Key highlights

For Mar'16 quarter international handling was lower by 5.2% YoY while domestic handling improved by 6%, thus leading to an overall handling down by 3% YoY.

For 12 months ended FY'16, Exim traffic handling was lower by 5.5%, and domestic was down by 8.4% leading to an overall lower traffic handling by 6%. Net sales for FY'16 were up by 3% due to revised rates and tariff as compared to FY'15.

While domestic traffic got improved in Mar'16 quarter, EXIM was hit severely on YoY basis. There was an additional Empty repossession costs which was higher by Rs 28 crore on YoY basis and an additional one time additional expenditure of Rs 10 crore as compared to Nil for Mar'15. The number of double stack train for Mar'15 quarter stood at 142 while for Mar'16 quarter it stood at only 37. The company earned freight of around Rs 6 lakh per train in double stack. Further on YoY basis for Mar'16 quarter, rail charges were higher by Rs 16 crore and an additional service tax which the company did not pass to domestic customers was around Rs 10 crore. And there was a storage and warehousing income which was lower by around Rs 28 crore compared to Mar'15 quarter due to lower volumes and warehousing.

For 12 months ended Mar'16, there was Rs 84 crore higher empty repossession costs compared to Mar'15, Rail costs was higher by around Rs 83 crore, Rs 24 crore income was lower due to lower handling volumes and Rs 18 crore storage and warehousing income was lower compared to Mar'15. Service charge income from Railways for FY'16 stood at Rs 30 crore compared to Nil for FY'15. All these lead the margin of FY'16 to be lower and stood at around 19% at operating level.

However in April'16 the container volume grew by around 9% YoY. Further Railways have removed the 10% service charge. Further the domestic activity continues to remain healthy, while Exim volumes improved but still needs to recover further.

For FY'17, management is very optimistic with a 8.5% growth in domestic market and exports on a lower base should grow around 12%, combined the management expects volume growth of around 12% and value growth of around 14% for FY'17.

Further for entire FY'15 the company did around 665 double stack of railway which got reduced to 388. From April '16 onwards, that number has reached to around 50-60 trains. So management expects it to reach to around 665 numbers in FY'17.

On business front, while recovery is visible, commodity exports and imports continue to remain sluggish. Commodities like Guar gum, cotton, yarn, buffalo meat, waste paper, rice etc continue to trade lower on YoY basis.

The company had incurred a capex of around Rs 1058 crore in FY'16. Capex for FY'17 will be around Rs 1150 crore.

The company lost some market share in EXIM business particularly the CFS business in Mumbai from companies like Navkar Corporation and Hind Terminals.

As per the management, the company would require more investments and resources for future expansions and hence the company has increased the overall Authorized share capital.