Railway Haulage Rates To Impact Concor's Margins? | NDTV Profit - video Dailymotion

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00:00 We are in conversation with the CMD of the company, Mr. Sanjay Swaroop.

00:04 Mr. Swaroop, good morning.

00:05 Thank you so much for taking the time out.

00:07 Let me start by asking you about the quarter gone by.

00:10 We're looking at a six and a half percent growth in your revenue.

00:13 I want to understand as to the factors that have actually contributed to this growth.

00:18 I also want to see and rather understand the impact of the railway haulage rates

00:23 and how they panned out and that what sort of a consequence

00:28 that they have when it comes to your top line.

00:30 Yeah, actually, we have posted excellent results for Q4 of this financial year.

00:40 In fact, this has been the best quarter ever in the company's history

00:44 as far as top line is concerned.

00:46 And the drivers for this growth has been steady volumes in Ex-Im

00:52 and very good growth in domestic volumes also.

00:56 And we have identified several circuits in domestic

01:00 and eliminated the empty running to a great extent.

01:03 As far as Ex-Im is concerned, in fact, Ex-Im and domestic both.

01:08 There was a slight effect of the haulage busy season surcharge

01:14 that was imposed by railways from October.

01:17 But by this Q4, all these were absorbed by the industry.

01:24 And whatever hikes strategically, wherever we have passed on to our customers,

01:29 they have now more or less accepted it.

01:32 And the business is quite stable now.

01:34 So double digit volume growth, 11 percent to be precise.

01:38 Is this what we can expect going forward into the next financial year as well?

01:43 Or do you think that we could do better than what the volumes that we've seen so far?

01:51 Yeah, in this financial year, we are expecting 15 percent growth in Ex-Im

01:56 and 25 percent growth in domestic.

01:59 So if we combine these two, there will be growth of 18 to 20 percent

02:03 in this financial year.

02:04 That is the guidance I would like to give to the viewers.

02:08 So that that is an incredibly positive guidance going forward.

02:13 That's these are very strong projections.

02:16 So I just want to understand then, because we've also seen an expansion

02:19 in margins for Q4 specifically, and this is due to tune of nearly 100 basis points.

02:25 Well, about 90 basis points is my according to my calculation.

02:28 So you were making a point about the impact of railway haulage rates going forward.

02:34 Do you think that there could be some amount of volatility in your margins in FY25?

02:40 Is this the range that a container corp could be with

02:44 over the course of the next few quarters?

02:46 See, it has been the philosophy of container corporation

02:54 that we give excellent service to our customers without sacrificing our margins.

03:00 And it has been well, you know, absorbed by our customers.

03:03 And they are very happy with our service.

03:06 And they don't mind paying a little bit extra for the service that they get.

03:10 This is this philosophy will continue in the future.

03:14 Plus, we are bringing out some new products in the market,

03:18 which will be the main growth drivers for this financial year.

03:23 And I am very, very hopeful.

03:24 We have an initial discussion with our customers and they are looking forward to it.

03:29 And we are very hopeful that we will bring more volume into our fold

03:34 and we will not sacrifice our margin.

03:37 We have been maintaining an EBITDA of 25% for the last several quarters,

03:42 which will be continued to be maintained.

03:44 Right. So can you tell us about these new products that that are on the anvil

03:49 going forward?

03:50 Yeah, actually, we will be starting

03:56 loading of bulk cement in tank containers, which is a new product for us.

04:00 And we are aiming to capture

04:04 a lot of bulk cement in the country.

04:07 Secondly, we will be starting the double stack trains for Navasheva

04:12 up to Varnama terminal that is near Baroda,

04:15 because we are hopeful that DFC connectivity will be given up to Varnama.

04:21 So from NCR region to Baroda, we will be running double stack trains

04:25 that will that way we are hopeful of shifting a lot of cargo into our fold.

04:30 And thirdly, we are,

04:34 you know, hopeful of getting more business in our new terminals

04:37 that we have commissioned.

04:39 We have had talks with our customers.

04:41 They are very, very bullish about our services.

04:44 They are very happy.

04:45 And so we feel confident and emboldened

04:48 that we will be able to achieve this target, you know, in the financial year.

04:53 All right, Mr. Swaroop, you know,

04:55 one of the notes also suggests that there's been a there was a demand notice

04:59 from the Indian railways for land license fees worth about nearly 700 crores.

05:04 So can you give us an update here?

05:07 We want to better understand what what this means.

05:09 Yeah, we keep on receiving demand notes from Indian railways.

05:13 That is a continuous process.

05:15 But we have reconciled the payment of land license fees with Indian railways.

05:20 So there is nothing to, you know, get worried about it.

05:23 So we will handle this issue and we will continue to make the payment

05:27 as per the agreed formula with Indian railways.

05:30 All right. Fair enough. Fair enough, sir.

05:32 So also a word on the strategic divestment plan.

05:35 Any updates on that?

05:36 Where has process reached? What's going on with that one?

05:39 See, it's a government policy that they want to divest.

05:47 So we are following the directives given by government of India.

05:51 So whenever we get any update, definitely we would like to share with you.

05:55 All right. All right, Mr. Swaroop.

05:58 We leave it at that.

05:58 Thank you so much for joining us here on NDTV Profit.

06:01 And we will be back with another episode of the NDPTV.

06:05 On NDTV Profit.

06:06 And we look forward to having a conversation once again soon after.

06:10 Thank you.

06:11 [Music]

Railway Haulage Rates To Impact Concor's Margins? | NDTV Profit

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