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The company held its conference call on 1 May 18 and was addressed by Mr. V. Kalyana Rama MD
Key Highlights
Handlling volumes in Exim stood at 796815 TEU and the handling volumes in domestic market stood at 154138 TEU making total handling volume for FY 18 at 950953 TEU which was up by around 13.8% YoY.
However increase in competition, mismatch in export and imports and increases in freight and other charges remains a concern on the margins.
The company, through double stacking and various other means ensures better margins. As per the management, despite FY 18 saw lot of measures being taken and led to margin increase, there is still some steam left for margin improvement in FY 19.
The company started 6 new terminals in FY 18 making total number of operational terminals to reach to 79 as on Mar 18 of which 72 are owned terminals and rest are exclusively tied up.
Expects to commission 11 more terminals in FY 19.
The company's performance was better in railways. It saw its tonnage growth increasing by 15% YoY in FY 18 as compared to overall increase in railway tonnage of 14.1% in FY 18.
The company operated 2297 trains with double stacking in FY 18 as compared to 1160 trains in FY 17.
Company's JNPT market share increased to 81.5% from 79.2% in FY 17. In Mundra and Pipavav, the market share was maintained at around 51%.
Empty running cost for FY 18 stood at Rs 130 crore as compared to Rs 147 crore in FY 17 in Exim. While Empty running cost increased in domestic market from Rs 109 crore to Rs 123 crore in FY 18.
Company's market share in overall rail traffic movement stood at 73.59%
Rail freight margin improved and stood at 28% during the Mar 18 quarter due to double stacking. Rail freight margin stood at 25.5% for FY 18.
Distribution logistics is another area which will commence in FY 19. This includes various services like Warehousing, first and last mile services and other value added services. Company also expects to enter into coastal shipping business in FY 19.
Company has 80 IA infra status benefits, so whatever capex on wagons and terminals it incurs, it receives 200% deduction. Overall tax rate will remain around 24-25%.
Overall in rail and roads, company's market share stood at 66.18% and improved by around 150 bps YoY.
For FY 19 the company expects volume growth of 10-12%.
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