds Understood. to 3 to 4% on container revenues is what you're saying and then less or so on overall revenues is that the way 21:28 21 minutes, 28 seconds no 3 to 4% of overall revenue increase has been taken on container marine and as well but even also the 21:37 21 minutes, 37 seconds other businesses we do take regular increases on the contracts understood uh the third question that I 21:46 21 minutes, 46 seconds had was on container volumes um as in if I see the revenue tractory from merge it's been kind flattish to declining from a revenue perspective. Uh and then 21:54 21 minutes, 54 seconds you're talking about this 15% growth that you've seen. 22:00 22 minutes How much more can be covered up in terms of growth if we really get uh uh the equation on volumes with Musk 22:08 22 minutes, 8 seconds right and it still seems far far distance away because a lot of the last five years have broadly kind of gone nowhere uh 22:16 22 minutes, 16 seconds from a revenue perspective in that account. 22:20 22 minutes, 20 seconds So Adita just to really understand your question you are referring to um uh the the volume growth coming from M line and 22:29 22 minutes, 29 seconds what more we can expect is is what the question is yeah as in our senses that when we see the annual report the RPT transaction 22:37 22 minutes, 37 seconds suggests that the M revenues have kind of gone over the last five years last five six years they are stuck in a 22:43 22 minutes, 43 seconds certain zone uh um so just wanted to get a sense of that while 15% already has happened for 22:50 22 minutes, 50 seconds uh 9 month period is there a lot more growth that can happen in that account to cover up for fast losses of opportunities. 23:02 23 minutes, 2 seconds I I'm unsure I mean I've already overall giving given you a color of how the market will grow but uh uh you know the 23:09 23 minutes, 9 seconds idea of giving at a customer level what will happen over the next five years is something that we don't intend to do. uh the context of giving a 15 you know the 23:18 23 minutes, 18 seconds the the number of 15% was to just to attribute that there is some positive momentum structurally there are certain things that we are trying to put in 23:26 23 minutes, 26 seconds place uh but at a customer level I'm we are not in we will not be in a position to kind of give a uh you know future plans in terms of what growth is 23:34 23 minutes, 34 seconds possible what growth is not possible we will look at the container business overall and you know we kind of will continue to give you a guidance of uh 23:41 23 minutes, 41 seconds you know how we see the container uh overall volume developing. 23:48 23 minutes, 48 seconds Understood. Uh maybe a slightly related question as in uh if you were to be doing the capex and kind of deepen on 23:54 23 minutes, 54 seconds the draft. Um uh can the uh liability of the port and thus container volumes see 24:01 24 minutes, 1 second a meaningful uptick from there obviously hinging on the cape but this might a sense of the quantum benefit that can come one way. 24:10 24 minutes, 10 seconds No no that these are farfetched at least at this stage. uh obviously uh you know if we are in a position to do a capex uh 24:19 24 minutes, 19 seconds the idea is to grow the business and make it profitable right so otherwise that doesn't make sense to do the capex so I mean I think these are all far-fetched questions at least at this 24:26 24 minutes, 26 seconds point in time uh so we will not like to kind of answer the question but in general any capex that we we we do uh 24:35 24 minutes, 35 seconds has to result in profitable uh growth for the company last question from my side um on um the 24:44 24 minutes, 44 seconds expenses uh that have kind of caught up in this quarter as in we saw some uptick in expenses uh 24:52 24 minutes, 52 seconds in the last year same time in the third and fourth quarter should one assume that on an annual basis uh these kind of 25:00 25 minutes expenses will be recurring in nature and how to think through margins in that context incrementally and that will be my final question 25:08 25 minutes, 8 seconds sorry actually I don't think we should we should assume the same just because of the last two 25:15 25 minutes, 15 seconds time we have seen this as I explained uh the main increases has come from from uh you know two main reason one is uh the 25:23 25 minutes, 23 seconds repressor maintenance cost and also the CSR and maintenance of course to certain extent there are some preventive maintenance which are planned in a particular quarter so we have some 25:31 25 minutes, 31 seconds increases there so in those cases can remain but again CSR is something which depends on what kind of activity has been done in the quarter so it's not 25:40 25 minutes, 40 seconds right to assume that this is a run that we should consider for every uh third quarter of the year. 25:48 25 minutes, 48 seconds Got that. Those are my questions. Thank you for responses. Thank you. 25:52 25 minutes, 52 seconds Okay. Thank you Mr. Kumar. Please go ahead. 26:01 26 minutes, 1 second Hi, thanks for the opportunity. So my question is what is our uh capacity for liquid and post the expansion of this 26:09 26 minutes, 9 seconds liquid jetty? what will be the capacity and uh how the uh uh ramp up of uh capacity utilization of expanded capacity will take place. 26:21 26 minutes, 21 seconds So depending on the commodities roughly our current capacity uh is around the 1.6 to 1.75 million metric tons. Uh the 26:30 26 minutes, 30 seconds new jetty is 3.2 million metric tons. So our capacity roughly expands to 5 million metric tons. 26:39 26 minutes, 39 seconds Okay. and uh capacity utilization of that JT will be very gradual or you can 26:46 26 minutes, 46 seconds uh uh straight away uh utilize it at a very high rate. 26:52 26 minutes, 52 seconds Yeah. I I don't know when you say high rate very high rate what do you mean by that but and when you say very gradual I don't know what it means but you know 27:00 27 minutes fundamentally the idea really is that uh there clearly we see more business 27:07 27 minutes, 7 seconds coming our way on the liquid side our current jetty cannot handle beyond and we have reached the capacity we need 27:14 27 minutes, 14 seconds additional capacity to handle larger volumes also the larger vessels that are coming in the market so it is a critical 27:22 27 minutes, 22 seconds component for our customers. Uh I would rather say 27:29 27 minutes, 29 seconds of course you know we are not expecting 3 million metric tons to fill up uh in the first year or two years but it will 27:36 27 minutes, 36 seconds be a reasonable growth victory. Uh we'll talk about that once the jetty is uh up and running. 27:45 27 minutes, 45 seconds And second question pertains to your arrangement with OMGC. Since you are reluctant to share the the details mean 27:53 27 minutes, 53 seconds what exactly OMGC is utilizing uh our infrastructure uh what is the 28:01 28 minutes, 1 second arrangement? If you can give some broad color it will be helpful. 28:05 28 minutes, 5 seconds Yeah. So, so from a scope perspective, uh we are the offshore supply base for OMGC for their installations in the 28:13 28 minutes, 13 seconds Arabian Sea. They have a large base uh in Nava which is been their traditional and continues to be their largest offshore supply base for their 28:22 28 minutes, 22 seconds installations uh in the Arabian Sea. We provide our uh uh uh jetties for their offshore 28:30 28 minutes, 30 seconds supply vessels to come and take cargo for these from our port. We also provide them open space and closed warehousing 28:38 28 minutes, 38 seconds space material that they stock in our uh port. So that's broadly the scope of activities. 28:47 28 minutes, 47 seconds Okay. Thank you. Mr. Please turn it please go ahead. 28:57 28 minutes, 57 seconds Thank you for the opportunity sir. First question would be on the line of the cost which you have mentioned CSR and repairs and maintenance. Uh can you quantify the amount for both of them? 29:07 29 minutes, 7 seconds Uh no no not not I will not able to all these details. Uh right but I given 29:14 29 minutes, 14 seconds the the major major component right so I think you should be fine with that. 29:19 29 minutes, 19 seconds Uh so can we say X of that X of this repairs and maintenance and one of cost of CSR we would we would have been able 29:26 29 minutes, 26 seconds to achieve that 58 59% margin which we achieve on a regular B sustainable basis. Yeah. Yeah. That's right. That's right. 29:34 29 minutes, 34 seconds Yeah. Thank you. Uh and second on the line of uh container volume growth uh are we seeing the container volume 29:41 29 minutes, 41 seconds growth bottoming out for us and can we expect future volumes to grow in FI27 and FI28 from from the current levels? 29:49 29 minutes, 49 seconds Yeah. So so as I answered earlier uh on this so there is a 7% improvement over 29:56 29 minutes, 56 seconds previous quarter. U however I would like to wait for one more quarter to see you know whether this is structural in 30:03 30 minutes, 3 seconds nature or not. So we would like to comment a little bit more in details uh in the next quarter results. Uh we will also have two quarter data points to 30:12 30 minutes, 12 seconds kind of talk. Uh clearly there are several initiatives that we initiated with mask which are sort of started to yield results. Uh we will see you know 30:20 30 minutes, 20 seconds final this thing in in uh the next quarter results. Uh also some structural 30:27 30 minutes, 27 seconds improvements uh in terms of the tariffs bilateral free trade agreements. 30:31 30 minutes, 31 seconds bilateral trade trade trade agreements are pass the Swiss canal opening up is in favor of us so you know we do expect 30:38 30 minutes, 38 seconds those uh uh things to structurally benefit us but again as I said I think we should wait for one more quarter results to kind of quantify uh benefits 30:47 30 minutes, 47 seconds etc got it uh and the last question on the line of liquid we are seeing uh 0.4 30:55 30 minutes, 55 seconds million metric t million tons of every quarter and you mentioned that we have a capacity of 1.6 6 to 1.75. So is it fair 31:03 31 minutes, 3 seconds to assume that we will be in the same level of 0.4 million until December 26 broadly? Yeah, broadly we should you 31:11 31 minutes, 11 seconds know see the four the 400k kind of a number. That's broadly based on the mix that we are able to do maybe you know 31:19 31 minutes, 19 seconds 420ish kind of thing getting up to 1.7 million but that's be roughly the numbers. 31:29 31 minutes, 29 seconds Got it. And last on the line of margin difference uh if you could me mention what kind of margins we have in uh container fertilizer liquid and roro. 31:40 31 minutes, 40 seconds No no we don't uh share margins split at our business level the overall margins are 31:48 31 minutes, 48 seconds uh known and and that's what we would like to kind of maintain. 31:51 31 minutes, 51 seconds Got it. So can you just uh specify the pecking order which has a higher margin followed by No we can't specify any pecking order 31:58 31 minutes, 58 seconds basically. Yeah. Thank it from us. Thank you, sir. 32:03 32 minutes, 3 seconds Thank you, Mr. Jatin Parasha. Please go ahead. 32:13 32 minutes, 13 seconds We can't hear you. 32:25 32 minutes, 25 seconds You can go ahead and Yeah. Hi. Thank you. I hope I'm coming through well. Um, yeah, great. Um, so I just had a follow-up uh question, more 32:34 32 minutes, 34 seconds of a clarification. Uh, you mentioned that you have made some adjustments uh or some structural changes uh with MSK 32:42 32 minutes, 42 seconds on some of their services, right? uh if you could help us understand what kind of um changes have you done um which 32:50 32 minutes, 50 seconds have yielded these positive results uh sequentially and uh secondly is has all the benefit been realized already or do you expect uh uh a further ramp up? 33:02 33 minutes, 2 seconds Yeah. So sorry I I'm I'm not at liberty to share what kind of changes we are doing. These are all at a customer level you know customer level information, 33:10 33 minutes, 10 seconds commercial information. We will not share that information. I have already said that we will wait for one more quarter results to kind of get back uh 33:17 33 minutes, 17 seconds on on more details in terms of how the container volumes are shaping up. 33:21 33 minutes, 21 seconds Okay. Okay. Fine. Uh the totally understand makes sense as well. Uh the other question I had was you mentioned that 15 to 25% is the uh exposure to the 33:31 33 minutes, 31 seconds US and Europe routes. I think in the past couple of quarters when we spoke about the US headwind the US tariff headwind I mentioned about 10 to 12% of 33:40 33 minutes, 40 seconds your exim containers are on the USbound routes so I understand that the rest 12 33:47 33 minutes, 47 seconds to 15% is from the Europe route as far as the rest of the volumes are concerned they are mainly Middle East volumes or 33:55 33 minutes, 55 seconds you have any far east services if you could help us understand the geographical exposure how it stands today most is far east uh in nature uh I mean 34:04 34 minutes, 4 seconds I very difficult to now I it's not you know in general that data is I'm not having it handy but in general that's more far east. 34:16 34 minutes, 16 seconds Okay. Okay. Also service but more more services. Yeah. Okay. 34:21 34 minutes, 21 seconds Okay. Okay. Thank you. Uh that is very helpful. Uh good luck. Thank you. 34:36 34 minutes, 36 seconds You still you still have some questions? 34:42 34 minutes, 42 seconds Yeah, just one question sir. What you you mentioned about the realization of uh 34:48 34 minutes, 48 seconds container liquid and bulk what kind of real realization is from ruro? 34:54 34 minutes, 54 seconds I know we normally don't don't give the real action for right now is with limited customers. So we don't want to share the revenue. 35:02 35 minutes, 2 seconds Okay. And can we share the revenues for ARO? No. No. Yeah. Thank you. 35:11 35 minutes, 11 seconds Thank you. Please go ahead with your questions. 35:15 35 minutes, 15 seconds Yeah. Hi sir. Most of my questions are answered. Just I briefly got discounted when you were mentioning the railation numbers. So any change on that front and 35:23 35 minutes, 23 seconds secondly the trade notice affect to the fourth quarter or the March quarter right you know what would that hike be 35:30 35 minutes, 30 seconds at a blended level of for container at a portfolio level and then are you also planning any specific or can you expect 35:38 35 minutes, 38 seconds similar increases in bulk and liquid as well very difficult to understand your question the background noise can't 35:46 35 minutes, 46 seconds so let me speak a bit louder maybe in that case so most of the questions are answers are only question you know on the realization front I briefly got 35:54 35 minutes, 54 seconds different question when you you were answering that so just trying to understand what the realizations for this quarter were and not 36:02 36 minutes, 2 seconds let me answer one question right now and then of course you can yeah sure on the real 36:10 36 minutes, 10 seconds ones for container it is 9,500 to 10,500 per tu 36:16 36 minutes, 16 seconds it continues to be 550 to 650 rupees per micro ton and for liquid 550 to 600 rupees per minute. 36:25 36 minutes, 25 seconds Got it. So and secondly for the trade notice that was issued right effect of Jan. So what would the effect I mean increase at overall level could be should will it be around 5 6%. 36:36 36 minutes, 36 seconds So increase is 5% realization we believe will be 4%. 36:43 36 minutes, 43 seconds Okay. And can we expect similar hikes for bulk and liquid as well or should we assume flat resolution sir? We'll let 36:50 36 minutes, 50 seconds you know you know when that happens. But marine is an overall increase for everybody. 36:57 36 minutes, 57 seconds Sure. Thank you sir and all the 37:08 37 minutes, 8 seconds we have any other followup questions from anyone? Mr. Jin, please go ahead. 37:22 37 minutes, 22 seconds Sorry, we can't hear you still, Mr. Mr. Prasha. We can't hear you. 37:43 37 minutes, 43 seconds Any other follow-up questions? 37:56 37 minutes, 56 seconds doesn't seem to be the case. Uh, thank you very much for joining the call. 38:03 38 minutes, 3 seconds Thank you everyone. Thank you.