Adani Ports and Special Economic Zone Limited (ADANIPORTS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Adani Ports and Special Economic Zone Limited Q3 FY '25 Conference Call hosted by PL Capital. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Tushar Chaudhari from PL Capital. Thank you, and over to you, sir.

Thank you, Dorvin. Good evening, and a very warm welcome to everyone. On behalf of PL Capital, I'm pleased to welcome you all on the earnings call of Adani Ports and SEZ for Q3 FY '25. We are happy to have the management with us here today for the next 1 hour. Management is represented by Mr. Ashwani Gupta, Whole-Time Director and CEO, Adani Ports; Mr. D. Muthukumaran, CFO, Adani Ports; Mr. Pranav Choudhary, CEO, Ports Business; Mr. Divij Taneja, CEO, Adani Logistics; and Mr. Rahul Agarwal, Head of IR and ESG. We will begin with the opening remarks from the management, followed by an interactive Q&A session. With this, I hand over the call to Mr. Rahul Agarwal. Over to you, sir.

Thank you, Tushar. Hello, everyone, and a warm welcome to the earnings call for third quarter FY '25. We are about to begin the call. I will request Ashwani for his opening remarks, followed by the Q&A session.

Thank you. Good evening, and welcome to APSEZ 9 months FY '25 Earnings Conference Call. APSEZ delivered all-round growth during the first 9 months of FY '25. Revenue was up by 14%. EBITDA increased by 19%, and PAT grew by 32% year-on-year. EBITDA margin increased to 62% from 60% last year. We continue to maintain excellent financial discipline. Our net debt-to-EBITDA was at 2.1 versus 2.3 in FY '24. The momentum in our business is being driven by strong execution across three key areas: market share gains, coupled with volume price mix increase, traction in logistics verticals, and operational efficiencies along with technology-led gains. Driven by this momentum, we are upgrading our FY '25 guidance to INR 18,800 crores to INR 18,900 crores from the previous guidance of INR 17,000 crores to INR 18,000 crores. We have closed significant business initiatives, including Astro Offshore, Gopalpur, Tanzania, Ennore divestment and ensure smooth commissioning of our Vizhinjam port. We continue to be on track to commission our Colombo port. We also launched a new Trucking Management Solution. This platform acts as a transformational marketplace and a fulfillment solution as well to streamline trucking supply chain for our customers. With that, we now open the forum for Q&A.

[Operator Instructions] We have the first question from the line of Alok Deora from Motilal Oswal.

Congratulations on a pretty decent set of numbers. So first question was on actually the EBITDA upgrade or guidance improve -- we have enhanced the guidance now for FY '25. So just wanted to understand the rationale there because have we also -- are we also looking to do higher volumes than what we were estimating because just the EBITDA number has been kind of revised upwards.

Yes. Well, thank you, and great to hear you, Ashwani here. We have been positioning APSEZ as not only a port volume company, but a truly integrated transport solution company. And that's why when it comes to the cargo volume, though we saw a mixed reaction in the different commodities in terms of the overall trade of the country. But when we looked at our performance vis-a-vis the total trade, we have gained the market share. And the biggest thing, which we have done is, of course, the container business, where we have grown 14.9% with respect to last year. So all, I would say, the plus and minuses, minuses coming from the all-India trade down, especially the imported coal was highly compensated and converted into the growth factors using container, steel and the other commodities. So that's why if there is a plus and minus of volume in the cargo, it does not anymore impact big on our financials because our businesses, especially marine and now the newly acquired Astro and the other businesses are contributing to the financials. So that's why we see APSEZ as a whole truly integrated transport solution company, which, of course, is dependent on the cargo volume, but getting away with the sensitivity only linked to...

Also, just one more question on that. So now our competitor in the private sector space has announced a big CapEx on the Logistics business, which is to the tune of almost INR 9,000 crores, INR 10,000 crores in the next 5 years. So they're also talking about big numbers in the Logistics side. So just wanted to understand from an industry perspective, not really any comment on the competitor really. But from an industry perspective side that is there really any -- that kind of big appetite for the Logistics business to scale that kind of opportunity for -- because we are also having big plans and even other players are now kicking in. So would there be any challenge for us to kind of scale up in the next 5 years? Yes, please?

No. I think next 5 years, what we want to do, we want to, on one side, increase the market share at our ports because we already have 15. So I'm pretty sure if something adds will not be substantial. Now what we want to do is use the ports network to increase the market share of our inland logistics. And this is where we are going to focus on CapEx on the Logistics business. And CapEx in Logistics business is about ICDs. We have just started Loni. We will be starting other ICDs also in the near future. And then in addition to the ICDs, we are investing in warehousing. And most important, we started the trucking business. We started the trucking business, which is going on well, and we want to expand it. So comparing with our competitor, who is #1 today, we are #2. We have the strength of having a port network and the trucking and the warehousing in addition to the ICDs. And that is where we want to focus on and spend the CapEx significantly on the Logistics.

Just last question from my side. So any -- since you're already in January now and end of this -- nearly to the end of this financial year, any cargo volume guidance for FY '26?

Yes. So I will answer that question, but I do want to preface. By referring back to the first question that you asked, what's the significance of cargo and vis-a-vis the EBITDA of the company. I'm sure you'll notice that actually we have upped our EBITDA. And cargo for this year, as we actually stand, we are sticking to our guidance. If there is any marginal plus or minus, it will be very marginal. But our EBITDA, which is where we wanted to bring the focus back to because last several years, the company has delivered what it has embarked on, which is delivering a transport utility. So cargo does not fully represent the profitability and the profit margin that we actually get. So therefore, we are trying to reorient to the EBITDA number. And within Logistics, from our point of view, logistics is one word that actually encompasses multiple business if you compare us with the competition. And starting this quarter, we are trying to give a little more granular information on Logistics itself. We have started giving subsegment on Logistics. You will see that in Page #45, we have given information on the truck management system, which, again, Ashwani spoke about in the beginning. It's actually a very important milestone in the Logistics business of this company, and that has been done in this quarter. So volume is important, but I would actually appeal to you to look at more comprehensive analysis where we actually start looking at EBITDA.

Sure. My last question was on the volume guidance for FY '26, if any, at this point?

So volume guidance for '26, as you know, we normally give when we actually give the results for the full year, which will be sometime in May.

[Operator Instructions] We have the next question from the line of Ankita Shah from Elara Capital.

Sir, how are you expecting volumes to ramp up in the fourth quarter?

How are we -- sorry?

Ankita, you are not very clear.

To achieve the guided range of the volume number that we've mentioned, there is an expectation of a pickup in the fourth quarter in cargo volumes. So what can drive this growth in volumes in the fourth quarter?

So two buckets, Ankita. The first one is actually the trial volumes of Colombo, the full volumes of Vizhinjam, and the full volume of sort of Tanzania, Gopalpur, although Tanzania and Gopalpur has been there with us in the last quarter, we expect some volume pickup. So these are -- let's put it in the bucket of new and upcoming ports. And we also expect actually sort of volume pickup in currently operating stabilized ports as well. So Mundra, for example, or Hazira. So we expect a pickup in volumes in some of these ports as well.

Also, you are expecting coal volumes to pick up?

No, there isn't anything in particular that we want to talk about coal volume to be a pickup or an increase. We don't -- we are not banking on coal to be sort of increasing in volume.

Okay. My second question is on the realization growth in the ports business. So volume has grown by 3.5%, but there is an 8% growth in the revenues. So where has this growth come from? Realization growth taken in which ports?

So our realization across ports have gone up, which is contributed by sort of foreign exchange increase as well as price increase that we have taken. So to that extent, actually, sort of we have seen price increase and realization increase in all ports.

Okay. And last one, sir, we've spoken about the growth trajectory -- long-term growth trajectory in Ports and Logistics business. If you can also highlight your thoughts on the International business, how that can pan out over the next 2 to 3 years, that would be helpful.

Thank you, Ankit, and thank you for asking that question. We discussed that when we had the investor meet in Vizhinjam. We are sticking to those ambitions. And for the Port volume, as we talked about, domestic, we continue to grow like this, and we should land in 2029/'30 around 1 billion. That's what is our ambition, out of which 820 million to 850 million should come from domestic, which is a normal growth, which we have. But the most important is the second part, which is 140 million to 150 million comes from international, so which means our mix at that time should be 85-15, which is today roughly 95 or 94 and 6. So which are the ports which will bring a significant contribution. As you would have seen that Haifa is doing good for us on the growth path. 50% of the Israel freight goes through the Haifa Port. So as we see now Israel growing, definitely, our port is growing and will grow. Second, Tanzania, with the traffic which we are capturing and with the plan we have to expand the Tanzania port to increase our catchment area around the Tanzania, including 5 countries, that will contribute to the growth. And last but most important, which is Sri Lanka, after the great success of Vizhinjam, we see still a lot of opportunity once we start the Colombo. Colombo is on track. We plan to start in April. And definitely, that will also bring the growth. So with these three ports mainly, and one or two coming up, which we are, of course, studying, definitely, we see to have an ambition of 85-15 by 2029, 2030.

The next question is from the line of Achal Lohade from Nuvama Institutional Equities.

Sir, just an extension. You said one or two coming up. Is that in relation to domestic or international? Because you were talking about international. Are you talking about one or two incremental international ports?

See, we are always look out for that. I think international -- we are studying international because in domestic, we are nothing left today. But if something comes up, definitely, we'll fight for it. And as you know, Vizhinjam project is the one where we will fight to get it. I'm not sure it will be coming before 2028. But as I said, we are always on hunt for the great opportunities which will increase our top line, but also will increase our bottom line. To start with, of course, international, but I'm pretty sure that domestic new ports will also come up after 3, 4, 5 years in mid- to long-term plan.

Understood. The second question I had is with respect to the Logistics business. If you could give some more sense how do you see it evolving over the next 4, 5 years, what kind of contribution, which particular subsegment within that will drive? More elaboration on that would be very helpful, sir.

Divij, this side. So as far as looking at APSEZ as an integrated transport play, we are in the process of redesigning our circuits so that there is true integration. So we have a lot of tech coming into play. That tech helps us manage in dense both on rail and on the trucking side. And if you look at the trucking numbers, there is almost a 92% growth year-on-year and almost a 152% growth on a quarter-on-quarter basis, if I look at last year and this year. Now as we strategically align and we put tech into the mix, the idea is to get into not just assets in terms of physical assets, but also virtual assets. So there will be some value prop, some fulfillment also coming in. So apart from the traditional CapEx that we're going for, there will be a lot of tech and a lot of end-to-end customer play making us into a truly ITUP thought process.

Right. Any quantification with respect to what kind of revenue contribution we can look at or EBITDA contribution?

Yes, yes. While talking to you, I'm trying to actually flip through the page, which is there in the investor presentation. There are two sets of information, which will be useful to you to answer this question. The first one is actually, if you look at the Page #9, we have given what was various asset profile and subsegments in Logistics business, which is actually sort of MMLP, warehouse, trucks and et cetera. And we have also given what is actually the size expected in FY '25 and finally, growth in 5 years from now. So you can see that actually our investment in rakes are substantial. MMLPs, we are expecting to scale up from 12 to 20 and warehouse, we are expecting 3 million to 20 million. Trucks, we are expecting 936 currently to around 5,000. Railway tracks, we've guided that we will do up to 2,000 kilometers. So we have given actually subsegment-wise details of what is the growth that we are anticipating.

Understood. And just one clarification, if I may ask, in your 3Q numbers, is there any one-off income or expenses, which need to be called out, sir, across the both entities?

No, nothing much. All of them are operating. Sorry, once again.

We've anyways reported on Israel as an exception.

Are you talking about income or expenditure?

Both sides, actually.

The expenditure we have called out Israel, there is actually -- I mean, there is an expenditure, but income, there is none.

The next question is from the line of Priyankar Biswas from BNP Paribas.

My first question is regarding this EBITDA guidance that you gave. So I understand that in the 9 months, you have already done something like INR 140 billion. And if we, let's say, take the 3Q run rate itself, what you are doing, so you should broadly be able to achieve INR 188 billion, INR 189 billion. So that's understood. Now if we have to build on that, so if this momentum is to continue, so what sort of EBITDA should we be able to achieve in FY '26? So should -- INR 220 billion be a fair ask?

Priyankar, unfortunately, we have to wait until we tell you the quarter 4 number because that's when we give you the specific guidance for the next year. It would be a little too early for me to actually comment on FY '26 right now. But one thing I can tell you without getting into sort of numbers, we expect year-on-year growth to be in the region of 20%, plus or minus, broadly without getting into details.

Yes, sir. That's very helpful on that front. Then the other question is, sir, what we are seeing is that the margins, especially at Gangavaram and Krishnapatnam this time is unusually low. So can you just elaborate what are the issues we are facing at these two particular ports?

See, Gangavaram actually -- both of them, by and large, is because of the coal volume. But within that, Gangavaram is also because actually we are still ramping back, and we expect that to come back to normalcy in a quarter or 2. So this is a passing cloud.

And should we see the similar thing happening in Krishnapatnam as well?

Yes, yes, Krishnapatnam as well.

Sir, in the Gopalpur, I see that you did roughly around 1.3 million tonnes of volumes for the quarter. And if I look at the revenues, the realization seems pretty high, something like [ INR 90 ] per tonne. So is there some additional income over there? Or how should we look at for the subsequent quarter?

Yes, yes. I mean what you're seeing is somewhat representative. So there is coming -- not somewhat, it is representative. So you will find it actually coming in same levels.

Okay, sir. And sir, just last question from my side. So Mundra port is already for quite some time now connected to the WDFC. So ideally, this should have led to more rail volumes into our Logistics business so as to speak. But what we are seeing is that the quarter -- the run rate has been broadly at around 48,000 TEUs or something like that, and it's not really increasing for some time. So why are the WDFC benefits not really showing up in this Logistics space?

Have you understood the question? Or should we seek clarification? Would you mind just asking that again in a slightly different way? I'm not sure we got the question.

Sir, what I was saying was, so Mundra port has been connected to the Western DFC for some time now, I mean, quite some time, for a few quarters. So ideally, that should have led to significant growth in our container volumes handled by our Logistics business, the rail container volumes. But it seems that for the past couple of quarters, it seems to have stagnated. So what exactly is happening here?

All right. So I'll just give you some clarity here. The connection to the Western DFC opens up infra for me, but it doesn't open up mindset as yet. So cargo, which has to move quickly still moves by truck because traditionally, until a full rate load is there, a train does not move. So we are seeing changing patterns in the buyers. We are getting them more acquainted with the rail. And you will see a change in the pattern because we are also redesigning circuits to that effect. So we may not necessarily run a full rate load in future, so we can compete and leverage the infra, but you will see an increase in volumes in the upcoming quarters.

The next question is from the line of Sumit Kishore from Axis Capital.

Two questions. It was good to see the EBITDA margins for international have improved quite significantly on a year-on-year basis. Absolute EBITDA for international is more than Logistics actually for the quarter. What has been driving this? Is it Tanzania the main reason? And is it a sticky margin profile that we should be looking at or even better than that?

Yes. So as we have always demonstrated that we took roughly 1 to 2 years to bring back any port we acquire or we build to the best-in-class performance. We have demonstrated that in every port we did in India. So same thing, the same DNA, we have applied it for Tanzania and Haifa, and Tanzania for sure. But Haifa, even if the country is going through tough challenges, but our teams over there are able to improve the operational efficiency in addition to the revenue catchment. So yes, your observation is correct. And we have -- they are really incorporating the DNA which we have in that. So yes, so you can see -- remember in the previous calls, we were always talking about it.

18% EBITDA margin, is this close to normal levels? Or can this go to 25%, 30%? Or so what is the road map for international EBITDA margins?

Yes. So yes, it will go towards 30% mark as far as the international operations are concerned. And it will ramp up. And actually, Haifa, Tanzania, all of them will get to that level individually.

And this will be over the next couple of years or longer?

Yes, yes, a couple of years, within a couple of years.

And once again, I'm pretty sure before you ask the next question, we have to see that in dollar terms. Otherwise, if we start comparing with the Indian ports, then it is not apple-to-apple.

For sure. So meaning if there is some element of help that optically numbers are showing because of the rupee depreciation?

No, no. The actual realization, billing realization.

Actual realization, obviously, yes. So it is much higher in international, so the EBITDA margins are lower as compared to the Indian ports?

No, no. See, I mean, probably we have to get into slightly more details here. International port is a combination -- sorry, international business is a combination of many things. Haifa, and as of now, Colombo is not even there in the current quarter's number. Tanzania, Astro, Australia, so everything, okay? So you wouldn't be able to actually get the realization per TEU of our international business from the information that is already published in the IR deck. But what we can tell you, again, without actually getting into details that we don't disclose. But directionally, we can tell you that Colombo realization and equivalent realization, let's say, Vizhinjam or anywhere else is in the same ballpark. So one is not significantly higher or lower than the others.

Yes. Colombo, Vizhinjam, makes sense. My second question is on your CapEx over the 9 months, if you could spell out that figure, maybe separately across Ports and Logistics given that you may [indiscernible]. And second part of this is on -- if you could comment on...

Sorry to interrupt, Sumit, but you are not clear just now.

I was asking for the 9-month CapEx number for Ports and Logistics. And maybe for Logistics, given you've given a breakup for trucking and other logistics, if you could spell out what has been the total capital employed in trucking and the other logistics businesses so far? And what sort of ROCE are we looking at in these two segments?

See, the total capital expenditure of the company for 9 months is INR 7,500 crores. This obviously excludes M&A, but this is company as a whole. At the moment, in trucking business, we are not investing in CapEx because basically, it is a service model. It's extremely important for us to reiterate here that what has been launched in this quarter is what we spoke about in the beginning of the year, which is actually the truck management solution. Truck management solution is a digitized platform for both marketplace and fulfillment of services. It is not capital intensive. It is actually getting into sort of more of the services to be rendered for the customer to have more control over the cargo to actually become a transport utility or in the direction of being a transport utility as we have laid out. So CapEx is not so relevant for truck management business for this quarter.

Sumit, does that answer your question?

Yes. I mean for the other logistics businesses put together, what is your total capital employed as of?

So we -- it's roughly about 20% is the sort of non-ports investment, 80% is ports of the INR 7,500.

The next question is from the line of Shivang from Barclays.

I just wanted to know if you could provide gross debt and cash balance as of this.

Okay. I mean, I can tell you the numbers. Just give me one second, if you don't mind. Sorry, can you go to the next question while pull up, if you have one more question?

[indiscernible] breakup as well for short term and long term? That would be really helpful.

Sorry, I didn't hear that. Could you repeat that, please?

Yes, just for the gross debt, if you could provide further breakup for short term and long term?

Okay. So first, let me tell you, gross debt as of December 2024 is INR 45,650 crores, and it was INR 44,060 crores as of September 2024, the last quarter end. Net debt is INR 38,000 crores, round number and as of December. And as of September, it is INR 35,200 crores.

Noted. If you could help me get the short-term and long-term debt, if you have the figures?

See, frankly, we have about INR 2,000 crores of short-term debt. Everything else is long term. INR 2,300 crores.

The next question is from the line of Aditya Mongia from Kotak Securities.

In a tough environment, fairly good set of results. So congratulations on the same. The first question that I had was more on this thesis that you can add to the growth that ports can provide you with in your overall revenues and EBITDA. Is there some way of thinking through how much can this be a growth boost? Let's say, in this quarter, I think Logistics would have given you a 2% boost to overall numbers of revenues. Can we think through a 5% number happening at some point of time?

Yes, yes. Logistics will actually, in the first step, get to 5% contribution and as the next step, eventually 10% contribution to the company.

So Ashwani here. I mean, whenever we look at any new thing we started, of course, there are always challenges, but challenges exist because there are opportunities. When we look at Logistics business today in India, 13% to 14% of the GDP is the Logistics cost, which is as compared to 8% to 9% in around the world. So which means, there's a huge inefficiency in the pipeline, which creates the low margins, not only for -- for anyone, right? Now the point is there are only two things which are important to make margins in the -- especially trucking business as we have also this time incorporated that strategy as truck management solution, TMS in our investor deck. One, it is the technology platform, which we have already developed. And the second is the utilization of the truck using the trained controllable drivers. So with that, if a fragmented truck business is running one trip a day with this platform, we can do three trips a day and definitely, the margin becomes triple. So our view of Logistics business is to first attack all the inefficiencies which exist in the system and get the margins from there. Similarly, we started our marine business which is highly profitable today. Similarly, we started each and every port, which is highly profitable today. And with that DNA in our culture, definitely, Logistics will go up to 10% contribution.

Understood. So that's heartening to know. And we keep on kind of question with this aspect because I think this is important. But just to move on to other questions. Could you give us a sense of these three assets, Tanzania, Gopalpur and Vizhinjam, how much would have been the aggregate contribution in the third quarter? And what is the run rate that you're seeing on a monthly basis right now? I'm just trying to get a sense of the boost that can come in as you see a full quarter effect coming in the fourth quarter.

On the EBITDA, right, is that correct?

Volumes more than anything else. So let's say, Tanzania, Gopalpur -- let's say, Tanzania number, what was the number in the third quarter? And if you could give us a monthly run rate...

You ask me the round number, the exact number is there, but the round number is 1 million each, 1 million in Tanzania and 1 million in -- a little less in Gopalpur, 0.8 million, 0.9 million in Gopalpur.

Is this the monthly run rate that you are talking about right now or just...

Yes, yes. In January onwards, we are expecting that run rate.

I understood. That clarifies. The third aspect is that at an overall level, obviously, our domestic volume growth has been 1%. And if I take away these add-ons, it's probably a small decline. Is it more to do with the high base that was created in the last quarter for the country as a whole? Or do you see some kind of worrying signs and the slowdown, kind of continuing at a country level on trade.

So I think from a container perspective, the volumes are ramping rampantly for us. We've taken additional market share. All India level, we've seen about 11% growth in the container volume, but we've been able to garner about 15% growth in our portfolio ports. On the dry bulk state, I think in spite of reduction in the coal import volumes where domestically Coal India has been producing more railways and even more rakes. We've been able to steady state market share. So about 4% drop on major port side on the volume side on YTD basis between the 2 years, same for us, about 4% drop for us. But we've been able to compensate that more in terms of our incremental market share in the container. I think the same story we would expect to continue running in the next year as well.

Yes. I think very important to know that as we have been repeating that with the port mix we have West, South and East Coast and the product mix we have from container to dry to liquid, we are able to absorb the risk in the trade. But on the other side, we are able to maximize the opportunities which we have in the trade. So that's why at country level, one or two commodities may be a risk. But at our level, we just nullify that risk with the other opportunities in the product mix.

Sure. Maybe just a last question from my side. The uptick in EBITDA that you have shared as a guidance number for this year, does it have any lumpy components that you may end up booking in the fourth quarter? Just trying to kind of double check on that. So that will be my final question.

No, no. As one of the participants in the call said current run rate actually will take us there. So there isn't actually any lumpy or abnormal.

Yes. Seasonality is typically against you in the fourth quarter, that was the genesis of the question.

Sorry?

Seasonality typically is against you, third quarter to fourth quarter.

Yes, yes. That is true. That has been considered when actually giving this guidance. So whatever we can see now, clearly, we can achieve the new guidance that we have given without any one-off.

The next question is from the line of Bharani from Avendus Spark.

Can you give the port-wise split of the third quarter's volume [indiscernible] 6 million tonnes?

See, Page #53 onwards.

Bharaniji, the mixture in the presentation has the port-wise split for both 9 months and Q3.

Okay. I'll go through that. And the 9-month international volume of around 13.6 million tonnes, would this be largely only containers?

Sorry, can you repeat the question?

The international volume for 9 months, which is 13.6 million tonnes, will this be largely only containers?

Yes. Tanzania and Haifa. There is a little bit of -- in Haifa, there is a little bit of non-container business. Let me guess about 30%, 40%. So -- but yes, by and large, Tanzania is more or less container. And Haifa, there is both container and non-container.

Okay. And given the strong performance, both international and domestic on containers front, in fact, if I were to see 9-month delta between last year's 300-odd million tonnes to this year's 330 million tonnes, the delta is all largely containers. So does this good performance on containers expected to continue even on the domestic side, given kind of, say, economic slowdown that we are seeing? And if so, what are the reasons for our ports doing better than the market, especially on containers?

Yes. Before we get into the container, I think you may be seeing the economic slowdown, but that is -- that was -- for me, that was just a correction in the month of November. And October, November was for sure low. But from December, we already saw the trade picking up. And there could be, I would say, nothing to do with economic slowdown or economic impact. For example, the imported coal has gone down. But on the other side, it is replaced by coastal coal. On the other side, when we look at steel, it has gone up significantly. The liquid has gone up, not significantly, but has gone up. Fertilizers, which started with no tender, no policy have opened up. And especially recently, the agriculture products, especially rice and now we see sugar opening up. So which means we don't believe that there is economic slowdown. We see the trade growing. And in that growing trade, we are maximizing the container growth because of our strength. And I request Pranav, he will explain you the strategy, how he is growing the container business in this economy.

We just mentioned at -- in this year, we've actually taken up the market share from 44% to 45%. So all India volumes grew by 11%, but we have been able to maintain our portfolio growth of 15%. Insofar as any downturn in the economy or slowdown is to be concerned, I think as Ashwaniji mentioned, it was momentary. We have got a healthy mix of import and export about 51% of -- and 49% of import and export mix. So we ride the cycle either way given the portfolio presence that we have across in the country, South India, Mundra feeding the Northwest -- the entire Northern India corridor, and Hazira and Mundra feeding Northwest corridor. So there's a healthy mix of the portfolio. There is a manufacturing growth happening in the Central India, North India and South India to be very robust. So I think we are rightly built to cater to this -- to take the incremental market share on the growth. We continue to invest into the CapEx to ramp up our capacity and ride this wave. So the growth will continue to come to us next year as well.

Okay. [indiscernible] we have seen a dip in the [indiscernible]

Bharani, you are not clearly audible.

Better now?

Please go ahead.

Yes. Just wanted to check why there is a dip [indiscernible]

No, we've lost your audio again, Bharani.

Sorry, we can't hear you correctly.

Drop in margins, could you explain the reason?

The drop in which margin?

which margin, Bharani?

Logistics.

See, logistics, actually, if you go to Page #45 and while talking to you, I am going to flip, yes. So the total business has come down from 28% to 23%. Probably that is what you are referring to. And we have been trying to actually sort of explain that Logistics itself comprises of multiple subsegments. Starting this quarter, we will actually give more details and more breakout. So if you see trucking is expected to be in and around 10% margin, which is what actually we have shown there. And we will add more line of business in quarters to come. So we will give more details of that as well as we go forward. Generally, the traditional logistics business that we used to have, if you remove the newly launched business, we are in and around the same margin.

[Operator Instructions] We have the next question from the line of Vikram Vilas Suryavanshi from PhillipCapital India Private Limited.

Sir, Haifa also continue to do around like 1 million tonne per month kind of volume now?

Yes.

Okay. And in terms of Gangavaram port, how is the possibility to ramp up the container volume there?

Gangavaram, we have a container terminal, but the volumes are very miniscule. So it's not a needle mover for us there.

Okay. And are they like a transshipment volume or how basically we want to -- or it will remain...

It's a mix of both OD and transshipment.

Okay. And last question on Trucking Management Solution, that platform what we are talking is only for hiring our own cargo requirement? Or is it like an independent platform as a revenue model with independent cargo owner and truckers can bid for it exclusively for our requirement only?

All right. So it is both marketplace and fulfillment. So that is the fundamental DNA of it. In what phases we will open it up to what marketplace will be in the next couple of quarters. But it is actually going to be a platform where the market can interact. The difference being that we will be responsible for the fulfillment. So it's not just a purely aggregator model. It is an aggregator plus fulfillment model.

Understood. So it can become a revenue model rather than just a back end to our Logistics operation?

100%. Definitely...

It already is. That is why we are actually giving the breakout. I refer you back to Page #45, please, where we have...

We don't do any business which does not bring top line and bottom line both.

The next question is from the line of Jinesh Kothari from Elara Capital.

So just wanted to check on one thing. We have seen the Mundra port margins substantially rising year-on-year and quarter-on-quarter basis. So is this purely attributable to the change in mix of containers and how sustainable are this going forward?

I think what you are seeing is right. I think it's a combination of -- we built the capacity in advance because we anticipate the business opportunity. And I think it is going to go like this. And that's why, as we shared, we already decided further to invest in CT5 in the Mundra. So we keep on investing in the infrastructure and the equipment because we believe that this port has much more opportunity than it is today. So that's why, as Pranav said before, we do believe that container business will grow in the same way it has been grown so far.

Sure. Sir, so this 75% trajectory can be -- we can assume that trajectory can be continued, right?

Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.

Yes. Thank you very much for the time. We appreciate the questions that are being asked. And we particularly appreciate the fact that actually we are able to highlight the significant achievements that we have done in this quarter. We are on track to not only achieve our EBITDA, we have upped our EBITDA for the full financial year. And this year, actually, we closed a couple of deals and also actually nearing completion for Colombo and launched Vizhinjam or commenced Vizhinjam. So it's been actually an eventful quarter. I look forward to seeing you in the next analyst meet. And we continue to be available. Rahul Agarwal is available for any queries that you may have, and we are also available sort of for a discussion, if you would like.

Thank you. On behalf of PL Capital, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.