Allcargo Terminals Limited (ATL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to All Cargo Terminals Limited Q1 and FI27 earning conference call. As a reminder, all participant line will be in the listen-only mode, and there will be an opportunity for you to ask question after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suresh Raman from Stellar IR Advisors. Thank you, and over to you, Suresh.

Thank you. Good morning, everyone, and thank you for joining us today. We have with us today the Senior Management Team of All Cargo Terminals Limited, Mr. Suresh Kumar, Managing Director, Mr. Preetham Bharta, Chief Financial Officer, and Mr. Sanjay Punjabi from the Investor Relations Team. The management will be sharing the key operating and financial highlights for the quarter ended June 30, 2026, followed by a question and answer session. Please note, this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Suresh Kumar, sir. Thank you and over to you, sir.

Good morning, everyone. A warm welcome to everyone on the All Cargo Terminals Limited Q1-FI27 Earnings Call. The results, press release, and presentation were uploaded on the stock exchanges and the company's website. I hope everyone has had an opportunity to go through the same. Q1 unfolded against a backdrop of continued global uncertainty, including disruptions arising from the geopolitical developments and fluctuations in trade flows. Despite these challenges, India's trade and logistics ecosystem remained resilient, supported by steady economic activity, improving infrastructure, and the country's growing importance in global supply chains. Against this backdrop, all cargo terminals delivered a stable operational performance in Q1. Our container volumes grew 7% year on year, demonstrating the resilience of our business model and the strength of our customer relationships. More importantly, we continue to improve profitability, which has been an ongoing trend for the last eight, nine quarters. As we move into the next phase of growth, our focus remains anchored around five strategic priorities. Let me take you through them. First, expanding capacity to accelerate growth. Over last year, which is FI26, we increased our annual handling capacity by nearly 20% to approximately 1.03 million TUs. This capacity expansion provides us the necessary headroom to capture future volume growth, organic growth on the back of India's story. Second, scaling volumes while retaining margins has been a priority. Growth for us is not merely about increasing volumes. It is about growing profitably. We remain focused on discipline pricing and commercial terms and effective resource utilization. The improvement in profitability during the quarter continues to reflect the effectiveness of this approach. Third, leveraging technology to elevate operations. You would recall that All Cargo Terminals was one of the early CFSs to adopt digital technology in both XM side of cargo clearance, The MyCFS is a proprietary app that we have, which has been well accepted by our customers, both direct and indirect customers. During the quarter, we continued the rollout of our smart yard management system across locations with the pilot phase happening in our largest facility, which is a JNPT. This initiative is designed to improve asset utilization. Enhance operational visibility, reduce turnaround times, and ultimately deliver a superior customer experience while optimizing costs. The fourth pillar is widening our footprint to capture emerging opportunities. We are all aware India's long-term logistics growth story remains compelling, driven by manufacturing, expansion, infrastructure development, and rising trade activity. We are positioning ourselves to benefit from these structural tailwinds. Construction of the Faruknagar Private Freight Terminal remains on track for completion by May 2027. Work is in progress. While the tendering process for the speedy JNPT expansion, where we got a renewal of the contract for 10 years, has been completed, and the work will start post-monsoons, this will add approximately 60,000 queues of annual handling capacity for us in speedy JNPT, which is the closest facility to the port in Navasheva. Alongside these projects, we continue to evaluate opportunities to expand our PFT and ICD footprint in strategically attractive locations. Last and the fifth pillar is to deepen relationships to grow market share. Our longstanding partnerships with customers, shipping lines, and other stakeholders remain a significant competitive advantage. By consistently delivering reliable service and efficient turnaround times, we have continued to strengthen our positioning in the market, and we expand our share of wallet with key customers, also leveraging the overall integrated logistics solutions that the All Cargo Group offers. Looking ahead, we remain optimistic about the opportunities before us. While external uncertainties may continue in the near term, India's underlying trade fundamentals remain strong. With expanded capacity, ongoing technology investments, and the disciplined approach to execution, we believe all the other terminals is well-positioned to deliver sustainable growth while creating long-term value for all stakeholders. Before handing over to... The call to Pritam, I would like to share a significant change, which is in transition at all cargo terminals. I am very happy to share with you that we have a new managing director designate, which is Pranal Chaudhary, who comes in from Adani ports. That was his last assignment. He was the chief executive. He will take over the reins from me as I superannuate and step down from my role of managing director by the end of this month. So, Pranav will take charge from September 1st. We have requested him also to be part of this call and I request you to continue giving him the support that you have extended to me and the management team now through Pranav from September 1st. Thank you and I hand you over and a quick word from Pranav before I hand you over to Pritam.

Good morning, everybody on the call. This is Pranav Chaudhary. I have just joined All Cargo a week back.

Thank you for being on the call and look forward for our continued relationship and partnership.

I will take you through the highlights of financial results for the first quarter of the new financial year. The total volume handled for Q1 FY27 stood at 176,490, reflecting a 7.2% growth year-on-year. Revenue for the quarters stood at 214 crores as compared to INR 187 crores for Q1 FY26 and INR 208 crores. Debita excluding other income for Q1 FY27 students. This implies an EBITDA for DU. The accountability came on the back of operational efficiency supported. And by higher share of transshipmen.

Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Reminder to all the participants, if you wish to ask a question, may press star and 1. Our first question comes from the line of Raj Doshi, an individual investor. Please go ahead.

Thank you for the opportunity. I have a few questions. So my first question is, what are the CAPEX and F527 and F528?

Thank you. Thank you, Raj Joshi. Your line is not quite clear, but I hope we are audible to you.

Yes, yes, you are, sir.

So your question was about CapEx for FI 27. This is part of the three-year plan in which we have identified key projects, and Preetam will share some of the highlights and the numbers with you.

I will link this question to the three years plan, plan 2030, which we are currently on path. So for our plan 2030, basically we had estimate of 400 crores of capex requirements, and this includes various projects which we have planned from Faruk Nagar to Chennai and SPD expansion at JNPA and also Munra expansion. Now, some of these projects would have actually started and the capex expenditure would basically start incurring from these financials. In SPDJNPA, we are expected to... So, overall, there is a requirement of close to 400 crores of capex. Various funding plan for these 400 crore capex has also been in place. Recently, we have raised an equity of 120 crores. Out of that, 25 crores we have already caught and close to 90 crores. This will be utilized for financing this capex plan. We have existing accrual close to Thank you. Thank you. There could be a certain debt requirement in the range of 100 to 150 crores, for which we have already tied up with. But to answer your question, we have plan for those two quorons.

Okay, thank you for that. And like how much would be from internal accrual and how much would be from debt or like do you have the bifurcation for that? Any plans for that?

Yeah, so maximum funds would be raised from our existing balance which we have maintained around 50 crores. Future cash flow over a period of project execution period would be close to 150 crores, so 200 would come from the existing accruals. As I told you, close to 90 crores would be used out of the equity which we have already raised in the past, and the debt requirement would be in the range of 100 to 150 crores.

Okay, great. Thank you. And my next question is regarding the EBITDA per TEU. So, once the ICB is fully operational, what are our targets for that?

So, if we are talking about Faruknagar ICD, the EBITDA for Faruknagar ICD would be significantly worse because we will be also factoring or participating into real revenue for Faruknagar business. So currently, we are looking to maintain our EBITDA per TU in the range of 2400 and that we have been able to maintain successfully for last few quarters. In our three years plan, we have targeted EBITDA per TU of 2750, that's including Farupnagar project. So we would be with Farupnagar project going low, that is the target EBITDA per TU we are looking to maintain.

Okay. Thank you. That's it from my side. If I have anything, I will call back. Thank you.

Thank you. Thank you, Raj.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Our next question comes from the line of Dave Raj, an individual investor. Please go ahead.

Hi. Thank you to the management and promoter for this opportunity. Sir, I just want to know that, do we get any business from our group companies, right, example, or Cargo Global, where they do LCL and HCL?

Yeah. So, for LCL business, yes, we use RCFS to handle the LCL containers for all cargo logistics. That business is there at JNPA, Munra, and Chennai, all the locations. We provide storage as well as handling services to all cargo. It comprises close to 10 to 12 percent of my overall revenue, and margins are on a similar level as we get it from our third-party customers. So, yeah, to answer your question, we do get business out of LCL from all cargo.

In addition, Mr. Devraj, also relevant to know that the All-Cargo Group, through its other listed entities, offer products and solutions which are adjacent to what All-Cargo Terminal does. So while we present solutions to customers, there is the oceanside logistics, the freight, which gets taken care of by All-Cargo Global. All cargo terminals does the port side logistics work, and then you've got all cargo logistics, which takes care of Express and the 3PL, the consultative logistics. So there are a set of customers who participate in all these products and solutions with us, while we remain separate entities to them. So that is, in some way, a cross-sell opportunity for us at an entity level, which our teams do.

Okay, not yet, sir. But sir, it was very difficult to understand for a long-term shareholder that there were four businesses which were cowed out. And we just did feel that there were some inside the group, one company gets a business. But now, as we are separately listed, so that was the question was coming from that point of view, how we will get more business. And it's okay, I'm done. So my question is related to the DEFC. How does the DEFC benefit our ICD business and rail?

Thank you. Thank you for this question, and this is a thought which keeps coming up in our quarterly conversations. So if you were to look at DFC, I'm sure as an investor you have looked at where the DFC starts, ends. Mundra is a very important cog in the wheel, and then you have got JNPA, the Navasheva connectivity, which has happened but still not fully functional in the manner in which should. When you look at CFSs, the kind of catchment area and the markets that we end up supporting typically are in a 200, 300, 350-kilometer range. So, Mundra, you can look at it that way, rail coefficient being high in Mundra, one of the highest in the country. JNPA, there is a scope for rail coefficient to become better. Lastly, the JNPA CFS is catered to a 250-kilometer radius. You have Bivandi, Pune, a lot of these industrial clusters is what we cater into. With the GFCC, obviously, there could be an increase in port volumes, which can trickle down into CFSs in the form of DPD-DPD or the regular storage ahead of the exports which happen. So we expect the DFCC to improve port efficiencies, which is the stated purpose. It gives customers choice, it gives customers speed, and as part of the value proposition for a customer, as part of the logistics chain, we expect those benefits to rub off on CFSs like us. And as you know, we are strategically located in We have two locations on the DFCC and now Farutnagar in the next one year will be the latest addition to that. Mundra we are present through two facilities. Navisheva also we are present through two facilities. So that is our view about how DFCC will have an impact, largely positive on our business.

Okay. So the rail line is connected to the Farutnagar and we will be the CTO, right?

Yeah, so there is a PFT and an ICD that we will have in Farooq Naga. So there will be a rail line connectivity. The PFT work is in progress. That will get completed before the ICD gets started. March 27 is the deadline for the PFT to be commissioned. So we will operate that as a standalone PFT for initial months before the ICD gets fully operational. And as you would know, we also have a strategic investment in HORCL. All cargo terminals holds about 7.5% stake in HORCL, which gives us, maybe in the next one, one and a half years' time, when the whole project is done, it will give us preferential access to DFCC, which will also help customers and consignees to save time when they move cargo from northern India to Mundra. So, that's what we are looking forward to. This is a little ahead. As we get closer to commissioning of the PFT and the ICD, we will share with you more details about how we plan to leverage that new facility.

Okay, sir. Thank you. I will join the team. Thank you.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star in 1. Our next question comes from the line of Omkar with Kotak Capital. Please go ahead. Yeah, hi, I'm Audubon.

Yeah, you're audible, Mr. Omkar.

Yeah, actually, Omkar is not there. I'm going to come here. I have two questions. Actually, one question only you answered very broadly in the last question. So, one question I have about the EBITDA margin, and you guys have seen improvement over a period of the last two, three years, from 17% to now 22%, upwards of 22% in the first quarter. Is it, one question, is it sustainable at 22% or the way you are improving the operation excellence? You see a further improvement in the margin from there, over period of time, but generally over period of time, because that's what your target is to improve the margin. So, can you take me through the journey, and can you tell me about the more operational excellence happening in the company, and what's the guidance on these two years?

Sure, sure, Mr. Omkar. I think it's a very relevant point, and we are happy that over the last eight to nine quarters, the efforts that we are putting in, in terms of both commercial yield management and optimizing costs, both are working hand-in-hand to deliver this upward trajectory. So, that's the first thing. So, what are the things that we have done till now? I think commercially, understanding the cargo mix, what's the kind of cargo which comes in 40, 20, all those things, over a period of time, we have optimized it to an extent, which is really hitting the sweet spot, and that is something on the commercial and the cargo mix type. On the cost side, I think by being part of a Pan-India CFS, we obviously have certain cost advantages, key costs like transport, key costs, the other key costs in terms of equipment and security. We managed to negotiate Pan-India and therefore end up getting rates which are very competitive. That is also something which flows down into our bottom line. The other thing is simply because there is capacity utilization which has consistently improved. So if you were to go back three years ago, post the COVID period, our capacity is used to hover around 65 to 70 percent. From that, we have built up our capacity. And the capacity utilization has also kept pace. So last year, we were at a capacity of about 8.3 lakh to use. We built it up to around 10.1 lakh to use. But the capacity utilization from a 60-65% increase three and a half years back hovers at a healthy 80-85% at this point in time. And there are a couple of our facilities which are really completely fully utilized, like our Chennai facility and one of the facilities that we have in Mundra. Therefore, the scale efficiencies start to come into play. So, if you were to look at it, it's a conscious effort over the last 8 to 12 months, both on the revenue, commercial management, yield management, using the right kind of scale efficiencies to optimize costs. We have also introduced technology in the form of MyCFS, which more... Which is more in terms of customer convenience rather than any direct impact on the cost. But I think because of that, we end up getting more stickiness from our customers, churn reduces, and therefore when customers stay with you for a long period of time, and we end up having a larger wallet share, that also adds to building up our EBITDA profile. So broadly, these are points that we have worked on, and we will continue to do these things to ensure that our margins remain at this level. And to final point about what is the kind of guidance that we have, freedom short while back said, That with the ICDs becoming part of the portfolio in about a year and a half time, there will be a natural increase which will happen. Even without that, we expect the profitability numbers to hover around the current level. Because as you know, the market is very competitive. And therefore, beyond the point, I don't think we can push yield management. And I think we are at a very ideal spot at this point in time. So we will endeavor to maintain profitability EBITDA per TU numbers in the range of 2,400 to 2,500 per TU. I hope this answers your question.

No, absolutely. Yeah, yeah, yeah. I got that. Because I just took an FI30, you know, expiration, and when you see revenue, what, 14 minutes per year, EBITDA 2.75. I just want to understand that this is the one-time or is it a sustainable because you got to explain the efficiency part and it is very relevant to your business. So that's what my curiosity that are we targeting 20 or 22. That's the question.

Thank you. Thank you for your question. Thank you.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and 1. Our next question comes from the line of Janhvi Sharma, an individual investor, please go ahead.

Hello. Hello, good morning. Yeah, good morning. Yeah, thank you for the opportunity. So, my question is, since it is such a high cash-rich business, any plans of coming out with a dividend payout policy?

Freedom will take that question. Thank you.

We do discuss dividend distribution in our board meeting. However, we are just, I think we just completed three years of listing. There are some very important and interesting investment plans which we are currently having. We look at ourselves as a company who is like in a growing phase. Very recently, we also raised equity capital to finance our projects and expansion plans. So, that's where I think this particular decision in terms of not declare dividend at this point of time, which we are leaning towards. As we execute our projects, as we go into the different trajectory where our cash flow requirements have been fully taken care of. We will look at those returning some of this money to our investors by way of dividend. As of now, because considering the plans which we are having, we are staying away from declaring dividend at this point of time.

So, the sentiment is, if there is an opportunity for us to deploy and create, Models and assets for the future which will have a longer-term competitive strengthening of our overall business. We are prioritizing that at this point in time, and we are a relatively young company, just completed three years of listing. So thank you for your support, and we look forward to this foundation being strengthened and multiple returns. Coming in through the Bharat Nagar project and other expansion, that being funded at this point in time, and then over a period of time in the coming future, we will move from this phase to a phase in which we become a regular dividend-paying company. So that's the philosophy that we follow as of now, and I hope that that makes it clear for you.

Yeah. Okay. Okay. Thank you for the opportunity. Thank you. Thank you.

Thank you. Our next question comes from the line of Rikesh Parikh with NVAlpha Asset. Please go ahead.

Thanks for the opportunity. First, just a regular accounting question. Our employee cost has increased slightly in the first quarter. So, any one-off in this or this is the runaway we should be taking for the full year?

Two things. One is on account of annual increments. Which is in the range of 10%. Plus, additionally, you would have seen that we have issued ESOP to one of the KMP CEO. And both these impacts have come into this current quarter. So, impact of ESOP would be close to 1 crore rupees per quarter. And the impact of increments you have already taken. So you can take this as a regular quarterly.

Got it.

And in terms of timeline of our new project getting streamlined, so probably Chennai and Parutna were literally third quarter, fourth quarter for commercialization.

So, thank you. Thank you for that. Let me also quickly take you through the projects that we have been talking about consistently. The projects that we have identified for capacity expansion from 8.3 lakhs to 13 lakhs, there are five projects that we have, out of which the first one was renewal of the CWC Mundra license, which we did along with an additional area coming in, so this happened early last year. Second one was the expansion of our flagship facility in JNPT, where we added yard capacity and then got enlarged facilities there with warehousing and other capacity. That added close to a lakh plus capacity there in JNPT. The third project that we have is a speedy renewal, which we successfully got the renewal. We got the term extended by another 10 years. We also got a commitment for a 40 crore. Facility upgrade in which we participate 50% and JNPA participates 50%. That adds capacity. Fourth, so these three projects are done. The first two are done. Third one, tendering has been completed. The work will start in post-monsoon in Mumbai, August, September, and should get complete by... Jan, February of 27. The fourth project is Farutnagar, in which there are two portions, the PFD portion and the ICD portion. The PFD portion should get completed by February, March 27, and the ICD portion should get completed by Q3, which is October, November, December 27. The other project for which there is advanced stage of negotiations which are going on is to identify a facility which is closer to the Katupali cluster of ports in Chennai. We are in discussions to identify a facility, and once we have clarity among the options that we decide to choose, Possibly in the next quarter call, we will be able to give you firm timelines. So this is the timelines that we are operating with. Other than this, there is a project that we have identified, which is the Mundra project, where we have acquired land. But then we have the current licenses with the Adani, as you said, available till 2030-31. Depending upon what happens to the extension discussions with the landlord there, we will take a call whether to continue with the same or build a larger facility outside. So that's a call that we will take during the year. Even without that, we are well poised to get to the 13 lakh capacity that we have planned in our 2030 vision. Therefore, I wish to assure you that what we require on capacity and headroom has been, is virtually, we have complete visibility of the 13 lakh capacity that we require. I hope this answers, answers your question, Mr. Bharik.

Yeah, sure.

Just... This JNPT, the new speedy

thing, what we've done, so that ramp-up is already there, and the

upgradation will be operated by JanFeb, right?

I'm talking about JanFeb, yeah, 27, because the tender has been done, the contractor, I think this is appointed through JNPA, we participate as a partner. But that should get done in the coming month, and then the work starts post-monsoon. So your timeline that you have indicated is correct.

Okay. So for the full year, probably means we should go with the current capacity only, and the new capacity will be likely coming up from the next year onwards, means the ramp up as such, right?

Yeah. Yeah, that's sad to say that, yeah.

Sad to say, yeah.

Thanks. Thanks. That's it for myself. Thank you. Thank you.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and 1. Our next question comes from the line of Utsav B, an individual investor. Please go ahead.

Hello, sir. Am I audible?

Yes, you are audible, Mr. Utsav. Please go ahead.

Thank you for the opportunity. Sir, I would like to, you know, know a bit more about the MyCFS portal that we have launched. I mean, at like... I mean, how does it function, and how much of the customers are currently using MyCFS, and I mean, what are the plans of this going ahead?

Thank you. Thank you for this question. So, two years back is when we launched this app and portal for our customers. So if one were to go and understand, and I'm sure you would have done a bit of this as part of being our investor, is to understand what typically happens in a CFS with regard to the entire process of import and export. There are a lot of manual work which needs to be done with regard to writing forms, filling forms, and the whole payment and the interactions which are there. So there are multiple steps which need to be done. And for that, our customers and our customers' agents, the CHAs, would have to come to our CFS and then do a lot of this work, including being there physically when they have to move a container and place it for inspection and things like that. So we went through this workflow for a customer, and the principle that we adopted was whatever could be done from outside the premises of the CFS, sitting in the confines of the CHA or the customer office, can be done through this app. And that is when we lost this facility for customers. First, we started with imports. And the whole import cycle, if there are hypothetically 14 or 15 steps involved to get an import container cleared, I think we have We've automated about 70% of that workflow through the MyCFS app. There are some portions which need to be integrated with the customs and other ice gate and other solutions, which we will do at the right time when the API and other kind of permissions work out. So what does this do for the customer? Basic documentation, entry of necessary forms, placing of requests for inspection, and invoice generation and the kind of tracking can all be done through the MyCFS app, saving time for the CHAs and the customers. We are now slowly extending this to the export side. If you were to look at the volumes that we handled, 75 to 80% of volumes handled in our CFSUs as imports. And large portion of that is done through the app. Exports, we have now started doing a portion of the export work also through the app. And whenever we are able to integrate it fully, like so many systems which are happening in the country, whether it is in banking or any other service, I'm sure there's a lot more of digitalization which will happen in the customs interface. We are well positioned with regard to the necessary work which needs to be done to integrate. So, this is largely a time and effort saving for our CHAs. The adoption rate amongst our CHAs on this, large CHAs are more inclined to adopt this versus the marginal CHAs, and we have seen an adoption rate ranging, monthly usage rate ranging between 70 and 80 percent amongst the CHA community for whom this product is really targeted at. I hope that answers your question.

Yes, thank you so much. Just one more question. I might be a bit harsh in asking this, but I mean, there are a lot of CFS in India. So, I mean, just to get an idea how many of the CFS have this kind of a portal, just to have an idea.

So, in our understanding, we were one of the first to do this, and possibly, amongst the count of CFSs in the country, about 140-odd functioning. And there are very few who have multi-city presence like us. There are maybe two or three other CFSs who have this kind of a solution for customers.

All right, sir. Thank you. And just to think about the EBITDA for TU, I mean, how much of the increase has been due to our cost savings and how much has been due to, you know, favorable pricing from the customers? Just if you can touch upon that.

Difficult to segregate that. In terms of pricing, if you see, I think a year back we were hovering around 11,000-11,500 rupees per TU. Now, that is something which we have been able to push at 13,000 rupees per TU in the current financial order. So, yeah, I think substantial part of that has been achieved by way of better yield management and better selling practices which we have adopted. Also, in the last current quarter, we have also been able to increase our rates. The customers and that has also given us a good increase in terms of revenue per TEO. So, I would say this is a combination of yield management as well as cost saving. Maybe to answer your question, we can put it like 50% of the savings we have been able to derive by way of better yield management. And 50% of this improvement has come from our operational efficiency which is good. RST modernization plan, and yard management systems, and things like that.

Just to supplement what Pritam has said, please also look at over the last three years, there's also been a steady increase in input costs, whether it is fuel or the contracts that you have with transporters. So we have been able to absorb all that as part of the commercial rate changes which have happened. And after absorbing that is what you have seen, the growth in profitability per TU. And like what Pritam said, it's very difficult to put a finger. This also depends upon the kind of cargo mix that we have, which keeps fluctuating depending upon the kind of size of containers. And also we know that there are categories of cargo like ODC cargo, ones in which we do more of them, reefer, some of these are better margin cargo that we have. So it's a combination of all that, and I think whatever possible buttons or levers that we can press on this, we have activated them to get this upward trajectory.

Thank you, sir. Thank you so much for answering my questions.

Best of luck in the future. Thank you. Thank you, Mr. Wood, sir.

Thank you.

Ladies and gentlemen, anyone who wishes to ask a question may press star in one. Our next question comes from the line of Devaraj, an individual investor. Please go ahead.

Sir, through the private freight terminals, we aim to target the time is of domestic rail

to use or existing rail to use.

Can you please repeat the question, sir?

Sir, that's private spray terminal, right, in Farukh Nagar, which will come up, example. So, through that, we are aiming to target the domestic rail TUs or extreme rail TUs.

Yeah, so good question. I couldn't hear you clearly. So when the PFT starts, which is hopefully by March 27, the initial phase, it will cater to the domestic, and then when the ICD gets done, obviously this is meant largely for ICD, and in our business estimate and projections that we have, the volumes that this terminal will handle will be in the range of 20% to 25% domestic and about 75% to 80%.

Okay, okay, and sir, domestic EBITDA margin will be lesser, right, compared to the Exim EBITDA margin.

Yeah, you're right.

Okay, okay. And, sir, one thing, sir. Sir, in our website, you mentioned Nepal, right? So, sir, what exactly value addition we do, and how do we get business from there?

Yeah, thank you. Thank you for noticing that. Nepal is a small joint venture that we have. In Nepal, we operate one ICD, and we operate three ICPs, which is the checkpoints that we do, with a joint venture that we have with a Nepal-based partner. We are present in Tathopani, Biratnaga, and in Kathmandu, I think, with a CFS, and we operate the ICPs at Tathopani and Biratnaga. Now, with the rail connectivity, and you would have learned about what's happening with MERSC launching a rail service between Nepal and Calcutta, we expect more volumes to happen. So, there's a very small portion of the overall volumes and turnover and profitability that we do. This contributes at best about 2% to 3% of the overall profitability revenue that we have.

Okay. Okay. All right, sir. And, sir, just one thing, that renewal thing, right, in earlier participants' question, so that renewal comes up from port authorities or it comes from the customs authorities?

Yeah, so the JNPA renewal comes from the port authorities. So they are the landlord port, and therefore this is a SAMO model of CFS. The earlier contract was for 20 years, which got over in 2025, and we have now been able to successfully get a 10-year extension for that.

Okay, okay. So, our premises will be in the port premises or outside the port?

It's outside the port premises, but we are the closest CFS in Navasheva to the port.

Okay, okay. Not yet, sir. Thank you. Thank you for answering this question.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Suresh Khabar, our Managing Director at All Cargo Terminals Limited. Thank you.

Thank you very much. It was a pleasure sharing our results and our plans with all of you. I hope our responses to the question were complete and it gives you a good picture of how we are placed. In summary, we are very, very well placed when it comes to creating capacity and We are well on track for the three-year ambition that we have of becoming a 1 million TU operator with significant jump in EBITDA margin and profitability. All the key projects that we have identified are progressing well. And I also shared with you that there is a management leadership transition which is happening, and we welcome Pranav to be the MD of All Cargo Terminals from September 1st. He brings in a lot of wealth of experience having been on the port side of a large conglomerate like the Adani Ports, and he will, along with the team of All Cargo Terminals, take our business forward in the direction in which we have outlined it for the next three to five years. We thank you for your patient hearing and look forward to your continued support. Thank you very much.

Thank you so much, sir. Ladies and gentlemen, on behalf of All Cargo Terminals Limited, that concludes today's conference. Thank you for joining us and you may now disconnect your lines.