Navkar Corporation Limited (NAVKARCORP) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 FY '20 Earnings Conference Call of Navkar Corporation Limited, hosted by PhillipCapital (India) Pvt. Ltd. [Operator Instructions] Please note that this conference is being recorded. I'll now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital (India) Pvt. Ltd. Thank you, and over to you, sir.

Good afternoon, and a very warm welcome to everyone. Thank you for being on the call of Navkar Corporation. From the management, we are happy to have with us here today Mr. Anish Maheshwari, Chief Financial Officer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company on the date of this call. These statements are not guarantee of future performance and involve the risks and uncertainties that are difficult to predict. Now I hand over the call to Mr. Anish Maheshwari, Chief Financial Officer of Navkar Corporation. Over to you, sir.

Good afternoon, and warm welcome to everyone present on the call. We are on call, from my team, Mr. Shailesh Jha and Krunal here with me. We -- as we all are aware from last few months, very conductive to economy as a whole, and it all affected the trade volumes as well. As we see, there is no such growth on the toll side also. For Navkar, as you can tell, the EXIM volumes have been mix, while the domestic volume have been good. In spite of these conditions, we have been able to grow and the momentum of past 3 quarters, so the growth in the volumes as well as the financial numbers. I just want to appreciate on the call our entire marketing team and the senior management. They are putting their efforts towards the growth rate of the company. I just wanted to start with the financial update of quarter 3 FY '20. Revenue for quarter 3 FY '20 is INR 144.3 crore (sic) [ INR 144.2 crore ], which is an improvement of 10.5% on a substantial basis of 16.9% on a Y-o-Y basis. The improvement has been mainly led by the volumes, which has increased by 5.6% as compared to Q2 FY '20 and 7.1% as compared to Q3 FY '19. And the average realizations was [ hit ] by 7% on year-on-year and Q-o-Q basis. The operating profits for the Q3 FY '20 had increased by 11% on Q-o-Q basis 74 -- this is INR 2 -- INR 74.77 crores compared to INR 67.55 crores in Q2 FY '20. The EBITDA for Q3 FY '20 has increased slightly by 1% on a Q-o-Q basis, INR 46.63 crores potential compared to INR 40.90 crores in Q2 FY '20. The net profit for Q3 FY 2020 is INR 15.10 crores, which grew by 46% on last quarter basis. Now I just wanted to give the operational updates. We have seen improvement in the volumes for this quarter with total EXIM volumes being 91,789 TEUs in Q3 FY '20, an increase of 3.4% on a Q-o-Q basis and 6.1% on Y-o-Y basis. Volume at Mumbai CFS increased slightly by 1.16 to 57,844 TEUs in Q3 FY '20 from 57,178 in Q2 FY '20, of which finance 29,251 TEUs were imports, 28,593 TEUs were exports. On a Y-o-Y basis, the volumes at Mumbai CFS declined by 8.7% as compared to Q3 FY '19. The volumes at Vapi ICD in Q3 FY '20 were 33,945 TEUs as compared to 31,579 TEUs, a 7.4% increase on a Q-o-Q basis. However, on a Y-o-Y basis, growth has been 46.9%. The Vapi volumes were mainly driven by the imports volume, which is -- which were 22,949 TEUs. Exports were 10,996 TEUs for Q3 FY '20. On the PFT side, the total trains handled for the quarter were 736 trains, which was grew by 66.5% as compared to Q2 FY '20. The main reason behind this is increase in the domestic's movement at our ICD as well as the Mumbai CFS. Now I'll open to -- open the floor for the Q&A session.

[Operator Instructions] The first question is from the line of [ Nitin Ranjit ] from Capstocks.

And my first question is regarding -- we were actually planning to buy a few rakes. So have you actually done any internal calculations as to what sort of cost efficiencies that would actually bring about?

So we have just -- in our presentation also, we just add, we have already added 2 railway rakes we had purchased, and that delivery will be coming in, like, 10 to 15 days. Right now, there is -- as we are not doing such operations with our new rakes, once we'll start operations, then we'll get the actual numbers with the calculative benefits, which we are getting down. Now we are operating almost 8 trains in a month for ICD and Bombay operation, which is all leads. So first -- then when the trains will come, then I can definitely give you the sense on it after next quarter.

Okay. And both these trains would cost something like INR 50 crore, if I'm not mistaken.

It's all together train costing me on INR 27.5 crores approximately, and INR 10 crores which we have already paid for the CTO license.

Okay. And one more thing, my last question is with respect to the storage revenue at Vapi. Do you have comparable numbers for this quarter and the last quarter?

Can -- I'll just illustrate give a brief about it. Because we are not separating any kind of storage value proposition, because we are giving the entire package to the party, this is slightly difficult for me to give you the sense on it, what is the comparable numbers for the quarter-on-quarter. Because we are till now -- With the onward delivery also to party, we're giving the entire package to the party.

Okay. So -- and if I may squeeze in one more question. So this growth, which we have seen over the last 1 quarter, is this sustainable? Or what's the outlook looking like? It's been almost 1.5 months for this calendar year quarter. So what's the outlook looking like right now?

Frankly speaking to you, as I told you on the call when starting the call, this is the entire volumes, which we had kept just because of the efforts of marketing team. Looking forward, the market situations are not such a good or not even -- we are selling the [indiscernible] on the port side. But I can say, as we are doing good, that may continue or -- this is hard to say today, it will be sustainable or not. But practically, as we are giving -- putting efforts, our best, it may continue.

Okay. And if may -- with due respect, sir, if I may squeeze in one more question with respect to our capital work in progress. So we have been capitalizing for the last 1 year. So is this going to continue for this current financial year? Or are we going to, like, bring it -- are we going to like commission this year itself, the capital -- or I believe it's something like INR 500 crore -- INR 150 crore under our WIP vehicle?

Yes. It will be after this quarter itself, because this quarter is the last quarter of this year, and everything will be in a commencement position. Then you definitely -- WIP will be converted to capital assets.

[Operator Instructions] The next question is from the line of [ Vivek Kumar ] from Shivsagar Investments.

Congrats on a good set of numbers. I just want to know what are your realizations at Vapi and Mumbai. And why is ICD figures around 20,000 realization against CFS of 10,000 around. Why is that difference?

CFS is 27 kilometers from port. And Vapi is 175. And both the operations are towards JNPT Port majorly. So that's the reason there's a distance high between the port to CFS and ICD. That is mechanism of the difference between the pricing.

So 10,000 difference is the price -- cost of rakes.

Yes. It's a 125 kilometers away from the port. ICD is 125 kilometers, yes.

So that realization includes the freight also?

Yes, yes. It's a road transportation also there, because we are doing the entire transportation road as well as the rail. That entire transportation for 175, 200 kilometers is added in that.

And what is the realization in Vapi and Mumbai? What is the like...

So Mumbai, in this quarter we have INR 9,112. And Vapi, we have around INR 20,827.

So if I exclude the transportation in Vapi, then it will be around INR 9,000, like...

Practically not like that, because it's an entire package system. So we are not only doing the transportation for any kind of activity.

So the EBITDA far Vapi on INR 20,000 is like a higher margin on this -- what transportation will be very less margin you will have, just like 2% to 3% will...

[ Vivek ], we're not calculating separately any kind of EBITDA for Vapi as well as Mumbai. Because my field and entire operational things are equally used for both the facilities. So this is difficult for me.

Okay, okay. So what is the expectation in Vapi, EBITDA you will maintain, like...

So now you can see my average EBITDA for this quarter is around 33%, 34%, which will be similar for both the units.

That includes the total revenue model?

Yes, yes, yes. Because somewhere we are giving some different facilities to Vapi, like we are giving onwards also, at Mumbai which we are not doing. So it's difficult to me for segregating both the trains on EBITDA level.

So -- and like, we are doing, like, 120,000 in Vapi. So can we expect like touching 3 lakhs, 4 lakhs?

If you see quarter-on-quarter, last year same quarter was 29,000 TEUs, which is 34,000 TEUs almost. So also it was around 28,500 for last year same quarter at Vapi. So this year, if you'll see, this is around 33,945. So year-on-year, there is a growth.

How much we can scale? Like scalability is possible till 3 lakhs for the year?

Our soft target for each month of 10,000 TEUs, which has already been crossed. So now our next target is 15,000 TEUs. So we are trying for that only, and it has still...

4 year, 5 year, 6 year horizon, is it possible?

4 year, 5 year is really a long time, I can say that. We are hoping that as our numbers are improving quarter-on-quarter over there at Vapi, it will be definitely depends on the market situations. And our efforts are always 100% for the same. We can hope that it will be the range of 15,000 TEUs in next couple of quarters, a couple of months.

It will convert from both to Vapi through most of the -- it will just go through -- move to road will convert -- will come to Vapi? We are...

No, no, no. Yes. So till today also, if you'll see, in this quarter itself, my train volumes are getting very high because of Vapi volumes are 95% get up by the train only.

And so second question was that we are having decrease in TEU in Mumbai. And -- but PFT in Mumbai is increasing. That means I think the clients are not using the CFS, but they are using PFT, correct?

Yes.

So we are not getting the revenue from TEU in Mumbai, but increasing revenue in PFT. So do we have containers like third-party containers, where we don't -- where they don't use the CFS of ours, but they use the PFT? Is it -- and what is the model there and what is the revenue there?

So I'll just give you the example of that...

Why is the difference between decrease in TEU, but increase in PFT, yes?

So for third parties, we're giving our services towards PFT only. What -- in that, but what they are completing, they are completing their cargo over there in like domestic yard. And from there, they are using my PFT. For that, we are charging them the whole package system, which is again towards [indiscernible] domestic. So in that, we are particularly focused on the operations from railway PFT for their domestic offices also.

So here, we use -- charge how much per container? Is it container-wise or...

No, it's all -- it is based on tonnage basis.

[Operator Instructions] The next question is from the line of [ Aditya Tambre ], an individual investor.

Congratulations on a good set of numbers. So my only and only question is what would -- according to you could be the future of CFS going ahead when the government is continuously pushing for DPD and DPD? Looking at the volumes at Mumbai is continuously -- I mean it's still falling, I mean, compared to last quarters or years before that. So this is one thing I want to know about.

Sure. If you'll see, last quarter, there is an improvement in the number of TEUs, correct? Last quarter, the number was 57,970. It's a pure EXIM I'm talking about, which is this quarter 57,844. But I can tell you about the DPD. DPD on peak was around 68% to 70%, which has now settled down at 52%, 50%. So it's on a saturation basis now. So further dip we are not hoping for on an EXIM level. But we are working on the other avenues of the domestic and all other operations. Likewise, on last question, I was already telling that we are more [indiscernible] PFT and we have all the certificates [indiscernible]. So now the phase, which -- so frankly speaking to you, rather than we are focusing on that, EXIM volumes are getting down, ports are not doing good, the global normalized is not positive. Despite of that, we'll have to be at the positive side. We'll have to be -- work on positive side. Whatever we'll gain, I can say, only 1% will make a difference.

All right. Can you just give me a rough figure as to how much revenue you're generating from the PFT in Mumbai, by any chance?

So on domestic volumes, I can tell you, Mumbai, we are having a value proposition of 12 crore 32 lakhs. At the same time, at Vapi, we have a INR 6.82 crores. So all together, from my top line, this quarter, is around INR 144 crore. Out of that, the domestic on the PFT side is INR 19.14 crores.

The next question is from the line of Dipan Mehta from Elixir Equities.

So congratulations on a good set of numbers. Just to carry forward that question, which was just asked...

Sorry to interrupt you, Dipan, your voice is breaking up. Can you please check?

Yes. Can you hear me better now?

At the moment, yes.

Okay. So my question is that of the INR 144 crores, INR 19 crores is from private freight trains, right? And the rest is from...

It's not only private freight trains. This is the entire movement for the domestic, railway movement as well as the warehousing.

Okay. And ICD is the balance, right?

Yes. INR 12.32 is from the Mumbai operations via domestic as well as rail movement. And Vapi, we have INR 6.82 crores.

And the balance is ICD?

Yes. INR 144 crores is balance -- is not ICD only, there is a Mumbai one also out of INR 144 crores...

Yes. Sorry, INR 124 crores?

Out of INR 144 crore, total value from Vapi is INR 78 crore. Region-wise, Mumbai is INR 66.25 crores. It's our entire volume -- revenue.

So how would your classify your revenues? Are you classifying it by location? Are you classifying it by ICD versus PFT? So there has to be some standard basis of classification of revenue?

Yes. So we have a standard basis, boss. We have 3 different kind of models over there with me. So EXIM as well as -- EXIM and -- EXIM, we have export, import and domestic, 3 different kind of nature of revenue, correct? In that, we are giving the separate numbers in our presentation for the domestic as well as export as well as import. So these are the 3 classifications. The revenue we are giving proper in PFT in Bombay as well as the Vapi unit separately.

My next question, sir. You have 129% higher number of trains of PFT, and you have 18% higher number of TEUs which you are handling. Then why the turnover is up only 16%? I would have thought you're doing much, much higher.

No, no, no, sir. So today, if you'll see, it's not depends on the volume, it will depend on agreements also.

On?

On agreements mix also. Because it's a blended number of per TEU realizations, correct? So in that, if you'll see my exports towards both the entities is going high comparative to last quarter. So in exports, there are less tariffs comparative to imports.

Yes. But the number of freight trains are increasing, so that should also contribute. So is it that we are still facing a lot of pricing pressure because of which the volumes are higher, but the value is on the lower side?

No, no, no sir. I think, sir, there is some mismatch in your calculation, because in accordance to volume, if you see my last quarter's per TEU realization, Mumbai was 9,132, Vapi was 20,285, which is in this quarter if you'll compare it with the last quarter, 9,912, It's almost similar for Mumbai and 20,827 for Vapi.

So all figures are not there in the presentation, sir.

Yes. So we are giving the entire columns of EXIM as well as the domestic -- export as well as import numbers or per TEU realization. So if you'll see my -- see the -- our end on realization, if you'll see, my first phase of revenue and the second phase at Mumbai, it's clearly mentioned the value of total export and total imports. TEU data also available on the presentation.

No, TEU data, the value is not there, sir. I can see the TEU data, 26 versus 29.

Okay. What we'll do -- I'll do -- what I'll do, I'll...

Sir, appreciate if there's some more details about the breakup of the revenue and other things so that we know exactly what is happening. Because on the face, [indiscernible] that there's severe pricing pressure in your business. We have 129% increase and 18% volume increases and 16% increase in revenue. So there's obviously pricing pressure, which you are seeing is not there. So if you can give us...

So what I wanted to tell you, I'll add one more slide in the presentation with the revenue number separately from the Vapi as well as Mumbai.

So any which way, so we can -- so as analyst, you would like to know, volume growth is there and then what is the realization, how volume is moving and how realization is moving. That will enable us to build out our revenue model. Otherwise, we are just shooting in the dark.

So what I just want to tell you, I'll definitely correct that presentation also. I'll add one more slide in the presentation that will give you a fair sense. Then after also, you have a query, you can directly connect with me.

Okay. So second question is that what is the management proposing to do about the steep fall in the share price? I think, it's going up 0.22x its book value. So is there any proposal to do a buyback instead of buying trains, which give you 9%, 10% type of IRR. Why not do a share buyback and get it...

First off, I just wanted to interrupt here. One thing, which is in our hand, it's our business operations. On that, management is really concerned. They are doing their best. You'll see the numbers compared to last quarter, last year also. So whatever best we can do, we are doing, correct? And secondly, really what you are saying that rail is a need of business. That's why we're doing that, because we have 8 trains today on lease. Tomorrow, as companies come to me and tell me, we are not going to give you more trains for the operations, like they'll less the 2 trains, or I can tell you that 2 trains, which we have added now, that will be improve my efficiency only. And that is business need. So we'll have to be focused on that first. And on share, I can tell you, we are definitely concerned about it. But whatever best we can do on the business side, that we are doing.

No. But you can definitely consider doing a buyback. The company's financial position is very strong. Debt is also on the lower side, positive cash flow. So a lot of companies there, the stock price has got beaten down, that's one option. So if you do a buyback, and that will benefit the promoters as well as minority shareholders.

Yes. I'll definitely discuss the same with the management also.

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

First question is on volumes at Mumbai location. Can you repeat the export/import volumes? And also, you haven't given, like in presentation, domestic volumes at the 2 locations?

So -- but basically, domestic volumes, we are not giving -- we'll give you volume value basis. Because in domestic, we're doing a tonnage basis. Okay? So last time also when we are calculating those numbers, we were just dividing that number between our per TEU realization, correct? So I will add the slide in that. Now you can take the numbers from me for the Vapi total TEUs, which we handled at Vapi, is 33,945. Out of that, export is 10,996 and import is 22,949. At Mumbai, we did 57,844, out of which import is 29,251 and export is 28,593.

Okay. So moving forward, we will not get any data on domestic volumes front.

So that's why, Prateek, we -- I just wanted to tell you one more thing. Rails which we had handled in Mumbai is 276 and Vapi is 439, first. Secondly, because we are doing our domestic operations in a tonnage and the space basis. So TEUs, we were converting in Mumbai earlier on the basis of per TEU realization divided by the value.

Okay. And when you say INR 68 crore revenue at Vapi, INR 68.2 crore, what was the like-for-like number in Q2 FY '20?

Vapi?

At Vapi.

In Vapi this quarter is INR 28 crores, which was last -- last quarter, Vapi was INR 65.63 crores. And...

Last quarter is how much? How much? INR 68 crores?

INR 78 crores.

INR 78 crore, okay.

Yes. And Mumbai, it was INR 64.90 crores, which is this quarter is INR 66.25 crores.

INR 66 crores. And out of that INR 66.25 crore, INR 12 crore is domestic?

Yes.

Right. Okay, okay. And sir, how much is the CapEx which we have spent till now? What is the expectation for the full year?

Full year, which -- last quarter also, we were giving the sense of entire year may be having a CapEx, including the railway extension as well as the railway PFT with the CTO also. So it will be in a range of almost INR 100 crores this year. All put together, CTO, railway and all.

So last year, we said INR 80 crore is the -- prior to that, we were looking at INR 50 crore. So we have increased -- doubled the CapEx.

So Prateek, I can tell you, as I was giving the answer on last question also, the railway is my need now. If you see my railway volumes, it was not even we expect at that time and we did [ elation ] of our CapEx side. It was in the range of 400 trains. We will be best case scenario, we'll do. But this quarter itself, we have 736 trains all put together for the Vapi as well as the Mumbai operations. So this is basically a need for me. In this market where the volumes are not as high in the EXIM side as well as the port side. And we are giving our best. So whenever we require further revenue side in the betterment or the TEU data or TEUs volume side, that will make that kind of arrangement.

So which all segments, like, INR 100 crore would be spent at, like, rail and other CapEx? What would be the...

Yes. This year, definitely it was done. Next year -- by next year onwards, that number may be -- I will give you the next quarter.

No, no. So for FY '20 only, what would be the split of INR 100 crore CapEx?

It will be 100% towards railway, and as we did around 100-odd trucks here in this year itself, that's 2 trains we had taken. And last quarter month's call also, we have given the sense about the TXR activity for the railway. So this is all towards the -- major towards the ICD side.

So we are looking at some 6, 7 trains purchase in current year?

It will depend. If the volumes will be more high from here, then we'll have to think about it.

Okay. So INR 30 crore was that TXR expenditure and then INR 70 crore...

Yes. INR 30 crore is about the TXR, INR 30 crore for the train almost with BSE. And INR 10 crores we have already given for the CTO license.

Yes. So that adds up to INR 70 crores. So remaining INR 30 crores will also end up like another 2 trains, 2 to 3 trains?

No, no, no. It's INR 100 crores, which I'm talking about -- almost in the range of INR 100 crores, it's a recurring expense for the repair and maintenance of the yard for sale; and secondly, improvement of the efficiency. So that will include all together in the range of INR 90 crores to INR 100 crores. So now as I told you on the last quarter call or before last quarter call that, that CapEx which we're doing now, it's more about the facility, which we are using on a basis of [ higher and higher ]. Like last time, if we have a capability of using 50%, that will have to be increased by 60%, 70%, 80% to -- reaching that part, we'll have to meet the infra quality also.

Right. And sir, what is the debt position now, which was like INR 500 crore by 1H?

So it's -- today, on the quarter-end 31st, I'll just give you the entire number. It's all together is INR 421 crores, including INR 50 crores of WCDL. It's in the range of INR 370 crores and plus INR 100 crore of unsecured loan.

So total INR 520 crore.

It's INR 480 crores.

INR 480 crores. And this includes current maturity on long-term debt?

Yes.

Okay. So it hasn't increased on a quarter-on-quarter basis?

Everything includes -- train -- which we have added trains also, that INR 27 crore is also added in it.

Okay. And just one question on your working capital position. Has that -- for industry as a whole, has it -- is it improving? Or is it still very stressed in terms of disables?

It's not -- there is no such improvement, but as our volumes are adding up, so we are also on the same [indiscernible] also. So we are -- working capital side, the situations are [indiscernible] as last quarter.

The next question is from the line of Sachin Kasera from Svan Investment Managers.

Congrats for a good set of numbers in the challenging times. So just on debt, so overall, how much are you looking to reduce the net debt in the financial year FY '20 vis--vis FY '19?

So my per quarter obligation towards [ increment ] weakening of principal almost in the range of INR 8.5 crore. So by this quarter, I think INR 30 crore -- INR 27 crore, INR 28 crore would be reduced.

But have you taken any debt for the CapEx or increasing working capital? So what we're looking for is the net debt including fresh loans as well as increasing working capital? That's the number we're looking.

Yes. That's why I'm telling, that number, it will be the range of INR 480 crores to date, all together.

INR 480 crores is including the promoter debt.

Yes, yes. INR 480 is including promoter debt also.

Okay. Secondly, sir, what is this -- what is the progress in this promoter debt? Is there at certain point some proposal that you may look in terms of conversion, any update on that? And as well as on the promoter pledge.

Promoter pledge is not there. It's a promoter group pledge towards SBI, which is remain to be seen, which was the status of last quarter also.

Okay. And sir, any thought process on the promoter to increase the market [indiscernible] as some of the participants said that stock is very, very cheap? So are we -- any solution for the market to -- that you're holding?

Sachin-ji, I can tell you on that, the business has plans and the management also. Now we are more focused on the business as numbers are improving, business is intact from the various parties. We have always tried to add some new more parties. So more focus on the business side only.

Sure, sure. And sir, on this -- lastly, what is [indiscernible] currently, the way we are -- the marketing is going aggressive. What is, in 4 to 5 quarters, can be generated from where we are to -- for Vapi is concerned on a monthly basis?

Again, today, I'm not into the position to tell about this. We are exploring some different thoughts that will be definitely giving positive numbers towards the next 2, 3, 4 quarters.

Sure. One final question regarding CapEx. So this year, you said that against the original CapEx of INR 50 crores, you'll end up in INR 100 crores because of certain requirements on the train and the facility side. [indiscernible] in FY '21 or we'll need to keep investing as we ramp up the operation?

Practically, I can tell you, it all depends on the business, as there is no further requirements for making business sound, then we'll definitely not doing any kind of further CapEx in early years.

Okay. But if any...

It all depends on the business opportunities. If there is such opportunities, which we can add back to the business, then we'll have to be thinking about those CapEx. But today, if you'll ask me, the CapEx which we had done in this year, it is sufficient to survive the same number of -- same set of numbers. And if further -- if there may be -- I can tell you, frankly, if the jump is almost 100%, then I'll have to think about the CapEx. And so, marginally improvement, like, from here, it will be in the range of 20%, 25%, 10% business growth, then we are sufficiently address with the current CapEx.

So when we see sharp growth, which area will we include? Will we need to buy more trains? What are the areas we need to spend CapEx?

So it will be more on the -- first thing, we'll have to add trains, our movement towards onward, then we'll have to be add more trucks or there are certain requirements of the repair or the maintenance of the entire facility, both the facilities, Bombay and Vapi. Today, what happens, as in Mumbai, we have a further capacity added to us, so there is more requirement of the repair and maintenance in early years. But at Vapi, as we are doing business smoothly, if there is a requirement, like certain things which is not in our control, like the -- in June quarter, there may be heavy rain, then there may be certain CapEx towards the repair and maintenance of the yard. Otherwise, there is no such CapEx on the same kind of -- same set of numbers of business.

And sir, last time, you had mentioned that if there are some attractive opportunities you may look, especially in [indiscernible], so any thought, any progress, anything that has come across the table to invest in?

So right now, there is no such thought. Right now, we are more focusing on the facilities which we have, aggressively utilize that.

And sir, on the Mumbai, the surplus assets, you're still looking at a discussion for disposing some of them? Or as of now, because the market is big, [indiscernible]?

Pardon?

You have some surplus land in Mumbai. And we are contemplating if you could dispose them, consider this market we have put that proposal on hold, or are we still actively looking in the market to dispose or close them?

So frankly speaking to you, the discussions will always be on, okay? There are certain queries for dealing that -- those assets. There are certain queries towards the JV. There are certain queries for further. But still, there is no conclusion. The discussions will always be on. Somebody is coming with some different kind of thoughts. We'll have to be in discussion. Because land is ideal with us -- idle with us.

The next question is from the line of Jayakanth Kasthuri from Jayakanth Kasthuri from Way2Wealth Securities.

I just wanted to get a sense of, like, in this 45 days, what are you seeing in terms of your EXIM, considering right now we have the China issue?

So on the [indiscernible] side, major volume is coming from the Europe as well as the U.S. So there's no such impact which we have seen yet from the situation of China, as per our knowledge. If there is any kind of situation, which will be updates to us, we'll definitely conclude on it. But right now, there is no such impact on the business, which we have seen.

So in terms of Vapi for exports, anything?

Not yet. There is nothing such event, which we're seeing.

The next question is from the line of [ Vivek Kumar ] from Shivsagar Investments.

How many PFTs are there in JNPT, and how do we calculate the capacity?

JNPT, there's no such conclusion of capacity. That is on your railway track, now which we have 3 tracks. So there are 3 sets. So we can easily handle almost 12 trains in a day, correct? So at the same time, Vapi also, we can do around 16 to 20 trains. It all depends on the number of -- it all depends on the operations, first thing. So that is under the primary calculation for the railway PFT. And other question which you had put?

How many PFTs are there in JNPT? Like how many people are having this [ CFP ], JNPT?

PFTs are only 2. One is Navkar, okay? And second one is having CONCOR, I think so.

So only these 2 people will have -- so any person looking to add PFT base, any ICDs?

So from -- we started PFT in 2011, sir. But after 2011, we haven't seen any kind of developments towards PFT bill. Because making PFT, the knowns are very different. PFT required almost 1,500 meters of a straight stretch for making railway tracks. So the land you required almost in the range of 50 to 60 acres with the national highway connectivity. So that kind of a land parcel, I think so, is difficult to find. Today's rates like that with the railway tracks and national highway is much, much higher. That may be the reason why nobody is making that kind of a PFT yet.

So with this direct delivery system coming up, the volume of PFT will increase? Like there will be demand for PFT?

Practically not, because PFT demand, it all depends on the demand towards the domestic market. So we can't directly link with the DPD itself.

As there are no further questions from the participants, I now hand the conference over to Mr. Vikram Suryavanshi for closing comments.

We thank the management of Navkar Corporation for giving us an opportunity to host the call and taking the time out for interacting with the stakeholders. Thank you all for being on the call.

Thank you so much.

Thank you. On behalf of PhillipCapital (India) Pvt. Ltd., that concludes this conference. Thank you for joining us, and you may now disconnect your lines.