Key takeaways of the call

Expecting operating income to grow 12% for FY22. But the profit will register a 100% growth as the EO accounted in FY21 will not be there for current fiscal.

Land licence fee is now settled and it will be at 6% of current market value of IR land.

The company is currently working on finalizing long term lease of land from IR for a lease period of about 35 years. Long term lease for IR land would cease uncertainty. The amount of one time long-term lease amount paid upfront will be based on current market value and will eliminate the uncertainty of current market price of land ( due to frequent change in guideline value by revenue authorities). Once that one time upfront lease fee for land is paid there will be no annual LLF payment for 35 years. The company is considering taking a short term loan for payment of one time long-term lease fee to IR.

So far the company has surrendered 16 terminals back to IR and currently having about 26 terminals on IR land. The company will be surrendering back 2 another terminals at place where it is building terminals on its own land. So finally the company will be having 24 terminals for which the company is working out long term lease with IR. The company has also resized the terminals on IR land by surrendering back excess lands.

Since the company has already rightsized the IR land required for its operations, the LLF for FY22 will be about Rs 450 crore.

Bottom-line for Q4FY21 would have been better than of corresponding previous quarter but for addition LLF due to change in LLF policy by IR and other one off items.

The company paid LLF to IR on market rate in FY21 against earlier method of as per TEUs handled. The company paid Rs 646 crore (including earlier period dues) against earlier estimate of about Rs 420 crore thereby providing additional LLF in Q4FY21. Similarly the company has written off some assets (Structures on given up land returned back to IR is non recoverable) amounting Rs 77 crore. The company has also post-retirement medical expenses of Rs 67.33 crore.

Company's earlier LLF calculation of Rs 450 crore is made on market value as per formulate with base year of 2009. But now LLF is calculated as 6% of current market value of IR land, which worked out to about RS 515 crore. The company has also paid old LLF dues on land surrendered, thus taking the total LLF paid for FY21 at about Rs 646 crore and for Q4FY21 is at about Rs 290 crore.

Lockdown impacting loading and unloading operations. Could maintain volume for FY22 as there is no sharp fall in demand.

Offering 50% rebate in moving empty wagons to ICDs from April 1, 2021 initially for 45 days and now extended for whole year.

Having a market share (Both domestic & Exim together) stands at 67%. The company has gained 5% market share in domestic segment and it is about 74% now. And its positive growth in EXIM segment and that is about 64% as of now.

Otherwise for these one off items, the fiscal ended March 2021 is best for the company. In March 2021 the company did extremely well register a revenue of over 700 crore.

The company has 40% of NW corridor.

Rebates for FY21 was about Rs 71.23 crore. Quarter is about 35.45 crore.

Cash balance is about RS 2500 crore

Capex planned for FY22 is Rs 500 crore.

Domestic margin has increased as the company is handling more cargo. Bulk cements in containers are experimented.

Lead distance for domestic is about 1678 km for FY21.

Will restart the coastal shipping operations once the right time comes.

Originating volume for Q4FY21 stood at 651692 TEUs with EXIM being 555106 TEUs and Domestic at about 96586 TEUs.

Originating volume for FY21 ended up higher to last year with domestic volume up 3%, 0.5% growth in EXIM.