JSW Infrastructure Limited (JSWINFRA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q1 FY '26 Earnings Conference Call of JSW Infrastructure Limited, hosted by Nuvama Institutional Equities. [Operator Instructions] Please note that this conference has been recorded. I now hand the conference over to Achal Lohade from Nuvama Institutional Equities. Thank you, and over to you, sir.

Yes. Thank you. Good evening, everyone. We have with us Mr. Rinkesh Roy, Joint Managing Director and CEO. Mr. Lalit Singhvi, full-time Director and CFO; and Mr. Vishesh Pachnanda, Head of Investor Relations. Without much delay, I'll now hand over the call to the management to start with a brief opening remarks, which will be followed by Q&A. Over to you, sir.

Thank you, Achal. Good evening, and thank you all for joining our earnings call for the quarter ended 30th June 2025. The global economy is in the face of recalibration facing subdued growth and rising uncertainties. Recent U.S. tariff hikes on key trade partners have disrupted investments and significantly impacted developing economies. Amid geopolitical tensions and shifting supply chains. India stands out for its resilience, stability and forward-looking economic approach. With inflation under control and fiscal consolidation progressing, India is well positioned to achieve over 6.5% growth in FY '26. Supporting this outlook, the RBI adopted an accommodative stance on June '25, cutting the repo rate by 50 basis points to 5.50%. Backed by easing inflation and strong fundamentals, this move is expected to boost liquidity, reduced borrowing costs and drive investment across sectors. India's sports sector remains central to its trade and infrastructure ambitions. In FY '26, the government has ramped up efforts to privatize, modernize and expand port capacity while enhancing connectivity and digitizing operations. At JSW Infrastructure, we are focused on scaling our cargo handling capacity from 177 million tonnes per annum to 400 million tonnes per annum by FY 2030 or earlier, while building a strong pan-India logistics network. Growth will be further driven by opportunities such as privatization of terminals at major ports and value-accretive inorganic expansions in port and related infrastructure. As part of this strategy, we have secured a letter of award from the Syama Prasad Mookerjee Port Authority for the redevelopment of Berth 8 and mechanization of Berth 7 and 8 at Netaji Subhash Dock, Kolkata, enhancing our container handling capacity. In line with our logistics expansion goals, our resolution plan for NCR Rail Infrastructure Limited has been approved under the insolvency process and we have received a letter of intent from the resolution professional. Regarding our growth project, progress at Keni Port continues as planned with a public hearing scheduled for August. On the 302-kilometer iron ore slurry pipeline project, 214 kilometers of welding and 192 kilometers of pipeline lowering have been completed. The project remains on track for completion by March '27. At Murbe port, hydrographic and geotechnical studies have been successfully completed. The EIA report has been submitted for the process of public hearing. For the Jatadhar project, the anchor customer has signed the concession agreement and the innovation agreement is expected to be finalized shortly. Work on the JNPA liquid terminal is progressing well, and we are confident of completing the project within this quarter. Moving on to the operational and financial performance for the period April '25 to June '25, the total cargo handle stood at 29.4 million tonnes. This is a 5% year-on-year growth. This growth aligns with our historical trends, where cargo volumes in the second half of the year typically exit those in the first half. We remain on track to achieve annual guidance of 10% volume growth over the last year. Our third-party cargo grew by 8% year-on-year to 15.3 million tonnes, and the share of third-party stands at a record high of 52% in the overall mix from 50% a year ago. Navkar Corporation has delivered an outstanding performance in the first quarter of FY '26, highlighted by a strong recovery in operational volumes and a return to profitability. Total revenue for the quarter stood at INR 1,314 crores, reflecting a growth of 19% year-on-year. EBITDA for the period stood at INR 671 crores, which is a 10% year-on-year growth and net profit for the period was INR 390 crores, implying a 31% growth. With this, let me hand over to Mr. Lalit Singhvi to take us through the financials and other details.

Thank you, Rinkesh, and good evening, everyone. Let me first talk about our port business. In Q1 FY '26, the company handled cargo of 29.4 million tonnes as compared to 28.1 million tons in the quarter ended June '24. The 5% volume increase was primarily driven by a strong performance of coal handling operations at Ennore, PNP and Paradip. Robust performance at Southwest port and Dharamtar port along with interim operations at the Tuticorin terminal and JNPA liquid terminal also contributed to the group. The growth was partially offset by lower cargo volumes at Iron Ore terminal at Paradip and third-party volumes at Jatadhar port. Third-party cargo has increased to 15.3 million tonnes from 14.1 million tonnes, representing 8% growth and the sale of third-party volumes stood at 52% versus 50% a year ago. The growth in cargo volume and the change in volume mix resulted in 8% increase in operational revenue for the port segment for the quarter from INR 1,010 crores in Q1 FY '25 to INR 1,086 crores in Q1 FY '26. Operational EBITDA for the core segment could end INR 561 crores, up from INR 515 crores, an increase of 9%. The margin has improved to 51.7% from 51% a year ago. Navkar Corporation delivered strong operational and financial results in Q1 FY '26. Total EXIM cargo volume reached at 81,000 TEUs, representing a robust growth of 31% year-on-year growth. Domestic cargo volume stood at 275,000 metric tons, up 11% compared to the same period last year. The revenue from operations rose to INR 138 crores, reflecting a 17% increase year-on-year. EBITDA climbed to INR 20 crores, showing substantial improvement, while net profit turned positive at INR 2 crores, a significant turnaround from a loss of 13 years in the previous year, following our recent acquisition. Total consolidated revenue of the company stood at INR 1,314 crores and total EBITDA stood at INR 671 crores, reflecting a year-on-year growth of 19% and 10%, respectively. The EBITDA growth was largely driven by the increased revenue. Consolidated depreciation was INR 143 crores and finance cost was INR 91 crores in the current quarter as compared to INR 135 crores and INR 74 crores, respectively, in the quarter ended June '24. Given the changes in the INR and subsequent changes in the yield curve, we have recognized a mark-to-market unrealized gain of INR 36 crores. This is essentially a noncash charge and in line with guidelines of Ind AS 109. As a result, profit before tax for the quarter ended June '25 stood at INR 473 crores as compared to INR 392 crores in the quarter ended June '24. PAT for the current quarter grew by 31% at INR 390 crores as compared to INR 297 crores in the same period last year. The aggregate financial commitments across all growth projects encompassing awarded work orders and procurement of materials stands at approximately INR 3,000 crores. As of June '25, we have net debt of INR 1,246 crores with net debt to operating EBITDA of 0.54x, and this is one of the strongest balance sheet in the sector. This, coupled with steady growth annual cash flows from the current asset base, we are well positioned to pursue a growth plan to enhance our present cargo handling capacity to 400 million tonnes and parallel grow our logistics business with a top line of INR 8,000 crores by FY 2030. With this, I request the operator to open the line for questions. Thank you.

[Operator Instructions] The first question is from the line of Alok Deora from Motilal Oswal.

Sir, just a couple of questions. So first is on the volume growth. So it's been low single-digit for us, and we have guided for nearly 9% to 10% volume for this year. So how do we see that number now shaping up because there will be a big catch up for -- in the remaining part of the year?

We still stand by our guidance of 10% for the entire year. And we are seeing very good trends also. So we have -- still we stand firm on that guidance of 10%.

Alok, our -- typically, if you see, our second half is always higher than the first half. If you see last year also and every year, it is like this because first half is a monsoon affected and second half always typically growth increases. So we are fairly confident and the second quarter also starting July itself is showing a good trend. So we are confident of covering up the -- whatever the shortfall of the first half in the second half for sure.

Got it. And sir, the employee cost actually has come down quite sharply Q-o-Q and even Y-o-Y. So just any color on that?

Yes. You see that our ESOP charge that is continuously reducing. Quarter-on-quarter, it is most of the ESOP charge is already factored in. So this quarter also, if you see compared to last year, it is lower and against Q4 also is much lower. So basically, it is the employee cost, including ESOP has come down.

Okay. So this -- going forward, this number run rate could kind of continue?

Yes, yes. So this will not go up. In fact, the surcharge will further come down.

Sure. Just last question. So Logistics business, we saw around INR 131 crore of growth last quarter, and now it's around INR 138 crores. So how we should see this number shaping up for this year and next year?

So broadly, we are looking at around INR 700 crores to INR 800 crores revenue in the entire year. And we're looking at around INR 100 crores EBITDA for the year '26. And mostly, we -- our plans are in place, and we are following those plans, and we should be achieving these levels.

The next question is from the line of Mohit Kumar from ICICI Securities.

Yes. My first question is on the volumes Jaigarh and Dharamtar. The volume numbers have continuously declining for last 3 to 4 years, right? In fact, we did 12.1 million tonnes in Q1 FY '23, if my memory serves correct. Last year, we did 9.8 million. And this year, again, we are at 9.8 million. Despite the underlying steel production growth, especially in this quarter from JSW Steel at 6.5%. So can you please explain this anomaly?

See, one is you see this -- our group cargo, as we discussed earlier also, will always have a lumpy growth. Whenever the capacity additions comes, then there will be a quantum jump. Till the capacity is same, so next -- last few years, if you see capacity is almost similar and now it is going up. And it is primarily serving to the Dolvi steel plant, if you look at Jaigarh and Dharamtar. So Jaigarh, Dharamtar is serving to steel, and it was almost steady. What you have seen decline was primarily due to the last quarter. Again, there were some maintenance shutdowns in earlier period also in this period also. But if you look at it in the current quarter, this Dharamtar has not gone down. There is a growth of 7% or so in the Dharamtar. It is only Jaigarh, which has shown a little decline, which was frankly one is some third-party cargo also got reduced because MOP and this urea one, last quarter government has not placed the orders, and this is coming up in the subsequent quarter. And a little bit of -- we are seeing that this growth of JSW Steel will cover it up. So Q2 onwards, you can see that they have now booked this iron ore import in a large vessel, which can come only at Jaigarh. So we are seeing the traction coming from July month itself. So whatever is the shortfall, it gets covered in the Q2 onwards. So we don't foresee there is any issue coming from the -- from our group cargo perspective.

If you broadly see this -- if you put Jaigarh plus Dharamtar together, they have broadly been doing 43 million to 46 million tonnes of cargo every year. That is the range at which it operates. And this year, we'll be operating at the higher end of the range will be targeting around 45.8 million, 46 million tonnes.

Understood, sir. My second question is on Kolkata container terminal. I think the entire Kolkata handles around 0.8 million TEU. And if I remember correctly, Kolkata has, I think we won 0.4 million TEU per container and Kolkata is looking to expand or it is in the process of bidding out another 0.9 million TEU. And I think a bid is due in the month of July or August. The question is the price discovery of INR 4,678 per TEU is very, very competitive given the interline potential. Can you please help us explain this price discovery and how do you see the volume coming at the ports?

So as you rightly pointed out that Kolkata, the other bids that will be coming up, you have already now got a base price here, whatever we quoted for the project earlier. So we feel that it's a very competitive price, keeping in view that the other projects are going to come up. And if you understand Kolkata and that area better, most of the cargo is very sticky in nature that it serves the hinterland is very, very close to the port area. So we don't foresee that with better efficiencies being brought into play, and better turnaround of vessels at the port. With the port also looking at taking up new efficiency measures and increasing throughput across the log gates, we don't foresee much of a challenge in being competitive there.

We'll take it offline. My third question, can you please help us the details of the an agreement you signed Jatadhar, what is the take-or-pay agreement and for how much volume?

Yes, yes, Jatadhar has -- we have yet to sign the novation agreement, but there is an assured cargo coming from them. You know that this is -- slurry pipeline is getting attached to this port. Slurry pipeline has already got the take-or-pay agreement, which will trigger from 1st of April '27. And the entire cargo, which is coming through slurry pipeline will get transported through this port only. So cargo is assured here. So absolutely, there is no issue of any dearth of cargo for this port.

Okay. So when you say concession agreement signed in June '25 with anchor customer, you mean that this is subconcession, right? That's what you mean, right?

No, no, no. It's a consistent only it will get novated in our name. So then it will be a full-fledged concession in our name because the concession provides that it can be novated to any of the group company. So under the provisions of the policy and concession agreement, it will get novated to us. There is no such thing that we have to share anything. It will be completely engaged internally.

The next question is from the line of Priyankar Biswas from JM Financial.

So my first question is what I observe is that there is a divergence between the volumes at, let's say, Dharamtar and Jaigarh typically, they tend to move in line. I mean, like 1 is increasing, the other increases. So why is this divergence this time like Jatadhar -- sorry, Jaigarh volumes are not keeping pace with what is happening at Dharamtar, if you can explain that?

Priyanker, as I said that there were some third-party cargo. Also, there is a dip. So you are looking at the total cargo Jaigarh which is dipping. So major part, if you look at 0.3 out of that 0.15 is third-party cargo. So that, I explained that MOP and this urea saying, the government has not issued the order, which was there in the earlier period, and this is coming in the second quarter. And then there is a small gap of the 0.15, which will get covered in this. There are certain ships which were to come in this quarter, they got shifted to this current quarter in the July. So July itself, there is a traction and a lot of import booking has been done by JSW Steel and larger ships, which will bound to come at Jaigarh port. So that will cover it.

So sir, if I understand correctly, if that be the case, then would it be fair to say that on a full year FY '26 basis, at least our group volumes would be similar to like what it was, let's say, in FY '24?

Absolutely, absolutely. It should be -- we expect a little better than last year.

Okay. And sir, just adding one more question. So what I see is NCR Rail, you have acquired recently. So what is the rationale for that acquisition? And how it will translate into, let's say, revenues and EBITDA going forward?

So this, as we told you earlier that we're looking at building up a pan-India logistics network and primarily serving with the anchor base of steel cargo and then looking at ICDs and containers for return cargo. So keeping that in mind, this is one of those terminals we had identified to fit into our overall pan-India logistics plan. We see a big market in the nearby area. And it also serves as a gateway to the NCR region. And location-wise, it's located near the Eastern DFC as well as it is at the entry of the Western DFC. So keeping all that in mind, we had found it to be a very strategic location, and that's why we had zeroed in on this. So it's part of a bigger network. So it will start giving its EBITDA as and when we form the network in full.

Okay. And sir, just one more question, if I can squeeze in. Regarding the, let's say, terminal privatization at major ports. So of course, you've got this Kolkata order. But are there any other ports at least in the very near term, that is in FY '26 which you may be interested in and may come up for near-term bidding?

So what we have been given to understand is that many ports have already are getting or in the process of getting clearances for the various terminals. One is in Kolkata, which the outer terminal and the inner harbor of Netaji Subhas Dock. These are all also coming up for further privatization bid. Similarly, we are also getting new bids coming up at Paradip. So this process will be ongoing, and we'll be participating in this, evaluating them and looking at all these terminals.

The next question is from the line of Veenit from Investec.

Sir, a couple of questions. One is, what's the status on the approval for expansion of capacity at Southwest from 11 million to 15 million tonnes. Where are we on the approval there?

So here, this -- we have been -- we'll be applying to the State Pollution Control Board for further increasing this capacity. We have already got the EC for 15 million tonnes. And the subsequent part of increasing the capacity is now at the state level. So we are pursuing this, and we expect a decision to be taken soon.

Okay. Understood. And sir, at Jaigarh LPG terminal, we have seen frequent delays in terms of time lines. Initially, we had started with Jan '26 as the time line with -- then got pushed to June '26 and now we are looking at FY '27 year-end as the completion date. And even at Tuticorin, we have pushed our time lines by a quarter. What is happening there? And what gives you assurance that there will be no further delays at both these locations?

So first of all, let me talk to you about Tuticorin. So Tuticorin, all the orders for piling, the machinery, the conveyor, everything has been placed. So -- and already piling works have started for the conveyors and the orders for the ship unloaders have been placed. So these were the 2 main orders that had to be given. So that is on track. We have just taken guidance for another 3 months because we got the final LOA at March '25 this year. So that was the main reason. We had expected it to come somewhere between December and Jan. So that got -- that actually pushed it by another quarter. So that was the main reason. And LPG project in Jaigarh, the peso approval we got was slightly delayed. So keeping that these are all statutory approvals that need to be in place before we can undertake the project. So that was the prime reason. But now we are on track, and I think we should be completing it on schedule as we have given the guidance or before that.

Understood. Understood. And sir, last question from my end. For the NCR Rail resolution, if you can speak about any consideration which has to be paid out here? What could be the revenue potential of this asset? How should we think about this, let's say, over the next 3 to 5 years?

So as I explained to you, it's a part of a strategic fit of individual terminals in a pan-India logistics network. So the development of the network itself is kind of more important than looking at the individual terminals giving their EBITDA. So keeping that in mind, it's very early days to predict the exact numbers. And I think Lalit can talk about the considerations.

So this is INR 467 crores is the amount for which we have bidded for this. And as we said that once the grid is complete because we have to create 25, 30 centers across the country, right from Arakkonam, Chennai going up to NCR. So we have got readily available this asset, which is very near to -- sorry, Eastern DFC and Jaigarh Airport and everything. So that is a very good asset, and we are looking for creating through GCT or stressed assets or build our own. So out of this, once we are getting something like this, which is readily available, it makes sense for us. So as we have the cargo availability from the group also, as we said, the base cargo will be coming from the group for this network. And then we will look for possibility of getting a return cargo and all those things. So over a period of time when the grid is in place, so that will certainly give us the desired ROCE, which we are looking from the logistics sector.

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

The first question that I had was, I think, something that others have also asked. See, Jaigarh and Dharamtar in fiscal '24 did about 47 million tonnes, and we will end FY '26 as per your guidance at 45 million, 46 million. Now simple question that I want to ask you is that what is the scope of third-party volume growth of these assets? And is it as limited as numbers would suggest over the last few years? And similarly, is captive taking a leg down because of its numbers little bad? Or is it third party, which is broadly being absent over there from a growth perspective?

Yes. Aditya, as I said, that Jaigarh and Dharamtar is serving primarily to Dolvi Steel plant, and it will have a lumpy growth. So till the capacity additions come from 10 million to 15 million tonnes, it will remain almost similar level and 1 million or 2 million here and there, it may be fluctuating. But coming to this year, we expect that it will be on a higher side, and it will be higher than last year number. It will not be less than last year number. So we expect from Q2 itself, we are seeing the traction because this year, they are importing more because iron ore prices are lower. So we see big ships coming in from the month of July itself. So whatever the shortfall is there, it will be covered up.

Understood. Maybe a link of question over here. Is there any change in the sourcing pattern of the captive customer, which is leading us to see slightly weaker numbers on the captive side. I asked because on a 2-year basis, it seems to be declining quite meaningfully. And just wanted to kind of check whether there's any change in sourcing pattern for any of the raw materials that the captive customer requires for itself?

See, there is no such thing that any big numbers coming in. As I said, it is only a few millions here and there out of that 45 million to 47 million or 48 million the cargo what they need for running their this 10 million tonne capacity. and it is going to be increased. So cargo is going to come. It is a matter of a year or 2 where you are seeing this problem. As they go to 10 million to 15 million, their requirement will further increase. So whatever the Mumbai increase, they are getting it, which is around, say, 10 million is the ultimate what they can do. So that is only thing that 1 million or 2 million here and there in Mumbai and keeps fluctuating. So that is the only difference. Otherwise, there is no such thing that which can affect our volume growth at Jaigarh or Dharamtar.

So broadly, the last 2, 3 years trends have been to operate between 43 million to 46.5 million, 47 million tonnes. That has been the broad range. And this year, we are very sure and the guidance is for 46 million plus, keeping both Dharamtar and Jaigarh together.

Understood. I'll move on to the next question. Just wanted to get a sense that this Ennore bulk terminal has done close to 3 million tonnes this quarter, whereas the capacity for the full year is about 9.6 million. Could you help us better understand how to see the growth from this...

You're confusing it with Ennore Coal. So it is -- Ennore Coal is actually 9.6 million and that -- so that is going up to 11 million. So we're broadly on track also. So there's no issue on that.

Can it expand beyond 11 million? Or is this 11 million...

No. Current with the -- current setup, it will not expand beyond 11 million. So we have got the So we have got the EC for 11 million, and that is what we are looking.

Okay. The final thing from my side, again, just wanted to check the asset -- the port volumes breakup that you give for the quarter, somehow add up to be a slightly higher number than 29.4 million. That's one confusion. It appears to be 29.7 million. So is there some intersegmental things happening over there? Or I just want to clarify this. And part B of the question, somewhere in the footnote, one talks about Tuticorin volumes not being there of about 0.6 million tonnes. So should one be adding 0.6 million to your overall numbers and then thinking through the annualized numbers? I just wanted to get a better sense of those 2 things.

No, Aditya, this is Vishesh. So that footnote is for the information purpose that Torrent in the last quarter was also considered in the stand-alone JSW Infrastructure Limited. So one should not add or subtract that 0.6. That is just for the information.

Okay. And there's some small discrepancy of 0.3 million tonnes, 1% of growth. So if you could...

That discrepancy, I can come back to you once I get back. One more thing is there, we report numbers in million tonnes. So it might be rounding off or some casting at particular plant. So that -- at particular port, that could be also an issue. But I can come back to you.

Aditya, Vishesh will come back on this if there is a clerical some issue, we'll come back.

The next question is from the line of Ketan Jain from Avendus Spark.

I just have one question. What is the expected commissioning of the recently won terminal at Kolkata.

So this will be, I think, 18 months from the letter of -- from the award of concession. So it will take some time for the conditions precedent to be completed. And from there, the clock will start ticking. So we will be somewhere, let us say -- so 18 months from the concession, which may take another 4 to 6 months to get the concession...

2 years.

Around 2 years, you can take from now.

August '27. Q2 of '27.

The next question is from the line of Mohit Jain from [indiscernible].

Congratulations for the good set of numbers, especially on the logistics side. Sir, my question is for the Navkar Corp only. So what is the current capacity utilization across your 3 CFS and 1 ICD, particularly the Morbi ICD, which I guess previously was operating at below 30%. Please correct me if I'm wrong. And sir, when do you expect them to reach at the optimal level of 70%, 80%? And one last thing on this, based on your existing infrastructure, what is the peak annual revenue potential assuming full utilization, 80%, 90% across all 3 facilities.

So Morbi, if you see, we have been continuously going on an upward trend and the critical benchmark was hitting -- crossing 5,000 TEUs per month. So that we have done in the last quarter, and we're maintaining that. Plus the mix of -- a major part of it, you should realize is how much of empty and loaded ratios we are looking at. That ratio has improved in Morbi. So that gives a lot of better returns for us. And at the full 80%, 90% capacity utilization, we should expect around INR 800 crores to INR 850 crores top line for these 3 or 4 terminals. And as you increase the rate fleet, that should be cross touching. So the one part is the terminal and you increase the rate fleet, it should touch around INR 1,000 crores.

All right, sir. So just a follow-up on this. So you said in the beginning, I guess, we are expecting around INR 750 crores to INR 800-odd crores in the logistics side this year. So that's around 80%, 90% only. So -- and I'm assuming that most of the contribution is coming from Navkar. So do you think we'll reach a good utilization of Navkar this year and next year, we need to look for some organic or inorganic expansion in terms of ICDs or...

Absolutely, absolutely. We will have to add to the kitty somewhere 1 or 2 more terminals, especially in the Western circuit where it will be more of a logical fit for Navkar. Otherwise, we will be looking at expanding its growth.

All right, sir. All right. And one last thing -- one last question from my side. Since sir, we have guided on the entire logistics space of INR 8,000 crores of revenue by FY '20 and 25% EBITDA margin. And what I'm assuming is that our logistics segment is now bifurcated between Navkar and Gati Shakti. Please correct me if I'm wrong.

No, no, no. I think it's all part of -- Navkar is also a part of the center fit.

So we have a JSW port logistic company and this Navkar is acquired by this port logistic company. So under port logistics company like Navkar, we will have many more such verticals coming in, either through GCP or through stressed asset buyout or building new one. So what we are talking is the total logistics business when we say of investment of INR 9,000 crores or sales of INR 8,000 crores over a period of 5, 6 years. So this will be grown like that. So Navkar, whatever Navkar can absorb this is their balance sheet will come under Navkar. Rest, most of the things will come under the port logistics company.

But this INR 8,000 crores Navkar is a part of it, right?

Navkar is a part of that. Absolutely.

And sir, just to follow up on this. Will Navkar be a very huge contributor to this INR 8,000 crores, like above 50%, 60%? Is it...

No, no, it's like that because the Navkar balance sheet doesn't permit that much. You know the balance sheet of Navkar. So whatever the way EBITDA is improving, now you can see that EBITDA improving substantially. So whatever we can absorb basis net debt to EBITDA of our guidance, we will keep investing in this. But obviously, their balance sheet is not that strong that they can take that much of load.

The next question is from the line of Nidhi Shah from ICIC Securities.

So my first question is that we recently signed an MOU with the Konkan Railway for rail siding from Bhoke Railway station to Jaigarh. So could you just give some color on how binding is the agreement? And where are we expecting the rail siding to come in? And what is the potential time line?

So this is one of the nearest rail heads to Jaigarh port. It's around 20, 25 kilometers away from Jaigarh port. And number two, this railway siding is built on a deposit work basis so that we are funding the entire project and the Konkan Railway is to execute it for us. So they'll be doing it in a period of, again, 1.5, 2 years' time. And much of our rail logistics that we are building up. So this will also come into play at Bhoke siding. So you can have tank containers, containerized traffic, fertilizer cargo moving from this Bhoke siding.

And are we expecting a rail line from Bhoke to the port? Like what will be the situation of cargo from the port to railway siding? Is it...

No, no. That we are not taking up right now. So this will be an outlet for rail bound traffic for Jaigarh port on the Konkan railway network.

All right. Also, we can see the realization per tonne on cargo has gone up about 2% this quarter Y-o-Y. Is that due to price hike or due to mix? And if you have taken a tariff hike, then what is normally the time when the company takes the tariff?

So we have been able to increase some prices this year, like Goa, we have increased, then the coal terminal also we have increased. So wherever there is a possibility, otherwise, WPI based in any way, we are able to increase, but WPI was not that high. So wherever it is not WPI linked where we have been able to increase substantially.

All right. Generally, what is the time period when you take this tariff hike? Is it in Q4 or Q1?

No, no, It is normally April to March. So in the Q1 itself, we increase whatever we can increase.

Ladies and gentlemen, we'll take that as the last question for today. And I would now like to hand the conference over to the management for closing comments.

So as we have gone through the results and the detailed questions from you all, I would like to reiterate again once more for the persons attending this conference that we stand by our guidance of 10% growth in throughput, and that's on the annual basis. And as has been explained to you, historically, H2 is greater than H1, and the trends are quite good in the second -- in July. So we are quite confident of meeting this guidance. Thank you.

Thank you. On behalf of Nuvama Institutional Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.