Key takeaways of the call

Throughput for Q2FY21 was down by 9% (EXIM down 10%; Domestic down 2%) to885673TEUs (EXIM 744788 TEUs; Domestic 140885 TEUs) from 969158 TEUs (EXIM 826013TEUs; Domestic 143145 TEUs) in Q2FY20. For H1FY21 the throughput was down by 15% to 1618384 TEUs with that of EXIM down by 15% to 1372693 TEUs and 13% fall in Domestic to 245691 TEUs.

Doing well in domestic segment and EXIM also started doing well from Sep 2020 onwards. While exports are doing well, the imports are currently subdued largely hampered by shortage of Boxes.

Now expects the FY21 volume to be down by 10% from FY20 levels (i.e. 90% or more of FY20 levels) as against earlier guided 20% fall in FY20 volumes.

Land Licence Fee: Currently the company has 28 terminals on the Indian Railways Land. As per the rules currently applicable, the management is very confident that the LLF for FY21 is estimated just about Rs 450 crore. However the demand notice from IR of Rs 480 crore is for 13 terminals and this is not recognised by the company. As per its calculation of Rs 450 crore of LLF liability for entire FY21 for 28 terminals is as per the circulars and rules of IR in force at present, the company is confident of making the IR to agree to accept it as IR can't go against its own rules. The company expect to get to close this issue by end of this fiscal.

As of now there is no policy for IR to lease land to non PSUs.

LLF for Q2FY21 accounted is Rs 70 crore higher than Q2FY20.

Lead distance for H1FY21 is about 752 KMs with that of domestic stand at 1382 KMs.

No price hike is planned as in immediate term as the company has deferred the price hike for some more time considering the current market condition.

Port wise mix of the company's throughput: JNPT 37.3%; Pipavav 10.7%; Mundra 30.6%; Chennai 7%; and Vizag 6.5%.

The share of the company in rail container volume of JNPT port is 60%; that of Pipavav is 45% and that of Mundra is 42%.

The company is focusing on 1) moving goods in bulk in containers using flexi bags and no special equipment which will potentially expand the cargo availability; 2) time table trains; 3) end to end services; 4) distribution logistics and 5) point to point export services, where the company offers its boxes for export destination such as Middle East and Bangladesh etc. The company has run 2000 containers of bulk commodity in FY20.

Planned capex for FY21 is Rs 500 crore.