Container Corporation of India
hosted a conference call on Nov 11, 2022. In the conference call the company
was represented by V Kalyanarama, CMD and Sanjay Swarup, Director Operations
Key takeaways of the call
Volume handled in Q2FY23 was up
17% to 1143895 TEUs [ EXIM up 18%yoy to 936950 TEUs & Domestic up 10% to
206945 TEUs]. Similarly for H1FY23 the volume handled was up 9% to 2156943 TEUs
[ EXIM up 7%yoy to 936950 TEUs & Domestic up 19% to 435136 TEUs].
Exim scenario is subdued with
recession in western and US. Inflation easing up in US, may be good for future.
Keeping figures crossed for next 5 month.
With pickup in volumes south the
empty running is coming down.
H1FY23 numbers are in line with
the guidance giver at the start of the year.
The company is confident of 10-12% growth in topline and bottom-line for
FY23.
In domestic segment the company
is able to develop new business streams and that reflected in originating volume. In
EXIM the company have diverted more cargo from road to rail but due to
geopolitical scenario negatively impacting
the sector, the impact of incremental volume in overall EXIM numbers is not got
reflected.
Originating volume growth is very
fractional.
Launched various schemes such as roundtrip
schemes, free empty containers for increase in laden cargo etc. to gain market
share.
Clarity has emerged on LLF front now with new land license policy. For railway land the LLF will not be more
than Rs 450 crore for FY23. The LLF of Rs 450 crore include additional
provision of RS 60-70 crore from earlier estimate of Rs 380-390 crore. Policy guidelines are yet to come from Indian
railways as far as LLF under new land license policy. Escalation clause is mandatory as per the new
policy and there will be 7% annual escalation.
Realization and margin of EXIM
was impacted due to launch of last and first mile logistics services launched
by the company as this is not of high margin/value.
Response of timetable train is very good and
the company was successful in shifting some road cargo to rail.
Per TEU realization on
originating basis is Rs 27890/teu which is more than first quarter.
Lead distance in H1FY23: Exim
lead 675 km domestic lead distance is 1344 km
Exim empty running is Rs 52.7
crore and the total empty running is Rs 186 crore in H1fy23.
Double stacking during the
quarter was higher by 32%.
Rail coefficient in JNPT was 18.2%; Mundra l 26%, Pipavav 70%.
Rail freight margin for the half
26.48%.
Port wise market share of the
company: JNPT short lead 79% Mundra 40%,Pipavav
48%.
Port wise volume mix for the
company JNPT 36%, Mundra 36.4%, Pipavav 11.4%, Chennai 5%, Tuticorin 1.6%
balance other ports.
|