Key takeaways of the call

Q1FY23 has witnessed increase in revenue, volume and market share. The growth could have been higher but there was impact from the lockdowns in China, disrupting the supply chain worldwide affecting the trade. Volume throughput was up 4.4%YoY to 178659 TEUs.

Rail business has done well and CFS was stagnant at best or negative. Krishnapatnam CFS got impacted as container shipping lines stopped calling on Krishnapatnam port. The performance will remain impacted until ships start calling again with efforts from the part of new owners of the port.

Q1FY23 profits are impacted by onetime expense of Rs 2.5-3 crore towards merger and acquisition.

The company is also looking actively to expand into more rail linked ICDs in North India. Investment will be done only in rail business and there won't be any capacity expansion in CFS. The company is planning to set up 2 new ICD terminals in North. The planned capex on these two terminals was revised up from Rs 200 crore earlier to Rs 250 crore.

Focus of the company remains on improving its profitability by increasing volumes, improving operational efficiencies, and further reducing debt and finance cost.

EBITDA/TEUs will be Rs 5000-5500 and it will go up as volume grows. Expect a growth of about 7% in throughput going forward on existing capacity.

Over last 4 years the company has not added any train set to the fleet and this has resulted in utilization of the fleet. The company will chart rolling stock. The company planning to add about 9 rakes largely the high capacity rolling stocks.

Have land bank to take it to 4 times of current capacity. Current ICD capacity utilization is at about 50%.

Tax rate applicable for the company is 17.47% MAT. There was deferred tax liability of Rs 13.27 crore in Q1FY23 thus leading to negative tax rate for the quarter. The company will be paying MAT at the rate of 17.47% for current fiscal.

From this year onwards the company stopped giving segment breakup i.e. rail, CFS in terms of volume, revenue and ebitda as it is one company now post reverse merger.