Container Corporation of India hosted a conference call on Jan 25, 2024. In the conference call the company was represented by Sanjay Swarup, CMD.

Key takeaways of the call

Overall volume handled for 9mFY24 was up 7% to 3475186 TEUs [EXIM up 6% to 2714018 TEUs & Domestic up 11% to 761168 TEUs].  For Q3FY24 the throughput was up 6% to 1150808 TEUs [EXIM up 8% to 902582 TEUs & Domestic down 1% to 248226 TEUs].

Originating volume is 635 269 TEUs [Exim 525138 TEUs; Domestic 110131 TEUS] 

In EXIM business there are effects of geo political impact and this issue is temporary. The company is talking with shipping lines and things will stabilize by first week of Feb 2024. 

Domestic business is witnessing very good demand all across the country.   With increase in container inventory and good fleet of rakes the company is set to capitalize the domestic demand growth.

The company could capitalize on good fleet of rakes and containers.  Focus of the company is customer centric offering total logistics solutions including first mile and last mile connectivity, warehousing etc.  The company has deployed 75 LNG trucks in Chennai, Baroda, Nashik and Ankleswar and that was well received in the market. The company is planning to increase the LNG fleet going forward.   

Against initial projection of addition of 16 rakes in FY24, the company so far added 12 rakes including 5 BLC rakes in Q3FY24 and 4 more rakes are expected to get added in Q4FY24.

 The company is adding 400-500 containers per month and this has boosted the domestic container inventory of the company to 41000 domestic containers. Mysore MMLP is commissioned in Q3FY24 and is fully ready to serve customers.

Double staking grew by 55% in Q3FY24 and 38% 9mFY24.   

Expect to end FY24 with a volume growth of 15% in domestics and 10% in EXIM.   Good growth will continue in FY25 with ramp up in infrastructure as well as WDFC connectivity to JNPT is expected by  Dec 2024.

LLF for FY20-21 was Rs 517 crore; for FY21-22 it was Rs 465 crore and For FY22-23 it was Rs 392.34 crore. On reconciliation with IR the company reversed provision to the tune of Rs 36 crore made in previous years. The company expects a LLF of Rs 100 crore in Q4FY24 and that makes a LLF of Rs 388-400 crore for full year FY24. For FY25 a LLF of about Rs 454-460 crore is expected.

Still around Rs 90 crore of claim and reconcillation is underway with IR and if that are in favour of the company then that will be reversed as well.  The company is right sizing its terminals and if excess land is there that will be surrendered to IR and in that case the LLF for next fiscal may even be lower than what is currently expected.

IR revoked the rebate on surcharge in Oct 2023 and the company revised its rates only on Nov 11, 2024. 

Planned capex for FY24 is Rs 600 crore and till 9mfy24 the company spent about Rs 474 crore. 

The company decided not to focus on low margin business in EXIM and this has resulted in marginal drop in market share.

Rail freight margin is 24% in Q3FY24.

Lead distance for Q3FY24 in case of EXIM is 724 km and that for domestic is 1413 km. the overall lead distance is 837 km.