Container Corporation of India Limited (CONCOR) Earnings Call Transcript & Summary

[Audio Gap] In the last fiscal, in value terms, total exports of the country went down by 4.78% from $330.08 billion in '18-'19 to $314.31 billion in 2019-'20. Imports of the country have also gone down by 9.12%. From $507.44 billion in '18-'19 to $467.19 billion in 2019-'20. CONCOR experienced a raise in export of commodities, such as aluminum alloy, food items, medicines, machines, nonhazardous chemicals, iron hardware, while import of commodities, such as auto parts, newsprint, furniture, solar module, aluminum scrap and polyester goods [indiscernible]. In the year 2019-'20, we started as a promising year on all fronts and we were on track to achieve the expected growth in our performance. However, due to various external factors and spread of COVID-19 pandemic in the last quarter, the performance has been impacted. Even during this tough time, the company moved on the path of long-term sustainable growth through focused approach and adoption of right strategies. The performance parameters were volumes, financial, CapEx, dividend, et cetera, which I would like to share are as follows. Your company handled 3.75 million TEUs and transported 40.43 million tons of cargo volume by rail in 2019-'20, a decrease of 2.13% and 7.05%, respectively, over the previous year. However, in domestic segment, there was an increase of 1.54% in volumes. The EXIM volumes are impacted by decline in imports and exports of the country, while the decline in volumes was 2.79%. During the year, the company achieved gross turnover and net profit of INR 6,754 crores and INR 376 crores, respectively. The turnover was impacted due to decline in EXIM volumes and no SEIS income in the current year. As a result of this and on account of onetime previous provisions made for dissolvements of major portion of SEIS benefit of earlier years, net profit of the company saw a decline. Regarding the capital expenditure, the positive business outlook in the long term for the logistics sector is intact, for which our company is well geared up and committed. During the year, an amount of INR 1,069 crores was incurred towards capital expenditure, mainly on development, expansion of terminals, acquisition of wagons, handling equipments and IT infrastructure, et cetera. The company has further strengthened its existing terminal network to provide efficient services to its customers as well as commissioning of 3 facilities of MMLP and Mundra, [indiscernible] that is in Gujarat and Jamsola in Odisha have been planned in -- for FY '20-'21. This year, in order to strengthen and improve service levels, 80 bogie low longer, BLL, wagons were added to the existing fleet, increasing the holding of BLC and BLL to 13,497 wagons. Axle load capacity of 2,005 BLC wagons was enhanced from 20.3 tonnes to 22 tonnes. In addition, 560,123 containers, 29 recycles have been added. At the year-end, the company had a fleet of around 31,000 containers, 335 owned rigs, 111 RCs and 16 [indiscernible] trains. The net loss of the company was INR 10,064 crores as on March 31, 2020. The market capitalization of the company as on 30 June, 2020, was INR 25,462 crores. Keeping in view the financial performance, funds requirements for future and DIPAM guidelines, for 2019-'20, the company has predetermined dividend of INR 0.75 per share and recommended a final dividend of INR 2.85 per share on par value of per share of INR 5 each. The total dividend payout for the year 2019-'20, including the dividend distribution tax paid on interim dividend will be INR 228.06 crores, which is 61% profit for the year. Let's look at strategies and initiatives. We are a company that's an undisputed leader in the field of multi modal logistics in India with the largest available network of state-of-the-art intermodal terminals across the country, providing unparalleled reach and penetration, combined with its presence at almost all container handling ports and major industrial hubs in the country. Over the years, it has transformed itself to enlarge its bouquet of services to achieve objectives of serving the society and enhancing stakeholders' value. Today, the company is strategically placed and is all set to achieve its long-term goals. Thus, with its formidable physical presence throughout the country, large fleet of its holding stock containers, specialized container handling equipments, fully controlled freight operations and internet-based customer interface, the company has been providing efficient and reliable value-added logistic services to the trade. In addition to expanding existing business verticals, the objectives are to tap the enormous business potential becoming available in areas, such as setting up regular trade terminals, expansion through setting up MMLPs along with DFC network, increase in double-stack haul, e-business, overhead to distribution logistics and integrated logistics and manufacturing tools, venturing internationally, innovative FMLM solutions, air cargo, coastal movement, bulk movement of cargo and containers, other value-added services like labeling, palletization, bar coding, KYCL, cross-docking, wrapping, et cetera, for which a lot of ground has already been covered. The benefits of running double-stack trains from Mundra to [indiscernible] to Kathuwas and vice-versa are continuing to improve, which helped in containing the cost of empty running, enhancing range cohesion and made our services more competent. I would like to inform that many of our terminals are built on the land leased from railways. The recent order of railways were charging land license fee at the rate of 6% of value of land recovered from 1 April, 2020, will have impact on the company's financials and the same has been suitably represented to the railways. However, taking into consideration the business liability and to mitigate the impact of increased LLF on railway land, the company has recently surrendered its 15 terminals built on railway land. With its focus on customer value creation, the company has taken various initiatives to seize the opportunity by expanding its bouquet of services. The medium to long-term business strategies involve exploring the overseas business, bulk cargo movement, [indiscernible] technology for temporary sensitive cargo, haul transportation for power companies, haul transportation through legacy rail mode, growth in double-stack running, innovative uses of IT tools, studies of rail freight design for bulk transportation of cement, alleviate liquid cargo and auto cars and offshore presence in neighboring countries. I'm confident that with all our efforts and well laid down plans, your company is well poised to reap the benefits from various new business opportunities in logistic sectors, thereby continuing to enhance its shareholders' value. Your company at present has 3 wholly owned subsidiaries, namely: Fresh and Healthy Enterprises Limited, FHEL; Concor AIR Limited; and Concor Last Mile Logistics. In addition, several joint ventures have been set up and tied up with leading players in the industry, which are primarily contributing directly and indirectly towards business growth. There are, in total, 14 such arrangements, which are either subsidiaries or joint ventures, doing businesses in the field of cold chain, air cargo, port operations, container freight stations, providing bus and last mile connectivity, setting up rail infrastructure, running multimodal [indiscernible] paths and many of them are regularly distributing demands. The 2 generic companies, namely, [indiscernible] and Punjab Logistics Infrastructure Limited are also our subsidiaries in which state government will be Uttarakhand and Punjab with respect to the other parts. In the past, FHEL could not do well and was unable to achieve its objectives at the initial. Due to change in the business dynamics with implementation of DSC, customized storage requirements and intense competition with our organized sector, it was decided to reengineer its facility to develop it as agriculture -- agri logistic center. We changed the business model of leasing, renting out the chambers for storage of perishable loads. Support was also provided by way of converting its loan from holding company into equity share capital. The reengineering project was planned for implementation in 2 phases. But as of now, the equity inclusion of INR 13.45 crores was done and the project is nearing completion. Now 1/3 of the [indiscernible] FHEL have been converted into customs bonded warehouse for which customs notification has already been issued and it will be the only such facility in Delhi NCR. The facility of FHEL is now being used for storing a variety of products like apple, [Foreign Language], eggs, [Foreign Language], almonds, pears, grapes or supplements for medicines. Once the business as well as the region plant is fully established, it is expected that this venture will give good returns in the [indiscernible]. Your company has also expanded its business into the field of air cargo, in which we had established Concur AIR Limited, a wholly owned subsidiary. This company handles the domestic and international air cargo at Mumbai airport with concession agreements with the airport operator. This company did well in the past. However, after the period of international cargo concession ended on 15 April, 2018, the business has been impacted. The operations of domestic air cargo facility the company can give to the needs of terminal industry in and around Mumbai area are continuing. With above venture, your company has established itself in the field of air cargo business, and it is now looking at various opportunities emerging in this sector, which may be implemented directly or through strategic tie-ups with the leading entities in the field. In order to have a focused business approach towards first mile and last mile connectivity, another wholly owned subsidiary, Concur Last Mile Logistics Limited, was incorporated in January 2020. This company will tap huge potential in areas of providing seamless FMLM services, which were [indiscernible] include warehousing for specialized cargoes, inventory management, developing freight terminals and railways load shares, efficient transportation and handling of cargo and other value-added services, incidental or related there. While the existing joint ventures continue to perform to their full potential, contributing to the growth of the core business, during the year, CONCUR and JSC RZD logistics of Russia have signed the service agreement for transporting containers to cargo through international routes of transport corridor, INSTC. Technology and standardization. In this, the COVID crisis has provided us an opportunity and laid the foundation for deeper penetration and uses of IT tools in our day-to-day functions. The company has leveraged its existing digital assets and has undertaken further investments in technology-driven solutions to improve operational efficiencies, with focus on providing quality services and customer satisfaction. In this direction, we have taken many initiatives recently by the upgradation of digital-based R&D network with [indiscernible], e-contractor billing for online submission of invoices by vendors through their digital signature, e-payment to vendors, electronic filing of documents and commercial systems, know your container location, provide continuous cargo visibility through mobile application, SMS alert and interactive website. Further, with the seamless implementation of wireless e-working across its offices to improve operational efficiencies, restructuring in its functioning has been carried out in which a 2-tier system with 4 operational areas have been created. I would like to inform that during the lockdown due to pandemic, we continued our operations for providing essential services, as per government guidance. Further, through effective usage of IT tools, team Concor continued to function from home as effectively as in the pre-COVID era. Various meetings of the Board, its committees and the engagement with customers, vendors, [indiscernible], field units, et cetera, were held smoothly with effective usage of available and secure IT infrastructure in your company. The mobile applications for disseminating information in respect of public tariff, private tariff, platform trace, et cetera, the app for EXIM e-filing, covering reports, inquiries and the app for FMLM and EXIM [indiscernible] customers. Steps have also been taken for system improvement, like distancing submission of e-tender document, making circulars and guidelines available on intranet for employees and not only for [indiscernible], et cetera. The company has been recertified ISO 27001:2013 certification. For [indiscernible] for establishing an information security management system. Regarding our human resource management capabilities. Your company has a reservoir of highly envisioned and dedicated pool of human resource. Due care and steps were taken to retain the talent developed over the years in the specialized field of logistics, which is the main business of the company. The HR policies are aimed at meeting both companies' future needs and the aspirations of its employees. Our HR strategies act as motivating factors for its employees, and it encourages employees' empowerment, their growth and development by realizing their potential. The work culture in the organization is open and dynamic, enabling the employees to take initiative in jobs, and its policies attracts the best available talent with skill sets required for the growth and development of the organization. Participation of employees and their family members in sports, cultural events, et cetera, is encouraged and supported. Requisite steps are taken to maintain safe and nurturing working atmosphere and provide suitable environment, conducive to good health of all people. Right placement and refinement of employees is given due emphasis, and alignment of individual performance and growth within the organization is [indiscernible]. Timely delivery of HR services through right-to-service in time-bound manner is being ensured. Our systems promotes the philosophy of rewarding and recognizing the [indiscernible], and management supports development of [indiscernible] through structured reports or career coach. Over the years, the company has maintained industrial peace and harmony, and it believes in community of interest and not in conflicts of interest. It provides an environment of 2-way communication, participative culture, open platforms for discussions of ideas and motivation of the employees. With the best employee welfare and career development policies, our attrition rate is merely around 2%. I consider the dedicated pool of talent in the company, which shows the outcome of all our business initiatives and ambitious goals. Your company's development and good corporate governance is the core to its success. It believes that best corporate governance systems and procedures enables the company to run the part of services. In your company, the corporate governance is about accountability, transparency, effectiveness and responsibility among various key figures. The company is always -- have conducted its activities in an ethical and responsible manner towards sustainable value creation for its shareholders as well as for the community at large. It has always given emphasis on putting in place the framework of best policies, practices, structures and ethics in the organization, which are reviewed and updated from time to time. These initiatives have enabled your company to earn the trust and goodwill of investors, business partners, employees and the communities. For the year 2018-'19, DPE has rated the corporate governance compliances of our company as excellent. [Foreign Language] Regarding the awards and accolades, your company has got many awards and accolades have been confirmed for the company for its achievements and performance, some of which are ET Now Business Leader of the Year award in the category: Best State of the Art Facility; Company of the year: Logistics award from CNBC-AWAAZ; Winner in the transport and logistics category at the Duns & Bradstreet Corporate Awards; The Gateway Awards 2019 in the category Inland Container Depot of the Year; the Container Terminal Operator of the Year award in South-East Cargo and Logistics Award 2019; State award from Karnataka's Chief Minister for Services; the prestigious Delhi Best Employer Brand Award 2019; the Punjab Logistics Leadership Award 2019; the prestigious CII SCALE Awards 2019 in the category: Container Logistics; Northern India Multimodal Logistics Award 2020 in the category Inland Container Depot & Rail Operator of the Year. Regarding the future outlook, the COVID-19 crisis is the most disruptive event in the recent human history and its resultant economic impact has caused hardships for the entire global program. The way we were doing business is going to change. And when we will emerge out of this crisis, the world will be a different place. Our objective is now to conduct the business by ensuring the safety and well-being needs of our employees, business associates, vendors, suppliers, et cetera, for which affective steps have been taken. Your company believes that normalization of business environment, economic recovery and [indiscernible]. The measures taken by your company will result in business growth with the substantial augmentation of handling capacity, locational advantage, value-added services and exposure to other segments of value chain. The commencement of operations in dedicated different corridors in future will be an added advantage for your company as it will help in containing costs, growing volumes, enhancement in capacity utilization of terminals through running more double stack trains and faster turnarounds. There is no doubt about the challenges in the existing business environment, disruption of trade, rising competition, particularly from the road sector and [ PCTOs ]. However, your company is well geared up to march ahead on the path of growth with its endeavor to return market share along with maintaining margins in containerized rail transportation while improving service experience, taking innovative steps in marketing, meeting customers' expectations and creating new business revenues. Last year, government announced strategic divestment of [indiscernible] your company. However, this has not impacted the morale and confidence level of the employees. Rather, your company is highly motivated to create more value for the organization and its stakeholders. Let me inform at this forum that in spite of the challenges in the long term, based on the solid foundation that has been created over the years, your company is well placed to remain consistent in the future. [Foreign Language]

Thank you, Chairman, sir, for summarizing the performance and plans to the shareholders. I would like to inform that in terms of provision of Section 108 of the Company's Act read with relevant rules and regulation 44 of SEBI's Listing Obligation and Disclosure Requirement regulations, the company had provided remote key voting facilities to the shareholders to cast their vote on the agenda listed in the notice of AGM. The period of remote e-voting was from 9:00 a.m. on 26 September, 2020 to 5.00 p.m. on 28 September, 2020. I hope the shareholders must have cast their votes through remote e-voting facility provided by NSDL. In addition to this, e-voting can also be done now during this AGM by the shareholders who had not cast their votes in the remote e-voting process. The shareholders who have already cast their votes in the remote e-voting need not cast their vote at AGM as that will be invalid. The result of remote e-voting and the voting at AGM, along with the consolidated scrutinizer's report shall be announced not later than 17:00 hours on 1st October, 2020. The result of voting will be placed on the website of the company and NSDL, and the same shall be communicated to the stock exchanges, that is BSE and NSE, where shares of the company are listed. I would like to inform that there are 5 ordinary and 1 special agenda listed for this meeting. First item is regarding the adoption of financial statements and auditor's report. I would like to inform that the auditors have given their report dated 25 June, 2020, on the stand-alone and consolidated financial statements of the company. In the auditor's report, there are no qualifications. In the -- though, in respect of certain other observations of auditors in their report, like key audit matters, the company has duly replied to the same in detail at Page #52 to 57 of annual report, which can be referred for this purpose. The company has also received comments from C&AG of India on the stand-alone and consolidated financial statements of the company by its letter dated 22 September, 2020. The C&AG comments, along with the replies of the management on the same, were sent to all the shareholders earlier through e-mail immediately after its receipt. It was simultaneously provided to the stock exchanges and was placed on the company's website. The shareholders may take note of the same. In addition, the secretarial auditor has stated in their report regarding composition of Board not having requisite number of independent directors. In this regard, comments of the management have already been given in the Directors' Report at Page 49 to 50, which I would like to reiterate that CONCUR is a government company and its directors, including independent directors, are appointed by Government of India through Ministry of Railways, and the company has already requested the government for appointing requisite number of independent directors on its Board. Item #2 is regarding confirmation and approval of final dividend. Here, the Board of Directors of the company in its meeting held on 7 February, 2020, had declared interim dividend of 75 paisa per share of INR 5 each, which is 15%, which was paid after its declaration. In addition, final dividend of INR 2.85 per share of INR 5 each, that is 57%, was declared by the Board in its meeting held on 25 June, 2020. Therefore, there is a total dividend for the year, which is INR 3.60, that is 72 paisa, which has now been placed before the shareholder for its approval. There are other agenda items for reappointment of 2 directors, Shri Pradip K. Agarwal and Shri Sanjay Swarup, who are retiring by rotation at this Annual General Meeting. Then we are taking note of the appointment of statutory auditors and taking approval of the shareholders authorizing the Board for fixing the remuneration of auditors. And the one item in the special business is appointment of Shri Ashutosh Gangal as government nominee director on the Board of CONCOR. So this is a list of agenda we have. Now I would request CMD sir to inform the shareholders about the resolutions to be passed.

[indiscernible]

Right, sir. With the permission of Chair, I would like to read the resolutions which are proposed at this AGM. Agenda item #1 is regarding adoption of financial statements, auditors' report and directors' report. So the text of the resolution is resolve that the financial statement stand-alone and consolidated of the company, including balance sheet as at 31 March, 2020, and statement of profit and loss for the year ended on that date, along with the report of the Board of Directors and auditors and comments of C&AG of India thereon be and are hereby approved and adopted. Item #2 is in respect of confirmation of interim dividend and declaration of final dividend. The resolution proposed is resolve that the interim dividend at the rate of 15%, that is INR 0.75 paisa per share of INR 5 each, and final dividend of 57%, that is INR 2.85 per equity share of face value of INR 5 each on the paid up equity share capital of INR 304.65 crores of the company for the financial year 2019-'20 be and is hereby approved. Item number third is for reappointment of Shri Pradip K. Agarwal, Director, Domestic Division, who is retiring by rotation and he has offered himself for reappointment. The resolution proposed is resolve that Shri Pradip K. Agarwal, Director, Domestic Division, DIN 07557080, be and is hereby reappointed as Director, Domestic Division of the company. Item #4 is for reappointment of Shri Sanjay Swarup Director, International Marketing and Operations, who retires by rotation and, being eligible, offered himself for reappointment. The text of the resolution is resolve that Shri Sanjay Swarup, Director, International Marketing and Operations, DIN 05159435, be and is hereby reappointed as director of the company. Item #5 is taking note of appointment of statutory auditors and fixing auditors' remuneration. The proposed resolution is resolve that the appointment of Messrs. S. N. Nanda & Co. chartered accountant as statutory auditor of the company for the financial year '19-'20 in terms of order CA.5/COI/central government CCIL 9495 dated 7 August, 2019, of C&AG of India be and is hereby noted. The statutory auditors of the company will be paid such remuneration as will be fixed by the Board of Directors of the company from time to time. Further, the remuneration payable to the branch auditors appointed by C&AG of India may also be fixed by the Board of Directors of the company from time to time. Item #6 is in respect of appointment of Shri Ashutosh Gangal, a government Director, on the Board of CONCOR. The proposed resolution is resolve that pursuant to the applicable provisions of the Company's Act, 19 -- 2013 and rules made thereunder, Shri Ashutosh Gangal, DIN 07057313, who was appointed as a Director government nominee by Ministry of Railways, vide its order number 2005/PL/46/5 dated 27 August, 2020, and number 2005/PL/46/5 dated 2 September, 2020, and was accordingly appointed as director of the company by the Board of Directors and in respect of whom the company has received a notice in writing from the director himself be and is hereby appointed as a director of the company liable to retire by rotation on terms and conditions determined by Government of India. So these were the proposed resolutions in this AGM. Now we can go to question-and-answer session after this. There are few shareholders who have listed themselves for giving their views and raising certain questions at the Annual General Meeting. There was a time provided to them during which they can register themselves. So what I'll do is those shareholders who have requested for speaking at AGM are provided requisite link for joining the meeting at their e-mail address by the company. Right now, I would like to request those shareholders by announcing their name one by one, and thereafter, they can speak. The answer to all the queries of shareholders will be given by the Chairman after all the shareholders have spoken.

So I would request the moderator to connect one of the shareholders -- such shareholder, [ Shri Manoj Bagadia ].

Hello, can you hear me sir. Hello?

Yes.

Can you hear me, sir?

Yes. We can hear you Mr. [ Manoj ].

Thank you very much for the opportunity to talk, sir. I mean you explained really well the whole thing, the structure of the company, the opportunity, the risk and challenges. Just a few broad questions, sir. One is with COVID, what are the long-term changes do you foresee in terms of the business opportunity as well as the cost structure? Because this is giving an opportunity to a lot of companies to restructure this business model completely. So just if you can throw some light on how do you see it for us? Second thing is if you can put some time line as to the dedicated freight corridor, sir. And how do you see the benefits trickling to us? Because it'll happen in phases and it's already delayed. So how do you see that happening? And how do you see the benefit coming to us? Third thing is about the relationship with railways, sir. I mean there has been some changes that has happened. You started paying more rent actually, and we are also disagreeing with some of the thing -- what railway is charging us. So as the government has put us on divestment list, do you foresee any major changes in terms of the relationship what we have with railways, which can increase the cost in future and hurt our margins? How do you see the business, as of now, improving over the past few months compared to the initial parts of the lockdown? And do you foresee that normalized, we will be back on track from FY '22 onwards? And what kind of annual growth we would be targeting? And the final thing is, sir, longer-term margin aspiration for us. Thank you very much for the opportunity, sir, to ask questions.

May I now request to connect another shareholder, [ Shri S. N. Mishra ]?

Hello? Hello?

[Foreign Language]

Hello?

[Foreign Language]

Respected CMD sir, and all the Board of Directors, good afternoon. I'm thankful that on this occasion, I have been given opportunity to speak. I am an old shareholder of CONCOR, and I'm very happy to note that with the able guidance of management, despite of COVID-19 pandemic, with only 1,426 employees, CONCOR is marching ahead and achieving all milestones set for it. CONCOR has also declared dividend in the tough times, for which I want to congratulate to the management. I also want to congratulate to management for excellent CSR initiative and contributing at least [Audio Gap] I wish all the success and bright future to CONCOR, sir. Thank you very much.

Now please connect [ Shri Daljit Singh ].

Sir, he has not joined as he had thought he might be left, sir. We can move to next shareholder, sir.

Okay. Okay. Now we can connect [ Divya Sharma ].

Hello?

Yes. Go ahead.

First -- yes, first of all, I'd like to congratulate the entire Board of Directors for the various initiatives taken by CONCOR during COVID-19 pandemic. CONCOR has contributed INR 30 crores to the PM CARES Fund to help the nation fight against the pandemic. Even during the lock down, CONCOR was supplying essential commodities across the country, thereby keeping the supply chain moving. Commendable job. Secondly, I would also like to praise CONCOR for its increasing presence on the social media platforms. It is good to see regular posts by CONCOR on Twitter and Facebook. As a shareholder, I'm proud of the entire team of CONCOR for contributing towards the success of this company. I believe that CONCOR can and CONCOR will conquer all the odds and create value for all its stakeholders. Thank you for giving me this opportunity to speak in this AGM.

There were some other shareholders, but they have disconnected now. So I would -- we are left with only 1 more shareholder who wants to speak. [ Madam Veena Gera ].

[Foreign Language] Myself Veena Gera. Thanks for giving this opportunity. [Foreign Language]

I would request Chairman sir, to -- he can give his comments on the shareholders' queries, sir.

Yes. Regarding the long-term challenges in the new normal environment, see, as I mentioned in the Chairman's address, the company has taken all the initiatives to make it more and more digitalized, and digitized environment gives the customer a stress-free and safe environment to work with. So with these initiatives -- and we are further working on these initiatives to make more of digitalization. I'm sure we will be able to continue on all our services uninterrupted. As we did in the complete lock down period, your company has never closed down. All the terminals were -- continuously through all the days of lock down giving the service -- required service of moving essential commodities. Other than this, the challenge is the economic scenario. As on today, the manufacturing has not yet picked up in India because of various restrictions on personnel movement and other things. So as it is asked what will be the expectation? The expectation, in general, of the industry is that in the last quarter of this financial year, things will start looking up, and maybe next year will be a better one. So we are also hoping that the things will gradually -- and we are -- financial year '21-'22, we will be coming back to normalize in terms of volumes and other growth prospects. The dedicated freight corridor up to Palanpur, which is connecting to ports Mundra and Pipavav, is expected to be ready by the end of this financial year. Then these 2 ports, we will be able to connect from our North Indian destinations via Kathuwas, which already is working very well and we are running a lot of double-stack trains. The advantage of dedicated freight corridor is being a dedicated corridor, there will be faster transits, time-bound transits, and we can assure our customers we can give guaranteed services, time-guaranteed services in collaboration with the railways. That will be definitely a big boost because 2 -- the main important things for any logistics is, one, continuous cargo visibility; and the other one, transit guarantees. Your company is already providing the continuous cargo visibility 24/7 to customer for the last few years, and it is very well appreciated by all the customers. Now with the dedicated freight corridor, we will be able to provide the transit guarantees. As on today, because of the congestion on the Indian Railways network, the transit guarantee is a difficult proposition. As far as the relationship with railways is concerned, there is absolutely no issue. We have excellent relations with railways. We got all the support. And in fact, I'm happy to share with all the shareholders that we are running some timetable services also, which are [indiscernible]. The decision is a policy decision of increasing the land license fee of the land on which we have terminals along with railways, and it should bring the things in -- making it competitive with the rest of the industry, bringing everyone on the same platform. But I'm happy to share with you that we already made our reengineering plans and we surrendered 15 terminals, and we have not lost even a container. We shifted our volumes to the nearby depots. We made all those plans, and then we surrendered. So we reduced some liability on that, and rest of the things will get adjusted. Yes, there is an impact in this financial year -- there will be an impact in this at year. But over the coming financial years, I'm sure we will be able to cater to this increased liability on land license fee, and the commercial workings will be according to that. A couple of different scenario in annual growth, I already expressed in my speech. We are looking at it on the brighter side. And with the positive signals, such as dedicated freight corridors and new initiatives which our company is taking as bulk transportation of commodities in containers using [indiscernible] distribution [indiscernible], constructing and the agency business, these are all very good verticals we are trying to develop in FMLM, the first mile/last mile, giving the complete logistics solution to the customer. I'm sure we are on a growth path, and we will try to maintain the growth. I don't want to take any guesswork on the margins, but your company is always striving to maintain the margins as per the expectations of the shareholders. Thank you.

Thank you, sir. Chairman, sir, there is one more shareholder who has registered himself. He has just now got connected. So if you permit, can he -- can we ask him to raise -- give a view, sir?

Yes. Please.

So I would request you to connect [ Shri Santosh Kumar Shah ].

[Foreign Language]

Thank you, sir. So he has sent some queries, sir. So we'll reply to them on e-mail. We'll send the reply on e-mail.

Sure.

Right, sir. So we have come to the end of this question-and-answer session, sir. So we are coming to the end of the meeting. So I would like to thank our esteemed shareholders, including the President of India nominee, Dr. [ Manoj Singh ], who are present with us today in this meeting. I sincerely thank our Chairman and Managing Director, all the functional directors of CONCOR, government nominee director, our independent directors for successfully running this company and sparing their valuable time for this meeting. I would also like to thank C&AG, our statutory auditors, secretarial auditors and scrutinizers on the occasion of this Annual General Meeting. I also thank the entire team in CONCOR for successfully organizing this virtual AG. Now I would request Chairman to announce closure of this meeting.

Yes. Okay. Thanks to all.

Thank you, sir. The meeting ends with a vote of thanks to the Chair. Thank you, sir.

Thank you. Thank you all.