CONCORNSEAugust 05, 2022

Container Corporation of India Limited

7,027words
58turns
5analyst exchanges
5executives
Management on call
V. Kalyana Rama
CHAIRMAN AND
Pk Agrawal
DIRECTOR (DOMESTIC)
Sanjay Swarup
DIRECTOR (INTERNATIONAL
Manoj Dubey
DIRECTOR (FINANCE)
Bhoomika Nair
DAM CAPITAL
Key numbers — 40 extracted
30%
e had good set of numbers of the Q1. We had very good growth in the domestic sector. We had almost 30% growth and compared to the last corresponding quarter, I think it is more than 35% growth. However
35%
. We had almost 30% growth and compared to the last corresponding quarter, I think it is more than 35% growth. However in EXIM trade, which is more dependent on the exporting import of the India, there
rs,
tinued that and in the beginning itself, we announced it for the entire year and all the stakeholders, shipping lines, exporters, importers, particularly the exporters they're taking good advantage of i
95%
ross the company, putting customer value creation in the forefront. So in that almost we are there 95%. This year we'll be adding the artificial intelligence based system on the trial basis at
10%
the scenario is and as I have given the forecast in the beginning of the year, we'll be looking at 10% to 12% growth, both in volumes, as well as in top and bottom line. And I'm sure that we are on tra
12%
nario is and as I have given the forecast in the beginning of the year, we'll be looking at 10% to 12% growth, both in volumes, as well as in top and bottom line. And I'm sure that we are on track towa
15%
rrent quarter, what can we expect? Yes, railway has actually recently reduced the concession from 15% to 10%. So we have, while revising our tariff for empty containers during the last quarter, as our
0%
taking into account no discount from railways. So in the future also, they will reduce from 10% to 0% already, it has been taken care of. Okay, this price revision is already reflecting in our number
25.60%
in has come down little bit because the of the regional factor mentioned by my colleagues, this is 25.60% for this quarter. Mukesh Saraf: So on the DFC we have seen this year partial operations in effe
INR 95.6 crore
an you throw some light on why the LLF amount that you provided has come down in the quarter, it's INR 95.6 crore this quarter versus last year 1Q, you've given INR 113.8 crore. Manoj Kumar Dubey: So if you
INR 113.8 crore
has come down in the quarter, it's INR 95.6 crore this quarter versus last year 1Q, you've given INR 113.8 crore. Manoj Kumar Dubey: So if you recall, last year in the beginning, we had told that we'll be ai
INR 450 crore
So if you recall, last year in the beginning, we had told that we'll be aiming in providing for INR 450 crore because last year was the first year when we started having the rates from all the state for land
Guidance — 20 items
V. Kalyana Rama
opening
We are very sure of our domestic segment growth and in EXIM segment also we are hopeful that we will be able to achieve growth in that and by the end of the year.
V. Kalyana Rama
opening
This year we'll be adding the artificial intelligence based system on the trial basis at Container Corporation of India Limited August 05, 2022 Tughlakabad very soon, which will be giving the customer a real time experience of the cargo handling and cargo movement, at ICD on both export import side and the domestic side.
V. Kalyana Rama
opening
So this very soon we are starting and replicating that will be very fast at all the depots.
V. Kalyana Rama
opening
This will be giving a complete different dimension towards customer experience.
V. Kalyana Rama
opening
And these phases, will be completed within a year’s time, both the phases.
V. Kalyana Rama
opening
So with the same effort, we will be able to handle more cargo.
V. Kalyana Rama
opening
This is an ongoing process and in high capacity rakes, as of now, we already introduced 31 rakes and the total addition in this will be, as I mentioned to you earlier, 276 out of the 31 already done.
V. Kalyana Rama
opening
And in this year, we are aiming to introduce we thought of introducing more rakes, but there are certain issues with the rail wheels availability in India, because there's only one government factory producing wheels.
V. Kalyana Rama
opening
So we will be adding continuously and this will be there, vis-a-vis whole demand forecast demand for cars.
V. Kalyana Rama
opening
They will be starting very soon Paradip.
Risks & concerns — 3 flagged
Because of the geopolitical factors the addition of new assets is a challenge now.
V. Kalyana Rama
We keep the number with us, but it'll difficult to share it with you right now,
Sanjay Swarup
Just last clarification on this LLF last year when we did the INR 465 crore provision for the LLF charge, does that include some higher provision than what was actually paid off, and which is why this year there is a decline that is the way to think about it.
Bhoomika Nair
Q&A — 5 exchanges
Q
First question is on pricing actions that you might have taken could you some sense on especially with the empty container discounts now reduced further by Indian railways to 10%, what kind of pricing actions you have taken in the past quarter and in this current quarter, what can we expect? Yes, railway has actually recently reduced the concession from 15% to 10%. So we have, while revising our tariff for empty containers during the last quarter, as our CMD already mentioned, we have already taken care of that. And we revised the tariff as taking into account no discount from railways. So in
Sanjay Swarup
For all customers, it has been done. Okay. Okay. Okay. What was the rail freight margin this quarter? So rail fright margin has come down little bit because the of the regional factor mentioned by my colleagues, this is 25.60% for this quarter. So on the DFC we have seen this year partial operations in effect and we've seen benefits for CONCOR and general container train operators with respect to turnaround time, etc. So would you have a sense on what percentage or what proportion of volumes should have already moved from road to rail based on what we have seen so far and say in the coming yea
Q
Sir can you throw some light on why the LLF amount that you provided has come down in the quarter, it's INR 95.6 crore this quarter versus last year 1Q, you've given INR 113.8 crore.
Manoj Kumar Dubey
So if you recall, last year in the beginning, we had told that we'll be aiming in providing for INR 450 crore because last year was the first year when we started having the rates from all the state for land in the different parts. So in last year, INR 450 crore, we have around INR 70 crore of provision there. This year, because things have settled down, we are not making any provisions, we are booking on the actual basis. So what we have booked it here is the actual that we pay to the railways. Meaning thereby we are not keeping any provisions in this year, apart from what we have actually pa
Q
Hello. So thank you for taking my question. So just couple of things, what is double stack volume during the quarter and what was the share of cement in the domestic sector? Yes, double stack actually we moved 1145 were double stack trains total, which is a growth of 42% as compared to the corresponding quarter of last financial year. Yes, basically in the cement, what we are aiming now for the bulk cement, which is just a commercial run has started because not much other than that, we run some dead cement also, which share will be not much, but we run on both piece meal as well as on the full
Sanjay Swarup
Yes. originating volume for Exim for this quarter were 497222 TEUs and domestic 106271 TEUs. Second is could we help us with the empty running cost for the quarter? Empty running cost for Exim was INR 20.40 crore domestic 63.84 crore. Sure. Just to clarify on the LLF provision you said that out of 450 crore, you had, you had 70 crore of provision. So just to simplify this, can you give us a number for LLF that you expect for ‘23? It would be around 370 crore as of now that we have planned. But as you know, the last question you heard that there is a long murmuring going about regarding refixin
Q
Yes sir. Just a bookkeeping question. If you can just tell us the lead distance for both EXIM and domestic as also the port wise breakup that you typically give? Lead for this quarter for EXIM was the INR 674 kilometers for domestic it is 1320 kilometers.
Bhoomika Nair
Sure, sir. And the port wise volume breakup, sir, Port wise volume. It is JNPT, 35%. Mundra port 37.5%. Pipavav 11% Vizag 5%, Chennai 5%, Tuticorin 2%, Cochin 2%. These are the main ports that have the presence of CONCOR. Sure. So that's quite useful. So just to clarify you know, on the haulage rate the discounts which have withdrawn from effective 1st August, we have also withdrawn it and passed it down to our clients from first August, or is there some lag that is there for us? As I already explained that haulage rates for empty, they were withdrawn from 1st May from 25% to 15%. At that time
Q
CONCOR Q1 FY23 Earnings Conference Call Hosted By Dam Capital Advisors Ltd
Time
Aug 05, 2022 11:30 Hrs India Time Main Speaker(s): Management Of CONCOR Ms. Bhoomika Nair - Dam capital Total 156 Participants including the Speakers. Participants List Name Phone Company HOST:Bhoomika HOST:Management Abhay Shanbag Abhijit Mitra Abhishek Ghosh Abhishek Nigam Abhishekh Verma Adil Khan Aditya Mongia Ajit Motwani Akash Kumar Akshay Falgunia Alok Deora Alok Deshpandey Alok Wadkar Amish Shah Amit Agarwal Amit Bhinde Amit Khurana Amit Vora Anand Nadappi Anjali Kumari Ankit Jain Ankur Deore Anurag Patil Aparna Shankar Arun Kumar Arun Saxena Ash Shah Ashish Shah Ashish Shah Ashwin Aga
Speaking time
V. Kalyana Rama
14
Sanjay Swarup
7
Moderator
5
Mukesh Saraf
4
Manoj Kumar Dubey
4
Ashish Shah
4
Logesh
3
Koundinya N
3
Bhoomika Nair
3
Guarav Birmiwal
2
Opening remarks
V. Kalyana Rama
Ladies and gentlemen good day and welcome to the CONCOR Q1 FY ‘23 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing” *” then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Bhoomika Nair from DAM Capital Advisor Limited. Thank you and over to you. Thanks. Good morning, everyone and a warm welcome to the Q1 FY ‘23 Earnings Call of Container Corporation of India. We have the management today being represented by Mr. V. Kalyana Rama Chairman and Managing Director and his entire team. I will hand over this call now to Mr. Rama for initial remarks post which we will open up the floor. Over to you, sir Yes. Thank you Bhoomika. Good morning to all of you. I'm
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