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Conference Call Overview • Date: August 2, 2024 • Focus: Performance for the quarter ending June 30, 2024 • Key Participants: • Suresh Kumar (Managing Director) • Pritam Vartak (CFO)
Economic and Industry Insights • Global growth projection for 2024: 3.2% • India’s growth forecast for FY25: 7% • Driven by increased private consumption and robust trade activity
Company Performance Highlights • Volume growth: 8%, outpacing market growth • Market share increase: 14% • Revenue growth: 5% year-on-year • EBITDA growth: 4% • Total volumes: 159,000 TEUs • Revenue: INR 190 crores • Net profit: INR 9.5 crores for Q1 FY25
Strategic Initiatives • Land acquisitions for new facilities in Mundra and Jhajjar • Operations expected to commence by mid-FY26-27
Financial Details • EBITDA margin improvement: 14.7% to 15.8% • Gross margin improvement: 32.4% to 32.9% • Growth attributed to: • Increased volumes • Absence of one-off items affecting previous results
Key Questions and Responses • Margins Inquiry: Improvements due to increased realizations and cost reductions • Revenue Contributions: • JNPT: 40% • Mundra: 30% • One-off Items: Current quarter had no one-offs; previous quarter included reversals of old provisions • Growth Patterns: Strong cargo volume in June continued into July, driven by international shipping disruptions and stable freight rates
Closing Remarks • Focus on organic growth, capacity expansion, and operational excellence • Optimism for continued momentum in upcoming quarters
Conference Call Overview • Date: May 21, 2024 • Participants: • Suresh Kumar (Managing Director) • Pritam Vartak (CFO) • Sanjay Punjabi (Investor Relations)
Global Economic Landscape • Projected global growth: 3.2% • Moderating inflation rates • Challenges in global ocean trade due to geopolitical tensions • India expected to become the world's fourth-largest economy by 2025
Company Performance • FY24 volume increase: 8% • Operational improvements and future growth plans: • Land acquisition in Mundra • ICD opportunities • Financial highlights: • Slight decline in quarterly revenue and net profit • Overall increase in annual volume and revenue
Margin and EBITDA Insights • Margin profile inquiry: • 14% margin questioned for seasonality or one-off impacts • Gross margin improved to 32.4% • EBITDA decline attributed to one-off expenses • Future projections: • 10% volume rise expected to enhance EBITDA and gross margins
Terminal and Expansion Updates • JNPT facilities EBITDA comparable across facilities • Speedy terminal license valid until December 2025; renewal discussions in early 2025 • Expansion plans: • New facilities in Mundra • ICD Jhajjar project targeting 2026 launch • Exploring Gati Shakti Terminal locations in Gujarat, Maharashtra, and Haryana
Market Share and Growth Model • Allcargo outpacing industry growth by 1-2 percentage points • Estimated market share: 10-11% • Volume growth guidance: • Target of one million TEUs by FY’27-28 • Driven by organic growth and new facilities
Closing Remarks • Growth drivers emphasized: • Operational excellence • Digital enablement • Strategic partnerships • Optimism for continued growth expressed by Suresh Kumar
Conference Call Details • Date: February 2, 2024 • Participants: • Suresh Kumar R (Managing Director) • Pritam Vartak (CFO) • Sanjay Punjabi (Investor Relations) • Moderated by Shaukat Ali (Monarch Networth) • Transcript Availability: Posted on the company's website
Company Overview • Established: 2003 • Position: One of India's largest container freight station (CFS) operators • Strategic Growth Pillars: • Organic and inorganic growth • Digitalization • Strategic partnerships
Economic Outlook • Global Growth Projection: 3.1% for 2024 • India's Growth Projection: 6.5% for 2024, driven by domestic consumption and government initiatives
Financial Highlights (Q3 FY24) • Volume Growth: 9% year-on-year to 154,000 TEUs • Revenue: INR 185 crores • EBITDA: Decreased to INR 29 crores • Net Profit: Increased to INR 15 crores • Nine-Month Performance: • Volumes: 459,000 TEUs • Revenue: INR 551 crores • Decline in EBITDA and net profit compared to the previous year • Balance Sheet: Net debt-free status
Key Discussion Points • Volume Doubling Target: Acknowledged challenges from competition, tariff pressures, and customer rebates • Hub and Spoke Network Pilot: Initiated in late 2023 to enhance logistics efficiency • EBITDA Stability: Normalized EBITDA per TEU remains stable at INR 2,000 • Dedicated Freight Corridor (DFC): Potential for improved EXIM efficiency, with plans for an ICD in Jhajjar
Competitive Landscape • Market Complexity: Competition primarily from existing players, especially at Nhava Sheva • CFS Utilization: Continued demand for CFS facilities for inventory management despite DPD services • Investment Plans: Focus on expanding ICD presence while maintaining an asset-light model
Challenges and Strategies • Impact of DPD: Increased DPD volumes generate lower revenue per TEU; CFS still plays a role in inventory management • Growth Strategy: Five strategic priorities including expanding existing CFSs and participating in government infrastructure projects • Government Initiatives: Aimed at enhancing logistics efficiency and supporting organic growth in the EXIM sector
Conclusion • Future Outlook: Optimistic about growth and profitability despite competitive pressures and external challenges.
Submission Details • Date of submission: November 10, 2023 • Earnings call date: November 7, 2023 • Participants: • Managing Director: Mr. Suresh Kumar • CFO: Mr. Pritam Vartak • Moderator: Mr. Mohit Lohia (ICICI Securities) • Transcript availability: Company website • Signed by: Hardik Desai (Company Secretary and Compliance Officer)
Company Overview • Established in 2003 • One of India's largest CFS operators with a 13% market share • Operates seven CFS and ICD facilities • Serves approximately 3,000 customers
Strategic Growth Pillars • Organic and inorganic expansion of CFS business • Exploration of DFCC-linked ICDs and Gati Shakti terminals • Operational excellence through digitalization • Adjacency opportunities in the supply chain • Strategic partnerships with shipping lines
Financial Highlights (Q2 and H1 FY2024) • Q2 volume: 156,647 TEUs (up 13% YoY) • Q2 revenue: Rs. 185 crores • Q2 EBITDA: Rs. 32 crores (down from Rs. 40 crores) • Q2 net profit: Rs. 12 crores (down from Rs. 14 crores) • H1 volume: 304,900 TEUs • H1 revenue: Rs. 366 crores • Net cash position: Rs. 11 crores as of September 2023
Q&A Session Highlights • EBITDA Decline: Attributed to increased volumes and competitive pricing pressures. • Asset-Light Model: Minimal CAPEX for future growth. • Customer Ownership Post-Demerger: Greater independence and financial flexibility. • Technology Deployment: Focus on enhancing customer interfaces and automating operations. • Working Capital: Minimal receivables from group companies; payables related to lease transactions. • Inorganic Growth: Openness to attractive acquisition opportunities. • Future Opportunities: Potential for acquisitions similar to Speedy Multimodes. • Cash Accruals: To be invested in short-term opportunities or considered for dividends. • EXIM Imbalance: Monitoring the situation but optimistic about future export opportunities.
Closing Remarks • Suresh Kumar thanked participants for their engagement. • Investor Relations team to follow up on specific inquiries. • Extended warm wishes for the festival season (Deepavali).