Container Corporation of India
hosted a conference call on May 19, 2023. In the conference call the company
was represented by V Kalyanarama, CMD.
Key takeaways of the call
Total Throughput (in TEUs)
|
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2303 (3)
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2203 (3)
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Var.(%)
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|
2303 (12)
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2203 (12)
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Var.(%)
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Exim
|
|
851261
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832861
|
2
|
|
3406864
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3269026
|
4
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Domestic
|
|
267773
|
235858
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14
|
|
954267
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803899
|
19
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Total
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|
1119034
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1068719
|
5
|
|
4361131
|
4072925
|
7
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The company expects a growth of
10-12% for FY24 and look to sustain FY23 margin in FY24 as well. No concern on domestic volume and the
company look to sustain the growth momentum and perhaps increase it as well. Exports
and Imports volume of the country is weak and thus the EXIM will remain as a
challenge or tough task for the company in FY24 as well. But the thrust for the
company in FY24 is to regain the market share it has lost in EXIM which will
increase the overall EXIM volume. The company is looking for 10% growth in EXIM
as well. Secondly the company is
looking at operational of WDFC the direct connection to Dadri is expected to
boost shift in transport from road to rail as well as operation of more double
stack containers. Operations of more
double stack containers in EXIM as well as domestic are to boost margin.
Availability of key components of
wheels and axles is a challenge in the country currently and thus putting road
block in getting the rake manufactured and delivered on time. Similarly the
weak ecosystem for container manufacturing in the country is also not making
easy the delivery of acquisition of 19000 containers for the company. Manufacturing of 19000 container is not
happening at the pace as liked by the company.
The company is working on leasing
of containers and placing more orders to ensure availability of
containers for its growing domestic operations.
Hope to overcome this constraints going forward.
Planned capex for FY24 is about
Rs 600 crore against Rs 560 crore in FY23. In FY23 the investment was made
towards new terminal, rolling stock and containers. In FY24 the company is to commission 5 terminals
and to 24-26 trains.
Out of Rs 560 crore of capex in
FY23 about Rs 300 crore of investment were made towards rolling stocks
especially key components that were in shortage such as wheels and axles so as
the delivery of the trains could at least happen this year.
Out of planned acquisition of 270 rakes, the company has so far got only 33
rakes delivered and remaining will be acquired over next 3 years. The cost of each rake and container will
roughly work out to about Rs 14-15 crore and Rs 1-2 lakh each.
Rail freight margin in Q4FY23 is
about 26%. Lead distance for Q4FY23 is
about 657 km for EXIM and 1382 KM for domestic.
Empty running is Rs 94 crore of
which EXIM is RS 84 crore and Rs 7 crore in domestic.
The company has 90% share of
container moved by rail but in EXIM the company has lost some market
share.
Order placed for 100 LNG trucks
and the company making efforts to proliferate LNG transportation across the
terminals as the cost of transportation
with LNG trucks is 50% that of diesel trucks and result in about 20-25% savings
in local transportation for the company.
The company has not passed on the
impact of withdrawal of 25% rebate on Empty running and 5% rebate on loaded containers in FY22
and largely absorbed it. Part of the impact was offset by faster turnaround and
other operational efficiency measures.
Keep on improving the competency to retain
market share as roads are also improving the lead time with Mumbai Delhi
expressway etc.
Originating volume in EXIM is
about 1918079 TEUs and 440878 TEUS in Domestic for FY23.
Higher other expenses is largely
due to Rs 10 crore paid towards MCD tax paid on court order in case of
Tukhlagabad deport, Rs 15 croe spent on Repair & Maintenance
across various depots/ternubals, Rs 3.74 crore towards disposition of hazardous material at Mulund depot, Rs 5 crore towards CFS payment, Expense of 2
crore additional in bulk cement business.
Require 25000 more container for domestic and there is
limitation in container manufacturing in the currently in the country.
LLF cost expected for
FY24 is about Rs 430 crore (up 7%) as against Rs 392 crore paid in FY23.
Circuit building, double stacking and value added services
are to offset some part of pressure on margin owing to its efforts to regain
market share.
The new five terminal for FY23-24 is to come up at Punjab,
Haryana (South of Delhi for which land acquisition is negotiated with state
government), Jadhpur in Odisha,
Mandalgarh and Varanasi.
About 60% of domestic
volume is coming through business associates of the company.
Now have two hubs at Palanpur and
Dadri near NCR with 600 km distance in WDFC.
Double stack trains will go up from 4100 to 5000 trains.
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