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

Ladies and gentlemen, good day, and welcome to Container Corporation of India Limited Q3 FY '21 Earnings Conference Call hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors. Thank you, and over to you, ma'am.

Thank you, Dhiraj. Good morning, everyone, and welcome to the Q3 FY '21 Earnings Call of Container Corporation. We have the management today being represented by Mr. V. Kalyana Rama. He's the CMD of CONCOR. I'll now hand over the call to him for his opening remarks. Post which, we'll open up the floor for Q&A. Over to you, sir.

Thank you, Bhoomika, and good morning to all of you. First of all, I'm very happy to share with you the good numbers we could achieve in this quarter. This is a very good sign that the economy is recovering. So we are getting back our demand. And as my colleague, director, mainly my BF keeps telling me always remind me that this is a V-shaped recovery which government has started. So this is what I want to share with you that, yes, we are on the V-shaped recovery, not on a U-shaped recovery. This quarter, you must have already seen the numbers, the revenue is better or much better on the corresponding quarter of the last year, which was pre-COVID quarter. COVID started in month of January. So that way the performance is really good. We had almost 10% less in originating volumes in both EXIM and domestic. Our margins improved. Rail freight margin improved because more loaded volumes we carried. And also, we have an advantage of 15 days, free movement of MTs by Indian Railways, which we could utilize very well. It all made our rail freight margin to grow substantially from 27.3% to 33.88%. Our overall operating margin also has grown in this quarter compared to last quarter, but corresponding quarter because we booked some Khatuwas increase so the operating margins are getting subdued as compared to last year. And overall, now at this moment, we are in throughput roughly around 8% less than last year and then originating volumes around 6% less than last year. So now our guidance for the entire year is we maybe 5% less than last year. We may close by in the handling volumes and if the things go better in this quarter that expected then maybe we will cover more ground. Our revenues here also as of now, we are around 8% less than last year. But here also, we are hopeful we will come to 5% less than last year or we may try to even cover more ground and try to see -- our aim is to match last last year, at least come to the last year level, it depends on. It depends on how things are going to unfold in the next 2 months, yes we could see good traction in the month of January as well. So these 2 months February and March if they are good, then we will be able to cover a lot of ground, and we can come with good numbers. That is in this year, particularly where we -- all of our economy, country -- whole country and the whole world is effected by COVID. And still the effects of COVID are on raw. And many countries are in a lockdown. It is good news that in India, we are able to see recovery, and particularly in the domestic sector in your company a V-shaped recovery. And one thing which will be from and most of the people so let me clarify that position as well as regarding the land license fee, the disclosures what we are giving. That is because of the -- our policy of good corporate governance we always disclose whatever demands which we get. So these demands are quite unreasonable and not having any basis. But as we receive this demand from various divisions of Indian Railways the total sum of it to calculate it and given as INR 30 crores, INR 37 crores LLF demand. So our calculation of around INR 450 crores, we stand by it. And we are providing for it in our balance sheets, in our accounts. So that will be resolved very soon. There will be no doubt in the minds of the management. So I think this, please note, everyone, so let's not have more questions on this time and again, that we will be unnecessary wastage of time that's my request to all of you. So our LLF for this year will be -- not be more than INR 450 crores. Thank you very much. Now we can open for questions.

[Operator Instructions] The first question is from the line of Ajinkya Bhat from Macquarie.

Sir, 3 questions from my side. Number one, if you could share the outlook on volumes, how you see them panning out in 4Q as well as lead distance and MTs repositioning. Second question would be essentially about -- we have read in the media report that you have started charging land license surcharge -- land usage surcharge at Tughlakabad terminals. So if you could explain a bit more about that, what is the thought process, if you are seeing any volume impact out of that? And lastly, regarding the actuarial provision that you have booked in this particular quarter, if you could throw some more light on that in the sense that are any more such provisions expected in the coming quarters, especially considering that the divestment process might get accelerated in the next few months. So is there an exercise to clean up and provide for all the outstanding or future expenses right now? What is the thought process there?

First I will answer your third question. So it's not a clean-up act. So it is actually the employee welfare provision. So these -- we are not providing till now because it was going -- as the issue you are right, there's a divestment that is announced and it is -- the process is on. This is supposed to be provided from 2003 onwards till 2021. And what the management decided is that the -- whatever is need based we will keep on providing into the medical fund. And because now the divestment is coming on to give a clear indication of what should be and what will be. So we thought of providing this fund. Instead of keeping in the books of our company, we are transferring it to the medical trust.

Going ahead sir, it will be quarter-to-quarter only within 1% of the PAT.

Yes. So it is -- going ahead, we will be giving 1% of our PAT into -- not PAT 1% of the basic?

PBT only.

PBT, 1% of PBT.

Based on that QV calculation.

Based on the actual calculation.

Not more than that.

Not more than 1% of PBT. We will be providing continuously every quarter. So that will be the policy to be adopted in future also. Now regarding the volume, I already said that we are expecting to cover the ground up to 5% less than last year in handling volumes and maybe in originating it will be better. And if things go better, we may cover more ground we may almost equal last year numbers. But that scenario is very optimistic scenario. But yes. It's good. But we first given for the -- our guidance of 20% less than last year, we have come up to now 8%, and we are forecasting now up to 5% less than last year. Tughlakabad, yes, we imposed [ 5,000 ] and for a TEU, [ 10,000 ] for FEU. As of now we could not -- we did not see any effect on our volumes.

The next question is from the line of Achal Lohade from JM Financial.

My first question was if you could help us with the originating volumes for the quarter?

Originating volumes for the quarter in EXIM they are 5,36,563, and then domestic 77,076.

And if you could also help us with the MTs cost for domestic and EXIM for the quarter and Y-o-Y, sir?

The MT cost for EXIM is INR 32.77 crores. And for domestic, it is INR 34.15 crores.

Could you please also give the similar number for the last year, sir, would have that? 3Q FY '20 as well?

For last year EXIM it was INR 22.73 crores, for domestic is was INR 28.46 crores.

Understood. And just one question with respect to...

Two questions per participant.

It's just a clarification, sir, if I may? The difference between originating and EXIM is on account of what? Is it only Khatuwas? Or is there anything sir, if you could explain that?

Originating is -- Khatuwas is handling. Khatuwas is a hub. Okay? Originating is pickup of traffic everywhere around the country.

Right. So the difference is because of what sir, I wanted to understand that.

Sir, what to say I told you previous, grown man.

Overall business...

The overall business grew, that's what V-shaped recovery we are talking of.

The next question is from the line of Priyankar Biswas from Nomura.

Yes. So my first question is, sir, when I look at your other operating expenses, and if we, let's say, look at it ex of the land license fee that you have booked like INR 120 crores each quarter, then it seems that it has come down substantially, like to almost like 8%, 10.5% of sales, whereas this figure used to be almost like 10%, plus the year back. So what are the initiatives that we have taken that have brought down this other operating expenses to such a level. I mean what are the steps that you have taken so far?

One major step that we've taken, it was told earlier also in the Q2 that the security arrangement, where we have the mix of the government see as the security as well as the ex equipment security arrangement. And that has a huge cost. So that was optimized in this FY. And we have optimized the cost at mainly at TKD, which has come down by 50%, and the similar activity has taken in all my depots, and that has brought down substantially my cost of security. This is one major cutdown. And the other is on the fuel counts also, there is a cut. So all this together has given me a lot of savings from these accounts.

Okay. And sir, one more.

And this is going to be approved thing in all quarters, henceforth also because this cut is permanent cut.

So these are sustainable effectively.

Yes, yes. Most. That was the benefit that we took in the pandemic time, and we had a lot of time to discuss things and bring a lot of, I mean, reforms. Also, that we have merged our second tier, and now we are operating in only the depots and the CO. So that also has got so many impact on expenses and there we are going to save not only this quarter but in sustainable manner to the future quarters also.

And sir, does the surrendering of the low profitability terminals, has that also helped in improving these numbers as well?

But the overhead costs have surely come down without effecting my originating numbers or the -- as you can see, there's a growth in both. So yes, we have proved what we talked to you in first quarter and second quarter, that these are terminals that we are surrendering, it is not going to affect my business because we have planned in a very meticulous manner to shift these businesses through the nearby or the new depots that came up in the CONCOR lands. So without affecting my volume, we have cut down on overhead. So you were right in those manners that we have optimized my business with the depot that are owned by CONCOR. We have hauled more than what we use to haul in the number same quarters last year. And still, we have cut down overhead. So you are right in those manner.

And so sir, similarly, the second thing...

Okay, okay, you have to ask 2 questions only.

The next question is from the line of Vikram Suryavanshi from PhillipCapital.

Yes, sir with this improved in volume significantly, how is the -- our view on -- now on coastal shippings restarting our routes on that if you can give that? And second question is on basically, we have seen significant impact on global container trade because of imbalance in MT or repositioning and all that. So the containers, what we have bought for domestic purpose, can we use for EXIM route to support this imbalance? Or how is our overall impact are you seeing in coming months because of this global trade imbalance in repositioning and other things?

See, because of the container shortage in India, we started providing some of our containers for rice exports to Iran. So we have done work on as because we don't -- we are not present in this EXIM trade. We can only work from point to point basis because we have to get back our equipment. So we started Iran thing, and we could do around 200 containers as trade shipment. And now we are going to do some more in this quarter. So we are looking at it in terms of interest. Like Bangladesh, we already started there our own containers go. Nepal we do this. We These are -- in addition to that, now Iran we are doing, and we are looking at other interesting points. So our services will be point to point only. And regarding coastal, during COVID, we suspended it. And then we thought of going -- looking at and making it and reanalyzing the model what we adopted. Even though at the present rates our model is -- will be very -- quite successfully workable. So we are reassessing the thing. And soon we will come out with our policy on that.

[Operator Instructions] The next question is from the line of Ankit Panchmatia from B&K Securities.

Sir, if you could provide just the volume handled in metric tons, that would be helpful.

Metric tons [Foreign Language] in EXIM in Q3, we handled 8.85 million tons in domestic 2.46 million tons and total it is 11.31 million. In 9 months, total is 29.64 million.

Okay. And sir, leads if you can help me out with some.

Lead. Overall lead in this quarter is 790 kilometers, EXIM lead is 709. Domestic lead is 1,401.

Okay. And sir, regarding our strategy to come out of the low lead, the low profitable route, has that strategy bottomed? Or are we still undergoing this exercise of analyzing this -- the strategy wherein we would continue to come out of the lower lead, low profitable routes?

Lower lead, lower profitable, et cetera, we are not doing much, so except very few and in fact that is how our lead increased. If you see last quarter, we -- our lead was 680 in EXIM, we got it to 709. And in fact, this is the -- got lead we got in this year, the 709.

Last one sir, on CapEx, your guidance on CapEx. That's it.

Around CapEx?

Yes, sir.

CapEx, we will be doing around INR 500 crores this year.

And sir till now, how much it has incurred?

You are asking number of questions.

[Operator Instructions] The next question is from the line of Atul Tiwari from Citigroup.

Yes. Sir, just one question. Any color on the issue of land license fee, when are we likely to see a resolution?

I told, that is why I -- in my opening remarks, I have very clear said there no further color that can be given on this.

The next question is from the line of Ankita Shah from Elara Capital PLC.

Yes. Sir, my question is on realization side what led to the improvement in realization both in EXIM and domestic this quarter? And your outlook for full year given the first 9 months, we are -- net realization is down 2% so looking to your outlook for the full year. And second question is on the number of double stack trains handled during this quarter?

And your first question, what is that 9 months what you want to know?

No, sir, realization. So basically, what has led to the improvement in realization in this quarter both for EXIM and domestic?

It is because of more loaded running and improved -- increase in lead kilometers.

Sir, there is no price hike or anything that's taken?

There is no price hike in this quarter. So overall, in the 9 months, there is a price hike, because we have not given the discount on MT container movement in EXIM. And also there is -- in this quarter, there is 15 days window where railways has given free movement of MT. So that helped us improve our margins in domestic.

Okay. And number of double stack trains handled?

Double stack trains this quarter we handled 777.

The next question is from the line of [ Jitesh from Spark Capital Advisors ].

Sir this is Mukesh Saraf from Spark Capital. So my question is on the DFC plan so if you could give some understanding on once this Rewari-Palanpur route in account of starts pilgrimage, what added benefits we'll get from the current scenario? Because probably this quarter, we would have already seen improvement in turnaround times where passenger rail was not operational to a large extent, and we're always doing a lot of double stacking from Rewari. So could you just give a sense what added benefits we will...

You are not clearly audible. Can you please repeat? You are not clearly audible.

Yes, yes. Is it better now?

Yes.

Yes. So what I was asking is in this quarter, we would have seen a good amount of benefit with respect to turnaround times given that passenger rails was not operational. And we are already doing a lot of double stacking at Rewari. So once DFC is operational, the Rewari-Palanpur route, what added benefits you'll get from hereon in terms of, say, profitability or volumes?

Yes, we have -- yes. Domestic business, you're right that we have picked up usually in this quarter. And there's a lead also as CMD mentioned in the last question, that the lead also is very good compared to the last quarter. So both together has given us a good top line as well as bottom line. Margins have also tremendously improved.

Sir, my question is that once you start operating on the DFC, what added benefits you can get because a turnaround time probably already is good for you, given that passenger rail was not operational. And in terms of double stacking, we're already doing I think majority of the double stacking that is possible via Khatuwas?

The DFC, some of your voice is not very clear, but DFC advantage is the transit time DFC gives the transit advantage from Rewari to Palanpur, today they operating up to Maddur, even Maddur they are connecting the ports. They're operating -- their transit time will come down at DFC to 12 hours. And then another 12 hours is add so 24 hours, you will reach the port. So that is the advantage. So more and more cargo will come on to rail more from road. And double stack train running, we are already doing. So it can be done on a massive scale and volumes increase. As of date, there is some constrain because volumes are not coming for more number of double stack trains. So volumes increase will add more number of double stack trains that will increase the margin, so that benefits will accrue to the company. This is the advantage of DFC, and we can introduce more and more time table trains, guaranteed services. So these are all various things we can bring in with the dedicated freight corridor.

Right. Right. So when do we plan to introduce these time table trains, sir?

We are already running time table trains in DFC, the scheduling of services has not yet started, they are still doing trains. Once they do the scheduling, then we will announce more time table trains. We are already running some time table trains it is -- which is now given the time window opened by Indian Railways, we are utilizing that.

Right. Right. And just the final one, what you said, the turnaround time will improve for you on the DFC route. Currently, what is it, sir, in this quarter given that passenger rail was not operational? We would have already seen some benefits of that turnaround time?

Yes, to some extent, yes, you are right. Because of less number of passenger trains, now the things are moving faster on Indian Railway System. But it will be more -- much more faster on DFC, because DFC is a dedicated freight and everything runs at a uniform speed so that increases asset utilization, our roading start utilization, there is so many things. So it is -- so the advantage alone it is around [indiscernible].

Right. Right. And then also a lot of the hired [indiscernible] the higher action rates of the 25 ton action even that will be from manual company allowed?

As of now, they will run with 22 ton lakh kilos. And when the thing improves, then we will let you know. Okay?

The next question is from the line of Deepika Mundra from JPMorgan.

Just two things. Firstly, I mean, recently, you've had market share gains for railways with passenger trains not plying and transit time improving. Is that expected to change in the next quarter or so as more passenger trains come onboard? And secondly, if you could just talk about the timing of DFC.

See the passenger trains as of now, whatever they are already increasing day by day, but the things are improving on Indian Railway System and moreover DFC started functioning. So the DFC will give some advantage, that will take some load. So the things may improve further than deteriorating. And DFC, as I mentioned, they are already doing trial runs, regular scheduling will be done during this quarter, so we can see the advantage of DFC coming to us from the next financial year.

[Operator Instructions] The next question is from the line of Pulkit Patni from Goldman Sachs.

Sure. Sir, my first question is on pricing power. Many a times in the past when we've asked you about pricing, you have said that we have to take in consideration the road pricing because there's market share shift, depending on how we price. And now given the fact that we've got good realizations this year, and with DFC, with post-COVID, is it fair to assume that the pricing power for CONCOR is looking a lot better than what it used to? Is that a statement you would agree with? Or you don't think anything gets changed?

First of all, why should I agree for some statements tell me? See if there is a pricing for -- we have got our own pricing power. As I mentioned earlier, pricing power, we always keep things in our perspective when we decide on the market, our pricing, which we can introduce in the market. We are not connected with rail tariff hike or decrease. We do our own pricing. Yes. I agree with you to some extent because of the situation today prevailing in the country, the rail more has got an advantage of pricing. But being a pre issue with some ethics and with lot of transparency, we are not taking too much advantage of this situation. So we don't want to harm our economy to boost up our exports and continue. So we have not actually increased any price in this. Yes, there is a pricing power available today to CONCOR. Going forward with DFC coming into operation, definitely, the pricing power of CONCOR will have better advantage because we will be able to introduce some sort of time table trains. So one of the pricing power, all of you witnessed is our increase in our land license CAG is at [indiscernible] of 5,000 by 10,000. So we always go back to the market, tell them very clearly why we are increasing and market accepts it. So that, because of that reputation of CONCOR that CONCOR never misutilizes the opportunity, market access increases in a right earnest.

Sure, sir. Sir, my second question is, are there any other accounting adjustments that one could possibly see before CONCOR gets divested, given that a government company accounting for rentals, et cetera, could be on railway land or railway properties, et cetera, or any similar employee-related accounting adjustments that could happen? Or do you think when we transfer this to whosever is the new buyer, there should not be any major adjustment either ways?

I don't think there are any surprises left. This company is with very good corporate governance.

Sure, sir. That's what we want no surprises. That's it from my side.

The next question is from the line of Achal Lohade from JM Financial Service.

Can you help us with the market share, Port wise market share and the mix there?

Yes. Azhar Shams will give you, our, Executive Director of Business Development. [Foreign Language].

I'm Mohammad Azhar Shams, Executive Director, Business Development CONCOR. Actually, the port share in -- of Container Corporation, both at the 3 major ports that is JNPT, Mundra and Pipavav, has increased in the -- in Q3. You know that in Q3 at Mundra, we increased as compared to last year. From 52% to 58% in imports and 43% to 50% in exports. And in Pipavav -- this was in Pipavav and in Mundra also there is -- has been an increase in imports from 41% to 45% and in exports from 45% to 47%. So I think the situation is really good, and our share has increased in these quarters, and it is further likely to increase in coming months as well.

JNPT?

JNPT, actually, it is -- has increased very marginally. It has from 62% to 63% in import and 63% to 64% in export at JNPT. So increase at JNPT is almost 1%. And both in Mundra and Pipavav it is quite substantial.

And the Y-o-Y 3Q figure, sir is that now or 9 months?

No, no. This I was telling about Q3 only.

Compared to last year Q3?

Yes, compared to last year, exactly.

And the port mix, sir?

Port mix, again, that is a -- and overall port share then all the major ports in the country. Our share has increased from 0.34% from last year's 10.77%. It has gone to 11.11%.

Sorry, I needed, sir, in terms of JNPT, what is the market share we have, like -- sorry, what is the mix we have from JNPT, Mundra and Pipavav and Chennai coast, sir. Like in 2Q, you mentioned JNPT was 37.3%, Mundra was 30.6% and so on.

So see that at JN port, it says, I mean, April to December last quarter, it is 35.93% from last year's 32.64%. And in Mundra, it has increased from 31.26% to 32.69%. And in Pipavav, from 11% to 15%.

Got it. And just a second question. With respect to the other businesses, the distribution management service, what we were talking about, what is the update? And the MMLP, how many do we have currently up and running? And how many can come in, in FY '22?

Actually, with respect to distribution logistics, you know that we have then started our arrangement at Ennore. And that facility is doing the business. And in this current financial year, you know that I can't give you the number that how many terminal -- I mean MMLP we are going to start. But as a general practice, now we are trying to utilize our all major terminals either distribution logistics rather than starting a new facility at this point in time. So the new facility is at Ennore only, but we'll certainly increase this distribution logistic business at all our major terminals in the existing facilities only because you know that we have good, it's safe for warehouses and rail connectivity, everything is there. So it does not require any new thinking and new facility. We can start at our existing facility only. So I think that is going to give us a good volume this time.

Right. I wanted, the logistic parks what we were commissioning the new logistic parks, how many of them we are expecting to commission in FY '21 and '22 as a full year number, sir?

See FY '21, '22, we may commission maybe 1 or 2. Because of COVID, the works got delayed. So they are getting postponed to '22, '23.

[Operator Instructions] The next question is from the line of Shrinidhi from HSBC.

Yes. Congratulations on good set of numbers. I just have a couple of questions. First one is, sir, I want to understand this opportunity that CONCOR is pursuing in the transportation of feed and food grains with Food Corporation of India. First of all, has that already started? And if yes, how has been the response? And more importantly, sir, how large this market according to you could be in years to come?

See, we already -- we are doing transport for Food Corporation, but the transportation in the traditional form of bags. One which you have seen the news item and you are asking is about the bulk transportation, bulk reduces the bagging and debagging. So it saves a lot of logistics cost. So the first trial is going to happen. First trial is going to happen. It will be done very shortly. And if that trial is successful, then if you ask me what is the potential, potential is huge because the bagging and debagging of these commodities is mere wastage. And you can avoid a lot of waste, you can save a lot of cars. So unless you have something the -- which has to be put into a bag, there is no need to put it into a bag. There's good potential for this sort of bulk transportation in India and many commodities, not only in food grain, in cement, in soils, there's in oil. There are so many things we can do. So we are working on these things. So this is one thing which we are doing the trial.

And just one related question, sir, is it fair to understand that currently, this market is largely served by trucks, like the food that gets transported from one warehouse to another warehouse of Food Corporation. Predominantly, it could be served by road with truck and which is this?

You are not correct, you're not correct. See, the transportation in bulk is not happening today, except in some specialized wagons manufactured for that purpose. So those wagons numbers are limited. But whereas if we can do it by containers, the flexibility is more. See, wagon if it is moving, it has to move on track, it has to be handled on railway track only.

Right. Understood. Understood.

But the container can move on both multi-modal. So it is a more flexible, more versatile way of dealing with the bulk transport. So this bulk transport is not happening today by road.

Right, right. And sir, one, if I may, a separate question. Sir, I want to understand how much of -- how much percentage of your Northern Hinterland volume that is NCR, Punjab plus Northern Rajasthan market is actually getting double-stacked currently. I know you give number on double-stack trains, but if you can quantify somehow in terms of percentage terms, it would be really helpful.

[Foreign Language], this -- we are not having the calculation right now, but at the top, my -- I can make a guess, it may be around 60% to 70%.

The next question is from the line of Bhoomika Nair.

Yes, sir. Sir, I wanted to just understand what is our thoughts on rolling stock addition and particularly for the higher load, what is the status of that?

Now whatever we are going to procure, we are going to procure only the higher capacity rolling stock. That is of 25-ton axle capacity. So we -- that is a policy action taken, and now we are not going for any other loading stock, except what with 25 tons. Already 4 rakes of this 25-ton are with us. They have been handed over to us. And they're already running, but they are running at 22 tons because of some technical issues with Indian Railways. This year, we may add another 8 rakes, another 4 in this year. And these rakes, we have already given orders for 66 rakes. 60 rakes. We have already given orders to various manufacturers for this 25-ton capacity. Out of which 4 we received 4 more we receive in this current financial year. And next year onwards, we'll keep getting these rakes.

And will these be replaced by our old rakes? I mean so will we retire our old rolling stock because of these...

There is no retirement of old rolling stock as of now. Everything will be in use so for next 5 years window, I can tell you, there will be no retirement of any stock.

Okay. Because I was wondering if we are also -- because if you're adding rakes so aggressively, the turnaround time is actually improving and will improve further when -- once the DFC comes in. So will that create any excess capacity of rakes?

DFC is coming in only 1 sector between Bombay and Delhi and that too it is extension between Mundra and Delhi.

Yes, sir.

Even Delhi is not covered. It is short of Delhi 130 kilometers to Rewari. So India is very big, has got north, east, south, west.

Understood. Sir, just I missed the originating volume on the domestic one. If you can just kindly repeat that number for me?

77,076.

The next question is from the line of Ankit Panchmatia from B&K Securities.

The -- I missed on the 9-month CapEx, how much we have done? And would we continue with our INR 1,000 crore CapEx mark for the next year as well?

CapEx for this year is INR 500 crores.

Sir, till 9 months. So till now how much...

Yes it is INR 500 crores for the whole financial year. In 9 months, we did around INR 200 crores. We are -- we will be completing INR 500 crores by the end of the financial year.

Okay. Okay. And sir, this LLF, has 21 terminals are being kind of recalculated. So are there any other terminal pending at this point of time? Or this is the...

We are having 27 terminals. Our calculation of LLF is INR 450 crores for all 27 terminals. As I mentioned, it is good corporate governance. We are disclosing what we are getting from railways, but I request all our investors, investment community, analysts, particularly you people not to get worried by these figures. There's nothing to read beyond anything in this. This is only a simple governmental confusion which happens in government departments.

[Operator Instructions] The next question is from the line of Prateek Kumar from Antique Stock Broking.

First question is on, sir, rail coefficient -- has the rail coefficient like improved further at the ports for industry? Container Rail segment?

The industry at JNPT, yes, it increased at Mundra?

Sir, what would be these numbers, sir, market share rail coefficient at ports?

That you send a mail. Right now, I can't read out these numbers, looking at all these charts.

And sir there is one...

Write a mail we will reply you.

Sure. And just one question. There was -- this was talked about earlier. This export and import share, how has that changed at Mundra Port? I think this was talked about just if you can repeat that one?

Import share of CONCOR or what you are...

CONCOR. Import share of CONCOR.

Share of CONCOR...

At Mundra Port.

I think it was answered to earlier question to someone.

[Foreign Language]. Actually at Mundra, for this quarter, that is Q3 in import, the share has increased from 41% to 45%. And in export, the increase has been 45% to 47.96%.

That is our share.

It is our share, yes.

This is corresponding quarter of last year to this quarter of this year.

The next question is from the line of Atul Tiwari from Citigroup.

Yes. Sir, just 1 clarification. This contribution to the medical fund, 1% of PBT. So whatever provision has been made after assessing the liabilities. So are we done invested or this 1% of PBT account -- amount will be recurring going ahead?

That is a policy it will keep going on depending on the actuarial valuations. I have already given you the actual valuation, what is to be contributed for the last 17 years. Now based on this the further actual calculations will go on every year. And if there is some more requirement is there, then up to 1%, we can contribute into that.

Okay, okay. But cumulative amount till today has been provided for in this quarter, sir?

Yes, cumulative amount has been provided this time.

The next question is from the line of Shrinidhi from HSBC.

Yes. Sir, just wanted to understand, has there been any price hike apart from the TKD cost that we increased? Has there any...

I already mentioned this. There is no price hike during this quarter. And during this time, we don't want to affect the market. So we are here to service the market. So we are not taking any price hikes at this point.

Right. Fair enough, sir. And sir, one more question is, we have seen a very good performance in rail freight margin. You touched upon that you had a higher -- better mix so that has helped. But apart from that, are there any reason that you would like to highlight why the rail freight margin has been so strong? And...

Lead increased more loaded transport than 15 days window of free movement of MTs by Indian Railways. Yes I think we can take last 2 questions. Yes.

[Operator Instructions] The next question is from the line of Ankit Panchmatia from B&K Securities.

Sir, just wanted to -- your view on this TKD traffic and our dominance in this market. Because despite taking this price hike, we are seeing -- not seeing any impact on the volumes. Sir, what sort of exporters community or just your view how sticky is the customer base for this market?

I can't give you these details. These are commercial -- the details. We will not disclose them.

Okay. Okay, sir. And sir, since our last con-call, we also surrendered the Navi Mumbai terminal back. So is there any plans ahead also to surrender or to recalibrate our own...

No further surrenders. That was the last surrender we did [indiscernible]. Last question we will take.

The last question will be from the line of Achal Lohade from JM Financial Services.

That got addressed sir.

Okay.

Thank you very much. I will now hand the conference over to Ms. Bhoomika Nair for closing comments.

Yes, sir. Thank you so much for answering all the queries and wishing you all the very best, sir, and thank you to all the participants for being on the call.

Thank you. Thank you.

Thank you very much. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.