Good afternoon. Welcome to the 4Q FY26 earnings call of Container Corporation of India.

We have the management being represented by Mr. Sanjay Swarup, Chairman and Managing Director.

I'd like to hand over the call to Sanjay sir for his opening remarks, post which we can take up the Q&A. Over to you, sir.

Thank you. Yeah.

Good morning to all. I am accompanied by Mr.

Ajit Kumar Panda, Director (Projects & Services); Mr. Vijay Kumar Singh, Director (International Marketing & Operations); Mr.

Vivek Gupta, Director (Finance) & CFO; and Mr. Harish Chandra, Principal Executive Director (Finance) and Company Secretary of our company.

I will just make the opening remarks, and then I will open for question-answer session. I'm glad to announce that Board of Directors have approved the dividend of ₹1 per share of par value ₹5 that is interim dividend for quarter four.

This makes the total dividend of ₹8.6 per share, which is 172% of the par value of share. In yesterday's Board of Directors meeting it was approved.

I would like to outline the challenges being faced by international trade in FY 25-26. Most of you are quite well aware of that.

There are a lot of geopolitical uncertainties, which is due to the international conflicts and trade tensions. This has severely disrupted the global supply chains and increased the trade risks.

There are trade restrictions, and tariffs by United States up to 50% were imposed during the year, and this has severely affected the volumes, specially in textiles and marine products. Then there was a global economic slowdown in US, Europe, and parts of Asia.

There are currency fluctuations also, exchange rate instability is there. With all these factors are impacting the EXIM trade.

India's international trade, that is merchandise trade, was as under for the FY. Exports were total $441.8 billion, which was a growth of 0.9% over previous financial year.

Imports were $774.9 billion, which was a growth of 7.45% over the previous year. Despite these challenges, our company, Container Corporation, achieved ever-highest throughput of 5.58 million TEUs in FY26, and which was a growth of 9.6%, in which EXIM growth was 8% and domestic growth was 14.6%.

Our rail freight margin increased from 25.65% to 27.16%, which is quite a healthy rail freight margin, is a growth of 1.1 1.51%. Our overall operating margin increased from 29.99% to 30.89%, it's a growth of almost 1%.

Our operating income increased by 2.2%. Our PAT suffered a decrease of 4.5%.

The main reasons are the less demand in domestic streams, primarily the gunny bales traffic and tiles traffic, due to the geopolitical conflicts. Second reason is the shortage of tank containers, because the ecosystem of tank container, it's a new product, in our country that ecosystem was not there.

Due to that, in last FY, we could not get a good supply of tank containers. Now the ecosystem is quite well developed.

We have two-three good vendors, and we have a fleet of 500 tank containers with us right now. Every month, we are adding 200 tank containers to this fleet.

Yesterday, I'm glad to inform you, Board of Directors further approved the procurement of 2,000 more tank containers apart from 1,000 tank containers approved earlier. In this FY, we will have a very good availability of tank containers, which will give us good loading of bulk cement in domestic.

Apart from that, the reason for decline in PAT was the challenges faced by international trade, as I already highlighted. The growth in double-stack rakes was 1.5% from 6,302 double stack to 6,396 double stacks rakes in this financial year.

There is a very big development taking place that already most of you may be knowing, DFC connectivity to JNPT will be commissioned by 1st June, 2026. We are quite ready.

Earlier last week, I had a meeting with top management of DFC Corporation, and they are quite optimistic that from 1st June, they will be able to run double-stack trains to JNPT. We will be getting a very good business from 1st June.

We will be running double-stack train from NCR to JNPT, and EXIM volumes will get a very big boost as a result of this connectivity. Then during the financial year, CONCOR signed MOU for Bharat Container Shipping Line, in which we have a 30% stake.

We are one of the majority partners of Bharat Container Shipping Line. As per the Amrit Kaal vision of honorable Prime Minister, this shipping line will be among the top 10 shipping lines of the world by 2047.

CONCOR containers are now going to Middle East. Of course, because of the conflict, this movement has stopped, otherwise our containers, almost 700 containers, have gone to Middle East under our own document, that is we have issued the bill of lading for these containers.

We are quite bullish on infrastructure additions. We have commissioned 43 high-speed rakes in this financial year, taking total to 423.

We have procured 400 7 4,729 new containers, taking our total fleet size to 57,746 containers of our own. Due to the excellent operation planning, we reduced the empty running of rakes also, and in EXIM by 27%, and in domestic around 4%, overall 10.5% reduction in empty running of rakes.

This has positively contributed to our bottom line. Company is quite conscious about the ESG norms.

We have taken lot of green logistics initiatives. We have 230 LNG trucks of our own.

We have five electric RSTs and two electric vehicles, which we are using for trial basis. We are quite seeing good results, and we will be procuring more of them.

CapEx achieved in last financial year was one of the highest, which is ₹1,085.20 crores. In this financial year, yesterday Board of Directors have approved CapEx budget of ₹945 crores.

We may be increasing the budget during the mid-year review and because we need lot of CapEx for infrastructure additions. Now I will briefly summarize the business-wise scenario.

In EXIM, we crossed ₹6,000 crore, that is 60 billion rupees for the first time, that is revenue for the first time in the company's history, which is all-time high. EXIM has performed exceedingly well.

We achieved 4.21 million TEUs handling only through EXIM, which is again ever-highest in the company's history. WDFC connectivity will give a very big boost to volumes in this financial year and now from the coming years.

We have signed MOU with PSA, that is Port of Singapore Authority, for dedicated services between JNPA and CONCOR ICDs. This will be a big driver for growth for EXIM in the coming years.

In the last financial year, we achieved a export growth of total 3%, in which auto parts achieved a growth of 17%, buffalo meat 19%, aluminum ingots 22%, besides other commodities. Imports, we achieved a growth of 5.8%, in which auto parts contributed 38%, solar panel parts 92%, and polymer products 23%.

We also unveiled a liberalized DPD and cabotage policy, which was very well received by trade, and we saw 38% increase in our DPD volumes, which is now further going to grow in this financial year also. In collaboration with a leading shipping line, Maersk, we launched Aushadhi Express from our Hyderabad ICD, Sanathnagar to JNPT.

It is also very well received. All this drugs usually they go to Western countries, USA and Europe, primarily USA.

This is also a very good product that has been launched by us from Hyderabad, and we are getting good patronization from trade. Our reefer exports also saw a very good growth of 17%.

It's a healthy growth, and this financial year also, there is a good demand in reefer volumes. At almost all the ports, we recorded growth in imports, like in JNPT there was 12% growth, Mundra 8.8%, Chennai 14%, and Vizag 28% growth in our imports.

Now I will come to domestic. Domestic, our product that we launched, the bulk cement transportation in tank containers, is very well received by trade.

We are getting lot of demand, and now the supply of tank containers is also coming. We are quite well positioned in this financial year to capitalize on this new stream, and normally in domestic we are doing 14 to 15 million tons of loading, and I am quite positive that in this financial year itself, we will be able to do at least 1 million tons of bulk cement in tank containers in domestic.

Besides that, our trials for bulk loading of food grains in containers along with liners has been successful, and very soon we are going to start that also. We are running assured transit time train from Tughlakabad, Delhi to Shalimar, Calcutta, which has also contributed to increase in our volumes.

Several new services, assured transit, will be very soon announced by Indian Railways. Indian Railways, in fact, is working on various reforms for container sector, and we are expecting so many reforms from Indian Railways, which will be unveiled in the coming weeks, which we will be informing all of you in due course of time.

We are already also in talks with gas authority GAIL and Petronet, and we are expecting very good volumes from them. That also we will inform you once we receive the orders.

Apart from that, gunny bales traffic, which suffered quite badly in last financial year, is likely to be revived in this financial year. There are quite firm indications for that, which will positively contribute to our domestic volume.

Now going forward, as I told you, the factors which will contribute to our business, I would like to summarize them. First is WDFC commissioning and assured transit trains.

Second is double stacks at our locations in Salawas and Charodi. Salawas is near Jodhpur, Charodi is near Ahmedabad, and Charodi will be on DFC.

These new terminals will contribute to double stacks. We will bring to Jodhpur, Ahmedabad already of course double stack is there, but we don't have a facility of double stack, we hope to ramp up good volumes at Charodi also.

Besides that, we have commissioned new terminals like Mandalgarh, Kadakola near Mysuru, Jajpur, and Paradip, which will also bring new traffic to our company. Then Nepal traffic that is going at present to Birgunj, we have opened another point at Raxaul, where we are handling the containers.

Crane handling is allowed by Indian Railways. Birgunj and Raxaul, two points.

Apart from that, Biratnagar, very soon we will be starting. Nepal traffic also there will be good growth in this financial year.

Lastly, we are quite positive for shipping business. We were already moving to Middle East before the conflict, and now Far East also we have started moving.

Apart from that, we are a major component of Bharat Container Shipping Line, as I already informed. This will be also a big driver in the coming years.

I would like to now give the guidance for this financial year '27. EXIM, I would like to give guidance of 8%.

Domestic, I would like to give guidance of 15%. Overall will be 9.5%.

Of course, I'm a bit conservative because of the various geopolitical factors which are right now present. In the mid-year, we will review our performance and various environment around us, and we will go for a revision if required for this guidance.

Right now, it is EXIM 8%, domestic 15%, overall 9.5%. In the present market scenario, I feel it is better not to make any long-term guidance forecast.

I will adhere to only this financial year guidance. For subsequent years, we will tell when the situations stabilizes around us.

Thank you very much. This is my opening remarks.

Now you can start with your questions.

Yes, good morning and thank you for the opportunity. My first question is regarding the DFC connectivity to JNPT starting next week itself.

If you could give some sense on the size of the opportunity here, say either road moving to rail or shipping lines calling at JNPT and not, say, at Mundra because of this rail connectivity now. This will kind of give us some sense on what kind of volumes we can kind of shoot across JNPT to NCR.

See,

at present, the rail coefficient at JNPT for the last financial year it was 15.12%, and with this connectivity, overnight it will not increase. In this FY, I am sure from 15% at least it will go to 18% to 19%.

There are quite good indications, and we will be actually running time-tabled assured transit train from NCR to JNPT. Secondly, we will be tinkering with our tariff also, because our company believes that without sacrificing margins, if we incur some savings, we will share those savings with our customers, part of the savings.

Because in double stack we have to pay less haulage charges to railways, we'll be having some saving on 40-ft containers, we will be coming out with a very competitive tariff that will be like cargo which is at present moving by road. Transit time will reduce, and our tariff will also at par or very competitive with road.

We are quite positive that lot of traffic will shift from road to rail. Right now, numbers I cannot give you, but I am very sure that this shift will be there, and in another 3 years' time, rail coefficient will increase from 15% to at least 30% or 35% at JNPT.

As far as the movement of cargo from Mundra to JNPT and all is concerned, at the moment, I would not like to comment on that. Let us see how the trade takes it, and shipping lines and trade, they will see the service levels and what advantage they will get, what other dynamics they have, and they will take a decision.

At present, we have the service at Mundra also, we have the service at JNPT also, and we have signed in fact an agreement with PSA at JNPT. From our side, we are able to give service to customers from both the ports.

They have to decide that where do they want to bring the cargo.

Got it. Got it.

That's quite clear, sir. Thank you.

Secondly, on the tariffs you had mentioned, what we are reading is that road tariff is going up, with diesel, etc., kind of moving up. Are you starting to already see some kind of a shift from road to rail because road freight rates are going up while, I guess, Indian Railways will be quite aggressive on the rail side of it?

If you could talk a little more on the economics between road and rail? See,

rail is a green mode of transport and it is environment-friendly mode of transport. I am a great advocate for rail transportation.

We should have long-distance transportation by rail. Definitely efforts should be to move more and more cargo by rail.

Whatever factors are contributing to it, but the rail transportation at the end of the day should increase. For your information, at JNPT there was a very big congestion some few days back due to various reasons, you may be reading.

CONCOR came forward. I also spoke to Chairman and top management of JNPT.

We evacuated lot of containers from JNPT to our facility at Dronagiri, and all this evacuation was done through rail only. We deployed special rakes, and transportation was done between JNPT and our terminal.

Rail definitely helped us a lot in easing the congestion. Now the JNPT is having huge imports now, it's dealing with lot of volumes.

Definitely rail is the preferred mode of transport for our country as a whole.

Sure, sir. Sure.

Just one last question from my side. You mentioned about assured transit time services.

Say in FY26, could you give a sense on what percentage of your services are running on assured transit time, and what could this go up to, say, in the next year? See,

percentage-wise, if you compare from our overall volume, it is a negligible percentage. I should say that it's a welcome beginning by Indian Railways, which is welcomed by the trade.

If I go for percentage, it is a very meager percentage, but more and more reforms in the form of various other things and assured transit, more services are being announced by Indian Railways because they're seeing the benefits of that. These are small steps being taken, and we should welcome these steps.

Because eventually it will again divert traffic to rail.

Got it, sir. Thank you so much.

I'll get back in the queue.

Thanks for the opportunity. Sir, if you can elaborate on your thoughts around the West Asia crisis, which is still ongoing, and we are almost 2 months into the June quarter.

What has been the disruption in terms of volumes for EXIM and domestic, if you could give us a flavor? Very difficult to give an outlook here, but given you have left us with an 8% growth guidance on EXIM and 15% for domestic, what kind of a slow start do you expect in the first half of the fiscal?

That is my first question. See,

as far as the West Asia crisis is concerned, our volumes were impacted in the month of March, due to which last FY also we were expecting more, at least we could not perform that much. April was also not very good.

From the month of May, we are again seeing an upsurge in our volumes, which is a good indication. Probably the other markets like US, and Europe, and Far East, they are now contributing a lot.

Government of India has signed various FTAs with various countries, that is also positively impacting the business. We are getting good import volumes at all the gateway ports, and FTAs have a very important role to play in that.

I'm quite sure that whatever guidance I have given, taking all these factors into consideration, we have worked out, and now we are giving this guidance. We are quite positive to achieve these guidance.

Sure. My second question is on the domestic segment revenue growth, a decline of 4% in the March quarter and segment EBIT margin was just 0.2%.

If you could help us quantify the impact that the West Asia crisis in March particularly had for the domestic business, and what really led to such a steep sort of impact in the domestic segment, that would be useful. See,

domestic actually affected very adversely because of the disturbance in our neighboring country, because of that, we could not get the supply of jute. This gunny bales were the major domestic loading commodity in Eastern India.

Because of no supply of jute or less supply of jute, the gunny bales traffic was very severely affected. This affected our top line in domestic as well as bottom line.

Because traditionally cargo goes to Eastern India, and in return direction, gunny bales were stuffed in the containers. Because of there were no gunny bales, these containers were coming empty.

Bottom line was very badly affected. The second reason was the tiles industry in Morbi, you must be reading in newspaper.

Almost all the tile factories are closed because of there is no supply of gas. These two commodities are big commodities contributing in domestic, and these were the reasons.

Now, slowly both the commodities are getting revived, we are quite positive. Apart from that, now this bulk cement will also gain traction.

That is why I am giving a guidance of 15% domestic, which we are quite optimistic that we will be able to achieve.

Sir, gunny bag issue and the Morbi volumes, are they back to 50% of normal or even below that right now?

Right now, they are below that, but there are indications that very quickly they will be increasing.

Okay. Thank you and wish you all the best.

Thank you for the opportunity. I had a couple of questions from my side.

First one being on JNPT. Sir, you talked about an 18% to 9 19% year-end number, and eventually a 30% modal coefficient number.

Could you give us a sense of what are low-hanging fruits over here which can make the 18% to 19% happen early on, and then what needs to happen for 30% modal coefficient to happen? Why I'm also asking this question is my sense was that the entire movement that goes from road from JNPT to northern part of the country was 10 odd percent.

Just trying to get a sense which are the other routes that you are exploring when you think of through 30% modal coefficient. See,

Aditya, actually this changeover from road to rail will not happen overnight. Once these services start, it will take some time to stabilize.

Like right now, I told the rail coefficient in last financial year at JNPT was 15% - 1-5. I'm expecting that in FY27, this will reach around 19% - 1-9%.

Maybe it may reach 20%, 21% also. In 3 years' time, it will stabilize at 30% or 35%, because JNPT is not serving only North India.

Lot of traffic is going to Hyderabad area, to Nagpur, that is Central India, and then to Bangalore also, South India. All these places are also served by JNPT.

All these places are not connected on Western DFC. Western DFC is connecting North India, that is NCR, and it's passing through Gujarat.

Nagpur, Hyderabad, and Bangalore, they continue to be non-DFC locations for JNPT. In that all locations also, we are getting a good business.

They will continue to move on non-DFC. From all these locations, Nagpur, Hyderabad, Bangalore, we cannot run double-stack trains to JNPT because it is not on DFC.

For NCR area and Gujarat, we will be able to run double stack. They will reap the benefits of Western DFC.

That is why I am saying that in 3 years, rail coefficient will increase to 30%,

35%. Or maybe just a clarification over here.

When you say the non-DFC routes, Hyderabad, Nagpur, on and so forth, will they be any which ways impacted by the commissioning of Western DFC, or what are the reasons that why they would start coming on double stack to JNPT versus them not doing it today?

These locations like Nagpur, Hyderabad, Bangalore will not be impacted with commissioning of Western DFC, because double-stack trains cannot be run from these locations.

Yeah. Why would they shift from road over time?

For these locations also, we are running services, and shift from road to rail is there, but it is gradual shift. It's not that quantum shift, I should say, that will happen as when DFC is commissioned for NCR and between NCR and JNPT.

These locations also, there's a gradual shift from road to rail, but not that quick.

Sure. Just a second question from my side.

I was intrigued by you suggesting that Indian Railways are on the anvil of talking about or announcing more reforms. Could you give us a sense of which direction are these reforms focused on?

As in, one part is obviously assured traffic and assured rates, but what beyond that could be the focus areas for Indian Railways, sir?

I cannot disclose the details of reforms to you, but I can give you a hint, because in logistics, there are only two things that a customer wants. First is the transit time, and second thing is economically, cost should be reasonable.

Railways is working on both these issues. That much only I can tell you right now.

Thank you, sir, for those responses. I'll get back into the queue.

Good morning, sir. Thank you for the opportunity.

Am I audible?

Yes, please.

Sir, first question, you've talked about the Bharat container investment. If you could talk a little bit more on that in terms of what are the plans here, what kind of capital allocation or capital investment would that entail from our end?

See, what capital we have to invest in that, it's a confidential information right now, and it's going to the cabinet, I cannot disclose that information to you. I can only tell you that we have a 30% stake in that, and it will be a very big shipping line for our country.

Our country, it's a pride for us that we will have a container shipping line. Till now, we don't have a container shipping line at all.

With Make in India getting traction in our country and lot of exports being generated, it's high time that we should have a container shipping line where we should have our own ships, we should have our own containers, and ports have also been made stakeholders. We should be an very active part of global supply chains.

This is a welcome move by Government of India. Container Corporation with its strength in the hinterland, in inland logistics, and Shipping Corporation of India, they are also having 30% stake, they have a good experience in the shipping sector.

Both these big companies have joined hands. Apart from that, there are three ports, JNPT, Chennai Port, and Tuticorin Port, they are also part, and Sagarmala Development Fund, they are also part of this BCSL.

All these relevant players, Government of India have decided that they will be part of Bharat Container Shipping Line. As I told you already, as per the Amrit Kaal vision of honorable Prime Minister, by 2047, this shipping line will be among the top 10 shipping lines of the world.

Only this much I can tell you right now.

No problem, sir. The second question I had with respect to the margins.

While you have talked about the volume growth guidance, and I presume you're talking about the handling volume or originating volume, sir?

I'm talking about handling volumes.

Okay. Given that volume guidance, how do we look at the margins, if you could talk a little bit on that margin front at a overall or, if possible, even on segment level, please?

See,

you people are very good in number-crunching, we cannot match you. You can very easily do that.

All I can tell you is we will maintain the EBITDA level between 24% to 25%, as we have been doing till now. In fact, last financial year also, we had an EBITDA of 24.33% in FY26.

FY25, it was 24.98%. There was hardly any drop in EBITDA percent despite all these setbacks.

In the coming years also, we will maintain EBITDA between 24% to 25%. We are quite clear on that.

Got it. Sir, just a quick clarification I wanted to check is in terms of the dropping the segment margin for domestic.

If I look at the QoQ drop in terms of the segment EBIT, that is very, very sharp. Is there any one-off anything you want to call out?

I also see at the same time there is a significant jump in the other expenses. If you could call out if there are any one-offs here or any expenses which have gone up materially?

See, as I told earlier also that in domestic actually if you have to have good bottom line, then you should have minimum empty running of containers. You should have both-side loaded movement.

Logistics is sustainable only if you have loaded movement from both the sides. Because of the setback of not getting the gunny bales traffic, we were forced to move empty containers from Eastern India to North India and Western India, because we have lot of business traffic moving from Western India and North India to Eastern India.

Return direction, we were getting gunny bales which were loaded from Eastern India to these locations and Central India also. Now because gunny bales traffic stopped, we were forced to run empty containers out from Eastern India back to these places for getting the loading.

Because of that empty running, it severely affected our profitability in domestic, and we were not able to build any circuits. Of course, we tried some triangular movements, but most of the cases, we had to take out empties from Eastern India, either to North India or to West India, sometimes to Central and South India also.

This affected the profitability of domestic in a very big way in Q4.

Got it. If you could help us with the originating volume, sir, for fourth quarter or full year, sir?

You want for fourth quarter or full year?

Ideally both, but if you could basic fourth quarter, that would be very helpful. Ha, because

up to Q3 you may be having. Fourth quarter originating volume EXIM was 549,273 TEUs, and domestic 129,065 TEUs, total is 678,338 TEUs.

Got it. Thank you.

I have more questions, but I'll fall back in the queue. Thank you.

Sure.

Hi, sir. Thanks for the opportunity.

Sir, just wondering over here, if we see our handling volume growth for this year was at around 9.6% total, whereas our originating growth was at around 4.5%. If we see our revenue growth, it was near 2%.

Of course, our double stacking has been increasing, which is leading to a lower realization. Our first-mile, last-mile is also increasing, which is leading to having a difference between originating and handling volumes.

Now we are guiding let's say around 9.5% growth for the handling volume for next year. How do we think it will convert into the originating growth and probably to the revenue growth?

How do we see that two numbers panning out from the handling volume growth for the FY27?

See, it is difficult to tell you the exact percentage, but if you are tracking Container Corporation, you may be knowing that broadly originating is almost 65% or 70% of handling. That is a thumb rule.

As far as earning is concerned, it's a function of two things: NTKM, in railways we call net ton kilometers. It's a function of weight and distance, lead.

Originating, that is only it tell the million tons which are million TEUs or million tons which are moved. You have to multiply it with the distance which is the lead.

If originating is increasing by 4.47%, whereas earning is increasing by 2.2%, that means our lead has come down. If we move for less distance, then we get less revenue.

It's a function of weight and distance. That is the thumb rule for that.

Yeah.

Got it, sir. On the empty running part that you were highlighting on the domestic part, what I see over here is that for domestic full year, I guess empty running has been down by around some 4% or 5%.

For the quarter, the calculation that I've been doing, empty running has increased from 66 crore last year 4Q FY25 to around 73 crore in 4Q FY26. That is increase of around let's say ₹7-8 crore on the top line of around 760 crore that we have booked for the domestic segment.

That is near 1% of the impact that has eventually been there in empty running cost for the domestic part. Our margin used to be between let's say 5% to 8% the EBIT margin for the domestic segment.

Now we've reported 0.2%. Even if we add back 1% of this empty running cost which has increased over last year, then the margin would have been let's say 1.2%, 1.5%.

Where is the gap between let's say 5%, 7% that we used to report versus let's say 1.5% even after removing the empty running cost of 73 crore that we would have reported in 4Q FY26? Now

the empty Q4 to Q4 has increased by 11% in domestic, for your information, from 68.9... Increased from ₹68 crore

to ₹73 crore,

yes.

Yeah. It was around 11%

increase. No, it is not 63, it is 68.9 crore to 76.7 crores.

That is 11.3% increase. Second thing is the lead in domestic has also gone down from 1,321 to 1,309.

Both these things have contributed to top line as well as bottom line. As far as the year figure for full financial year, domestic empty running has come down from 291.4 crores to 280.35 crores, that's a drop of 3.8%.

Got it, sir. Got it.

Of course, we've not given any long-term guidance, but we used to say that our handling would be reaching to let's say 10 million TEUs by maybe '29, '30. How this recent crisis would have been impacted that timeline or maybe the volumes, or let's say does this have any impact on our CapEx for future years, or we'll be building on the capacities for the future growth?

See,

we are incurring expenditure on CapEx rigorous because we want to be ready, and of course there is lot of demand. At present, sometimes we feel then when EXIM and domestic are firing on all cylinders and lot of demand is there, we are not able to meet the demand of our customers, and customer will not wait for us.

We should be future-ready with our infrastructure, and we don't know when these things will turn, when the demand will increase, and of course we have some forecast. Procurement of rakes, procurement of containers, it cannot be done overnight, it will take some time.

We have to be future-ready to meet the demand of our customers, because we believe in giving them excellent service without sacrificing our margins. That has been the motto of our company.

We work on that principle. That is why we go for CapEx of ₹1,000 crores every year.

This year also ₹945 crore has been approved by BOD. Definitely mid-year review will be there, and I think we will be touching that figure only that we did in last financial year.

All these infrastructure additions are going to further bring in more volumes to us only.

Got it, sir. All the best from my side.

Thank you so much for the responses.

Thanks, sir, for the opportunity. My first question is, sir, we have recently seen like significant increases in diesel prices.

In the past 1 month. In that context, I guess truck freight rates should have also increased meaningfully.

In that case, are we seeing any movement back from road to rail at least on the volumes that you may have seen in the March of at least in the months of, let's say, month of May? That's the first question.

If you can elaborate like how do you see the rail modal share going going ahead? See,

we are already in the month of May. All I can say is that definitely we are seeing a good volumes in the month of May.

March and April were not good for us. I cannot give you any numbers right now because I don't have readily at present.

Definitely it would have contributed to increase in rail share, but numbers I don't have with me right now.

Ideally the rail modal share should have increased with this diesel price increases leading to truck freight rates, would that be a right understanding?

See, it is very premature to say that, but definitely whatever you are pointing out, it's correct. Definitely more movement will be done with rail only.

I fully agree with you.

Sir, just adding on to that, despite you meeting up with your EXIM volume guidance for the full year, what I observe is despite that, the top-line growth is something like 2.5%. Where is exactly the disconnect?

Ideally one should expect that if you are growing somewhere in let's say double digits, ideally the revenue growth should also be coming close to double digits. What exactly is the issue that we are facing on the revenue front?

See,

incidentally in EXIM we have not grown with double digit. Handling growth was 8%, originating growth was 5%, and there was a drop in lead also.

As I explained earlier, the earning is a function of weight as well as lead. EXIM there was a drop of lead of 3 km overall in the financial year.

That is a big drop. It contributed to that much not commensurate growth.

Definitely in EXIM we have done very well. ₹6,000 crore we have crossed for the first time in our history.

This is a good growth, and we are expecting more growth in this financial year.

Sir, just squeezing in one more question. You used to provide your market share at JNPT, Mundra, and Pipavav, and also the rail coefficients.

If you can do that for the quarter?

I can give you for the year, I don't have for the quarter. Yes,

yes. That's also fine.

For the year is also fine.

JNPT rail coefficient was 15.12%, and our share was 60%. Mundra, rail coefficient 24.6%, our share is 35.4%.

Pipavav, rail coefficient is 57.5%, our share is 48.3%.

Sir. That's broadly it from my side.

Hello. Am I audible?

Yes, please.

Yeah. Just at the cost of sounding repetitive, I I missed the initial part of the call.

Could you please provide us with the provide me with the handling volume and originating volume? If you could repeat the market share and coefficient which you have just repeated for the previous caller?

See, handling we achieved for the financial year you want full financial year?

Quarter financials, break down in terms of EXIM and domestic both. Okay.

Q3 you may be having already. I will tell you about Q4.

Q4 handling volumes for EXIM was 1,068,283, domestic 359,819, total 1,428,102.

Yeah. Also if you could provide the originating?

Originating?

Yeah.

Originating EXIM is 549,273, domestic 129,065, total 678,338.

If you could repeat the market share point which you just discussed?

JNPT rail coefficient is 15.12%, market share 60%. Mundra, this rail coefficient 24.6%, market share is 35.4%.

Pipavav, rail coefficient is 57.5%, market share is 48.3%.

48.3%. Okay.

That'd be it from my end. Thank you.

Just want to kind of gauge from you as in from costing perspective, the dependencies on Indian Railways, where do you think there is scope for any kind of rationalization from CONCOR's perspective? Or railways to do better, yeah?

Can you please repeat the question? I have not heard you properly.

I'm just saying that from the perspective of costing and that decided by Indian Railways, there are a few dependencies over here. Where do you think that if the cost is rationalized, that the demand for the rail product can go up?

See, right now if you see the point-to-point cost, rail cost is less than road cost. The increase in total logistics cost is because road is door-to-door, and rail we have to go for first mile, last mile.

Normally, first mile, last mile is the component which increases the transportation if we do through rail. Rail point-to-point is still it is cheaper than road.

We have to minimize first mile, last mile. We have to have more and more facilities, more and more terminals, which should be near the cargo centers, so that first mile, last mile comes down and transportation is done through rail.

At present, the challenge being faced by trade is not the high cost that we have to incur on rail transportation, it is the transit time. Transit time is the challenge that trade is facing.

Cost-wise, I don't think there is not much issue.

Understood, sir. I'll get back into the queue.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, two-three questions from my end. Firstly, on the market share on the EXIM side, last year you were about 55 odd percent.

Where would you be currently, and how would that number correspond at different ports? Have you lost or gained share anywhere, if you can speak a little bit about that?

I will tell you the entire year. Last year in EXIM it was 55.2%, this year it is 53.9%.

Domestic, last year was 57.6%, this year it is 55.9%. Overall, last year it was 55.9%, this year it is 54.5%.

There is a marginal drop in market share, and basic reasons are we purposely avoided picking up the low-margin businesses on some segments, and some market share we lost in domestic due to various reasons. As far as port market share is concerned, already I have told for all the three ports.

Sure, sir. Sir, my second question is with respect to the empty running.

For the quarter gone by, that is the March '26 quarter, your domestic empty running cost went up by about 6% on a YoY, if I understood it correctly, which is similar to the YoY growth in your domestic originating volumes. Therefore, why there is a sharp drop in margins?

I understand you spoke about the empty running and all that due to empty back, but then empty running cost on a YoY basis is pretty similar to your cargo volume growth. Therefore, on a per TEU basis, are there any other elements which we are missing?

Or at least if there is a gap in our understanding, if you could help us there, please? Now

if you see the Q4 YoY, the domestic empty running has increased by 11.3%, not by 5 or 6%. It is 11.3%.

Last year it was ₹68.94 crores, this year it is ₹76.76 crores. That is a increase of 11.3% in domestic.

The reason that I was telling you, because of the Eastern side we have to move empty containers. Originating volumes in domestic have increased by 1.9%.

Then lead has also come down from 1,321 km to 1,309 km. All these factors have contributed to the numbers in domestic.

Sir, if I may ask one last question. How is the current quarter shaping up, because with the West Asia crisis and everything, are you seeing higher empty running or lower double-stacking?

How are the operations impacted, because we understand Middle East is a key export destination. How is it impacting the operations now, not just in terms of volumes, but also in terms of managing the empty running movement, etc.?

See, now

as I told earlier also, April month was not very good for us from business point of view, but from May, business is really picked up quite well. We are seeing good pendencies at ports also, and exports are also picking up, domestic is also now gradually increasing.

From May onwards, we are seeing some upsurge. We hope to end the quarter on a positive note.

Sir, my question is more specific to the operations rather than just the business, because with Middle East being a key export destination, are you seeing potentially higher empty running or lower double-stacking in the current quarter, is what I was trying to understand, because there were some media articles quoting that. Just trying to confirm it from you.

I don't have the numbers with me right now. Specific question I cannot answer that question.

Right now, I don't have the numbers with me for this current quarter.

Sure, sir. Got it.

Thank you very much.

Thanks for taking my question. Sir, just a clarification about container dry with BCSL has been announced for ₹59,000 crores.

This is what I'm reading from the PIB release. Which is in the parliament.

Is it that we have to make an investment of 30% of ₹50 ₹59,000 crores, is that understanding right or wrong? Can you just help me with that thing?

Sir, your voice is not clear. I'm not able to understand your question.

Can you move away from mic and then tell, yeah, because I'm not able to understand.

Hello, can you hear me?

What is the question?

What do you want to ask? Yeah.

When I look at the press release from PIB, Atmanirbhar container drive taking shape at BCSL, it talks about an outlay of investment of ₹59,000 crores. Is that understanding that we have to fork out 30% of that, or how is just try to understand whether this press release talks about a large number of ₹59,000 crores, just wanted some thought on that.

At the moment, I cannot comment on what is there on press release, and it's a confidential information. How much we have to spend in that JV, it's not possible, I will not use this forum to comment on that.

Okay.

Fair enough.

Just on the Bharat Mumbai container terminal of the PSA, what is the reason, sir, we have to get into an agreement with PSA? Isn't that containers offload automatically and we get it, or is that we get the first right of refusal or something like that?

Is there anything more benefits for us in that manner? Just trying to understand that business.

Just last on the other expenses have increased drastically as a percentage of revenue. If you could throw some light on that, it would be helpful.

See, Krishnendu, PSA that agreement we have signed, that's a unique agreement, because for the first time we will be bringing domestic containers as well as the cabotage containers also on that train. That we have got special permission from customs.

That permission is for everybody, anybody can use that. We will be bringing domestic plus EXIM containers from their terminal.

Why PSA? Reason is that they have a fully compliant DFC yard in JNPT, huge yard they have constructed, from which double-stack trains can be directly run.

This will be domestic plus EXIM. Now the other terminals at JNPT are also approaching CONCOR to sign similar agreement with them.

We are evaluating that, and very soon we may be signing with other players also.

Is it they have to give you a certain amount of volume, or you have to be on time? What is the underlying thing which holds up the agreement?

If you can shed some light on that. See,

it's a confidential agreement. I can't share.

It's not in public domain. All I can say is it will bring more business to CONCOR.

Fine, sir. Sure.

On the other expenses, which has increased drastically, could you just this thing? Do you think after DFC comes in full force, we will have expenses increasing on the haulage charges because now so we have increased everything to become more competitive with DFC operating from June.

What do you think the haulage charges could be at this level, hovering at whatever the number is right now?

I will answer your second part first, and then first part I will request my Principal Executive Director Finance for other charges. As you told, for DFC, haulage charges are same as Indian Railways, there's no difference at all.

If I run train on Indian Railways or I run train on DFC, I have to pay the same money. There's no difference at all.

In double stack, you may be aware that containers which are moving on upper deck, we have to pay 50% haulage charges. I will have some savings on that.

I will share a part of that saving with my customers by tinkering on tariffs for containers which are moving on upper deck. Then my tariff for upper deck will become competitive with road tariff.

I will be able to attract business on upper deck. As far as the...

Sir, no, I get that. I was just trying to understand whether you see an increase in haulage charges.

I get the economics of upper and lower deck and so on and so forth, but do you see in the recent happenings of all this war and etc., etc., various details, but do you see any increase in haulage charges as a whole for the Indian Railways from the Indian Railways to us? That's what I was trying to drive at.

Okay. See, that is actually that I can't comment.

That is a decision taken by Indian Railways, but at present, I can tell you there is no such move that Indian Railways is going to increase the haulage charges.

Certain, and on the other expenses, sir?

Other charges, Mr. Harish Chandra, our Principal Executive Director, I will request him to answer your question.

Yes, sir.

In fact, the element of rail freight and other operating expenses we have shown separately. The other expenses normally includes the expenses related to maintenance, the legal expenses, and expenses related to security at our terminals.

There has been some increase in our maintenance expenses and the AMCs which are payable for our contracts. Because we have also set up a DR site last year, the maintenance cost of that has also gone up.

Because of these elements like CSR expenses and maintenance expenses, there is some increase in other expenses during the year.

Is this 1,020 or ₹120 crores, is this the run rate we look at for every year, or it is just a one-quarter phenomenon?

No, this is not one-off. This will be a recurring expense.

Maintenance is a recurring expense. No, what I'm trying to drive at,

the expense are around ₹3.5, ₹3.2, at an average. For this quarter, it shot up to 5.3, 5.4, practically 2% is more.

Just trying to drive that whether this expenditure will normalize at ₹3.54, or it is going to be at 5.4, 5.5, so that takes away 1.5% of my EBITDA margins. That helps you later.

No, the expense for the year, if you see in the other expenses, it is ₹358 crores.

That's for the whole year. I'm just trying to drive for the quarter.

On an average, you can see the expenses would be around ₹70 to ₹80 crores per quarter, ₹80 crores, you can say.

Yeah. ₹80-90 crores ka beech mein, but for this year, it's ₹120 crores.

Right.

Yeah. It was like that.

Sure. Thank you.

Thanks for the details.

Yeah. All I can assure my shareholders is that company has, over the years, earned a very good name among all its stakeholders, and we are able to give best service to the customers and without sacrificing our margins.

We have a world-class infrastructure. We are standing on very strong fundamentals.

All ethical working is there in our company. We have got good contacts, good relationships and with all stakeholders, including various government departments, various customers, and other business associates.

They value our company very much, and this confidence has been reposed every year. We are getting more and more business.

Government decided to make our company important stakeholder when they decided to constitute Bharat Container Shipping Line. That goes a very strong testimonial from the government for the good governance that is prevalent in your company.

All I can say is that we will continue to do that, serve the EXIM and domestic trade to the best of our capabilities, and we hope that this financial year will bring much better results. Thank you very much.