CONCOR - Container Corporation Of India Ltd. Share Price

Management outlook for Container Corporation of India (CONCOR) reflects a positive trajectory for FY '26, anticipating a comprehensive overall growth of 13%, with EXIM growth projected at 10% and domestic growth at 20%.

Key forward-looking points highlighted by management include:

1. Volume Growth: CONCOR expects a robust demand in domestic markets, particularly in bulk cement, tank containers, and ceramic tiles, alongside solid performance in EXIM driven by increased trade activity.

2. Throughput Records: CONCOR achieved a record throughput of 5.09 million TEUs in FY '25, registering an 8% growth year-on-year. The management attributes this to an increase in market share, particularly in EXIM, where they gained 40 basis points overall.

3. Investment Plans: The Board has approved a capex budget of INR 860 crores for FY '26, primarily for procuring containers and wagons, and improving terminal infrastructure. The goal is to reach 100 terminals by 2028.

4. Double-stack Trains: The management emphasized strengthening their capacity by expanding double-stack train operations, which have seen a 16% increase this year, thereby reducing costs and improving margins.

5. Infrastructure Development: Management outlines the commissioning of four new terminals"”Salawas, Pathri, Mandalgarh, and Chunar"”which are expected to enhance operational efficiency and access new markets.

6. Market Position: The management reiterated a stable market position despite challenges, indicating a resilience in maintaining margins, with rail freight margin increasing to 25.65% from 25.10%.

7. Profit Forecast: The company reported operating income growth of 2.7% with a PAT increase of 3.35%, reaching the highest levels in its history.

In summary, the management is optimistic about growth prospects fueled by strategic investments, expanded capacity, and enhanced operational capabilities aimed at facilitating an effective response to market demands.

1. Question: Can you help us with the originating volume for the quarter?
Answer: The originating volume for Q4 for EXIM is 557,670 TEUs, and for domestic, it is 121,789 TEUs, making a total of 679,459 TEUs.

2. Question: Could you give the market share specifics for JNPT, Mundra, Pipavav, and aggregate India level for EXIM?
Answer: Our market share is as follows: JNPT is at 58.44%, Mundra port is 37.7%, Pipavav port stands at 48.4%. On a Pan-India basis, our EXIM market share is 55.2%, while domestic is 57.6%, totaling to 56%.

3. Question: Can you explain the drop in domestic business for the quarter?
Answer: The domestic business saw a drop primarily due to three factors: we chose not to accept low-margin traffic, railway congestion in Eastern India hampered operations, and delays in tank container supplies from Braithwaite caused significant impacts.

4. Question: What is the LLF for the fourth quarter?
Answer: The LLF for Q4 is INR 108 crores. The full year impact, net of INRs 65 crores, totals INR 370 crores, and we anticipate similar numbers for FY '26, increasing by 7%.

5. Question: When will we receive the specialized containers from Braithwaite?
Answer: We have received 90 containers enough to form a rake and are in trial loading. By the first week of June, we expect to stabilize operations, and we're also tendering for an additional 500 containers.

6. Question: What's the total containers handled at all Indian ports, and CONCOR's share?
Answer: The total handling at all Indian ports was around 23 million TEUs, with CONCOR's market share being significant but not specified for this query.

7. Question: Are you seeing any increases in realization in domestic businesses?
Answer: We expect improvements in domestic margins this financial year, despite past declines. Our focus on reducing empty runs and operational efficiency should drive realization upwards.

8. Question: What is the guidance for EXIM and domestic growth in FY '26?
Answer: We project 10% growth in EXIM and 20% in domestic, totaling an overall business growth of 13% combining both segments.

9. Question: Could you provide guidance on the expected EBITDA margins moving forward?
Answer: I anticipate maintaining EBITDA margins at around 24% to 25%, with operational improvements and upcoming DFC utilization aiding in sustaining these figures.

10. Question: Can you elaborate on your new terminals and when they might be commissioned?
Answer: We are developing four new terminals: Salawas, Pathri, Mandalgarh, and Chunar, which will be critical for expanding our network. Timelines are set, but I don't have specific dates right now.