Container Corporation of India hosted a conference call on Nov 11, 2022. In the conference call the company was represented by V Kalyanarama, CMD and Sanjay Swarup, Director Operations

Key takeaways of the call

Volume handled in Q2FY23 was up 17% to 1143895 TEUs [ EXIM up 18%yoy to 936950 TEUs & Domestic up 10% to 206945 TEUs]. Similarly for H1FY23 the volume handled was up 9% to 2156943 TEUs [ EXIM up 7%yoy to 936950 TEUs & Domestic up 19% to 435136 TEUs].

Exim scenario is subdued with recession in western and US. Inflation easing up in US, may be good for future. Keeping figures crossed for next 5 month.

With pickup in volumes south the empty running is coming down. 

H1FY23 numbers are in line with the guidance giver at the start of the year.  The company is confident of 10-12% growth in topline and bottom-line for FY23. 

In domestic segment the company is able to develop new business streams   and that reflected in originating volume. In EXIM the company have diverted more cargo from road to rail but due to geopolitical scenario  negatively impacting the sector, the impact of incremental volume in overall EXIM numbers is not got reflected. 

Originating volume growth is very fractional. 

Launched various schemes such as roundtrip schemes, free empty containers for increase in laden cargo etc. to gain market share.

Clarity has emerged on LLF  front now with new land license policy.   For railway land the LLF will not be more than  Rs 450 crore for FY23.  The LLF of Rs 450 crore include additional provision of RS 60-70 crore from earlier estimate of Rs 380-390 crore.     Policy guidelines are yet to come from Indian railways as far as LLF under new land license policy.  Escalation clause is mandatory as per the new policy and there will be 7% annual escalation.

Realization and margin of EXIM was impacted due to launch of last and first mile logistics services launched by the company as this is not of high margin/value.

 Response of timetable train is very good and the company was successful in shifting some road cargo to rail.

Per TEU realization on originating basis is Rs 27890/teu which is more than first quarter. 

Lead distance in H1FY23: Exim lead 675 km domestic lead distance is 1344 km   

Exim empty running is Rs 52.7 crore and the total empty running is Rs 186 crore in H1fy23.

Double stacking during the quarter was higher by 32%. 

Rail coefficient  in JNPT was 18.2%;  Mundra l 26%, Pipavav 70%. 

Rail freight margin for the half 26.48%.

Port wise market share of the company: JNPT short lead 79%  Mundra 40%,Pipavav 48%.  

Port wise volume mix for the company JNPT 36%, Mundra 36.4%, Pipavav 11.4%, Chennai 5%, Tuticorin 1.6% balance other ports.