Container Corporation Of India Ltd

So, now, I think that result we have started getting from this month only, and we have tweaked our rates positively also in some streams. So, I think whatever negative trend, you see that our volume has increased, our revenue has been flat, but from this month and whatever corrective action we took, now the customers are with us, and they are ready to accept a bit of rate increase because of our services. So, I think the positive result in revenue, you will see from 3rd Quarter onward, and October is certainly showing very good green shoots on that.

The next question is from the line of Bhoomika Nair from DAM Capital Advisors. Please go ahead.

First, can you please share the originating volume for this quarter?

Yes, I will tell you. Originating volume of this quarter is, EXIM, it is 5,57,576, Domestic, 1,33,255 TEUs, total is 6,90,831 TEUs.

So, sir, how are you seeing the trajectory now in October, there was this whole Red Sea and shipping disruption, etc., which had led to heavy volumes kind of moving away from rail? How is that now kind of panning out in the month of October or of late?

See, October month, as I told you, we have got very good traction in domestic. Domestic, we are seeing very good loading across the country. As far as EXIM is concerned, imports are a bit muted. Growth is there but not that much. But from the last one week to 10 days, we are seeing good demand of rice exports. And we have got firm indications, we are in touch with trade, that after Diwali, rice exports is coming in a big way. And imports are also going to increase.

Because of the Red Sea disruption, there was, as I told you initially, erratic vessel schedules, vessel schedules are erratic. They cannot be very, very predictable. So, because of that, it was a

Page 7 of 20 temporary, you can say, dip in the month of October for the first 15-20 days. But now it is going to pick up.

Sir, can we also get the empty running charges for EXIM domestic and also the lead distances for this quarter?

I have for half year. For EXIM, it is 63.47 crores. Domestic, it is 140.89 crores. Total is 204.36 crores. And the lead distances, sir?

Lead distances for EXIM, for domestic, it is 1,318 kilometers. EXIM, it is 705 kilometers. Total is 803 kilometers.

Sir, I am sorry, just to circle back on this volume aspect, I know you have guided for 15% in EXIM, but if you look at the first half, it is about sub 4% kind of a growth. So, it will mean that in the second half, we will have to see that trajectory moving to 20%-25%. That is the kind of momentum that we are seeing as of now?

Yes, as of now, frankly speaking, that momentum we are visualizing because there is a very good projection given by trade. And we are, of course, I find it challenging as I told my TV interviews also in the morning. Of course, we find it challenging, but we are quite confident based on the various sectors like rice exports and double-stacking to JNPT. So, these things are very, very crucial for trade and they are well publicized. Trade is very much aware, and so we are quite confident that we will be able to get this target.

The next question is from the line of Alok Deora from Motilal. Please go ahead.

Sir, just wanted to understand this LLF, there is this 40 crore reversal and you mentioned about 350 crore sort of a guidance for this year. So, we are expecting some further reversals also in coming quarters because the quarterly run rate I believe was around 100 crore per quarter.

I told 350 crore to 400 crore. It will be nearly 400 crore only.

Near 400 crore, got it. And then for next year it will be around 7% higher kind of number.

Yes, you are well aware. The formula is that every year it should increase by 7%, but at the same time, as I mentioned initially, we are constantly evaluating that wherever we set up new logistic parks and that logistic park is able to serve the hinterland for a particular terminal, then we move our business to logistic park and close the terminal, surrender it to railways. So, that exercise will continue. Maybe next year we are able to commission some logistic park and surrender some land. So, then it will have a saving of LLF.

Page 8 of 20 And sir, on this guidance point again, I mean, you have maintained the guidance, but it's pretty challenging environment as the industry's indicators are pointing out to be. So, in that scenario, such a kind of growth in the second half as you yourself mentioned is challenging. So, what is the bare minimum growth you could actually achieve if things did not pan out the way we are expecting, bare minimum growth in the EXIM side?

See, normally from 1st October we say that busy season has started in railways language. Busy season has already started. Busy season means more business. So, I am quite optimistic that we will be able to achieve the guidance that I gave in the start of the financial year, and there are various pointers, and there are various pointers that I am getting by interaction with trade. So, that is why I am feeling very confident to achieve this guidance. So, I would like to adhere to it, and I am quite confident that we will be able to achieve this guidance. I would not like to speculate on any other number.

The next question is from the line of Disha Giria from Ashika. Please go ahead.

So, while you are maintaining the guidance level, could you help us quantify what are the initiatives that you think would be contributing to this growth? I mean, the growth number is exorbitant, like the other participants has also mentioned, but could you help us quantify some numbers for it?

See, I already told the growth drivers, 5-6 growth drivers in my opening remarks. Now which growth driver will give me how much number? That I am not able to tell you right now. Maybe separately one-to-one basis we can discuss, and I can tell you.

Sir, my second question is regarding this Vivad Se Vishwas, the contractual expense that we had this quarter. So, could you just explain what was this for?

Actually, this was a dispute between contractor and CONCOR in which the Vivad Se Vishwas scheme is given by Government of India that if arbitration award goes against the company, then this is a medium through which some 65% of that award we can offer to the opposite party and if they agree, if they accept it, then we settle it and all the future court cases are avoided. There is no court case after that by the party.

So, it was some such dispute in some contract in which the arbitration award went against the company. And we, this contractor went for Vivad Se Vishwas Scheme, and we also worked out how much money is payable. And then 65% of that we offered as per the scheme to the contractor, and he accepted it. So, we had to settle it, and we made the payment, and net of tax it was rupees 25 crores, which hit we had to take in this quarter.

The next question is from the line of Priyankar Biswas from BNP. Please go ahead.

Page 9 of 20 So, this is Priyankar Biswas from BNP. So, my first question is, so what I understand now is that the Western DFC connection to JNPT is not happening before December 2025. So, earlier it was March 2025. So, in such a case, how would we be able to secure a, let's say, after double- digit growth in EXIM volumes in FY '25, again, let's say, a double-digit growth in FY '26?

Because what we are witnessing is a very steady erosion in real model share in JNPT. So, if you can address this point.

Yes, it's a good question. You rightly mentioned that the Western DFC connection to JNPT will be in December 2025 as per the indications given by DFC officials. But we are going to give benefit of double stacking to our customers for JNPT. We have set up a terminal at a place called Varnama near Baroda, which is 400 kilometers from JNPT. So, for North India customers, we will be running double-stack train up to Varnama because it's a unique terminal which is connected to Indian Railways and as well as DFC. DFC connectivity is under progress.

Last week I have visited Varnama. I have inspected the site, and work is going on in full swing.

Of course, it was affected because of the rains. But now work is going on at full speed, and we are confident that before the end of November, the work will be commissioned, and this terminal will be connected to DFC. So, it will be having a connection to DFC as well as Railways.

So, we will run double-stack train from Dadri and Kathuwas up to Varnama double-stack train on DFC. And from Varnama, we will break it into two single-stack trains. And they will go on Indian Railways route up to JNPT for the last 400 kilometers. And the reverse will happen for imports.

So, in this manner, we will be able to have some predictability for our customers, predictable time at JNPT. And secondly, we will pass on some cost benefits for the container which are moving on upper deck. So, we are confident that we will be able to shift a lot of cargo from road to rail as a result of this exercise. So, that is one of the growth drivers that I mentioned in my opening remarks. And we are quite confident to achieve this.

Sir, just harping again on this. Any particular reason why in JNPT the rail coefficient is falling?

And why and what is the coefficient right now? Because we have been seeing this trend for some time now. What may be the reason for it?

See, JNPT rail coefficient at present is around 16% in which CONCOR’S share is 58% for the first half of this financial year. The main reason is that lot of cargo has, for North India, lot of cargo has shifted to Mundra Port, which is giving a benefit of double-stacks. And secondly distance to North India is also less from Mundra port to North India. And JNPT is now serving the hinterland around JNPT for which the road becomes faster and economical. And JNPT is also serving the area of Nagpur, Hyderabad, and even we have started for Bangalore also. One moment we are doing for Visakhapatnam also from JNPT. So, all these places JNPT is serving by rails, but primarily it is serving short distance traffic, which is more viable by a road. So, that

Page 10 of 20 is the most probable reason of decline in rail coefficient. But with the commissioning of DFC, we hope that rail coefficient at JNPT will rise.

That's very clear, and just one question I am just squeezing in. So, I think in 2Q, the railway does not levy a busy season surcharge, but from 3Q onwards they again start doing it. I think it's 10%.

So, would that be impacting our margins on a sequential basis at least on EXIM, if you can take that?

The railway is levying busy season surcharge throughout the year now. So, they have not done any relaxation for Q2. But there is no cause of worry because whatever tariff increase that we had from November of last year that we are continuing. We have not revised our rates. So, there will not be any effect on margins.

The next question is from the line of Mukesh Saraf from Avendus Spark. Please go ahead.

The question is around EXIM growth. So, if I look at your origination values, they have grown around 3% this quarter. When I look at, say, the port volume growth at some of the major ports, obviously JNPT has grown at 15%, Mumbai at 12% in the 2nd Quarter. So, just trying to understand this gap is widening between our origination growth and the port volume growth.

JNPT obviously you had mentioned that rail coefficients have been falling. But in Mundra, what we understand is rail coefficients have been going up as well. So, could you kind of throw some light on the gap between the growth numbers for us and at the port level, especially in Mundra kind of ports?

As a matter of fact, at Mundra port, the rail coefficient has come down, but our market share has increased. I will give you the numbers. For the first half of financial year, in Mundra port, last year rail coefficient was 25.79%. It has become now 23.82%. So, there is a downward trend as far as rail coefficient is concerned. But our market share was 36.35%, which has now become 38.83%. Like I told in the opening remarks that our market share has grown by 248 basis points at Mundra port.

As far as Pipavav Port is concerned, there is a drastic fall in rail coefficient. Last year it was 64.55%. And this year the rail coefficient is 57.42%, whereas our market share has increased from 45.04% to 47.89%, which is a growth of 285 basis points. And all this we have achieved without sacrificing our margins. That is the beauty of it. So, our margins are intact. Margins have, in fact, increased. And we have increased our market share as well as increased our margins. So, that is a testimony of the relationship, excellent relationship that we have with our customers and the operational excellence shown by our team CONCOR.

If you could also give the same numbers for some of the other major ports like Chennai?

Page 11 of 20 I don't have numbers for other ports, but I have for JNPT, Mundra and Pipavav, which I have already shared.

And the second question is, I think you had mentioned in the opening remarks and in the last quarter as well, that you are getting into these long-term contracts with shipping lines, maybe three-to-five-year kind of contracts. While we don't want the details in terms of the commercials, could you throw some light on pricing, etc? How these would work? Because these are volume- based contracts and would you have to kind of bid at attractive prices to get those higher volumes? How does this work usually?

Yes, it's a very good question. Actually, what we are doing is, we are having long-term relationship with shipping lines and big shipping lines, we are, big as well as small, it is for all.

Actually, as you may be knowing since last one or two years, the focus of the company is on providing total logistics solution to our customers. This is one of the focus area of the company.

So, we have 4 million square feet of warehousing spaces at our 66 terminals across the country. We are building more warehouses.

Apart from that, we have become quite strong in FMLM also, first mile last mile. We are having 130 LNG trucks for FMLM and 200 more we are procuring.

One more news I wanted to share with all of you. The first LNG pump in North India of our country is going to be commissioned this month only, sorry, next month in November, mid November at our MMLP Kathuwas. So, because in North India we are constrained, we cannot deploy LNG trucks because there is no LNG pump, fuel pump. So, that is being commissioned by IOC in our terminal at Kathuwas.

So, we have had a series of meetings with shipping lines at Mumbai as well as through VC, and we offered our warehouses. We offered our first mile last mile, and we offer volume-based incentives. So, all these things we gave them as a package that you use our services and in turn it will be a win-win situation for shipping lines as well as for CONCOR. So, all these things, they are part of this agreement that we are having with shipping lines.

I visited the headquarter of Maersk, which is the second biggest shipping line in Copenhagen, Denmark, and they were quite excited when I told them about the green logistics, ESG norms being followed by our company and total business solutions. So, they have had internal discussions and all of them are coming forward to sign these agreements with us which are a comprehensive agreement. So, ultimately, we are going for giving total service to our customers, and in the process, we will increase our margins also.

So, we should expect these value-added services to go up vis-a-vis previous contracts to these new contracts that you are getting.

Page 12 of 20 Yes, that's right. We should expect more value-added services, correct.

The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead.

I will go ahead with my questions. First is actually more of a clarification. This 40 crore provision that you have kind of reversed and that links to Whitefield, does it have any impact in the manner that your incremental land license fees will be calculated? Completely different and not to be linked up to future land license fee numbers?

No, no, it will not be linked up to the future. This is a provision we made expecting that this will be the LLF rate once we settle it with Indian Railways. Then whatever provision, if it is extra, then that has to be written back. That is what we have done. So, future, I don't think it will have any impact.

Now if I then assume this to be a one-off, it seems that your margins are much lesser than 25% at an EBITDA level. I just wanted to understand when you kind of gave this guidance on the interview, was this including other income that you were saying 25% or if it was not, if it was an EBITDA margin level before other income, then how do you bridge the gap from here on?

Because today the margins are more like 23ish or so, if I take away this benefit.

As far as our, if you see the operating margin, operating margin is also quite high. It is a healthy operating margin. We have a 33.65% operating margin in this first half of financial year. Rail freight margin was around 28%. And one more thing is the exceptional item, Vivad Se Vishwas.

Yes, but this is including other income, just clarifying when you gave this number out, or excluding other income?

Of course, it includes other income also.

So, that clarifies. As in just moving on to the other questions, I wanted to get a sense from you that this model share coefficient issue is impacting assets that already have a DFC there. So, it is actually impacting somewhat JNPT, but a lot more Mundra and Pipavav. Should this be something that one should be worrying about? Will it reverse around? What are the drivers of it? Because DFC should be supportive, right, over here. We are just trying to get a sense of why would this be happening and how to think for the future.

I am not able to understand your question. Can you please reframe it?

Page 13 of 20 Typically, in Mundra and Pipavav, the modal coefficient should have gone up over time because the DFC has been connected for some time while it is going down. Could you give us a sense of what is happening leading to this situation?

So, now the Pipavav Port is mostly serving the hinterland, near Pipavav, so road becomes very competitive. Rail is not competitive for that short distance movement. For Mundra also, there is a lot of short distance movement, and apart from that, there is movement for this CFSs around Mundra. There are around 35 to 40 CFSs near Mundra port, where many shipping lines prefer that they de-stuff their containers and take the cargo by road, if they have urgency of containers near the ports. So, all these factors also affect the rail coefficient.

But of course, our endeavor is that maximum container should come to the hinterland for which we are creating so much assets. We continue talking to the trade and convincing them and many times it happens also that they shift their pattern from CFS to the hinterland ICDs. But lot of decision making is done by shipping lines.

Just a couple of questions more from my side. First of all, your other income or your interest income, if I see the cash flows statement, has meaningfully gone up from 1Q to 2Q. Could you give us a sense of what is driving this and will this number again fall or be sustained at 2Q levels?

I will request my ED (Finance), Mr. Harish Chandra. He will take this question please.

You have rightly said, the other income, we have the income from interest, the dividend which we get from our subsidiaries, so these kind of income and the rental income, so this varies because the dividend received from the subsidiaries and joint ventures, it depends the receipt of the dividend. And then secondly, we have also received one refund from Income Tax Department. There was also some interest element in that. So, that is the reason that the increase in the other income is reflected. In last year, it was 102 crores, and this is 130 crores in this quarter. So, that is the reason. Mainly receipt of dividend as well as interest on the refund, income tax refund.

Maybe a last question from my side. I think we now better understand JNPT because you are saying that you will do double stacking and give more predictability and pass on some savings to the customer. Could you give us a sense of how much the customer would be better off now when he makes a decision of choosing road and rail and what kind of savings would you be passing on to the customer once you have the Varnama terminal ready?

See, actually I cannot disclose that at the moment, but I can give you some idea about it. First thing is that when the container goes on upper deck, railway charges 50% of rail haulage. So, that will be one of the savings that we will be having for 40 feet containers carrying lightweight cargo.

So, just to give you an idea, when from Dadri to Mundra port we were running double-stack, when we started double-stack trains, we tweaked our tariff by 8% to 10% for this lightweight cargo and we had extra 12% to 15% traffic. So, maybe Nhava Sheva may be around that number only, but right now the exact numbers, it is not possible to give it to you.

And is there any other terminal alongside Varnama which may also come up from a competitor perspective? Let's say, Viramgam for that matter, is that a similar offering of double-stacking that is happening till Viramgam and then one goes to JNPT? Or are you the only one benefiting or going to benefit from this?

Viramgam is actually not on that route. Viramgam is a different, it will be taking off towards, it will be from Ahmedabad towards Mundra port. So, if you bring the train from North India to Nhava Sheva, Viramgam will not come in between. Viramgam will be a different route. From Ahmedabad to Mundra, in between you will get Viramgam. So, as of now, near Varnama, there is no such terminal which has connectivity to DFC as well as Indian Railways.

The next question is from the line of Srinidhi Karlikar from HSBC. Please go ahead.

Sir, just one clarification. Sir, did you say there was a busy season surcharge even during quarter 2? Yes, please.

So, in that context, sir, what has driven the sequential improvement in the rail freight margin?

Because if I look at the rail freight cost as a percentage of revenue, there has been a sharp sequential improvement. May I ask what has really driven this?

This is due to the operational excellence of team CONCOR. As I told you, there is a growth in double-stacking. There is 11.5% growth in double-stack in the first half of this financial year.

This first half, we have handled 3083 double-stack trains as compared to 2766 double-stack trains last year. So, this has contributed in a big way for reducing the empty running which has positively affected the rail freight margin.

And secondly, the domestic also, we are getting a lot of loaded movement. Now empty movement has come down. In domestic, if you see, there is a 1.5% reduction in empty running which is a remarkable performance as compared to 143 crores last financial year. We have incurred empty running cost of 140.8 crores. So, there is a reduction of 1.5%. So, all these factors have positively impacted the rail freight margin, and it has improved by 80 basis points year-on- year. From 27.06%, it has gone to 27.85%.

Page 15 of 20 Sir, a lot of the factors that drove this improvement seem to be company specific. So, do you think this very healthy rail freight margin adjusted for the mixed changes you would be able to retain in the second half as well?

Yes, of course, we will be able to retain it, and I think we will be able to improve upon it because we are bringing JNPT also on double-stack now, plus domestic we are seeing very good traction.

So, all these things will positively contribute, and the rail freight margin will further improve.

And sir, last one. I think the Director (Domestic) did highlight some changes like increases in domestic business prices. Have you taken any price hikes in the EXIM segment as well in recent months in some nodes?

No, EXIM we have not undertaken any price hikes because railways also not revised the prices, and domestic also we keep on changing. As such we have not done any, not across the board increase and we keep on revisiting because domestic is a dynamic pricing kind of thing. Road, it is a direct competition with roads. So, we keep on revisiting wherever we have to bring it down, wherever we have to increase. So, that is a continuous exercise by domestic division.

And sir, last one. How has been the first mile-last mile penetration now and where do you think it going up by next year?

The next question is from the line of Amit Bhinde from Morgan Stanley. Please go ahead.

I wanted to understand that there was an announcement made in September that there would be some discounts provided on the storage charges, etc., to boost the EXIM trade. So, what would be the cost impact for us on the EXIM margins or increase in cost in other words?

Now I want to clarify, there is no concession on storage charges. It was in the media also. The thing is that we are already giving 90 days free storage for empty containers. For empty containers, we are giving 90, in EXIM I am talking, in empty containers we are giving 90 days free storage at all our terminals. And for loaded containers, we are giving free storage of 15 days.

So, that is there for last one year. We have not changed it. There is no reduction or there is no upward movement is there.

The thing that we revised was the empty handling charges at our terminal at Dronagiri. At Dronagiri, empty handling charges were in the range of 6,000 for 20 feet and 9,000 for 40 feet.

So, that we have brought down. The reason was that at present, we have very miniscule empty inventory at our terminal at Dronagiri. So, we are intending that with this reduction in empty handling charges at Dronagiri, at only Dronagiri, we have brought it down. So, we will get lot of business. A lot of empty containers will come.

So, at present, suppose we are having an earnings of 0. So, at least we will get some earning. So, keeping that perspective in mind, we have revised the empty-handling charges, and there have been enquiries from shipping lines, and very soon they will be storing their empty containers at our terminal. So, that will be like extra earning for the company. It will not be a loss at all. And as per as empty storage time, I again want to clarify, it is still 90 days free time at all CONCOR terminals. This is there for last one year. There is no reduction in that.

And how about the 50% reduction in the charge beyond 90 days? Was there already there? Or now that would come? Or beyond 90 days?

No, beyond 90 days, there is a uniform tariff. Then there is no reduction in charge.

So, I think the news suggested that there would be 50% reduction.

Actually, yes, that is in media what was being shown was not in the correct perspective. So, it is good that you have asked this question. So, I hope it clarifies. If anybody has any doubt, they can ask more questions. I am ready to clarify.

Sir, the second question that I have is your guidance as you were mentioning earlier. You mentioned that now the trends would be such that handling and originating would be growing in line itself. And there wouldn't be disparity. So, the guidance holds on both. But here we see that your domestic has grown at around 15% in handling and at around 22% in originating. So, now your guidance for full year, are you giving it on the originating basis or handling basis? Handling. Handling basis, okay.

The next question is from the line of Koundinya from Jefferies. Please go ahead.

Sir, my first question is a bit on the macro side. Can you help me understand what is the thought process in extending this busy season surcharge? Because we clearly see that rail coefficient has been falling off across the ports. That’s the first one. And the second one, can you help us understand what is driving this market share improvement for CONCOR? What are the key reasons, if you can elaborate, please?

Page 17 of 20 See, for the first question, I am not the best person to answer this question, because this was done by the Ministry of Railways. But to be fair to them, for the last 8 years, they have not increased the rail haulage charges. So, 10% increase, I don't think it was very much unjustified, I should say. But of course, the quantum was very high, that immediately it stopped the trade. That is my reply on the first question.

As far as the second question is concerned, this increase in market share is due to the customer centricity policy that we have been following for the last one, one-and-a-half years. Plus the operational innovations, operational excellence that has been done by my team, operational team at CONCOR. These are the two reasons, primary reasons for increase in market share with corresponding increase in margin. There is no drop in margin also.

Sir, lastly, if you can also briefly touch base on some of the initiatives, because you spoke in one of the Con Calls that you are offering specific, you are giving specific offers to certain corporate groups. Can you provide some update on that and what is the current status?

See, we are PSU. So, we cannot have a one-to-one offer that is valid for one customer, it will not be valid for another customer. What we do is we design our schemes and based on the volume slabs, so whichever customer crosses that slabs, they are eligible to avail of that scheme. We are not designing a scheme for a particular customer. We can't do that because we are a public sector company.

So, we have been doing it for so many years, like volume discount schemes, if you give more volume you get more discount. If your incremental volume is more, you get more discounts. So, there are so many schemes like that, that we are doing it for exports, imports, throughout our ICDs as well as domestic.

Domestic we have business-associates policy. So, if they give more business, they become Platinum category. Then there is the gold category. Below that, Silver category, Bronze category. So, it is all the thing about whatever volume you are giving and what is the incremental volume as compared to last year. These are the two basic criteria that give incentive to our customers.

The next question is from the line of Sumit Kishore from Axis Capital. Please go ahead.

In your opening remarks, you mentioned that EXIM volume growth of 3.5% was pretty much in line with India's international trade growth, export growth of 1%, import growth of 6%. So, for the second half, when we are expecting a strong double-digit growth, what sort of macro export- import growth numbers you are thinking about for the country to grow at, which if they don't materialize, your guidance would be at risk?

Page 18 of 20 See, I can talk about only CONCOR's. Country, I think Honorable Commerce Minister will be the, you can ask this question to him. But as far as my business is concerned, I have already highlighted the growth drivers, and I am focusing on that. Of course, it is all driven by the policies of Government of India. So, we are hopeful to achieve our target whatever we gave to us at the start of the financial year.

So, I think the objective was to basically check if all India export-import growth were in a similar range, your growth drivers won't get impacted as much, you would still manage your double- digit growth because of Varnama and other initiatives that you have outlined. Yes, I think that is what I meant also.

That's very clear. The second question is on the double-stacking numbers that you have given of 11.5% growth and 3,083 rakes being double-stacked. What percentage of your overall rake movement on the DFC now is double-stacked? The idea is to understand how much of the potential of double-stacking has already been tapped when it comes to, say, Mundra, Pipavav. I know JNPT would still be pending, but this question is more to understand what potential of double-stacking has already been tapped by CONCOR.

See, if you see on DFC, we are giving double-stack benefit at Mundra and Pipavav. So, I can say that the total volume that we are running on DFC, around 70% to 75% is double-stacked.

So, pretty much this is a fairly high level of double-stacking which has already been achieved. Yes, that's right.

The next question is from the line of Akshay Ajmera from Nirzar Securities. Please go ahead.

I think this conference call is for one hour or more?

Sir, we will take this as the last question, sir.

Sir, this question is regarding the news announcement made by our Commerce Minister Mr.

Piyush Goyal in September, and I think this question was already taken up by you, but a part of it I want to understand more from you. So, on that press conference, which was basically to facilitate increase or ease of doing for the exporters of our country. So, the intent was to reduce the tariffs and provide logistic solutions to them. How do you see this going forward?

Because the intent of the government is to give and pass on benefits to the exporter so that they can export more, at the same time to reduce the logistic costs. This has been reiterated by the government and ministers of the government various times, that their intention is to reduce the overall logistics costs in this country. So, how do you see this pressure coming to you in terms

Page 19 of 20 of reducing costs, passing on the cost benefit, like you are talking about double-stacking, DFCC and all these things? But how this will improve the margins? Because I think it can give us some volume, but at the same time, whatever cost is there, you have to pass on to the customer.

And in the same meeting, they have also slashed your empty container charges, handling charges. This is what we have read from the news article. So, if you can clarify about how much impact you had, and what is your thinking on their intentions going forward.

See, now, actually, as far as the empty storage charges, as I clarified earlier, they are 90 days free at all our terminals for the last one year. They were not done after this meeting. And secondly, the handling charges we had reduced only at one terminal. That is Dronagiri. At all other terminals, the handling charges remain the same. We have not reduced it.

So, what could be the potential impact of that? Because 33% of the volume has come from Dronagiri, if I am not wrong. How much percent? 33% of our volumes.

No, Dronagiri hardly contributes less than 1% of our volume. Volumes, okay.

Yes, it is nothing actually. So, at present, the impact is zero. There is no impact at all. And because we are yet to receive empty containers from shipping lines at our Dronagiri terminal, which is near JNPT, so we have not started getting the container, so impact is zero. So, we are expecting in the next 10-15 days, they will be using this facility. Then we will get some revenue, because imagine we were not getting any revenue. Now at least we will get some revenue. So, it will be gain for the company. It will not be a loss for the company. Media article was giving some other impression. So, I wanted to clarify now to all of you that it will be gain for the company, that from zero revenue we are going to get some revenue.

Apart from that, for the last one year, we have started a scheme of 25% concession on empty container movement from gateway ports to hinterland ICDs. This was done to promote exports.

But we were offsetting this concession in terms of some charges that we had at terminals. And we are continuing with those charges. So, there is no loss of margin on that account. And because of the more empty container movement at our terminals, because of these concessions, we were getting exports, additional exports. So, it was additional income for the company. That is quite evident in our numbers also.

As I told you, we have increased our market share, but we have not sacrificed our margins.

Margins have also increased, and market share has also increased. This is because of the policy that the company has been following. We don't believe in sacrificing our margin to gain market share. We believe in giving good service to our customers so that the customer stays with us despite there are some... we may be expensive, but our service that we give to customer is of international standards.

So, remember we evacuate the containers from the ports immediately. The dwell time is less than 30 hours, whereas our competitor's dwell time is 30 days. So, there is a huge gap between service levels. So, customer is willing to pay more to get good service. So, that has been the philosophy of our company, and that will remain for the future also.

Thank you very much. Due to time constraints, that was the last question. I would now like to hand the conference over to Ms. Bhoomika Nair for closing comments. Thank you, and over to you, ma'am.

Thank you, everyone, and particularly the management for giving us an opportunity to host the call. And wishing you all the very best and a very Happy Diwali, sir.

Thank you very much, Bhoomika. Same to you and your team.

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

Management 1141673000 Container Corporation Of India Limited 3 Aakash 9892138178 Canara Hsbc Life 4 Abhinav Bhandari 9699358293 Sohum Asset Managers Private Limited 5 Abhishek Sanghavi 9969987152 Pragya Eqity 6 Abin 66242413 M K Global 7 Achal Lohade 9136727590 Nuvama 8 Aditi 9821447626 Abakkus Asset Manager private Limited 9 Aditya Mongia 2243360884 Kotak Securities 10 Ajit Motwani 9820934229 Dymond Asia 11 Akhilesh Bhandari 442086096838 Millinunum Capital 12 Aksah Kumar 7208838564 LIC 13 Akshay 9625580449 Informist 14 Akshay Ajmera 9870624556 Nirzar Securities Llp 15 Akshya 7208211260 Asian Market 16 Ali Khan 12064299176 Nexa 17 Alov Devra 9820513792 18 Aman Agarwal 8697218375 Carnelian Capital 19 Ameen Tirami 61573583 J P Morgan 20 Amish 66328656 Bank Of America 21 Amit Bhinde 2261181031 Morgan Stanley 22 Amit Dixit 9839043382 ICICI 23 Amit Goyal 9820517779 Amit Ventures 24 Amit Khurana 2240969754 Dolat Capital 25 Amit Kumar 8898708990 Determined Investments 26 Amruta 9969053166 Wealth Managers 27 Anifa 9821931519 28 Anil Bagadia 9757494130 Equicorp 29 Anish 9820563345 UTI Mutual Fund 30 Anishwer 7506161740 Pioneer Investcorp 31 Ankit Jain 67800305 Mirae Asset 32 Ankita Shah 9820679464 33 Anshuh Agrawal 66121228 Emkay Global 34 Anurag 9650806954 35 Areen 7977572598 Rb Investments 36 Arman 8319790530 Blue Sky Capital 37 Arun 9087779152 Capital Market 38 Ashish 9324233832 39 Ashish Shah 6597265952 Millelium Capital 40 Ayush Sabarjeet 8097436847 Whiteoak 41 Bharati C Sawant 9004192576 42 Bharti Sawant 67800306 Miraee Assest 43 Bijoy Shah 9867207988 44 Darshan 9930609141 Informist 45 Deepak Gupta 2242147104 SBI Pension Funds 46 Deepak Kumar 7838341823 Fedility 47 Deven 9820280686 Sage Investment 48 Devendar Sariipelli 4041970088 S&P Global THANK YOU FOR BEING WITH US Participants List Total 159 Participants including the Speakers. October 30, 2024 at 11:30 Hrs India Time CONCOR Q2FY25 Earnings Conference Call 04-11-2024 Page 1

Name Phone 49 Dishi Giria 9324791509 Ashika 50 Gauran Kedia 9830108977 51 Gaurav Narayan 9820073819 Saltoro Investments 52 Gautam 9819701801 Mirzar Enterprises 53 Harini Kumar 9434225692 54 Harsh Dole 9967581549 Optiva 55 Harshal Mehta 9967568857 ITI Mutual Fund 56 Harshit 9007036570 Nuvama Institutional 57 Hemanshu Srivastava 7506748289 Taurus Mutual Fund 58 Hemant Shah 69153547 ITI Mutual Fund 59 Hiten Udeshi 9820036204 60 Hitesh Jhaveri 2262074401 Axis Mutual Fund 61 Jainam Shah 6353378861 Equirus Securities 62 Jainam Shah 8758759924 Equirus Securities 63 Jayshree 16578375417 London Stock Exchange Group 64 Jignesh Mackwana 9930122599 Asian Market Securities 65 Jinesh Kothari 9727001077 66 Jonas Bhutta 9819222287 Birla Mutual Fund 67 Kartik 9990134412 Container Corporation Of India Limited 68 Kenil Kadakiya 9821514702 Sundaram Mutual Fund 69 Koundinya 2242246159 Jefferies 70 Krupashankar 9884128127 71 Kunal Mehta 9769004293 Janthor Partner 72 Lavina Quardz 2242246116 Jafferies 73 Lavish 9004973083 Sushil Finance 74 Laxminarayanan 9789951580 KSEMA – Wealth Management 75 Lokesh Garg 61556038 UBS Securities India Private Limited 76 Mandar Pawar 2262185279 Kotak Mahindra Asset Management 77 Manish Gupta 6585134023 78 Manoj Bagadia 9821083147 Equicorp 79 Mayur Magar 7028585756 Bandhan Life 80 Mehul Chawla 7977909377 R W Equity 81 Mohit Jain 7400195462 82 Mukesh Saraf 9840016171 83 Nandish Shah 8097603295 Neo Wealth 84 Nikhil Jain 8866684989 Crisil 85 Nilotpal Sahu 9355735975 BNP Paribas 86 Nirmal Gopi 13322457667 87 Nirmal Murarka 8240095715 V2 Capital 88 Nitin Gandhi 9821359091 89 Paresh Dave 6598380755 Balyasny Ams 90 Parth 7977050966 J M Financial 91 Pranali Patil 61047506 92 Pratik 9833755318 Alpha 93 Pritesh 7021526759 ICICI 94 Priyankar Vishwas 8657737455 BNP Paribas 95 Pulkit Patni 9820107735 96 Rachel Smith 17812306877 Aiera 97 Raghu 6596279496 Bam Capital 98 Rajarsai Maitra 9820637133 Incred 99 Rajvi Shah 8767224443 Bright Securities 100 Rakshak 8197162711 Kivah Advisors 101 Ratish Varier Ratish Varier 7823976240 Sundaram Mutual Fund 102 Raunak Pathak 9062516420 Stockedge 103 Renita 9773335514 ICICI 104 Rishabh Gupta 9900696860 105 Ritik Dhiman 66323075 Bank of America 106 Ritika 9910097857 JP Morgan 107 Rohan 9870041211 Axis Capital 108 Rohit 9870448599 Progessive Shares 04-11-2024 Page 2

Name Phone 109 Rohit Jain 6289550527 110 Roshan Pawar 9892721423 City Group 111 Rupam Jaiswal 6289899866 Investwell 112 Rushabh Sheth 9833133428 113 Sachin Upadhyay 69106000 Klay 114 Sagar Shirke 61291553 115 Sahil Kadam 17029131499 Global Solutions 116 Sameer Deshpande 9960621718 Fairdeal Investments 117 Sandeep Mamnn 4424679216 Frankling Templaton 118 Sandesh Shetty 9082589149 HSBC Bank India 119 Santosh Kumar 15103907767 Bloomberg 120 Saras Singh 9930440712 Haitong Securities 121 Saurabh Chugh 9820117499 Saltoro Investments 122 Shah 4041970000 S&P Global 123 Shalya Shah 7977349982 Kotak Life 124 Shantanu Pawar 37514752 125 Sheena 85291631120 TRP Co 126 Shey Gandhi 9589915521 CRS 127 Shiva Hari Raman 9620767145 Pinpoint Amc 128 Shobhit Tiwari 2266585681 Canara Robeco Mutual Fund 129 Shravan Raiappa 9042097197 130 Shrinidhi Karlekar 9901999884 HSBC Bank India 131 Shunak Mayank 9833448425 132 Sidhant Gupta 9650247503 133 Sonu Upadhya 7208798028 134 Soubir Samadder 8777431404 HDFC Pension 135 Sumit Kishore 9819626041 Axis Capital 136 Sunil 9482823451 137 Tanishq 9769268087 138 Tvisha 9820722403 139 Udit 66328520 Bank of America 140 Urmil Shah 9819916595 Ageas Federal Life Insurance 141 Urmil Shah 69317883 Envil 142 Vaibhav Shah 7045348239 J M Financial 143 Venkat Samala 2266578154 DSP Mutual Fund 144 Venugopal 7795441484 Trendlyne 145 Vibhor 8800361118 146 Vidhi Shah 9920910811 YES Securities 147 Vigesh Iyer 9664252284 Sequent Investments 148 Vikram Suryvanshi 9867327414 PhillipCapital 149 Vinit Manik 62327216 150 Vinni Motiwala 9819798409 CNBC 151 Vinod Jain 9814022999 152 Viraj Shah 7666947641 Arihant Capital 153 Vishal 9515154470 Bajaj 154 Vishal Kothari 9833780081 155 Vivek Sharma 61593160 PGIM India Mutual Fund 156 Yash 6377572688 UBS Securities India Private Limited 157 Yash Tanna 9920046969 I Thought PMS 158 Yashvant 7977028726 Southyarra Holding 159 Yatin Bhatta 68087070 Nippon India 04-11-2024 Page 3