Earnings Call Transcript - XNSE:CONCOR 2026-11-03

Operator

Ladies and gentlemen, welcoming you to the Container Corporation of NDR Limited Q2FI27 Earnings Conference Call, hosted by Darm Capital Advisors Limited. As a reminder, all participant clients will be in the lesson-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Shah. Thank you, and over to you, Mr. Shah.

Kunal Shah, Other

Yeah, good afternoon. Welcome to the 2KF27 earnings call of Container Corporation of India. We have the management being represented by Mr. Ajit Kumar, the Chairman and Managing Director. I would like to hand over the call to Ajit, sir, for his opening remarks, post which we can take up the Q&A. Thanks, and over to you, sir.

Ajit Kumar, Chairman

Good morning, Mr. Kunal, and good morning to all the participants who have joined this conference call. Along with me, we have got the management team, Mr. Vijay Singh, our Director of International Marketing and Operations, Mr. Dibek Gupta, Director of Finance, Principal AGP Director of Finance and Company Secretary, Mr. Harish Sandhra, and our Group General Manager, Mr. Porek Agarwal. So, you are now welcome to ask your questions. Before you ask your questions, I will give my opening remarks. I am very happy to announce a fairly decent result under very challenging geopolitical circumstances. Conquer has demonstrated remarkable resilience amidst We have recorded highest-level physical performance in any quarter by posting total handling volume of 14,48,379 TUs. We have posted highest-level operating turnover at Rs. 2373 crores and highest-level total income in any quarter 2466 crores. The revenue growth has been 0.93%. We have announced a dividend of Rs. 1.9 per share, and the total dividend has now gone up to Rs. 3.5 per share in the past. We have also reported handsome profits. The stand-alone profits before tax have been Rs. 462 crores, that is amounting Rs. 154 crores per month, a very remarkable performance given the adverse circumstances through which we have gone. As all of you are aware, the ceasefire which was announced in the Gulf, it collapsed in few days, and the state of Hormuz for container traffic remains practically closed. The ports, which were the engines of trade in West Asia, they are not handling that. The trade has shifted to new ports of Furcacan and Fujaria, and also our ports, both on the western side and eastern side, they are doing handling, they are doing transshipment of cargo, which used to be transship in the ports of the Gulf region. Therefore, there has been lots of turbulence in the trade, but despite that, we have posted handsome results. Throughput in the H1, in the Exim segment has increased by 4.57%, and domestic segment 4.22%, total 4.48%. Our lead has also increased in the engine. In the Q2, we have got the lead of 722 km. This is its corresponding lead of 686 km in the Q2 of last year. In the domestic segment, our lead has gone up from 13 to 1,315 kilometers from 1298 kilometers last year. The average lead in Q2 has increased to 817 kilometers from 779 kilometers, that is increased to 4.9 percent. Our Nepal business has increased from 45 rates to 107 rates in this quarter, 138% increase. Bulk cement in tank containers, it has continued to increase. In this quarter, we have added 195 more containers. Containers have increased about 1100, and the volume we have reported was 12,000 to use. We service the entire year of 14,000 used last year. We have added 13 new rates in the quarter, taking the total 32 in the half year. Total number of rates now stands at 456. We have added 413 containers, and we have also added 7 re-stackers into our fleets. It is 299.75 crores in the quarter, so total half-year capex has increased to 418.05 crores. We have moved 1,661 double-stack trains. In the domestic segment, we have started one ASIO transit train, new ASIO transit train from Whitefield to Dougalcabar via Tondiarpet on 14th of August 26th. This is in addition to the ASIO transit train that we were running from Tikadi to Salimar earlier. In Exim Fund, we have now new direct code delivery, long lead traffic of JNPT to CTKR. In Quator 2, we have done 2374 volumes. Now, new LCL exports have started from Dadri to Dronagiri and JNPT. New Exim Longlead, GCCK to IDBR. We have now put 18.48% growth in REFOR exports. We have started new REFOR services

Krupa Shankar N.J., Analyst — Aventus Park

from Hyderabad to JNPT carrying pharma products.

Ajit Kumar, Chairman

We have got 7.48% growth in DPD exports, 3.28% growth in LADEN exports. All over, we have made a very strong performance in the quarter, and we are very hopeful that in the next half, we will have also very strong performance. The DFC opening has laid off to start cabotage service from JNPT to Dadri, and we hope in the next quarter we will further strengthen that particular stream of traffic. We have reduced our upper drag date rates for exim traffic from Dadri to JMPT and some other terminals. We have also reduced our exim rates at Kugalkabad so that Kugalkabad rises further as a passive terminal of Concord. In domestic front, the tile traffic at Morbi, which was affected adversely by war, this has now improved. We are getting robust growth there. Ghani bells, which has also affected in eastern India because of geopolitical issues and have got cutted out. Whereas we had no Ghani bells in July this year, but from August and September, we are getting good traffic. And August and September, we got good traffic in Guanibale. In bulk cement, as I have told, we are continuing to improve our traffic streams. We are now talking to fertilizer manufacturers for taking fertilizer back in containers. We have food grains, we had a little setback, but we hope, because the busy season is over in September, we hope we will get back some traffic from October onwards. Gale, we have signed a contract with them, that traffic is expected towards November end, and it will add further volumes to our domestic market. Then in the port market share, we have achieved improvement in JNPT. JNPT has gone up by 3.5% to 63.75%. So EBITDA, we have maintained a very handsome EBITDA to consider total income. Then the EBITDA is 25.79%. So despite all the turbulence that we had in trade in last quarter and the last, in fact, last half year, maintaining an EBITDA of 25.79% is very creditable, and perhaps it indicates the resilience that conquer hearts and the strength that conquer hearts to have good results in the next quarter. So, these are my opening remarks. Now, I will request the participants to start their questions. Thank you.

Operator

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. The participants are requested to use answers 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 Krupa Shankar N.J. from Aventus Park Limited. Please go ahead.

Krupa Shankar N.J., Analyst — Aventus Park

Good morning, and thank you for the opportunity, sir. My first question is more of a bookkeeping question. Just wanted to get a sense around what would be the originating throughput for the quarter across exam and domestic, please.

Ajit Kumar, Chairman

For the quarter Q2, the originating exam volumes are 5,75,401. Domestic volumes are 1,430,014. Total, 7,18,415. So, we have seen increase in domestic volumes.

Krupa Shankar N.J., Analyst — Aventus Park

Got it, sir. So the thought question was that also on to the part that in the domestic side of business, while, you know, we had earlier highlighted that we can go by about 15 percent, just given the first half has been relatively weaker. First, I want to understand how are you seeing the ramp-up of new contracts and how do you want to revise your guidance on either the EXIM or the domestic volume growth for F527? And continuing to that also that on the domestic profitability, the EBIT margins in this business have come down materially, right, to around 2% sort of a level. So, just wanted to get a sense around, is there any one-off costs in the domestic business which had impacted? Because we could clearly see that the extreme business avid margins were quite strong. So, these are the two questions, sir.

Ajit Kumar, Chairman

As far as this domestic guidance and the faster performance is concerned, as you are aware, due to the turbulence in Gulf, the gas supplies got affected to India. And we had the entire tile cluster in Morbi. It practically shut down in the first quarter. They have gradually revised in the second quarter. Up to, they were weak till July and August, September, we are seeing good volumes in tiles. Similarly, for the various geopolitical issues, the Ghani Bell traffic was totally affected in Bengal in the month of July. From August onwards, we have seen strong recoveries. Then the food grains, we had BGCGN subcharge applied on Pankor traffic from July to September. So, we didn't have that BGCGN surcharge was not there in railway BCN wagons. Then the polymer traffic was also affected. We are getting recovery there. Foot grains will have recovery because the BGCGN surcharge now equally applies to containers and railway wagons. Fertilizer, we are talking to various fertilizers, manufacturers. The railways have changed the rating system to GTKM-based. So we are trying to take advantage of that. So if we succeed, then we will start new streams of fertilizer traffic, bulk cement. Almost every week we are setting up new streams as more and more tank containers are joining our feet. Already we have got 1100 time containers, 2000 are in pipeline, and further more order we are planning. Similarly, we have got signed a new contract as I told you with Gale, and we expect traffic coming from it in November end. So all these things will see strong recovery in domestic traffic. And we are just watching the situation in the West Asia. Various media reports are indicating, giving contradictory views, that what is going to happen in November. However, we are optimistic that the things will get resolved if the trade routes get normalized and the West Asia crisis does not depend, then we will have strong volumes both in extreme and in domestic in the coming quarter. So, we will review our guidance in the month of December. Right now, we are just keeping quiet as far as guidance is concerned, because the situation is evolving. We don't know what is going to happen even by the end of this week. So the situation is evolving. We are taking a close watch. But our domestic signals are very strong. Like the country has demonstrated resilience in view of this war-type situation, we are also at Concord. We have maintained our volume swell and posted different results. And we are very optimistic that we will have strong performance both in Exim and in domestic and in other allied logistics services.

Krupa Shankar N.J., Analyst — Aventus Park

Thank you, sir. And that follow-up on the EBIT margins on the domestic business, sir, we can consider any one-offs you want to call, sir?

Ajit Kumar, Chairman

No, because, see, when the volumes, like volumes like tile volumes, it disappeared. So, there is a strong competition. We are not the lone participant in the market. There are strong competition. So, whatever was the remaining volumes for that competition was there. So, in order to keep our market share or continue to carry these domestic volumes, we had to, at places, yield as far as our rates are consumed in some places, but we have not compromised our margins. And some increase in expenses are there, whatever deep you are seeing, margin, those are fixed expenses, like staff expenses are fixed expenses, land expenses are fixed expenses. So, if the volumes rise, then our margins will improve.

Krupa Shankar N.J., Analyst — Aventus Park

Understood. I have more questions, and I'll get back in the queue.

Operator

Thank you. The next question is from the line of Priyankar Biswas, an individual investor. Please go ahead.

Priyankar Biswas, Analyst — JM Financial

Yeah, hi. This is Priyankar Viswas from JM Financial. So, my first question is, if I heard your commentary right, did you mention that the busy season surcharge has been removed?

Ajit Kumar, Chairman

No, no, no, that is not what we have heard is not correct. The issue is that during the July to September quarter, BGCG in such a did not apply to BCN wagons.

Priyankar Biswas, Analyst — JM Financial

Yes, yes, now it is very clear. And also, again, coming back to that, if I heard it right during your presentation, you had highlighted that there were certain price cuts that were made in, let's say, TKT and Nadhri. So, if you can tell me, like, what is the extent, let's say, in percentage terms, by which you may have reduced the rates, and as a result, at least in the second half of the year, how much would you expect that your realizations to come off because of that, and hence, any comment on the profitability?

Ajit Kumar, Chairman

So, we have revised the upper deck prices, 40 feet container prices, more double stack traffic. It is the depending upon the stream and the circuit, it amounts to 10 to 20%. So, depending upon the kilometers, different slabs are there. So, 10 to 20% price reductions we have effected. Similarly, in TKD also, the export and import handling costs have been reduced. That also amounts to different types of traffic. It also goes from 10 to 20 percent. So, we hope that because of these two reductions, we are encouraging, incentivizing customers, particularly in case of Dadri, Barnama, and other DFC terminals, to get traffic migrating from road to rail. So, we hope to have a model. In case of TKD, what was happening because of we were passing the entire land cost to the customers, so the customers were going out of NCR, and those cargo was coming from outside the NCR region into Delhi by trucks. Stocks were adding to pollution in Delhi. Now, by reducing our tariffs in TKD, we hope that the cargo which is consumed in Delhi itself will come by rail into the heart of Delhi in TKD. It will also have economic effect. It will have benefit to us. It will have more volumes. It will have also benefit to consumers in Delhi. The logistics cost will go down. It will have also an environmental impact that now cargo will come by train rather than by road into the Delhi. So, these are the benefits of that TKD traffic tariff provision.

Priyankar Biswas, Analyst — JM Financial

Okay, sir. That's very clear. And if I just may squeeze one more in. So, sir, in the 1H of FY27, the domestic volumes were particularly weak. I mean, so, of course, I understand the reasons that were provided. And I also understand that we had a particularly severe monsoon as well. So, maybe on top of that. So, in considering that in FY27 full year, what sort of growth should we pencil in for, let's say, the domestic traffic for the full year?

Ajit Kumar, Chairman

Yeah, you see, the domestic, so far, the handling volumes in the first half, it has grown by 4.22%. And originating also, there is a marginal increase. But the issue is that, as I told you in the beginning, the situation is evolving. If we, these geopolitical issues, we will just watch for one more month, that is very crucial, and then I will be able to give a good forecast. Right now, we hope that whatever guidance we have given in domestic, that will hold at least for the H2P. Right now, we are not giving because it is not correct to give revised guidance so frequently that it loses its quantity. Percentage, I am not telling you. Because the situation and the media reports are suggesting is evolving and no one knows that what it is.

Priyankar Biswas, Analyst — JM Financial

Okay, sir, that's very clear, and just a bookkeeping, if you can give the... Mr. Dishar, sorry to interrupt.

Operator

I request you to join back the queue for more follow-up questions. The next question is from the line of Achal Lohadeh from Novama World Limited. Please go ahead.

Achal Lohadeh, Analyst — Novama World Limited

Good morning, sir. Sir, my question was, you've kind of indicated there is a price reduction or the tariff reduction for the upper stack container. You also mentioned the price reduction for the handling charge at TKD. Is it possible to get some quantification? What is the revenue loss on account of this? And what kind of volume delta can we expect in the second half because of these actions?

Ajit Kumar, Chairman

After reduction in Dadri, we have now experience of two, three months, there is, instead of reduction in revenue, revenue is increasing in Dadri. So, because this is incentivizing, our volumes are increasing, so we are having increase in revenue in Dadri, we don't have any reduction, And TKD, we have just reduced it 15 days back. So, we are observing and we hope we will have positive, we will be positive on revenue. Despite those reduction is to incentivize to get more volume. So, we will be positive in volume and positive in revenue, both in Darby and TKD.

Achal Lohadeh, Analyst — Novama World Limited

Understood. Second question I had, if I look at the other expenses, excluding or reducing the line license fee out of the operating expenses of 344 crores, I see that the operating expenses have gone up from 210 crores to 240 crores. So, would it be possible to get some more clarity as to which line item has given this increase, sir, this 20 crore increase or 30 crore increase?

Ajit Kumar, Chairman

Yeah, you see, the primary, the reason of increase in operating expenses is a little bit of increase in staff expense, little bit increase in our handling expenses because of fuel price rise. And we actually, then similarly, our FMLM segment also, that is road transport segment also, there is a little bit rise in expenses because, again, the drop rates have gone off marginally. So no single factor can be taken out which has raised to the increase in these 20. It's very natural. There is nothing, no abnormal increase is there.

Achal Lohadeh, Analyst — Novama World Limited

Got it. And just last, if you could help us with the port-wise market share, please, sir.

Ajit Kumar, Chairman

Yeah, the port-wise market share, you want this JNPT, Pipawa, and Kadri or? So, JNPT, you know, we had the market share of 63.75%, Mundra, 44.65%, and Pipawa, 47.81%. This is as far as this quarter is concerned.

Achal Lohadeh, Analyst — Novama World Limited

And total, sir? Aggregate?

Ajit Kumar, Chairman

Aggregate means total for exit? It's about 50%.

Achal Lohadeh, Analyst — Novama World Limited

And possible to know if hotels have changed QOQ or YOI in terms of, like JNPT, you mentioned 3.5 percentage points.

Ajit Kumar, Chairman

Yeah, the Mundra and Pippawa, there is a marginal decline. Mundra is 1.8% drop and Pippawa 2% drop. JNPT is 3.53% growth.

Achal Lohadeh, Analyst — Novama World Limited

This is year-on-year, right, sir?

Ajit Kumar, Chairman

Year-on-year for this quarter, Q2.

Achal Lohadeh, Analyst — Novama World Limited

Okay. Great, sir. Thank you so much. I'll fall down with you, sir. Thank you.

Operator

Thank you. The next question is from the line of Vikram, Sujavanshi from Philip Capital Limited. Please go ahead.

Speaker 3

Yes, sir. What was the rail freight margin and operating margin for this quarter?

Ajit Kumar, Chairman

I could not kindly speak a little louder or close to the mic.

Speaker 3

Yeah, what was the rail freight margin and operating margin for this quarter?

Dibek Gupta, Other

Yeah, the rail freight margin for the quarter is 28.3%, which is almost at par with what it was last year. And overall operating margin is around 31.5%.

Speaker 3

Okay, and any development or how is our log-up plan for extending this business for shipping side with Barat Container Shipping or its existing partnership we are doing for the forward integration in shipping side? So if you can highlight that, I think that will be it.

Ajit Kumar, Chairman

There are two points here. On the stand-alone basis, we have taken last year initiative of starting shipping services, and we started it from the Middle East, particularly the UAE, but because of the war in Mark, that has got disrupted, still we are sending few containers to Gulf now, And in addition to increase our shipping activity in the Southeast Asia and Far East, we have signed two agency agreements last month itself. And in the first half, in the H1, our turnover from these shipping activities was 12 crores, up to September, April to September, 12 crores. We are hoping that in the next half, we will have good turnover and will end the year with about 50 crores of revenue from these shipping activities. The point number two, as far as Bharat's container shipping line is concerned, that proposal is under approval by the government. Various clearances that were required for the MOU to translate into an agreement and the project being approved, those clearances from different ministries were received, but it is under approval of the government, and once the government approval is received, the setting up of the Bharat container shipping line will take off. We will have 30% stake in that.

Speaker 3

Yeah, and any plan to restart coastal service under shipping or it will be easier for us?

Ajit Kumar, Chairman

Yeah, because of the various turbulence in shipping sector, we, although we wanted to initiate this coastal shipping, we have, you know, the ship rates, the leasy rates of the ships have increased very drastically. The market is totally in a very fluid. So, at this point, we did You may not want to venture into coastal shipping. Once the market stabilizes, we had the discussion and an MOU with shipping corporation and other partners on coastal shipping, but for the timing, that is on hold because the shipping sector is in turbulence. On the ocean side, both the shipping lines and the ports, they have raised the rates very significantly. Ports are doing lots of transshipment, so their hands are full. Sipping lines, of course, their hands are full because the shipping is getting delayed. The ships are getting delayed and traversing longer routes. So at this point, we don't have the plan even to enter into coastal shipping in the current financial year. I would like to very frank. But once we are watching the situation in November, if the thing stabilize, we will definitely restart.

Speaker 3

Thank you very much.

Operator

Thank you. The next question is from the line of Durge Shukla from Intra Capital Limited. Please go ahead.

Speaker 3

Hello, sir. Thank you for the opportunity. Sir, what is the rail coefficient for this quarter at the ports, GNPT, Mundra, and Pipabip port?

Ajit Kumar, Chairman

Yeah, I do. Yes. Yeah, yeah.

Priyankar Biswas, Analyst — JM Financial

Yes, sir.

Ajit Kumar, Chairman

The JNPT rail co-existent for the quarter was 12.88. Actually, what has happened in these ports, the transshipments have increased. So, we are not getting approval comparison because port handlings include the transshipment volumes and transship containers, they neither go by road nor they go by rail. So, but whatever figures I have, I will share with you. I am sharing that. But this is not an Apple-to-Apple comparison. I am giving this disclaimer. We are working with the ports to arrive now at a correct index. So, JNPT is 12.88 and Mundra and Pippawa 64.81.

Speaker 3

Sir, Pippawa is 64.81, right?

Ajit Kumar, Chairman

Yes.

Speaker 3

And Mundra is 22.

Ajit Kumar, Chairman

Mundra is 24 points.

Speaker 3

That's right. Okay, sir. And what's the empty racks in this quarter?

Ajit Kumar, Chairman

Empty running?

Speaker 3

Yes.

Ajit Kumar, Chairman

You are asking of empty running?

Speaker 3

Yes, sir. Yes, sir.

Ajit Kumar, Chairman

The running cost for Exeme this quarter is 21.73 crores and domestic is 77.09 crores, total is 9 crores.

Speaker 3

Sir, what's the lead distance overall in this quarter?

Ajit Kumar, Chairman

Yeah, the lead is 817 overall, which is 4.9% more than the corresponding quarter last year, which was 779. 817 versus 779.

Speaker 3

Okay, sir. That's all from my side. Thank you so much, sir.

Operator

Thank you. The next question is from the line of Josh Manyar from Sycamore Advice of LMP. Please go ahead.

Josh Manyar, Analyst — Sycamore Advisors LLP

Thank you for the opportunity, sir. So I want to ask that over the last few years, Concord has lost some market share of the road freight, and partly that's because of the full benefits of the Western DFC were delayed. So now that corridor is operational, so how does the management see the pace of model shift from road to rail over the next three to five years? And specifically, what kind of incremental volume growth and market share recovery can conquer realistically target? And what the benefits, like will these benefits become meaningful or not?

Ajit Kumar, Chairman

Yeah, the dedicated site corridor is going to be very meaningful and significant for Concord, and in order to attract road traffic to the DFC, we have taken two very important steps. In addition that the DFC has got now fully connected, we have taken two important steps. One step is that we have got the customs approval at JNPT to start cabotage service. In the cabotage service, the domestic small cargoes, parcels, which were coming by road to Delhi area, this is getting aggregated and being put into 40 feet container onto the upper deck of double stack train at a JNPT terminal. So this service has just started, and we are going to strengthen this service. So this will lead to shift of light good cargo from road to rail. Second, in order to ship the normal cargo, both light goods and heavy goods, from road to rail, we have reduced the upper deck cost of 40 feet containers. And we were hoping that there will be more ships, the model pair.

Josh Manyar, Analyst — Sycamore Advisors LLP

I have a follow-up question that now since the WDSP is now operational, and we understand these benefits which were told by you, that device taking and high utilization. And so can you help us to understand that what the implementation achieved so far, like what are the targets achieved so far, and what percentage of eligible trains are currently operating through this device tracking?

Ajit Kumar, Chairman

The double stacking normally is at the level of about only 30% at JNPT, but it is substantially higher in Mundra. JNPT, what is the issue is that the last two, three months, the SHPs, SLs are not keeping their schedule. They are moving out of schedule. The import traffic has been very erratic, and because import containers are not coming, they are getting stock in the port areas of the Gulf of Oman. The two ports are working, Fujaira and Furukakan. And these ports, they are not releasing empty. Empty containers are not coming. So because of that, export volumes are also getting affected from India. And the shipping lines are not bringing empty containers because they are busy in managing the loaded containers. So, because of all these issues, there has not the full benefit, have not got realized in the last 2-3 months. The DFC has been operational. In addition, as one participant indicated, there was heavy rain, and the DFC routes also occasionally got affected. But now from October onwards, we are seeing better volume performance. And once the chips are coming, then double stacking will improve. At present double stacking, therefore, is about only 30% in JNPT, but we hope that it will improve.

Josh Manyar, Analyst — Sycamore Advisors LLP

Okay, sir. And one last question from my...

Operator

Sorry to interrupt. Mr. Mania, I'd request you to join back the queue for more follow-up questions. The next question is from the line of Pratik Gheri from Shoblag Physical Services, Private Limited. Please go ahead.

Speaker 3

Hi, Mr. Panda. Thank you for the opportunity. Mr. Panda, my question is again in continuation with previous participants' question. On, you know, the improvement which we are supposed to get after JNPT connection with DFC. Now, I understand there has been geopolitical uncertainties, etc. But if I talk particularly about JNPT, the rail coefficient there is very low. So, initially, we were expecting that the initial market share gain or volume gain will come from road to rail shift. Which probably is not there in this quarter. So I understand probably this might be an early quarter for the connection, which has happened recently. But can you throw some light on what recent developments you are seeing, which is giving you confidence on gaining market share from growth? That is the first question, Mr. Panda.

Ajit Kumar, Chairman

The signal, I will just give you a signal indication. In one day in Dadri, we loaded eight trains, and seven trains were double-stacked. Our volumes and performance in Dadri, Barnama, they have increased very significantly. So these are the signals which indicate that more traffic is coming to us by rail. So, and as I have already repeated, we have incentivized the customers by reducing our, moderating our rates, and therefore, we are very confident that significant road traffic is going to shift to rail, northbound road traffic, I am telling you, because the DFC is connecting JN52 Northern India. And we are now started running direct service from Ludhiana to JNPT, Bhaya Dadri. Earlier that service was not there. Even our Khatwa's terminal, that is also giving us good volumes, because target is moving by DFC. Number of percentages, this will take time to be indicated because the data available in the public forum and public space is not very clear. Like as I told you, one data that is affecting us now, sudden spot in transitment in port volumes. So, the data is getting affected. So, it will take some time to have a feel of the situation, maybe one or two quarters more.

Speaker 3

One follow-up, Mr. Pandava, on this. I am not sure whether you have numbers for this or not. But how was the October month? I am sure in internal reviews, probably you might have seen those numbers for the October month in terms of volume growth, particularly from GNPT to Northern India traffic.

Ajit Kumar, Chairman

So, in October, we are, that is what I am saying, we are seeing good signal, we have got positives in October, but as you know that we do not release physical numbers month-wise, we release quarter-wise, so we will release on completion of the December quarter for everybody to view. We are seeing improvement in physical volumes in the month of October.

Speaker 3

Very helpful. This last question, Mr. Panda. So, earlier, haulage charge used to be a major impediment in gaining market share or even losing, gaining market share from road because we used to see some erratic, you know, price increases from our payment. I am just trying to understand, post this DFC completion, are we seeing some moderation from Indian Railways also that they want to make the environment conducive where they can reduce haulage charges so that that ultimately leads to road to rail shift?

Ajit Kumar, Chairman

When Indian Railways announces any revision in its haulage charges or tariffs, it is publicly So, what you have seen and we have seen are four notifications, the commodities, the pattern of tariff has shifted from the old system of slabs to GTKM-based slabs, that is in bulk cement, fertilizer, fire, and food grains. So, these four commodities, they have rationalized the tariffs. They have changed the system. Now, in certain segment streams, we have found benefit in bulk cement, and bulk cement needed special type of tank container. We are procuring that. So, that stream of traffic has taken off. As far as food grains are concerned, as I told you, we are trying to capitalize only from the month of October, and there are other issues in food grains, and once those issues get resolved, we will hope to have some benefit. As far as fertilizer is concerned, there is a fertilizer that gets a rebate by rail, so we are trying to get that level playing field for containers also. We are in discussion with fertilizer manufacturers and fertilizer ministry to get that level playing field, and we are hopeful on that front. Fly us, it is still the rates are in favor of these wagons, railway of box and wagons. So we have not so far started on that front, but we will definitely, we are working out how do we have a presence in fly us stream. But we will have a presence, but we are working out. So wherever railway has revised or rationalized the tariff structure, we are working on all those fronts. And we'll get benefits out of it. We have already got benefits on bulk cement. And in other segments also, we are working. We have got a very large pool of talented officers. They are spread over all over the country. They are talking to various stakeholders, manufacturers. And we will definitely have benefits out of this rationalization.

Speaker 3

Understood. Any benefit that container features have got in this rationalization, cost rationalization?

Krupa Shankar N.J., Analyst — Aventus Park

Container?

Speaker 3

I am talking

Ajit Kumar, Chairman

about all these commodities are getting transported via containers only. These commodities, when they get transported in containers, will get benefits. We are getting that benefit in bulk cement, being transported in tank containers. Similarly, we are working to get benefit out of fertilizer, food grain, flyers, being transported in containers. We want to containerize this traffic. Substantial parts of this traffic are still moving by road. We want to containerize.

Speaker 3

Got it. Thank you. Just one suggestion, Mr. Pandra. A lot of today is already decided. Just a suggestion.

Operator

I'd request you to join back the queue for more follow-up questions. The next question is from the line of Krupa Shankar NJ from Aventus Park Ltd. Please go ahead.

Ajit Kumar, Chairman

Yeah, welcome for the next question.

Krupa Shankar N.J., Analyst — Aventus Park

Yes, sir. Krupa Shankar here again from Aventus. Just one follow-up question. Given the West Asia uncertainty, what you have stated, and the ship's schedule being quite volatile, I Just wanted to get a sense, is the trade using CFS more than inland container terminals for movement of goods because of these uncertain periods, and once the issue is settled, do you see that that could be one of the drivers of rail?

Ajit Kumar, Chairman

So, that dichotomy of CFS versus inland container depot is not there as far as turmoil in shipping is concerned. The CFS, ICD competition of the ecosystem, that will remain prior to this turbulence and will continue. What happens that once the cargo which is unloaded at the port, the bonded cargo, they go to CFS, and from CFS, they can go by train to ICD, or in the CFS, they can get released, and the released cargo generally do not come back to rail. They go by roads. There are direct, in the port itself, the cargo gets unloaded, and from there we get bonded cargo in the port yard on rail, which go to ICDs. So, if the port yard handling capacity becomes more and more, then more cargo will shift to ICDs rather than getting cleared in CFS, local CFS, and being released on road or through double handling through train. So, while the ICDs are doing well and well established in the hinterland, the issue becomes what is the efficiency in port yards, railway yards inside the ports, and how these empty racks or loaded racks, they can be quickly moved into the port yards. So, it is a question of mobility through the railway system into the port yards and the handling efficiency in the port yards. Now, in JNPT, anticipating the DFC connection, they have strengthened the port yards, but that needs further upgradation if we want to see massive modal shift of traffic from road to rail. So, whatever operation they have done, they can do double stacking, but they need to do it more quickly. They are adding more machines in the port yards. They are adding more railway lines in the port yards. So, if port yards become expansive, stronger, efficient, then you will have modal shift of traffic from road to rail as traffic will move to ICDs. If the port yards remain weak, then traffic goes to CSS and gets cleared there. So this is a system that is there not only in India, it is there everywhere in the world. But ICDs, they deliver a good service to the country by quickly moving the bonded cargo from the port to the hinterland. And the hinterland exporters and importers, they would like the ICD system performing well. Am I clear now?

Krupa Shankar N.J., Analyst — Aventus Park

Yes, very clear. Thanks for answering in detail. Last question from my side. On the CAPEX for the year, just wanted to get a sense of what would be the figure for FI 27 year estimate.

Ajit Kumar, Chairman

Yeah, the MOU target is 800 crores, but internal target is 945 crores. And in the first half, as I told you, we have done 418 crores. And generally the second half, there is more capex. So we are already on the path towards 900 plus crores.

Krupa Shankar N.J., Analyst — Aventus Park

And how much would be towards terminals, sir, out of the specifics?

Ajit Kumar, Chairman

Yeah, the terminals, we are developing two new terminals. One is at Salabas near Jodhpur, that is likely to be commissioned very shortly, maybe this month. And another terminal is at Patri Haridwar, that is getting commissioned maybe in this financial year itself. And then one more terminal work we have started in Amritsar. And one terminal work we are doing near Ahmedabad on double stack, this BFC, that is Harodi. So these four works are now going on and expenditure is happening. We hope that out of this 950 odd crores that we are going to spend, maybe 200 crores will be spent on this terminal, four terminals only. Then further land acquisition we are planning at various other terminals. So, if those land acquisitions happen, we will have more capex on them.

Krupa Shankar N.J., Analyst — Aventus Park

Understood. Thank you and all the best.

Operator

Thank you. Anyone who wishes to ask a question may press star and 1 on the touchtone phone. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to yourself.

Ajit Kumar, Chairman

So, thank you all very much for all your questions. We can again assure you to have a robust performance in the coming quarter. We had a good performance in quarter two, different number, and we are very hopeful that our both volumes and revenue will have growth in the coming day, and we wish very happy Diwali to all of you in the festive season. Thank you very much.

Operator

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

Priyankar Biswas, Analyst — JM Financial

Thank you.