JSW Infrastructure Limited (JSWINFRA) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to JSW Infrastructure Limited Q1FI27 Earnings Conference Call, hosted by Investor Capital Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal enough data by pressing star than zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Vinit Passat from Investor Capital Services. Thank you, and over to you, Mr. Passat.

Thank you. Good evening, everyone. A warm welcome on behalf of Investec India to Q1FI27 Earnings Call of JSW Infrastructure Limited. We have with us the senior management team from the company, represented by Mr. Rikesh Roy, Joint MD and CEO, Mr. Lalit Singhvi, Strategic Advisor and Board Member, Mr. Nagarajan J, CFO, Mr. Vishesh Panjshananda, Head Investor Relations. Now, I'll hand over the call to senior management for their opening remarks, post which we'll open the floor for Q&A. Thank you. Over to you, sir.

Thank you, Vinit. Good evening, everyone, and thank you for joining us for our earnings call to discuss the performance for the quarter ended June 30th. The global economy continues to operate in an environment of mixed signals. Geopolitical tensions, trade-related uncertainties, and supply chain realignments continue to create volatility across markets. Against this backdrop, India continues to stand out as one of the fastest-growing major economies globally, supported by strong domestic demand, sustained government investments in infrastructure, and a resilient manufacturing sector. We remain optimistic about India's long-term growth trajectory and believe the country's infrastructure and logistics requirements will continue to expand meaningfully over the coming decades. Turning to her performance, JSW Infrastructure delivered another quarter of healthy growth despite a dynamic and challenging operating environment. During the quarter, we handled 31 million tons of cargo, representing a YI growth of 6%. Growth was driven by higher volumes across key commodities supported by increased group cargo and continued momentum across our ports and terminals. Notably, this growth was delivered despite a negligible contribution from our Pujira operations due to the challenging operating environment in the Middle East. Excluding Kujerak, our India operations recorded an impressive 11% year-on-year growth in cargo volumes, significantly outpacing overall industry growth and validating the strength of our business model and deep customer relationships. Our financial performance remained robust, reflecting the strength of our diversified portfolio and operating efficiency. Consolidated operating revenue for the quarter stood at 1445 crores, representing a growth of 18% year-on-year. Operating EBITDA increased by 16% year-on-year to Rs. 674 crores while maintaining healthy margins, demonstrating the resilience and scalability of our business model. The quarter was also significant from a strategic perspective as we continue to advance our growth agenda across ports, logistics, and adjacent infrastructure. Our long-term ambition remains unchanged. We are building a platform that can support India's growing trade and logistics requirements by expanding our capacity from the current 186 million tons per annum to 300 by FY28 and further to 400 million tons per annum by FY2030 or earlier, while simultaneously establishing a comprehensive pan-India logistics network. We intend to achieve this through a combination of greenfield developments, brownfield expansions, port privatization opportunities, and value-equative acquisitions. A key milestone during the quarter was the receipt of environmental clearance for Mubei, Maharashtra, along with approval for rail connectivity to the dedicated freight corridor. These approvals represent key milestones and strengthen the project's multimodal connectivity, supporting its timely execution and long-term competitiveness. Across our development projects, execution continues to progress steadily. The Slurry Pipeline project has crossed a key milestone with 251 kilometers of pipeline lowering completed, representing approximately 83 percent strong execution momentum with the project on track for completion by March 2027. At Jatadhar Port, Odisha, the construction activities are in full string with the innovation agreement executed with the anchor customer following the approvals received from the government of Odisha. At Kenney Port, we continue to make progress on statutory approvals and expect environmental clearance shortly. At Southwest Port Goa, we received consent to operate for the enhanced capacity of 12 million tons per annum, up from 11 earlier. The expansion work at Mangalore Container Terminal has been completed as a result. Capacity has been increased to 6 million tons per annum from 4.2 earlier. Meanwhile, construction at a Tutikorin bulk terminal is progressing well and remains on track for completion within the planned timeline. We also expanded our presence in the container segment to the award of the integrated development of the outer container terminal and berks 1 to 5 at Netaji Subash Dock, Kolkata, under a PPP framework. This project further strengthens our position in eastern India and upon completion will increase our container handling capacity in Kolkata to approximately 1.4 million TUs. Our brownfield expansion projects are also advancing as planned. At Jaigarh Port, major equipment packages have been awarded, while at Dharamsar Port, work on the conveyor system and barge unrolders are progressing well. These projects will further enhance capacity and improve operational efficiencies across our network. In logistics, NAVCA delivered another strong quarter of strong operational and financial performance driven by healthy volume growth and focused business development initiatives. It reported an operating EBITDA of Rs. 33 crores in Q1, an increase of 62% Y-on-Y, reinforcing our confidence in the long-term potential of the integrated logistics platform. We also continue to strengthen our logistics network with the commencement of operations at the Gati Shatri Cargo Terminal at Arpanam, Tamil Nadu, and interim operations at Kourtini Logistics Facility in Karnatak. Beyond the existing fleet of 25 rail rakes and 17 container rakes, including those operated through Navgar, taking our total fleet strength of 42, we have accelerated the scale-up of our logistics platform. As announced earlier, in April 26, we placed orders for an additional 25 container rakes and 15 rail rakes, reflecting our confidence in the growth potential of the integrated logistics business. I am pleased to share that we have already received the first two railway rates under the order, marking the commencement of fleet expansion under this program. The balance rates are lined up for scheduled delivery in a phased manner, which will further strengthen our rail logistics platform and support the growth of our integrated logistics business. This expansion is aligned with the medium-term objective of scaling a fleet to approximately 110 rail rakes and 140 container rakes, creating a combined fleet of around 250 rakes over the next two to three years, with a clear focus on asset utilization, returns, and earning visibility. A major highlight during the quarter was the successful completion of a Rs. 7,503 crores, qualified institutional placement, which witnessed strong participation from leading global and domestic institutional investors. The transaction reinforces confidence in our business model, execution track record, and long-term growth strategy. The capital raised further strengthens our balance sheet and provides significant flexibility to accelerate our journey towards 400 million tons per annum capacity, expand our integrated logistics network, and pursue value-attractive growth opportunities while maintaining disciplined capital allocation. Looking ahead, we remain focused on execution, operational excellence, and disciplined growth with a strengthened balance sheet, a visible project pipeline, and a growing logistics network. With that, I would now like to hand over the call to our CFO, Mr. Nadrajan, who will take you through the financial performance and other details. Thank you.

Thank you, Nikeshji, and good evening, everybody. Let me first talk about our port business. In QI-FI27, the company handled cargo volumes of 31 million tons, compared to 29.4 million tons in QI-FI26, registering a growth of 6% of IOI. Increase was driven by strong performance at Jaigat, led by higher anchor customer volumes and increasing third-party cargo throughput from newer cargo segments. Further contributed by robust throughput at Dharamtar, South Westport and Ennor Bulk Terminal, along with interim operations at the Tutikoni Terminal. Growth was partially offset by lower volumes at Fujairah Terminal due to challenging operating environment in the Middle East, which impacted the third-party cargo volumes, which eventually stood at 48%. Operational revenue for the port segment increased by 11% during the quarter to 1208 crores compared with 1086 crores in Q1 FY26. Revenue increase was driven by volume growth and a favorable product mix. Operational EBITDA for port segment stood at 601 crores, up from 561 crores, a jump by 7%. EBITDA growth was largely driven by increased revenue, and the EBITDA margin was close to 49.8% vis-à-vis 51.8% a year ago. The dip in port EBITDA margin is mainly attributable to the lower contribution of volumes from Ozeropo. Naukar delivered strong operational financial results in Q1 FY27. Total domestic cargo volume stood at 3,85,000 tonnes, up 40%, compared to the same period last year, While Exim Cargo Volumes reached 83,000 TUs, representing a 2% growth. Revenue from operations for Naucar rose to 191 crore, up 38% YOY, while operating EBITDA climbed to 33 crore, representing 62% growth, compared to the same period last year, showing substantial improvement, while net profit increased to 12 crore, a significant increase from 2 crore in the previous year. Overall logistic business, including Naukar and the Rakes business, has generated a revenue from operation of 237 crores compared to 138 crores in the same quarter previous year. Operational EBITDA for logistics segment stood at 73 crores, up from 20 crores, an increase of 3.6x. EBITDA margin rose to 30.6% for the logistic business from 14.5% earlier. Total consolidated operational revenue for the company stood at 1,445 crores and the operating EBITDA stood at 674 crores reflecting a YOY growth of 18 and 16% respectively. Consolidated depreciation was 166 crores and finance cost was 95 crores in the current quarter as compared to 143 and 91 crores, respectively, in quarter-ended June 25. PBT was 463 crores versus 473 crores, mainly reflecting a lower other income, given the continued capex spend for the growth projects. PAT was 358 crores versus 390 crores, driven by lower PBT and higher ETR. For F27 and F28, the company plans to invest approximately 16,500 crores, with a significant portion around 13,000 crores allocated to the port segment and 3,500 crores yearmarked for logistics space. The company has incurred a cumulative capex outlay of approximately 6,900 crores up to June 26, including 671 crores spent during quarter towards ongoing and existing growth projects. In addition, the company has already committed further 5,500 crores of KPEX by placing orders for machinery, long-lead items, and other civil work towards the ongoing projects across sports and logistics segment. During the quarter, we successfully completed a landmark 7,503 crore QIP, attracting strong participation from marquee global and domestic institutional investors. Given the QIP receipts of 6,555 crores into the company, as of June 26, we have a net cash position of 2,769 crores. This, coupled with steadily increasing annual cash flows from current asset base, we are well positioned to pursue a growth plan to enhance our present cargo handling capacity to 400 million tons and in parallel grow our logistics business. I am also pleased to share that Moody's has assigned JSW infrastructure an investment-grade rating of BAA3 from the existing BA1 with a stable outlook, reflecting our strong financial fundamentals, disciplined capital management, and resilient business model. With this, I would request the operator to open the lines for Q&A. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and run on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bharani B from Evendus Park. Please go ahead.

Good evening. My first question is on the cost escalations due to the ongoing geopolitical crisis and how it has impacted our ongoing under construction projects like Slurry Pipeline. That's my first question.

So, the slurry pipeline work, as I mentioned earlier, we have crossed a very important, you know, landmark. We have now moved to 251 kilometers by end of June of pipeline lowering, and it has not affected any ongoing projects in any way. So, you know, there were some on and off issues with somewhere of LPG gas availability or diesel availability, but these were, you know, a normal part of project execution. So, we have moved ahead and the projects are moving on quite nicely.

And Bharani, the total project cost always has a contingency component. So any such minor escalations get adjusted in that contingency component and eventually it won't affect the overall project cost.

My second question is, it's due to note that if you've got general clearance for Moorbex, could you use status on daily, yes, we know it is being awaited, but where is the process and when we can expect it by last time? Could you be louder, please?

Varini, I think you are quite far from the speaker, so if you can come closer and repeat your question.

Sorry for that. I was asking the status of getting environmental clearance for KB port, where it is at, when we can expect it first.

So, KB port clearance is currently, we have applied at the Karnatak Coastal Zone Management Authority. So, they are now examining the matter and they will be forwarding the case to MOFCC. So, once it moves to MOFCC, then further approvals will be accorded. So, this should take another, you know, three to four months time to get the environment clearance in place.

Understood. Thank you so much and all the rest, sir.

Thank you. Participants who wish to ask questions may press chat in one at this chime. The next question is on the line of Preyankar Bitswas from JM Financial. Please go ahead.

Thanks, sir, for the opportunity and congratulations, sir, on the QIP that had a successful QIP recently. So my first question is, like, I understand that your Middle East volumes were impacted by

We have the current participant is connected. The next question is from the line of Shubham Barode from ICICI Securities. Please go ahead.

Hello. Congratulations on a good set of numbers. And volume growth has been here in this quarter. So, how do we see the volume growth for this year, F-27?

So, we, you see, we are taking into account loss of cargo handling at Fujairah. We are taking that into account. We should, you know, deliver you a number of around 127 million tons this year.

Okay. Thank you. Thank you. The next question is from the line of Priyankar Biswas from JM Financial. Please go ahead. Am I audible now?

Yes, yes.

So, sir, my first question is, if Fujairah operations were normal and not impacted by the Iran-US incidents, so what sort of additional EBITDA you could have possibly delivered in this quarter?

So, the post-601 crores, which we have delivered now, that would have become around about 670 to 675 crores.

So, 60-70 crores additional, you are saying, EBITDA.

Because the expense of 8 crores of Fujairah is already baked in this 608 crores, which is a drag. So incrementally, we would have got that 70 crores, taking it to say 675 crores of operating EBITDA for the port's business.

Okay, sir.

So, in which case, if we see on an underlying basis, and generally in the fourth quarter, you have the take-on pay also. So, ideally, we are actually doing slightly better than the guidance. Is that the right way to look at it?

Yeah, you can say that. And if you look at it, even the India performance, as we try to tell you, the Indian growth volumes, they showed a growth of around 11% in this period.

Yeah, but you have to stick to a guidance of 3,000 crores, Priyankar, in terms of the EBITDA.

Okay. So, there's one more question since Kolkata is a new development. You have already provided like 740 crores would be required as the CAPEX. So, if I may ask like at a steady state, what sort of revenue and EBITDA would be possible from this port? Let's say from FY30 onwards, like assuming the asset comes up in late FY28.

It should be around 70 to 90 crores. It will be in that range.

So, this is the EBITDA.

EBITDA, I am talking about.

70 to 90 crores EBITDA you can make.

So, let me put it to you this way, that currently the existing facilities have a 90% capacity utilization. So, by 2030, when we expect full completion of all projects in Kolkata area, so we expect at least 75 to 80 percent capacity utilization in that place. So, these numbers will be going up because these are coming in three distinct phases. The first one is birth 7 and 8, second one is the outer terminal, and third one is birth 1 to 5. So, if we look at all the three put together, these numbers will be substantially higher.

Priyankar, what I spoke about was only the phase 1.

Oh, so this 70 to 90 crore is phase 1.

That's birth 7 and 8. So, that's what I wanted to clarify to you. These are coming up in three phases. Birth 7, 8, outer terminal 1 and 2, and then birth 1 to 5. So, these all put together is 1.4 million TU. And when we get all the three in, you know, place, by that time, the starting point would be 75 to 80% capacity utilization.

Okay, sir. So, if I, I'm just paraphrasing. So, in the first phase, you should be able to get at least like 70 odd crores. Is that the right way to look at it? Like, once you are done with the first phase? 0.45 million TUs.

On full completion, you can take it to 90. This is the prevailing NSRs which are there. And we believe it can go up in the next 2 to 3 years by the time this stabilizes. So as of now, you can take it at 90. But overall, if you look at it for the entire 1.4 million TUs, you are looking at somewhere around about 300 to 350 crores. Yes, correct.

Okay, 300 to 350 floors in the long term, when all cases are there?

Yes.

Okay, and if I can just squeeze one more in, like I understand that you have got the environmental clearances for the DHP connection, right, for Moorbay, but what about the environmental clearances for the port itself, that is Moorbay, that is one.

So, the EC is for the entire project for Moor Bay, which includes the connectivity corridor.

Okay, so you should be able to now start construction, let's say, next year, possibly, in that case?

We are looking at starting it in Q3, somewhere by December, we should be starting the work. Although, all preparatory works, we are targeting to start within a month.

Concession agreement will be signed in the next two to three months. Order placement will start now, and construction will commence by, say, December and January.

So, already tenders have been invited, so we will be moving ahead quite fast from this.

Okay, sir. And any updates on Oman? So, that's my last question, because given this Gulf crisis, what I understand is a lot of Middle Eastern countries are actually pushing forward their projects,

So, as you have rightly stated, this port is outside the Straits of Hormuz, very strategically located. We have already invited bids on June itself for port construction. What is now awaited are some few details where the conditions precedent from their part has to be completed. After which, the concession agreement will be signed and then will be moving ahead. So, these will be all done parallelly. The award of the project, the concession agreement, so this should take another, you know, month or two to get it completed.

Thank you. The next question is from the line of Aditya Moghia from Portech Institute. Go ahead.

Hi. Good evening, everyone. I hope I am audible to you. I will go ahead with my first question. As in just taking the lead from the last person, I arrive at an EBITDA margin at a port business which actually improves Q1Q if you add back the 60 crore amount. While you had some pass-through income in fourth quarter, if 1-2 numbers are better, could you help us understand where and which ports are driving the margin expansion on a Q&A basis, while otherwise it should otherwise be falling?

Yeah, it is primarily Jaigar, which has, you know, driven the revenue as well as EBITDA in this quarter, and I think that's the only port. And third-party volumes also have gone up, primarily cargo mix, especially in Jaigar, because we have handled alumina as well as project cargo in Q1, that has resulted in some incremental EBITDA in this quarter.

So, just to clarify, these are obviously recurring volumes that have started coming in, so whatever margin improvement is happening should sustain, right?

No, these are in this quarter, especially the ones on aluminum and project cargo were there in this quarter, but I don't think this may be recurring in nature.

Okay, understood. So, the second question that I have all posed on some deferrals that have happened, especially Kenny, I think by one year the project has been deferred now. So, just I just wanted to get a sense of what are the key important elements from here on which may lead to any further delays or is everything in control over there versus the FI 30 guidance that we have today. I am asking that because we understand that it is a difficult project to get up and running that's all.

So, actually, if you look at it, you are absolutely right. We, you know, got the concession earlier in Kenney, but if you look at the EC, we have got it earlier in Moorway rather than Kenney. This has been actually something which was beyond our control because the KCZMA was not constituted for close to, you know, six to seven months in between. There were some issues. So, that statutory body was not there. So, apart from us, others were also affected in that process. So, that has actually delayed that entire process.

Yeah, so, as a related question over there is that, should one anticipate beyond using any execution challenges to also kind of spring up given the topography of the area? I'm trying to get a check that the F530 is fine, not as a fine time.

No, we don't foresee much of, you know, any problem because, again, these models that the port models that we have come up with are basically reclamation models in the sea. So, the land acquisition parts are very minimal. So, we don't foresee much of a challenge. Whatever is a local project challenge that we'll be facing.

Understood. Again, just a small clarification, if you could suggest the other income decline is quite stark Q1Q. Should we just presume that this is linked to K-Fix or maybe some one-of-same things correct from here?

No, last quarter, if you look at Q1 of FY26, the treasury balance was on the higher side. Of course, CapEx spend has been on, equity contribution is on for all the projects which are ongoing. That is where the treasury balance has come down. But as of 30th of June, as you are aware, the QIP proceeds have come in. So, the treasury income will shoot up at least for the rest of the year.

Understood. Those were my questions. Thank Thank you.

The next question is from the line of Alok Devara from Mutila Lumswal. Please go ahead.

Yeah, I just had a couple of questions. One is on the Middle East disturbance now. When do we, I know it's a difficult thing to answer maybe, but when we are giving the guidance, what are we expecting in terms of if the volumes normalize or have not given any much contribution from that? And also on the insurance side, if there is, what would be the process there and how much recovery we are expecting from that side. So that is question one. Question two is on the link to the previous question, when the value mentioned that the port margins have improved, but there is certain component of one-off. So we are expecting those things to completely kind of come back to the 4Q levels in the second and third quarter onwards.

So, I'll just answer your questions on Fujaira. Number one, by July end, that's another 13, 10, 11 days, we expect to get eight tanks in Fujaira operational. So they'll be ready for operations. And then, you know, it depends on the climate at that point of time, whether prices are low, whether ships are going to come in. So that would be a separate issue, but we'll be ready for operations with eight tanks from July end or first week of August. So that's one part of it, and we expected a hit, and we have taken that into account when I told you that we are going to minus losses at Fujera, we should be touching 127 million tons per annum. And on insurance, we have already put forward claims and it has been told by our advisor that it's going on well. And we should expect a resolution by end of October. So that's the current state of affairs on the insurance side.

And talking about the EBITDA margins, so in other expenses, there is around 8 to 9 crores of expenses, which are one time in nature, which have been incurred in this quarter. There was shifting of crane in Jaigarhpur from one bay area to another bay area. So that is one incremental cost, which we have incurred. It can't be capitalized. So that is one item. And if you look at the volumes, primarily vis-a-vis last quarter, there has been growth in SWPL as well as in Dharamthar. So, these are also a bit of higher EBITDA margin ports, wherein the volumes have gone up. SWPL, as you are aware, the capacity has gone up. That's where the numbers are up. And Dharamthar, obviously, because of enhanced volumes coming from the anchor customer, there has been a jump in the overall volume. So, these will be more or less kind of normal in nature going forward.

Got it. Just one last question. So, you also mentioned about going ahead with the Oman port expansion there. So, are we like going ahead with that or is there still more like at the MOU stage with still a chance to change it or having some alternate there because if things don't go as per the plan in terms of geopolitical situation? Yeah, that would be my last question.

So, as I, you know, we have been repeating this part of it, that the area outside Hormuz has acquired a lot of strategic importance, be it in UAE or in Oman. So, every government is now stepping up massive investments on emergency basis to develop this coastline outside the Straits of Hormuz. So, we will be going ahead with this project because these words, it's in our perception and everyone's perception. These are not going to be continuing indefinitely. So, these projects will take another two, three years to come into stream. So, I think it's a good decision to move ahead. We'll be continuing on this.

Got it. Got it. Thank you, sir. That's all from my side. All the best.

Thank you. The next question is from the line of Ankit Shah from Ilara Capital. Please go ahead.

Hi, sir. Ankita here. Most of my questions have been answered, so it's one of two. Sir, we had plans to merge Navkar Corporation. Any thoughts on that?

We will communicate at the right time.

But that's not, we'll, you know, take a, not taken anything on that.

And are we looking at any acquisitions in the logistics space in this financial year, given that we are guiding for a strong growth this year and assuming, and next year also, I'm assuming it is building in some acquisitions as well. So anything that you can share at the moment on the same?

Yeah, for the rakes business, obviously, we continue to place orders for the rakes. On the terminal side, as you are aware, we have kind of bid for NCR rail, and that's at the fag end of closure, so that we should be closing in this quarter, and a couple of assets are in the NCLT, where we would like to participate in those assets as a bidder.

And you expect? Okay, then, okay, fine. Take care. I think, yeah, that's it for myself, yeah, sure.

Thank you. Thank you. The next question is from the line of Kondinya Nimagada from Jefferies. Please go ahead.

Yeah. Hi, sir. Thanks for the opportunity. So, my question is likely a bit on the medium-term trajectory, right, you know. Can you speak a little bit about, you know, the opportunity for third-party volume growth at some of your greenfield ports, especially something like a Murbay or your Caney port, right, as and when they come? Can you give a little bit of color on, you know, what the catchment looks like? What are the industries that you're looking for to drive up utilizations here? Because at least my understanding is that, you know, there is not enough support from group for this port. So if you can speak a little bit on that, please.

So at Moorbe, let's go step five. So at Moorbe, we are looking at, you know, there's an immediate industrial area in Tarapur, Boisar, Palgar area. So that's the immediate vicinity. You have a lot of cargo. Then pushing inwards, because you are bypassing the western Ghats, you get the hinterland of MP, you get the hinterland of Telangana and southern and western Maharashtra. So that becomes a big catchment area for traffic origin. So, here the traffic we are looking at is not only bulk, break bulk, containers, fertilizers, so there is a wide catchment area, and most importantly, the moment you are connected to the dedicated freight corridor, the hinterland opens up to North India also. So, that is where the, you know, key traffic elements are going to come from. Number two part was on Keni. So, Keni, we are also looking at, you know, the immediate hinterland behind, you know, the Bellari hospice sector. So, there's a lot of potential. Those areas are developing very fast with a lot of mineral-based and metal-based industries coming up there. So, the hinterland is, again, quite vibrant and growing. So, these are the areas we are looking at third-party cargo.

Just spending a little bit more time on Budbeh, right, you know, you also need to compete with something like, let's say, JNPT or, let's say, Hajira port or Adani port, etc., right? And given it's a greenfield code where you're just starting, what are your strategies? We can maybe speak a little bit about, you know, how do you intend to attract cargo from these customers?

So it's a question of how, you know, quickly we, number one, I would say, is how quickly we execute this project. That is number one. And since we have got the regulatory approvals with minimal land acquisitions involved, I think that's that part of the story we should be able to deliver quickly. Most importantly, if you would have seen, why we strategize to move into logistics was to have this integrated play, what you're looking at. So, we would be one of those few port operators who has a big logistics play right up to the hinterland. We will be able to deliver door-to-door services. So, that is where our USP comes in.

Sure, sir. Understood. Got it. Sir, secondly, a small bookkeeping question. I'm just sorry for hopping on this EBITDA margin part. So, even if I add that 8-9 CR right back to the ports, one-off thing, even then the margins actually look lower, especially given, you know, there's a significant contribution for something like a JL port in this specific quarter. Am I missing something or am I reading it incorrectly, if you can help me understand it, please?

No, no. One is that add back, as I said, and second is obviously Hojera is not there in play. So, that is something you need to add back. Had it been there, then what would have been the outcome in terms of EBITDA marking, which we just highlighted around 65 to 70 cores, we would have lost. So, those are the things you need to kind of add or subtract.

Sure, sir. And, sir, just to confirm, did I hear correctly that your revised volume guidance is 127 for the year? Thank you very much, and all the rest.

The next question is from the line of Keitan Jain from Evendus Park. Please go ahead.

Thank you. Congratulations, sir. So, my question is on the rates part. Have we added any rates in this quarter?

So, this quarter, we did not add. The first two rakes have been delivered in this week only. So, that's, I thought, as I told you, we wanted to share that good news. So, the orders that we placed in April, they have started, you know, fructifying here in July.

Okay. Okay. And how many rakes are we expected to add this fiscal year?

So, this year, our entire orders of 40 rakes are supposed to come on stream by Jan or Feb latest. So, at least we should be having, you know, a rake fleet of 80 rakes plus by end of Jan or Feb, we should be having that. I understood.

Just a bookkeeping question. I see in our presentation that we have mentioned rail rigs contributed 43 crores in revenue and 40 crores in EBITDA. Can you help us understand the high EBITDA margin in this?

Yeah, because only the premium and the rebate is what we have accounted in our revenue. There is one more option wherein we can take the premium rebate and also the freight charges. At that point of time, the EBITDA margin will be around 25%. In this case, since the haulage charges or the logistic freight has been netted off, so that is where the EBITDA margins are looking a bit elevated.

So, we will be following this policy from going forward.

It depends, like which kind of rakes we will be getting. So, if it is LSFTO rakes, LSFTO rakes, the treatment will be different. If it is for GPWS rakes, it will be different. And for container rakes, again, it will be a bunched service, because for container rakes, typically, you give a bunched service, wherein the logistics costs plus the handling are all packaged together.

Understood. Okay, thank you. Thank you.

The next question is from the line of Aditya Bhartia from Investec. Please go ahead.

Hi, good evening, sir. So we have the target of reaching 250 rigs by 2030. Just wanted to understand how many of those rigs are likely to be GPWA and LSFTO rigs and how many of those could be container rigs? And just a related question.

So, broadly, 150 would be container rigs, 110 out would be LSFTO and other GPWIS rigs.

So, only thing is, as of now, we have 19 rigs GPWS in our portfolio, and there is a moratorium on that. So, in case the moratorium gets lifted, then this 250 may also be revised upward. But as of now, what we have targeted is a mix of container rigs and LSFTO rigs plus the 19 In GPWS rakes, which we already have, that is where we are reporting it at 250, but in case the opportunity opens up in the GPWS phase, we may revise this 250 a little bit upward.

Understood, sir. Understood. And what proportion of these rakes utilization is likely to be linked to the group, and how much is it likely to be for third party?

So, the egg, it would be around, you know, 45-55, it will be in that ratio on the egg front, because the larger proportion would be container eggs, 150 versus 110, 110 would be more or less group, 150, some part of it will be on the group cargo. So, currently, if you look at NAFKAR and all the other operations that we do, it's around 75-25. 75 third-party, 25 group.

Perfect, perfect. That's helpful, sir. And just one more question on Murabey. In Murabey, what proportion of traffic is likely to be container? And within that, on the bulk cargo, how much of that is likely to be linked to the group? Or should we assume it largely to be third-party support?

Thank you so much.

Thank you. The next question is from the line of Shubham Barode from ICICI Securities. Please go ahead.

Hello. Thank you. Thanks for taking my question. My question is, for this quarter, majority of growth in volumes have come from Dumpter and Jagat. So, how do we see that growth in the next three quarters?

As we said, we will be keeping that headline number of 127 in mind and basis that the cargo volumes will play out.

The next question is from the line of Achal Lohadeh from Novama. Please go ahead.

Yeah, good evening, sir. Thank you for the opportunity. Just two questions, actually. First, if I understand you rightly, 127 million ton doesn't include Fujairah. What about 3,000 crores of EBITDA? How much loss or profit are we accounting for for Fujairah in this EBITDA, sir?

So, around 40% of the numbers we have baked in for Kudera. As Rinkeesh was mentioning that we will be ready to operate 8 tanks by August and say another 3 tanks by, say, September or October. So, we have baked in around 100 to 125 crores of EBITDA coming in from Kudera operations out of the 3,000 crores numbers which we have guided.

Got it. And in terms of volume? The second question I had, you mentioned about the third-party cargo, which got handled at Jaigert. Was that just the ODC cargo and alumina product, and that is more one-time, have I understood right, Or is there a recurring third-party cargo, a new set of kind of category which is kind of emerging?

No, from the project cargo as well as the alumina cargo, that is one time. But we have also got an incremental cargo on the LPG space. So that we expect to take it forward or continue in the subsequent quarters.

Right. Understood. One clarification in terms of the other income. The QOQ fall, if you could clarify, sir, you clarified on the YY fall. What about the QOQ? Was there any, like, large one-off income in this 90 crore in 4Q FI 26?

Yeah, because we had receivables from Hiranandani, which were in there, into JV with us in Jaigarhpur. So, on the receivables, around 40 crores of interest, they paid to us in Q4 of FI 26. So, that is accrued in our financials. Otherwise, if you look at it, Sam's dad, it would have been in that 50 to 55 crore mark in Q4 FY26. And this 40 crore you have received or you have accrued? It's sitting as a receivement? We have received and that's how we have… Received. Okay.

That is how we have accounted for. Okay. Understood. Absolutely. Perfect. Thank you so much for the clarification. Those were my two questions. Thank you.

Thank you. Ladies and gentlemen, that was the last question of the day, and I would now like to hand the conference over to the management for closing comments.

So, we delivered a strong quarter driven by healthy cargo growth, resilient operational performance, and steady execution across our growth projects. We continue to make good progress on our brownfield expansions, while key milestones at Moorbe and Jatadar further strengthen the visibility of our greenfield pipeline. Thank you all.

Thank you. On behalf of Investor Capital Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.