|
Container Corporation of India hosted a conference call on Aug 5, 2022. In the conference call the company was represented by V Kalyanarama, CMD.
Key takeaways of the call
| Total Throughput (in TEUs) |
|
2206 (3) |
2106 (3) |
Var.(%) |
|
2203 (12) |
2103 (12) |
Var.(%) |
| Exim |
|
784857 |
815077 |
-4 |
|
3269026 |
3035794 |
8 |
| Domestic |
|
228191 |
176669 |
29 |
|
803899 |
607536 |
32 |
| Total |
|
1013048 |
991746 |
2 |
|
4072925 |
3643330 |
12 |
EXIM performance depends on export import trade of the country. Imports have not picked up in the country affecting the EXIM performance. However bringing empty into hinterland is working well. Lot of empties to concor ICDs and that is driving exports.
Originating volume in Q1FY23 stood at EXIM 197222 TEUs and Domestic 106272 TEUs.
Domestic market is doing well, not seeing any problem and confident of growth going forward. The company is also hopeful of achieving growth in EXIM side as-well by end of the year.
The company has effected price increase especially in handling charges boosting handling income. Indian Railways has increased the haulage charges effective April 1, 2022 and the same was passed on to the customers now.
Tariff for empty containers was revised by the company effective Jun 1, 2022. And this tariff revision was done considering zero concession from IR for empty movement even though IR cut the concession from 25% to 15% and then to 10% now. The effect of price increase in Q1FY23 financials was for one month.
There was time lag in passing on the price increase of IR to customers and there was impact on margin due to that in Q1FY23 but that won't be there in subsequent quarters.
LLF costs expected are Rs 370-380 crore for FY23. Last year the company put some cushion in the form of provision (Rs 70 crore) and that is not done this year.
The company tries to maintain current margin and maintain its share. Rail freight margin in Q1FY23 stands at 25.60%.
On course towards guidance of 10-12% growth in volume, topline and bottom-line given at the start of the year.
The company is working on improving asset utilization that will improve margin. Another measure is addition of high capacity rakes. Started constructing containers in India and expect to add new containers from Oct 2022 onwards.
Capex programme towards rolling stock is on. Addition of high capacity rakes is ongoing process. So far it has added 31 rakes out of planned 170 rakes. There are certain issues with availability of wheels which delays adding of more high capacity rakes. But now rake production picked up with wheels getting imported.
More depots are under construction. Paradeep ICD and Kalinganagar will be launched soon.
Lead distance for EXIM was 674 km and domestic 1230 km in Q1FY23.
Port wise rail coefficient in case of JNPT was 18.48% and concor's share is 60%; in Pipavav the rail coefficient is 71% and concor's share is 49%; in case of Mundra 26.45% and concor's share was 42%.
Portwise volume break up for Q1FY23 was Jnpt 35%, Mundra 35.7%, Pipavav 11%, Vizag 5%, Chennai 5%, Tuticorin 2% and Cochin 2%.
Double stack 1145 trains totalling a growth of 42%YoY. DFC operations are still on settling down mode. Feeder lines are not given preference.
Cement bulk just started and in terms of share that is not much. Seeing very good growth going forward.
Indian growth story is intact. But shipping lines see weakness across the globe and that have some implications.
Empting running cost in domestic was Rs 63.84 crore.
|