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

Good day, and welcome to the Container Corporation of India Limited Q1 FY 2023-2024 Earnings 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 Limited.

Thank you, Davin. Good morning, everyone, and welcome to the Q1 FY '24 Earnings Call of Container Corporation of India. We have the management today being represented by Mr. V. Kalyana Rama, Chairman and Managing Director. I'll now hand over the floor to Mr. Rama for his initial remarks, post which we'll open up the floor for Q&A. Over to you, sir.

Thank you, Bhoomika, and good morning, everyone. So I'm having all my directors along with me here. Sanjay, Director, International Marketing; Azhar, Director, Domestic; Ajit Panda, Director, Projects; and Director of Finance, Manoj Dubey. So this last quarter, we had mixed results. The turnover and margins have come down. Even though we were able to start getting traction during the month of May, with April little down partly as after March, that is a normal effect, but May, we were doing well. But in June, we had unfortunate incidents. The Bacon action, which affected were running very badly in the whole month in the eastern sector. That put us halfway in track balancing our grades, containers and all the things in the domestic business, mainly in the material. And in the example on the West Coast of areas 15 days and added to these 2 incidents, a lot of unseasonal rains across India. That dented demand in domestic and also, to some extent, the running of rains and Other issues. So this all affected the June and in the first quarter, we have to end with a muted results. But let me assure you that things are good, the demand is back and the tailwinds are, we are seeing good tailwinds. And as we are at this moment, I don't need see any need to revise the guidance, which we gave after the first year, the financial year, last financial results. So last conference call, whatever guidance I gave to you, that we will stand by it, and we are on will be able to come back to the guidance levels by the end of this financial year. In fact, Q2 itself may be giving good results if the traction goes on, except for certain measures and the government policies sometimes do affect the trade like the Danone rice exports is one thing, which is affecting the traffic and what domestic an exact. But otherwise, the demand is good. So we will be able to see the actions, and we are sure we will come back to the normal levels. The DXC operations are very well stabilized as we shared with you the set operations on Dadri going on. And the transit times more or less stabilized at 30 hours within Raja and Mundra, that's a good thing. So a lot of traffic is getting diverted to rise from and the discounts, what we gave on the upper stack even if we report in media that CONCOR is going for rate it is not a cat. It's basically a discount we offer to the car for the upper a containers moving from that. That will be, helping us profit has come. And in addition to that, this time reduction to 30 hours is helping attracting the lightweight cargo back to the right and the new rigs, which we introduced a test now BMC committing the running of 25 axis, that is we take. We are operating now even domestic containers in the liable stack. As all of you know that we got a Habermann that was using these 2 halves, we are able to put domestic containers back in this. So, all these new things are helping. And in domestic containers with the efforts that we put in the last 2, 2.5 years, then our manufacturing in India has picked up some pace, not as required well, but at least we are able to get some 350, 400, 500 containers per month. That's definitely adding and giving us some rating pace picking up the increased demand in the most with all this and with the issue of plan licensing, we settled down well and without any further ambiguities in that, except that the does an increase we keep on rating on. So the things are more or less second. And as all of us know that even though the divestment thing has not been pulled back, I'm not seeing any further movement on that. That also has given good content in our customers and things are stabilizing on that front as well. So with this, I just conclude my initial remarks that we will be able to maintain the guidance given to you people in our last conference call. Thank you.

[Operator Instructions] The first question is from the line of Deepak Krishnan from Macquarie.

Just wanted to understand, given that you've given certain discounts on your domestic and EXIM for both gating traffic assets, we've seen realization decline about 10% on a full year basis. Is this sort of realization expected to sort of continue? Or we expect certain pricing actions to kind of help us get realization back to last year levels?

See, actually, the realization drop that you have seen, that is because of the drop in our top line as our CMD just in because of the various factors of disruption in services in Western and Eastern part of the country, and certainly, the growth is the increase in the land license fees. These 2 sectors contributed to a decline in our bottom line. But we are very confident that we will be able to recover the bottom line. And for the end of the financial year, the guidance that initially were given, we'll be able to maintain that.

Maybe just a clarification on the land license fee, the increase that we've seen. I think on media, you're still flashing that you'd only be paying about INR 430 crores for the full year. So just wanted to understand why the sudden bump up in 1Q?

So actually, use when we started a new regime, if you recall what in '19, '20 and '21, our CMD gave a guidance, that was around INR 450 crores per annum, if you recall that. So against that INR 450 crores that we had ballpark figures that we have assessed, every year negotiation with the railway for the various land policies are going on. And last year, we ended up paying INR 392 crores, right, for the whole year. One depot, which is right in the center of Delhi now. So the rate for Slakter under discussions, and there was a difference of the opinion about what rates would be taken as the base industrial rate. So finally, with the negotiations, what we have ended up fourth quarter is that it is around INR 100 crores more than what we have said in last FY. So nearly 25-fold plus impact will come in every quarter so far as LLS is concerned, which is the last year.

And this rate once fixed for TKD is not going to get changed, right? Now it will be a 7% escalation further on?

Yes. So whatever we paid in TKD last year, every quarter, we are going to have an impact of it INR 22 crores to INR 23 crores. So meaning we are by nearly INR 100 crores per annum.

Maybe just one last question. If you could just share the Exim and domestic originating volumes.

For this quarter, the V-orienting volume was 466,970 TEU and domestic originating was INR 104,076 TEU, total is INR 571,046.

The next question is from the line of Amit Dixit from ICICI Securities.

I have a couple of questions. The first one is essentially an extension of the first participant. If we look at the realization, while you have said that the realizations were due to drop in -- I mean, due to disruption in services, was it also because of increased competitive intensity because we have seen volumes going up in the quarter Y-o-Y. However, the realization has come off. Was it due to the increased competitive intensity and how much it has to do with the discount that you have given to the customer? If you can bifurcate these 2, that would be great.

If you closely see the physical feedback, you will see that originating figures have not experienced an increase. The increase in only handling figures, which is due to the fact that we are handling more containers at hubs because of double stacking. And second thing is that we are as my last mile logistics that we are doing for our customers and logistics. That number also we are adding in our handling figures. So ending figure is seeing a growth, but originating volumes have not seen growth. So if you see the profit per TEU originating volume, then that will be a better indicator for you to compare this year as compared to last year. Secondly, this has been the company's policy that we don't sacrifice our margins to give discounts. whatever savings we do based on our operational better operational management, part of the savings we pass on to customers. For example, that Dadri has come on double-stack is Dadri. So whatever savings that we are having by running direct double-stack train to Mundra, Pipavav from Baddi. Part of that savings we share with our customers, even though the railway has not reduced any rail trade, but that saving or we shared with our customers, an 8% to 9% reduction we had for our rail fret from export from Dadri to Mundra Pipa. That doesn't mean that we are sacrificing our margin. Our margin will, in fact, increase because we are sharing only part of our savings.

The second one is since we have started the double stacking now from Datto ultra and Cutawa. So just wanted to understand how much the number of double stacking trains in Q1 FY '24?

Total double second is 1,184 in Q1. Out of that, Dadri itself as 100 to 38 double sterns.

And how many were for domestic operations?

That figure, I don't have at the moment. Maybe later on, I can tell you how much domestic and figure we don't have for double stack.

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

Sir, just again, one clarification on LLS. So this year, we should be working with about INR 520 crores of LLF factoring in this Tughlakabad impact? Is that a rough ballpark?

No, Boomer 500 because this quarter, we have got some payments for the last year also. So what we are looking forward to 32, that you said last year, plus 100. So it should end up somewhere around 500 for the quarter. for the whole year.

Okay. And now, sir, all the negotiations with railway are done. And then from the next year, we just assume 7% increase on this INR 500 crore number?

Well, let me tell you and all the other people or the LL, there is no negotiation. That means what do people will in the marketing balance that will be done across that they will negotiate with railway. It's not that negotiations. This principle is very clear. It is based on the land revenue rate by the revenue arthritis at that circle. So that there were some easy interpolations that keep happening and these interpretations happen at divisional level in Indian railways. So we work with the divisions, 26 divisions, different divisions. So it's not surprised at the ministry at the labor where we discussed the policy. So this is where the DF was talking about negotiation. So it's like exit land revenue rate as per the revenue authorities. So there was a problem with really government as well. The government is also doing some flip laps in the rates because of coater reduced after that, they increase, they increase suddenly. So all these things keep affecting. So here, the land revenue rates now are almost fixed everywhere. So is there anywhere which is not fixed? No. So it's fixed at all the dots location Unless this land revenue is changed by the revenue agility. Certainly, that is not in our hands. That's the government that the thing will be 7% increase over the whatever we pay last year. So there's a PKD impact, which is expired. So that is taking us to 390 plus 7%. That means around INR 42, INR 430 about INR 15, INR 60 crores impact. I hope things are clear. And if anybody else has got anything about LLS other than is please ask.

My second question is, again, I kind of missed the originating volume if you could repeat that again, sorry for... You... Kind of mall. You can't repeat volumes for the conference.

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

Can you help us with the market share port-wise market share what we share, sir?

In JNPT, it is 60% of the rail volume that we are handling. In Mundra, it is 37%. NPI is 45%.

And aggregate, would you have sir for the country as a whole?

Country as a whole, we don't have yet.

The second question, just a clarification, sir, you said this will be the LLF unless the authority revises the land rate. Have I understood?

So I told it very clearly. What is that you I understand 7 years spending with you all guys every quarter, the question should be on the policy on the future. This is not going to impact the balance sheet if it is INR 5 crores here and there. Do we think it will change the structure of this company? This in the balance sheet of this company?

Just one more question. So with respect to the discount, is that specific to Dadri or it's in the Northwest pocket?

Actually, we keep on giving discounts at various places. I cannot discuss all the discounts. I just mentioned Dajidiscount, to give you an example that we are not sacrificing our margin to give discounts. That was my actually emphasis. Because of that, I gave you that example. There based on the demand from our field units and assessing the volume that we are likely to get as a result of giving discount. We keep on just giving this count. That is the ongoing exercise.

Understood. And just last, with respect to the arbitration case. This INR 83 crores has already been provided or it's not It's not a provider?

It is just an information to everyone as a good governor. We have already inferred to save also. We had already won to high on Hid already see the matter. In the meanwhile, the container went to SCLC and NCT, in our view, wrongly gave a judgment for IRP, which has been rightly within say by onto an information.

The next question is from the line of Pranjal Jain from Morgan Stanley.

My question number one is on the CapEx. Can you guide us the CapEx number for FY '24 and '25.

The CapEx that we give you the guidance will be INR 600 crores this is INR 568 crores last year.

can we have for 25 as well?

We are working out because we are hoping in the CapEx front, a good upswing in the current year. So we'll by the end of next quarter, we'll be able to give you the guidance for 245.

Understood, can we have the EXIM volume guidance for this year for the currency scale?

Actually that guidance was already given at the start of the year by our Chairman and Managing Director, and that remains unchanged.

Okay. And sir, lastly, any breakeven on procuring new containers on the new ICDs?

Yes. We have also so far procured 1,800 containers, new containers for Viper and real now. And at the rate of about 400 1 per month, we are adding now. So we hope in the current financial year will be able to add about 5,000 new containers.

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

Sir, some questions are already answered, but just can you share entering cost for Hand domestic?

Which cost?

MDL MT running.

MP running is for EXIM for first quarter is INR 28.6 crores for domestic, it is INR 86 crores, total is INR 114.6 crores.

And the containers we are adding are the all these are ISO containers or will there be like a specifically for the... Containers only 2 numbers.

We have RS12-feetcontin us. Otherwise, they are all high ISO containers, all are produced domestically to our Make in India scheme.

Okay. Because what we heard that there was an issue related cartons and you import.

Regarding control manufacturing have been factored out, and we are on the path of ring fundaments regularly now. And the domestic ecosystem, we are encouraging to grow, and they are also responding well.

And how is the situation from the supply of rake availability?

Rate yes, again, we have achieved breakthrough. There were supply chain issues, particularly for titanate, the -- health of the railway we have sucked out. We announced at Swiss steels and actions. In the past quarter, we have 4 trains, 4 days, new trends have already are. And we hope to add about 24 in this financial year.

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

Just one question on the EXIM side. While you did mention that 2Q looks promising and situation is improving. Can you further elaborate on whether the XM balance is improving? Or is it more any guidance on what are the underlying sectors or anything which is picking up?

That 11 scheme for every incremental import containers will we are running one empty container free of cost from getter to Interlink. The scheme has really picked up very well. Plus as our Chairman mentioned at the start that the uncertainty about this investment is also becoming less, less and less now. And there are no visible signs for disinvestment. So that has actually really helped the company in getting more and more business because people are -- customers are feeling very confident that the present system is going to continue. Plus, we keep on introducing a lot of various schemes and they have been very well received by trade. And on almost all the sectors like from Western ports to Northern interland, from Visakhapatnam to Nepal from South also everywhere, we are getting good response. And we are expecting very good growth in EXIM in the coming quarters for this financial year.

Understood, sir. On the domestic side, we have seen some bit of slowdown coming in, I know there are multiple factors in the 1Q. But in the 2Q, you have seen some growth coming in, if you can highlight something on those that front, that will be really helpful.

Be with respect to domestic, that we had a volume drop of almost around 2,000 containers. And these drops in the Q1 has been mainly because of the slow running and then the problem in trains running and not lifting the lowers. There has been absolutely no issue with regard to demand. So now the running improving and demand has always been there, and it is still there. So we are quite hopeful that in Q2, whatever loss we had of 2,000 content, we will not only make good, will certainly show good growth in this Q2 and thus in the remaining quarters as well.

And last question from my side, if I may. The rail freight margins for the quarter...

There's actually real pet margin for the quarter is 26.9%. It has actually, in fact, increased by as compared to the same quarter of last financial year, it was 25.6%.

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

My first question was on the EXIM segment margins that declined from 24% to about 20% on a Q-o-Q and Y-o-Y basis. One can probably reduce more than 100 basis points coming in from land license fee. Could you give us a sense of where the remaining quantum is coming from? And what could be a good guidance for FY '24 on this parameter.

The guidance, I already told in my initial remarks, I think if we keep on repeating the same question, even it. I said we will be able to maintain the guidance. And this statistical question, you can variable calculate where the other 300 basis points has come down. Wilfrid margin increase, whether the costs on certain fronts have gone up and the overall because the running has come down, the top line has come down as the expenses, some fixed expenses will continue to remain so.

The next question is from the line of Abhishek Verma from Fidelity International.

On your CapEx figure of INR 600, can you please provide a breakup as well?

The breakup would be about INR 200 crores for our new acquisition of Lagan and INR 200 crores for Cantina about INR 150 crores will be on new terminals that we are setting up and INR 50 crores will be on other miscellaneous item like machine handling machines, MI, et cetera.

And sir, how has your turnaround time changed post the DFC implementation? Just some color on that.

Turnaround time at ports, actually, as per the guidelines of BPO, consistently, we are able to achieve within 30 to 32 hours, which is quite good and appreciated by the trade, private operators have 25 to 30 days turnaround time, 12x at port.

And comparing that to the previous number, what was that this...

Previously also, it was in the same level only. We have always been able to evacuate the containers in this time from the ports, but hub operations have definitely benefited us.

And how is the Lead distance business changed?

Let is actually now overall lead for this quarter is 4 kilometers. Last day, it was 775 kilometers.

And just one quick one. Your depreciation breakup, if possible?

No, that we will not be able to tell you right now deposition breaker.

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

This is Ankita from Elara Capital. Sir, out of the total in originating volumes that we handle, how much percentage is double tax currently?

See out of the total EXIM around 25% to 30% is double stack.

And how much it can improve in your estimate?

See, already, it is quite good because only Mundra and Pipavav connected to DFC, and we can then double stack. Once Nava shea comes on double stack, that is around next year, then we will be able to ramp up around 40% of volume in double sale.

Okay. And of 40%, this 25%, 30% can improve to 40% once the NPD gets connected.

Yes.

And when GNPD rail coefficient ramp up, this 40% can grow further?

Yes, GNPD rail coefficient definitely will increase once DFC it comes on DSP.

Correct. So then this 40% should improve further?

Yes, it will go further.

Also, have we heard you mentioned about rates added in this quarter. Have you added containers also for the domestic business?

Yes, we have added containers. So far 1,800 continents have been area and more are getting added about 400 per month letting RF. So we hope to add about 5,000 containers in the current financial year.

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

I have 2 questions. The first question is that your market share at Mundra in FY '20 was somewhere around 48%, which has now come down to 37% like you mentioned. Could you please explain the key reasons for the market share loss and who have been the clinical beneficiary?

The principal beneficiaries have been the private operators and who have consistently dropped their charges. That has been the basic reason for that. But we have taken a lot of steps now and we are gaining the market share back in Mundra now, Mundra and Pipavav and Navachab, all the 3 ports. We are gaining back the market share as a result of our various policies that I highlighted initially. So we are hopeful to get back to market share very quickly now.

How has experience on the Exim imbalance situation from fourth quarter to first quarter of FY '20, do you see a worsening of the imbalance? And what is the outlook for the balance system...

See, Exim balance was they are definitely it is already there. Some ports are export heavy, some ports are imported. Haylie Sapa is import heavy. There's a lot of imports, but there's no export. But similarly, Mundra is more or less balanced but it has got more imports. So, but the hubbing operations have really helped us, and we are able to bring the MT running to reduce the empty running because of hub. Initially, we had to run rate up to 4 to balance. Now we have to run up only up to hub we bring the double-stack trains from ports to house. So that has really helped the company.

And last question, if you could share the real [ coopetion ] at JNPT, Mundra and Papa...

That already I have told...

Really conficient. You have given the market...

At is JNPT 17%, Mundra is 24.3% and Papa is 52%.

The next question is from the line of [ Ash Shah ] from Elara Capital.

I had just one question. Earlier, we used to, we couldn't cater to the bulk commodities segment because of the container shortages that we were experiencing last year. But with the improvement in containers expected over this year, could you just throw some light on the bulk commodities...

Actually, with respect to bank mainly the cement loading of bulk, which has started very successfully last year, and we did around 1 lakh ton of bank cement from the 5 parties. So different destinations. But that was a policy issue from railway board. Actually, the railway board gave us a rate that is at all kind rate, we call it, for bulk cement loading in general purpose containers. But that Sacola was valued up to 215 2023. So France the 25th May, that particular has not been extended. So we are basically stuck what to do or not to do. We have been chasing this railway board to extend this circular because there is a lot of demand and DTS has just mentioned, is that container supply has also increased. But this one policy issue of not extension of [ cement ], we have been at the gross route at this point in time, but we are hopeful and chasing with the railway, let us see what outcome is there.

So this policy was applicable for me, but what about the food grain that we were doing, if you could throw some like...

Actually, we are in talk with SCI. We did 1 or 2 presentation also with the Chairman, FTI. One location from where we are noting this basically quota, but for many more locations are loading from Tino to our bulk containers. So the negotiation is on. And we are quite woeful and Chairman SCI has given us quite positive signal in this regard. So just latency and container availability has basically increased. So we are quite hopeful that whatever the happens is cement is one issue. But the bulk food grain is also in the pipeline, and we are hoping for a positive outcome in the FCI.

Also any other bulk commodities that we are planning to target or something in the future?

Actually, as of now, it is food grain and the cement only, but we are also trying to experiment with the Almena powder there in Visakhapatnam Vedanta. So that is in the experimentation stage.

The next question comes from the line of Bhoomika Nair from DAM Capital Advisors.

Yes, sir. Just as an extension on the last question. So this quarter, there was not any material bulk movement that would have happened in the domestic side. And in the month of June and probably continuing thus far. Is that the correct understanding for the domestic...

For Payment, yes. For cement, yes, there are disruption continues. But for food grain, whatever we are doing, we have continued to do.

So depending on when railway gives the revised order or whatever, then accordingly, this can come back as and when that circular is revised.

Yes.

Okay. Just one clarification on the LLF that INR 500 crores is for the full year, broadly INR 40 crores, INR 500 crores. So for this quarter, it would have been INR 125 crore kind of provision in 1Q FY '24 that we have done?

We have done INR 1.9 crores this year, as I mentioned, there are some INR 10 crores payment that we have brought for the last year also. So that is why you said it will be around 500 at the end of the whole effort... Actually, some just basically why this doubt is coming is because some adjustments are going on. This 26 classes, so we are paying and the rate adjustment that is happening, some areas, some are in paid, some areas we are keeping in provision. So if marginal difference is coming because of these adjustments, and these adjustments will continue throughout the year. and maybe next year also, marginal adjustment will happen. So let us not bother about that, we are settling all the these roles.

And lastly, from the lead distance perspective, you spoke about 804 million, but can I get a breakup for the XM and the domestic side?

Question, I want to share one part with you... You come with us, and we did conferences in U.S. Singapore investor. The outlook, they look at is on a policy side. And for a balance sheet of CONCOR size now, a difference of INR tens of 10 crores, INR 20 crores, does it make difference. The amount of time we spend for giving this conference call and you also range all these things where somewhere we out will not discuss this in a policy. or INR 115 crores difference here and there, we will keep on asking the one question but make any difference on the balance sheet. So my balance sheet, it will not get affected with 500 was different than any of the things. And one increase in some handling at some place and company-wide we increased even INR 100 under container the amount of money which we can add into our bottom line 100 crores. I'm just leaving the thought to all the analysts in India.

Right on point noted about that. I was asking if I could just get the exam and the domestically distance separately. You said INR 84 was the overall number.

You want handling figures?

No, sir. Lead distance.

Lead for the Exim is 695 kilometers and domestic, it is 1,356 kilometers.

The next question is from the line of Shrini Karlekar from HSBC.

Sir, can you update us on how has the service quality from your Dadri terminal has improved since the direct connection to the DSC in terms of time, it is saving the cost savings that you are getting and the reliability of the logistics?

Like I mentioned earlier, from Dadri, we are able to take the containers double-stack train in 30 hours to Mundra and which is a game changer. Initially, when Dadri was connected to Mundra Vaya Credit that is another upterminal. It used to take almost 60 to 65 hours to reach Mundra while the road was able to transport the containers in less than 55 hours. And now it is 30 hours directly from Dadri to Mundra. Transit time has come down drastically, and it is much, much better as compared to road. And secondly, as I mentioned earlier, cost price also it is cheaper. We have reduced the rate by 8% to 9% as a result of the savings that we were having it passed on a part of the savings to our customers. So cost is less, time is less. So there is no reason that traffic should not come to us. So from the road to rail, there's a huge diversion of traffic. In fact, the other day, I was talking to Merck, they are going to start a blocking wafer train, the refrigerated container train, I think next week, they're going, next to next week, they are going to lag off from Dadri to Mundra. Block 10 deeper that will be running every week and maybe they will start by weekly tri-weekly, after some time. So that kind of confidence trade is having, and they are getting all this target and all stores in U.S. all retail business that was going by road for exports, everything has come on real now. For container double tracking, we have already started for the last 2 months. So I think another improvement in the sort that we are providing to the trade.

And sir, just a clarification, sir, Tulokas volume does now we are routing through Dadri or it still gets routed through Catas.

It is going through Kuta.

And is it possible to route that as well so Darlot like from...

It's possible, but it will be in the reverse direction, so it doesn't make any sense.

last, just one clarification. When to answer to one of the questions, you said that 25% to 30% volume is going through double stack. Here, are we referring to only 40-feet container and the Northwest corridor alone, right? Is that...

Into all the traffic, even lower debt upper deck combined double stacking, it is difficult to bifurcate only 40 bit containers.

But this we're talking about the route rate, not at the entire network, right?

So holdco was asking only about the road. Route-specific, right?

last one, if I may. Because of this weight-carrying capacity consent earlier, only 40-feet containers, according to our understanding, was able to be the best app. Are we now able to do 20-feet container to the second as well?

So that is actually not get consideration. That is because of the restriction and the safety because of the railway, only 40 bids allowed an upper deck 20 is not allowed. We are putting it on so... The double at May 20 feet are going and we're going from the beginning. As an ace were doing 2 fleet also in double staff, 2 goes in the lower debt, 43. Now the wait thing, what I explained is that is applicable only on the DFC roads in the hubs between Dadri to Soroban. So there, we are now putting heavy weight domestic containers and sat and we are bringing the domestic and to be happy. So that helps in domestic margin improvement, domestic throughput improvement. So it's a little technical. I just mentioned it. You take it as that the guidance given by the management that there is a margin improvement by this Anders, you want to understand technically then you have to spend some time understanding how do we states.

The next question is from the line of [ Yuan ] from Money Control.

I just have 2 questions. First question is, at the start of the current financial year, the -- had announced that it will stop taking orders for wagons from private companies. Has that affected our ability to procure wagons. And going forward, what is the impact of that?

Timely repeat your question, Kunargetit.

At the start of the year, the Indian Railway had announced that it will stop taking new orders for wagons from private companies. Has that impacted our ability to pre... The orders for new Alamo... From private companies.

No, they are No, no, there is some confusion. I think you have some confusion. They had they have released us orders from private companies. What they have said that they are not sharing of wheel sets with others. So for Concor, basically now we have started getting the resets, and we have started getting the new-new rates.

My second question was that, is there any update from the government side on the divestment of Concor?

So the only update is Highlands.

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

In one of the answers, you mentioned that we are gaining back market share. In last quarter, you didn't share the market share. Can you help us with the fourth quarter market share for agreement domestic for us?

For quarter figures we don't have right now. Okay.

Where I'm coming from is that when you're saying gain back market share, I presume you are talking about Q-o-Q because Y-o-Y, there is a loss of market share, particularly at Mundra. That's my other questions.

Q-over-Q also, there is a lot of market share. We, Sanjay has not mentioned that he is gaining now. What we mentioned is now we are gaining back our market, not about on, we love smarter.

Q2 on what we are looking at gaining market share and...

That's the guidance which we are giving you...

The next question comes from the line of Koundinya N. from JPMorgan.

My first question is on the DFC. You did allude to the fact that transit times are now reduced to 30 hours. So just trying to understand, are there some efficiencies that we can look at some scope for margin improvement and efficiencies over here? Or is it all fully captured already in the numbers?

As we run more and more double step for which there is a lot of scope as our Chairman already mentioned that we are able to run BLC dragons, which have more capacity loading capacity. So more double stacking will further improve, and domestic is also coming on double setting. So definitely, there is a lot of scope for margin improvement. It is not saturated. once since the DFC gets connected to JNPT, there will be a huge opportunity. And further, we'll capture further value.

my second question with respect to JNPT connectivity because you and also some of your peers are also already using up, like, for example, in your case for gas to double that containers or maybe use as they have to cater to JNPT as well. So will connectivity to JMP to materially change things on the DFC? Or I'm just thinking about on those lines, if you can help us understand the traffic flow better, maybe.

Definitely, the connectivity to JNPT will ramp up so much volume to rail because we will be able to run scheduled time to benches to JNPT. -- imagine running a train from Delhi at 9:00 in the morning and tomorrow, it reaches 13 900, 24 hours. That kind of service even road cannot provide. Nobody can provide. So definitely, a lot of volume we are expecting it will shift from growth to rail.

Understood, Sir, lastly, I think I missed it. Can you help us understand what those kind of actions that you're doing to recruit the market share in 2Q?

Actually, as I told earlier also, we are we have taken a lot of initiatives like 1 plus 1 scheme and running double stack more and more for Dadri plus in domestic also, we are getting building up circuits already from West to East, East to West so all these things will definitely help us in increasing more and more volume, and we will be able to build up the shortfall that we had in Q1.

The next question comes from the line of Janhavi Jain from Axia Asset Management.

So my question is regarding the last mile connectivity, which we've spoken about in the previous quarter as well. So if you could just like give on like we were about to order 100 LNG trucks. So how are we going ahead with that? And what is the volume handled in this quarter?

The LNG 100 trucks we have ordered and out of that 25 trucks have already come to our MLP at Mehan, Nau, already, they are they have been positioned and their registration process is going on. in the, I think, 3 to 4 days that will be completed. So we are hopeful that by next week, we are bringing them into we will bring them into operations.

And also on the volumes of this quarter, if we have any for last mile?

And last mile, we will not be able to share the volume separately because whatever handling relating figures we have done is move last night also for handling.

The next question is from the line of Pranjal Jain from Morgan Stanley.

Just a question on probably a generic question, but on the strategy. Like obviously, double stacking is up and running for 2 ports, and we're obviously expecting GMP to get connected and more rail movement to happen. But outside of this when you're looking at business development, you have these schemes, 11 and double stacking, which you are offering to our existing customers. Can you act. Can you probably talk about your efforts taking to develop a business or acquire new customers across different segments. You can talk a little bit on that outside of offering schemes to your existing customers.

So that is actually an ongoing excise of acquiring new more and more customers. Our all the field units, they are regularly meeting prospective customers, thus the customers who have left us, we want to bring them back into our core. That is a continuous exercise. And based on their expectations, we sometimes have a little tweak in our policy. That is a continuous exercise that we are doing because we are a commercial undertaking. We cannot state invest that customers have come. We don't do anything more marketing. So that is a continuous rise that is going on across the country at all of my terminals. And we are gaining at various places like Napo, just to give you an example. We have done very well in Mako, that multimodality far Mehan, we are able to run almost 3 to 4 trends daily to Navasiva. -- return to action also we are getting recently must partner with us at 6 ICDs, they reduced their charges. And as a result of these efforts, a lot of new customers are coming to us. So this is an ongoing exercise.

And just one more question. Whilst we know the rail freight margin, have you done any analysis just to understand this better, that for the trains where you're double stacking, what is the differential between the margins on trains that you're double stacking? What's the airfreight margin there vis-a-vis where you can't double stack right now. How different is it? Like is it...

We have done the analysis and several more analysis, but we don't find it necessary to share it on this forum.

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

My question was more to assess the size of Dadri, as you are saying, Rariset to grow fast. How much of your originating volumes are coming in from Dadri at this point of time on an analyzed basis?

Right now, I don't have the number, but I can tell you it is a sizable amount, and it is growing every year. And other incidentally is the half which is a junction point of Eastern and Western DFC, both the GFC meat and Bari, very, very critical.

Understood. And could you also kind of give us a sense of, let's say, if the volumes at Dadri, what is the kind of road volumes that happened from that Interline? I'm just trying to get a sense of the growth prospects of large can it double up? Can it become even better than that over the next few years?

Right now, it's not possible to give those numbers also. I don't have with me read event.

Understood. Maybe just a last thing. Eastern DFC, we did kind of getting commissioned over the next 1 year. Does that give us an opportunity to kind of build a particular business on that front? Or is it only Western corridor that helps us.

Actually, Eastern DFC is mostly for bulk and bag pulp business, not for container business. So most of the container business is concentrated in the Western side of the country. And so Western DFC is more crucial for us. Anders, understood.

Ladies and gentlemen, we have no further questions. I would now like to hand the conference over to Ms. Bhoomika Nair for closing comments. Over to you, ma'am.

Yes. I would like to thank the management for giving us an opportunity to host the call and all the participants and wishing over all the very best in his future interval. Thank you very much, everyone. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference.

Thank you all for joining us. You may now disconnect your lines.