Allcargo Terminals (NSE:ATL) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Allcargo Terminals Limited Q1 and FY 'twenty seven Earnings 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 in the conference call, please signal an operator by pressing star, then 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to mister Suresh Salman 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 Allcargo Terminals Limited, mister Suresh Kumar, managing director mister Preetam Bharta, chief financial officer and mister Sanjay Panjabi from the investor relations team, who will represent Allcargo Terminals Limited on the call. The management will be sharing the key operating and financial highlights for the quarter ended 06/30/2026, 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.

1:14 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 Allcargo Terminals Limited Q1 FY 'twenty seven 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.

2:06 Despite these challenges, India's trade and logistics ecosystem remain resilient, supported by steady economic activity, improving infrastructure and the country's growing importance in global supply chains. Against this backdrop, Allcargo 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.

2:51 First, expanding capacity to accelerate growth. Over last year, which is FY 2026, we increased our annual handling capacity by nearly 20% to approximately 1,030,000 TEUs. 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 disciplined pricing and commercial terms and effective resource utilization. The improvement in profitability during the quarter continues to reflect the effectiveness of this approach.

3:37 Third, leveraging technology to elevate operations. You would recall that Allcargo Terminals was one of the early CFSs to adopt digital technology in both XM side of cargo clearance. The My CFS 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 in 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.

4:24 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 Farooq Nagar 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 ten years has been completed and the work will start post monsoons. This will add approximately 60,000 TEUs of annual handling capacity for us in SPDY JNPT, which is the closest facility to the port in Nawaseva.

5:13 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 long standing 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 Allcargo 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 a disciplined approach to execution, we believe Allcargo Terminals is well positioned to deliver sustainable growth while creating long term value for all stakeholders.

6:14 Before handing over to the call to Pritham, I would like to share a significant change, which is in transition at Allcargo Terminals. I'm very happy to share with you that we have a new Managing Director designate, which is Pranal Chaudhry, who comes in from Adani ports, that was his last assignment. He was the Chief Executive. He will take over the range 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 1. 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 1. Thank you, and I hand you over and a quick word from Pranav before I hand you over to Prithub.

7:07 Good morning, everybody on the call. This is Pranav Chaudhry. I've just joined Allcargo a week back. Thank you for being on the call and look forward for our continued relationship and partnership in future. Thank you. Thank you, Pranav. Over to you, Prithub. Good morning. Good morning, everyone, and thank you, Suresh. Welcome to our Q1 FY 'twenty seven earnings call. 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 FY 'twenty seven stood at 1 lakh 76,499, a 7.2% growth year on year. Revenue for the quarter stood at $2.14 crores as compared to INR187 crores for Q1 FY 'twenty six and INR208 crores for Q4 FY 'twenty six.

8:05 EBITDA, excluding other income for Q1 FY 'twenty seven stood at INR47 crores as compared to INR 35 crores for Q1 FY twenty twenty six and INR 44 crores for Q4 FY twenty twenty six. This implies an EBITDA per TEU of INR 2,690 for Q1 FY twenty twenty seven. The improvement in profitability came on the back of operational efficiencies supported by technology improvements and by higher share of transshipment containers volume plus upward rate revision at various locations. Going forward, we expect EBITDA per TEU to remain around INR 2,400 level.

8:54 Net profit for Q1 FY twenty twenty seven was INR 6 crore as compared to INR 9 crore for both Q1 FY twenty twenty six and Q4 FY twenty twenty six. The PAT was impacted by tax on dividend from joint venture companies and also previous year's tax impact. Going forward, tax rate is expected to remain at 25% as we have moved to concession and tax regime from now onwards. With this, I would like to open the floor for the question and answer session. Thank you. Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Participants are request to use handsets while asking a question.

9:49 Ladies and gentlemen, we'll wait for a moment while the question queue assembles. A reminder to all the participant, if you wish to ask a question, may press star and 1. Our next question come our first question comes from the line of Raj Doshi, an individual investor. Please go ahead. You for the opportunity. I have two questions. So my first question is, what are the CapEx and for FY 2027 and FY 2028? 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 FY 2027. This is part of the three year FY 2027, 2028. This is part of the three year plan in which you have identified key projects. And Preetam will share some of the highlights on the numbers with you.

10:43 So I will link this question to the three years plan, Plan 2,030, which we are currently on path. So for our Plan 2,030, basically, we had estimate of INR 400 crores of CapEx requirements. And this includes various projects, which we have planned from Farooq Nagar to Chennai and speedy expansion at JNPA and also Munra expansion. Now some of these projects would has actually started and the CapEx expenditure would basically start incurring from this financial. In speedy JNPA, we are expected to around INR 20 crores of CapEx in this financial year.

11:31 Plus substantial amount of CapEx for Bharat Nagar will be incurred in this financial year and in the next financial year. So overall, there is a requirement of close to INR 400 crores of CapEx. Various funds requirement various funding plan for this INR 400 crore CapEx has also been in place. Recently, we have raised an equity of INR 120 crores. Out of that INR 25 crores, we have already called and close to INR 90 crores is yet to be called. This will be utilized for financing this CapEx plan. We have existing accrual close to INR 50 crores that will be utilized for the CapEx funding. Existing business continue to generate INR 70 crores cash flow on an annual basis and that would also be used for funding this CapEx expansion plan.

12:22 There could be certain debt requirement in the range of 100 crores to INR 150 crore for which we are already tied up with various banks and that they could be raised at respective points. But to answer your question, we have planned for close to INR 400 crore of CapEx expansion, CapEx for this financial year. Close to crore of that CapEx we should incur in the current financial year 2016. 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? Yes. So maximum funds will be raised from our existing balance, which we have maintained around INR 50 crores.

13:15 Future cash flow, the company over the period of project execution period will be close to INR 150 crores. So INR 200 crores would come from my INR 200 will come from the existing accruals. As I told you, to INR 90 crores will be used out of the equity, which we have already raised in the past. And the debt requirement would be in the range of INR 100 crores to INR 150 Okay. Great. Thank you. And my next question is regarding the EBITDA per TEU. So once the ICD is fully operational, what are our target for that? So if we are talking about Farooq Nagar ICD, the Yes, Farooq.

14:01 So the EBITDA for Farooq Nagar ICD would be significantly more because we will be also factoring or participating into sales revenue for our Uptanagar business. So currently, we are looking to maintain our EBITDA per TEU in the range of 2,400 and that we have been able to maintain successfully for last few quarters. In our three years plan, we have targeted EBITDA per TEU of 2,750, that's including Farooq Nagar project. So we would be with Farooq Nagar project going low, that is the target EBITDA per TEU we are looking to maintain. Okay.

14:47 Thank you. That's it from my side. If I have anything, I'll call back. Thank you. Thank you. Thank you, Raj. Thank you. Our next question comes from the line of 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, Allcargo Global, where they do LCL and FCL? Yes. So for LCL business, yes, we use our CFS to handle the LCL containers for Allcargo Logistics.

15:34 That business is there at JNP, Munra and Chennai, all the locations. We provide storage as well as handling services to Allcargo. It comprises close to 10 to 12% 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 Allcargo Group. Okay. In addition, Dev Raj, also relevant to know that the Allcargo Group through its other listed entities offer products and solutions which are adjacent to what Allcargo Terminal does.

16:19 So while we present solutions to customers, there is the Oceanside Logistics, the freight which gets taken care by Allcargo Global. Allcargo Terminals does the port side logistics work. And then you've got Allcargo Logistics, which takes care of Express and the 3PM, 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 cross sell opportunity for us at an entity level, which our teams do. Okay. Noted, sir. But sir, it was very difficult to understand, right, for a long term shareholder that there were four businesses which were carved out. We just did feel that there were some inside the group, one company get the business.

17:08 But now as we are separately listed, so that was the... My question was coming from up... From that point of view and how we will get more business. And it's okay. I I... I'm done. So my question is related to the DFC. How does DFC benefit our ICT 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've got JNPA, the Naveshiva 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, three fifty kilometer range. So Mundra, you can look at it that way, rail coefficient being high in Mundra, one of the highest in the country.

18:07 JNPA, there is a scope for rail coefficient to become better. Largely, the JNPA CFS has catered to a 200, two fifty kilometer radius. You have Bivandi, Pune, a lot of these industrial clusters is what we cater into. With the DFCC, obviously, there could be an increase in port volumes, which can trickle down into CFSs in the form of DPDDPD 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 locations on the DFCC and now Farut Nagar in the next one year will be the latest addition to that. Mundra, we are present through two facilities, Navesheba also we are present through two facilities.

19:09 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 Faruknagar and we will be the CTO, right? Yes. So there is a PFT and an ICD that we will have in Farooq Nagar. 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 stand alone PFT for initial months before the ICD gets fully operational. And as you would know, we also have a strategic investment in HORCL. Allcargo Terminals holds about 7.5% stake in HORCL, which gives us maybe in the next one, one point five years' time when the whole process 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.

20:10 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'll join the team. Thank you. You. Our next question comes from the line of Omkar with Kotak Capital. Please go ahead. Yes. Hi. I'm audible? Yes. You're audible, Mr. Umpra. Please go Actually, Umpra is not there. I'm Vikram here. I have two questions. Actually, one question only you answered very broadly in last question. So one question I have about the EBITDA margin. And you guys have seen improvement over a period of last two, three years from 17% to now 22%, upwards of 22% in the first quarter. Is it one question is sustainable at 'twenty two or the way you are improving the operation excellence? Do you see a further improvement in the margin from there? Or could have time on last quarter on quarter guidance, but generally over period of time because that's what your target is to improve the.

21:18 So can you take this to the, you know, journey, and can you tell me about some more operational excellence happening in the company and what... What's the guidance for next two years? Sure, sure, Mr. Umkhar. 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 side.

22:04 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 China 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%. From that, we have built up our capacity significantly, and the capacity utilization has also kept pace. So last year, we were at a capacity of about 8.3 lakh TEUs. We built it up to around 10.1 lakh TEUs.

22:54 But the capacity utilization from a 60%, 65 three, three point five years back, who was at a healthy 80% to 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. If you were to look at it, it's a conscious effort over the last eight to twelve months, both on the revenue, commercial management, deal management, using the right kind of scale efficiencies to optimize costs. We have also introduced technology in the form of MyCFS, 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, Pritham, short while back said that with the ICDs becoming part of the portfolio in about one point point five there will be a natural increase, which will happen.

24:10 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 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 TEU numbers in the range of $2,400 to $2,500 per TEU. I hope this answers your question. Yes, yes, yes. I got that. Okay. And because I just took an FY '30, you know, and when you see revenue of 14,000,000 total and EBITDA to 75 crores, you're roughly targeting 20% EBITDA margin and you already crossed 22. So I just want to understand that this is a onetime or sustainable because you've already explained the efficiency part and it is very relevant to your business.

24:57 So that's what my curiosity that are we targeting '20 or '22? That's all the question. Thank you. Thank you for your question. Thank you. Our Our next question comes from the line of, an individual investor. Please go ahead. Hello? Hello? Yeah. Good morning. Please go ahead. Yeah. Thank you for the opportunity. Sir, my question is, since it is such a high cash rich business, any plans of coming out with a dividend payout policy? So So Preetam will take that question. Thank you.

25:47 Correct. So it's we do discuss dividend distribution in our Board meeting. However, we are just I think we just completed three years of listing. There have been 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 the cash flow requirements have been fully taken care of and into our project. We will look at those returning some of this money to our investment by way of dividend.

26:49 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 Farooq Nagar project and other expansion, that being funded at this point in time.

27:35 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. Yes. Okay. Okay. Thank you for the opportunity. Thank you. Thank you. Thank you. Our next question comes from the line of Rakesh Parikh with n... NV Alpha Asset. Please go ahead. Yeah. Thanks for the opportunity. So first on 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 run rate we should be taking for the full year?

28:22 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 our one of the KMP CEO, and both these impacts has come into this current quarter. So impact of ESOP would be close to 1 crore per quarter. And the impact of increments, have already taken. So you can take this as a regular quarterly. Got it. And in terms of time line of our new project getting streamlined, so probably Chennai and Faruknavara, it will be third quarter, fourth quarter for commercialization?

29:18 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 facility there with warehousing and other capacity. That added close to a lakh plus capacity there in JNPT. Third project that we have is a speedy renewal, which we successfully got the renewal, we got the term extended by another ten years. We also got a commitment for a INR 40 crore facility upgrade in which we participate 50% and J and P participates 50%.

30:17 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 January, February '27. The fourth project is Farooq Nagar, 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 Kathopalu cluster of ports in Chennai. We are in discussions to identify a facility.

31:07 And once we have clarity amongst the options that we decide to choose, possibly in the next quarter call, we will be able to give you firm time lines. So this is the time lines 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 he said, available till two thousand and thirty, 'thirty one. 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.

31:55 Therefore, I wish to assure you that what we require on capacity and headroom has been virtually we have complete visibility of the 13 lakh capacity that we require. I hope this answers your question, Mr. Parekh. Yes, sure. Just this JNPT, the new speedy thing that what we've done, so that ramp up is already there, and the the operation will be operational by Jan Feb. Right? I'm talking about Jan Feb, yes, '27. 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.

32:42 So your time line that you've 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 for the ramp up as such, right? Yes. Yes, that's fair to say that. Yes. Fair to say. Yes. Thanks. Thanks. That's it from my side. Thank you. Thank you. Thank you. Our next question comes from the line of Utsav B, an individual investor. Please go ahead. Hello, sir. Am I audible? Yes, you're audible, Mr. Utsav. Please go ahead.

33:28 Yeah. Thank you for the opportunity. Sir, I would like to, you know, know a bit more about the MyCFS portal that you 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 one way 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.

34:17 There are a lot of manual work which needs to be done with regard to writing forms, filling forms and the whole payment and then the interactions which are there. So there are multiple steps which need to be done. And for that, our customers and our customers' agents or 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.

35:04 And the whole import cycle, if there are hypothetically 14 or 15 steps involved to get an import container cleared, I think we have automated about 70% of that workflow through the My CFS app. There are some portions which needs to be integrated with the customs and other ice skate 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 request 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 handle, 75% to 80% of volumes handled in our CFSs is 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 are a lot more of digitalization which will happen in the customs interface.

36:16 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. And 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 7080% amongst the CHA community for whom this product is really targeted at. I hope that answers your question. Yes, sir. Thank you so much. Just one more question. I might be a bit Mhmm. In asking this, but, I mean, there are a lot of CSS in India. So, I mean, just to get an idea, how many of the CSSs have these kind this kind of a a portal?

37:13 Just 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. And just to think about the EBITDA per TEU, I mean, 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 up on that. Yeah. So difficult to segregate that.

38:03 In terms of pricing, if you see, I think year back, we were hovering around 11,000, 11,500 rupees per TEU. Now that is something which we have been able to push at at 13,000 per TEU in the current financial quarter. So yes, 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 to the customers, and that has also given us a good increase in terms of revenue per TEU. So I would say this is a combination of yield management as well as cost saving.

38:53 Maybe to answer your question, we can put it like a 50 of these savings we have been able to derive by way of better yield management. Management and 50% of this improvement has come from our operational efficiencies, which includes our HD modernization plan and yard management systems and things we have. Yes. So just to supplement what Preetam 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 TEU.

39:39 And like what Preetam 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, mansen, which we do more of them, reefer, some of these 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. Our next question comes from the line of Devraj, an individual investor. Please go ahead.

40:38 Sir, through the private freight terminal, right, we aim to target the TAM is a domestic railties or existing railties. Can can you please repeat the question, sir? Such as private freight terminal, right, in Farooq Nagar, which will come up, example. So through that, we are aiming to target the domestic t... Rail to use or rail to use? Yes. 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 maintained 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% excess.

41:37 Okay. Okay. And sir, domestic EBITDA margin will be lesser, right, compared to the Ex I'm EBITDA margin? Yes. 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? Yes. 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 check post that we do with a joint venture that we have with a Nepal based partner. We are present in Dattopani, Bharat Naga and in Kathmandu, I think, with the yes, Kakarvita with the CFS, and we operate the ICPs at Dattopani and Bharat Naga.

42:31 And now with the rail connectivity and you would have heard learned about what's happening with Maersk launching 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. All right, sir. And sir, one just one thing that renewal thing, right, in earlier participant's question, so that renewal comes up from port authority or it comes from the customs authority license? The port yes. So the JNPA renewal comes from the port authorities.

43:17 So this is they are the landlord port, and therefore, is a SAMR model of CFS. The earlier contract was for twenty years, which got over in 2025 and we have now been able to successfully get a ten year extension for that. Okay. Okay. So our premises will be in the port premises or outside the port? Outside the port premises, but we are the closest CFS in our Naveeshewar to the port. Noted, sir. Thank you. Thank you for answering your question. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Suresh Kumar, our Managing Director at Allcargo Terminals Limited. Thank you and over to Thank you, 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.

44:17 In summary, we are very, very well placed when it comes to creating capacity and well on track for the three year ambition that we have of becoming a 1,000,000 TEU 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 Allcargo Terminals from September 1. 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 Allcargo Terminals, take our business forward in the direction in which we have outlanded for the next three to five years.

45:07 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 Allcargo Terminals Limited, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines.