Container
Corporation of India hosted a conference call on Jan 21, 2022. In the
conference call the company was represented by V Kalyana Rama, CMD.
Key
takeaways of the call
Volume
throughput was up 7% in Q3FY22 and 16% in 9mFY22 driven largely by domestic
volume. The Exim volume was up 3% in Q3FY22 despite despite challenges such as
container availability etc.
Total
Throughput (in TEUs)
|
2112
(3)
|
2012
(3)
|
Var.(%)
|
2112 (9)
|
2012
(9)
|
Var.(%)
|
Exim
|
828661
|
804557
|
3
|
2436163
|
2177250
|
12
|
Domestic
|
203040
|
161458
|
26
|
568041
|
407149
|
40
|
Total
|
1031701
|
966015
|
7
|
3004204
|
2584399
|
16
|
Expect
overall volume to cross 4 million TEUs in FY22 compared to 3.64 million
achieved in FY21.
Originating
volume for Q3FY22 was 646522 TEUs with EXIM stand at 549425 TEUs and Domestic
stand at 97097 TEUs.
Have
362 rakes as of now and look to take it to 380 rakes by end of this year. It
has added 16 rakes till now this year
all are high capacity rakes. New rakes are 80tonne payload compared to 68
tonnes earlier.
Domestic
volume is expected to continue is growth momentum. The margin in domestic segment is building
up in the last 3-4 years. The company
expects end up with 12 million tonnes of domestic volume in FY22 the company
have clocked about 8.5 million tonnes of domestic volume in 9mfy22.
Realisation
will be at this level in domestic segment.
The bottleneck for domestic volume growth is infrastructure. Once we get
required containers and rolling stock the growth will be there.
Cost
of empty of running was Rs 72 crore for EXIM Rs 146.76 crore for domestic in
9mfy22.
Lead
distance 698 km for EXIM, 1395 km for domestic in 9mfy22.
Guidance
– Expect 15% increase in volume for the fiscal; Topline will be touching Rs
7500 crore with PAT expected in excess of Rs 1000 crore for FY22.
Capex
- Already spend more than Rs 525 crore. Full year capex will be about Rs 700
crore.
Rail
freight margin for 9mfy22 was about 32% and for quarter also it was about
32-33%. The company is collecting some charges as other operating income.
Double
stack trains in a quarter reach a high of 1000 trains in Q3fy22. The company operates double stack rakes between
Swarupganj and Khatuas, a distance of 550 km. Assured time is the demand
trigger for DFC. The DFC offers more
opportunity for double stacking. The
company moves containers from Navaseva to Swarupganj and from there to Khatuas
it was double stacked. So for this distance of 550 km there will be increase in
margin.
Currently
Export volume are good but import volume not good. Unless industry pick up the import volume
will not pick up. Moving lot of empty containers to hinterland to support
exports.
Market
share of the company in JNPT is 77%.
Expect another 5-6% increase in
market share for the company in Mundra port once the bottleneck at Palanpur is
sorted out.
To
come out with 10000 container tenders.
The
company has developed method of moving bulk commodities such as food grain and
cement using flexi packs in normal containers. The company has handled 4 lakh
tonnes of bulk food grains in containers last year. The company is exploiting movement
of cement in bulk through containers. Cement production is in bulk and consumption
in bulk of it is 70% so there is strong growth opportunity provided necessary
infrastructure is built. The company is making efforts to gain business
in cement.
Multimodal
Logistics park (MMLP) – About 3 MMLP including Dahej and Baroda will be
commissioned within current fiscal. Six more are under construction. Bhalli (goa)
the customer working is expected soon.
There is good potential in mmlps.
Discount
was given in hinterland direction in case of empty and that is giving outward
cargo to ports.
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