Key takeaways of the call

Throughput for Q4FY20 was down by 4% (EXIM down 5%; Domestic up 2%) to 0.94 million TEUs and for FY20 it was down by 2% (EXIM down 3%; domestic up 2%) to 3.74 million TEUs.

Originating volume for Q4FY20 was down by 12% to 531274 TEUs (EXIM was down by 13% to 451007 TEUs; Domestic up 1% to 80267 TEUs). Originating side more empty movement happened in Q4FY20.

Covid never closed even for a single day during lockdown but with export import hit the company feels the heat with lower cargo.

The company expects to close FY21 with a throughput of 3 million TEUs compared to 3.74 million TEUs handled in FY20. And lower target is largely due to COVID impact. The throughput target expected for FY21 is tough but expect things to improve from Q3FY21 and Q4FY21 will be a strong one.

First mile and last mile service started in 12 terminals.

Coastal shipping will resume operation by Nov-Dec 2020. Stopped coastal shipping due to COVID.

Discount given IR for empty running has brought down the empty running cost down by 7%.

Capex for FY21 will be lower due to uncertain market conditions. The capex planned was about Rs 500 crore for FY21.

Lost market share by 6% as the company continue to desist from participating in lower margin low lead distance cargo market.

After surrendering back some terminal land to IR, the company is having 29 terminal on railway land.

Land Licence Fee (LLF): The company has paid LLF of Rs 140 crore on remaining 29 terminals in FY20. This year onwards there is shift to new LLF regime. As per its own calculation the LLF for FY21 will be about Rs 450, under the new mechanism which comes to effect from April 2020. But the company has made representation to IR, so how much it will end up paying for the fiscal is uncertain.

Due to high disturbance/risk in movement of cargo through Road, the share of Rail has increased even though the absolute cargo available for movement is subdued.

Will try to maintain OPM of about 30-34% for FY21.

Rail freight margin in Q4FY20 was 31.3% (compared to 34.9%) and for FY20 its was 28.9% vs. 27.8%.

Share of Rail in container cargo of JNPT, Mundra & Pipavav was 21.1%. 25.6% and 67% and of it CONCOR share was 66%, 44% and 49%.

DFC is expected to be operational by end of current CY or end of Fiscal Year.

Empty running cost was RS 203 crore of which EXIM was Rs 107 crore and Domestic was Rs 96 crore.

Operating now coal agency for Karnataka State Electricity board.

EXIM & Domestic lead distance for Q4FY20 stood at 738 km and 1366 km respectively and for FY20 it was 725 km & 1356 km.

In North West Corridor the share of railways was about 40% and of that the share of the company was about 75%.

Staff cost for Q4FY20 include leave cash encashment option given and pay commission investment.

Other operating expense include a write-back of Rs 30 crore in Q4FY20.