Container Corporation of India Limited (NSE: CONCOR) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Sanjay Swarup — Chairman & Managing Director
Anurag Kapil — Director, Finance
Ajit Panda — Director, Project & Services
Mohammad Shams — Director, Domestic Division
Analysts:
Bhoomika Nair — Analyst
Amit Dixit — Analyst
Lavina Quadros — Analyst
Kaustav Bubna — Analyst
Achalkumar Lohade — Analyst
Mukesh Saraf — Analyst
Sumit Kishore — Analyst
Akash Mehta — Analyst
Priyankar Biswas — Analyst
Prateek Maheshwari — Analyst
Vaibhav Shah — Analyst
Sandesh Shetty — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Quantana Corporation of India Limited hosted by DAM Capital Advisors Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms Bhoomika Nayer from DAM Capital Advisors Limited. Thank you, and over to you, ma’am.
Bhoomika Nair — Analyst
Thanks, Ruduja. Good morning, everyone, and a warm welcome to the Q3 ’25 earnings call of Container Corporation of India. We have the management being represented by Mr Sanjay Swaru, Chairman and Managing Director and his entire team.
I’ll now hand over the floor to Mr Swarook for his initial remarks, post which we’ll open up the floor for Q&A. Thank you, and over to you, sir.
Sanjay Swarup — Chairman & Managing Director
Good morning to all. I am joined by my Directors — Director Projects, Mr Ajit Kumar Panda; Director Domestic Mr Azar Shams, Director, International Marketing and Operations; Mr Pari; and Director of Finance, Mr Kapil.
So I just would like to make some opening remarks and then we can open for questions. I’m happy to inform that there has been a throughput growth of 7.8% in the nine-month period ending on December 31, 2024, in which registered a growth of 5% and domestic stream registered a growth of 7.8%. And this is in conformative with India’s international trade-in which exports have registered a growth of 1.6% to $327.7 billion US dollars and imports registered a growth of 5.1%, that is $532.48 billion year-on-year. In Q3, our company registered a growth of 11.6% over the corresponding period of last financial year, which included growth of 8% and domestic growth of 24.7%. This has been due to — in-spite of supply-chain disruptions at international level due to the various geopolitical reasons of which you are very much familiar.
I am further happy to inform that we gained in exil market-share also in pan-India basis by 73 basis-points. And at Mundra Port, we gained market-share by 180 basis-points and at port, we gained market-share by 278 basis-points. This is despite our increasing the rail freight margin also, we did not sacrifice on any margins while gaining the market-share. Our rail freight margin increased by-15 basis-points year-on-year from 25.61% to 25.76%.
Operating margin was flat, same year-on-year, more than 30% and reasons for increase in-market share is customer-centricity that is being observed by all the officials of the company. Customers have reposed faith in our company. And secondly, due to the operational excellence of Team. Further, we had operating income growth of 4.23% and PAT growth of 3.6% despite challenges on geopolitical fronts. We also registered a growth of 11.25% in double-stack rates. Last year, we did 4,142 double-stack rigs in the nine months. And this year we have done 4,608 at double-stack rates. For catering to our demand, which is increasing day-by day, we have added infrastructure. In the nine months, we have commissioned four rigs.
Now our total fleet stands at 382 as on December 31st. We procured 6,868 containers and now our total fleet of containers in domestic stream owned by us is 51,236 containers.
Then yesterday, Board of Directors deliberated the various demand, which we are catering and future demand, which is very, very robust and seeing into the demand, Board of Directors have decided that we will increase our capex by 40%. It was capex budget for this financial year was INR610 crores, out of which already INR44 crores we have achieved. Now we have revised it upward 40% to INR855 crores that we will be spreading by this year end. And company is going for a massive infrastructure creation.
I’m happy to inform that by 2028, that is three years from now, we will be having 80 terminals. We will be having 500 plus rigs ownership by Concor and we will be having around 70,000 containers fleets. So this will be a massive infrastructure upgradation, which we are doing, keeping in the demand in the market. And a lot of demand is there. We have to meet the demand and outlook is quite bullish by the company.
And I’m also happy to inform that we have declared an interim dividend of INR4.25 on share of par value of INR5. So till now, we have declared total interim dividend of INR9.50, which is 190% of the par value per share. As you are very well aware that the businesses in the logistics is deeply affected by challenging geopolitical scenario, supply chains which are getting adversely affected, kinetic vessel schedules, there are congestion and transition, all these factors had led to a small dip in the month of December. And now it is fully recovered in the current quarter, we are experiencing a double-digit growth.
And our — even then in the nine months, we have registered a handsome growth in exports and imports. Exports in RMG, ready-made garment increased by 92%, export of auto parts increased by 21%, export of food items 22%, paper products 20%, average 37%. In imports, auto parts increased by 34% and raw cotton increased by 77%. Rail services, we have started the export refer containers from to JNPT and in which we have already done 442 of movement. And one more thing is that we have brought on double-stack for North India by running the double-stack phase of up to MMLP Vanama, which is near, that’s 400 kilometers short of JNPT. So even DFC has not been commissioned up to GNPT, which will be likely to be commissioned by December 2025, but we have already given the benefit of that our North India customers and it’s getting a very good response. From December, we have started this services and we are ramping-up very good volume in this stream.
One more thing is that we have started new rail services at Pol and which is in Andhra Pradesh and already we have done 700 TUs we have undone. Focus area for the company remain customer-centricity, total logistics solution to customers, business solutions and green and sustainable logistics, which is a key focus area for the company towards fulfilling of our ESG norms. New initiatives, which will be both drivers in the coming months will be the very big growth drivers that will be the bulk cement in containers we are procuring containers.
Operator
So there is a lot of disturbance from the line.
Sanjay Swarup — Chairman & Managing Director
Hello?
Operator
Yes.
Sanjay Swarup — Chairman & Managing Director
Are you able to hear me?
Operator
I am able to hear you but the disturbance is still there.
Sanjay Swarup — Chairman & Managing Director
Yes, lot of disturbance is there.
Operator
Ladies and gentlemen, please hold the line while we check the connection for the management. Ladies and gentlemen, thank you for patiently holding your lines. We have the management line reconnected back. Over to you, sir.
Sanjay Swarup — Chairman & Managing Director
Yeah. Hello. I hope you have heard my previous whatever I have told about the opening remarks.
Okay. Now the last just I will take one more minute. The new initiative, which will be the growth drivers for the company in the coming months will be bulk cement and tank containers and we are procuring 1,000 tank containers and from yesterday, we have started receiving the supply of tank containers from our sister PSU breathway and they have started supplying 10 containers to us. In the coming months, this will be a very big growth driver in the domestic stream, even our customers are eagerly waiting for this. Then second will be double-stack to GNPT that I already told on DFC, then we are — we have signed various long-term agreements with our corporate customers and shipping lines, which will further push up our volumes.
Then we have rise exports, which is quite robust now. So we are getting very good demand, very good volumes in exam and domestic both and we are on the correct track to achieve the historic 5 million TEUs handling target that we will be having in this financial year. I’m quite confident that we will be able to achieve 5 million to you, which will be the landmark for the company. First time we will be achieving that target.
So these are — this is all opening remarks from me. Now you can put up questions.
Questions and Answers:
Operator
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from ICICI Securities. Please go-ahead.
Amit Dixit
Yeah, hi. Good morning, everyone, and thanks for the opportunity. I have couple of questions. The first one is on the capex. So while you highlighted that we will have 80 terminals, 500 rigs, 70,000 containers, is it possible to let us know a cumulative capex number till FY ’28, FY ’26, ’27, ’28, if I add all these? And this INR855 crores revised budget, now we have already spent INR440 and just two months are remaining in the year. So are you confident that we will spend this entire amount or something will flow-through in FY ’26? That is the first question.
Sanjay Swarup
Yeah. Now we — actually we — I am giving you estimate about this financial year that will be INR855 crores. All I can say is for the next three years also in the same range we will be spending. If you remember some four, five years back, we used to spend INR1,000 crore every year. So figure will be remaining around this number. Exact number is not possible to give at this stage. Secondly, as I told you, INR44 crores we have spent only till December 31st and January is already now getting over. So that number I have already not told you. So for this quarter, we will be spending the remaining amount. We are quite confident that is why we have revised the budget. We are quite confident of spending that much amount.
Amit Dixit
Okay, sir. The second question is essentially on the — on the growth. So what — given that January is already behind us and you mentioned that in January you have seen certain growth uptick. So what kind of volume growth can we expected in Q4 in both domestic and side.
Sanjay Swarup
So at this stage, I would like to not like to give any number, but all I can say is the — both and domestic, domestic, of course, has done very well. They are experiencing double-digit growth, but is also having double-digit growth in the month of January, which I’m quite confident is likely to continue up to March. I will not like to give any number at this stage.
Amit Dixit
Okay, okay, sir. Got it. Thank you so much. All the best. I’ll come back-in the queue.
Operator
Thank you. The next question is from the line of Lavina from Jefferies. Please go-ahead.
Lavina Quadros
Yeah, hi, sir. Sir, just wanted to understand two or three things. Your depreciation is lower by INR80 crores approximate run-rate. INR25 crores, I understand is because of the depreciation policy change. What about the balance INR50 crores? Is it a sustainable reduction because of a quarterly basis? Secondly, your realization in was down about 10%, right? I know you addressed it a little bit, but just a little more color there, please.
Sanjay Swarup
Our realization because of the Q3 volumes were down that I told you because of supply-chain disruptions were there in the international movement because of geopolitical reasons, that is why we could not do very well in England in this Q3. But now everything is back to normal. And in fact, we are getting very good volumes in. So for depreciation, I will request my ED finance, he will explain the details.
Anurag Kapil
Yeah, good morning. You said that depreciation has come down by INR25 crores. That is correct. This is for the quarter, this reduction is there, but if you see for the period, the impact of the change in the age of our useful life of our wagon, the impact is INR79 crores. So effectively, our wagon depreciation for the current quarter is INR12.5 crores and for the period, it is INR36.7 crores. So this is the clarification.
Lavina Quadros
So you’re effectively saying I should look at the Nine-Month depreciation trend, not focus so much on the quarter, right, for the trend ahead?
Anurag Kapil
Yes. Yes. T
Lavina Quadros
That’s the way to look at it. Okay. Just really
Sanjay Swarup
Stated in the note also, if you see the note to the results, that has been clarified. The impact in the quarter as well as in the period.
Lavina Quadros
Understood. And sir, just one more thing. This — on this realization, would it be fair to say that because volumes were weak, maybe some benefits, some pricing changes were made, which should therefore be corrected as volumes gradually pick-up ahead? Would that be fair to say?
Sanjay Swarup
No, no. We have not done any pricing change. Normally, whatever prices we declare, we keep it stable. We frequently don’t go for pricing change. So pricing change were not done. It was purely as a result of volumes.
Lavina Quadros
Okay. And sir, lastly, if you ex-out DFC, right, I mean, if I look at a three, five-year period, what do you think is the volume growth that you could see without DFC organically? And would that be different once JNPT connects? If I look out three to five years.
Anurag Kapil
Actually, whenever we make our assessment for the forecast, you know what will be the for three to five years, we have to take DFC into picture. Without DFC making a forecast will not be realistic because DSC is coming in one year. So realistic forecast can only be made if we take DFC into picture. So with DFC, it’s a very good volume growth numbers I cannot share right now. All I can say is that future is very good and we have been talking to trade. Even running double-stack up to Vanama is giving us a very good response and trains are reaching quite quickly and double-stacking and evacuation on-board is also very fast. So these benefits are going — we are seeing the benefits. If also gets connected on DFC and with the PSS second terminal also coming up, it will have a capacity of 10 million TEUs. Nawash Sheva can hand it 10 million TEUs now. So there is very good growth expected in the coming months.
Lavina Quadros
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of from BMSPL Capital. Please go-ahead. Y
Kaustav Bubna
Yeah, hi. Thank you for taking my question. So my question was regarding the DFC only. So could you explain to me a little bit about in how much of a detail you can providing data points of your knowledge about the market opportunity that’s opening up for our — for your company as the DFC becomes operational over the next couple of years.
Sanjay Swarup
So the DFC is going to be a game-changer. I will just give you some data. Like Bundra Port when it is now connected to DFC and feed a route and our Dadri terminal also is connected to DFC. Now Dadri — from Dadri to Mundhraport, there is a distance of 1,200 kilometers. Road is taking 55 hours to send one container from Dadri to Mundrapur, whereas DFC, as a result of DFC, we are running timetable trains, which are called Freight Express. We are able to take — we are able to send the container in 38 hours from Mundrapur to — from Dadri to Mundrapur. So containers are catching their schedule and it is very fast and we have tweaked our rates also. We are giving some commercial benefits to customers. So as a result of operational as well as commercial benefits, there is a sizable shift almost 11% to 15% shift from road to rail between Dadri and Mundrapur.
Now when Mahawasheva also gets connected on DFC, which is approximately 1,500 kilometers from Delhi, that will be a game-changer in logistics period. As per the national rail plan also, which is — which was done by Indian Railways, they are expecting a rail coefficient of almost 40% to 45%, which is at present 18% to 19% at. So it is going to be a game-changer in the field of logistics. Our company is also going to derive lot of benefit from that because we have already commissioned five MMLPs — four MMLPs on DFC, fifth one is under commissioning. So all these five MMLPs will cater to the growing demand in and we will be running timetable trains in collaboration with DFC and Indian Railways, connecting our MMLPs to. So this time — because this predictability and transit assurance, this is a very big thing in logistics. Once it is given to customers, then we are expecting a very good shift from road to rail.
Kaustav Bubna
Excellent. Thank you so much. Thank you.
Operator
Thank you. The next question is from the line of Humika Nayer from DAM Capital Advisors. Please go-ahead.
Bhoomika Nair
Yes, sir. Sir, if you know, if you could just share first the originating volumes for the quarter?
Sanjay Swarup
Yeah, okay. Originating volume in was 975 243 TUs, domestic 309551 TU, total 1284794 TU. Sorry, this is ending and originating is exhib 525812, domestic 117644 and total 643456, please.
Bhoomika Nair
Right. Now, sir, this — just to understand this drop-in realizations, while obviously volumes have been a bit of a challenge, particularly in, but the realization drop has got to do with some mix change, the distances falling or exactly what has driven this decline in the realizations because you said there has not been really any drop or any changes in our pricing strategy per se.
Sanjay Swarup
The only reason is a drop-in volumes and there is no other reason that comes to my mind because lead is also our lead-in exam, they just slightly dip, slight dip in nine months, it has come down from 708 kilometers to 704, only four kilometer dip is there. Not much dip is there in the lead. So only the reason is drop-in volumes.
Bhoomika Nair
Okay. Okay. Sir, in terms of, you know in terms of the overall, as we move ahead in terms of the volume pickup, you know, you said that January has seen an uptick in terms of volumes. Now for the full-year, we were earlier looking at a much sharper growth. Will this now be kind of toned down? And what is your outlook, especially from FY ’26 perspective that we could look at?
Sanjay Swarup
FY ’25, I will not like to give any further guidance because now only 1/4 is remaining. And whatever we were expecting because of the geopolitical disturbances, we could not reach that number in. In domestic, of course, we will be reaching that number. But FY ’26, let us wait for two, three months more. I will give a guidance in my next call.
Bhoomika Nair
Sure. So sir, I mean, are we seeing an improvement in the overall exit cycle? And do you think growth can come back-out here? And particularly the road rail share had gone adverse a little bit. Have we started to now start seeing volumes come back to rail in general?
Sanjay Swarup
Yes, yes, sir. We are seeing a very good growth in XIM also and domestic also. And there is lot of demand which is there in the market and very robust growth we are expecting. That is why, keeping all these things in mind, the Board of Directors had decided that we will increase our capex spend now. And I think we will be able to sustain around this number only for the next two, three years. There is lot of demand in the market.
Bhoomika Nair
Sure. Sir, and lastly, may I have the MT running for both and domestic for the quarter.
Anurag Kapil
Yes, for the quarter, you want for this Nine-Month period?
Bhoomika Nair
Anything we’ll do, sir.
Anurag Kapil
Yeah, Nine-Month period ex-Im was INR89.70 crore and domestic was INR20.92 crore, totaled INR310.61 crore.
Bhoomika Nair
Yeah. Meet sir. Thanks so much. I’ll come back-in the queue.
Operator
Thank you. The next question is from the line of Achal Lohade from Nuvama Wealth. Please go-ahead.
Achalkumar Lohade
Yeah, good morning, sir. Thank you for the — thank you for the opportunity. Sir, can you help us with the market-share, please?
Anurag Kapil
Yes, market-share at JNPT, our market-share is 58%. At, it is 38%. At Pipawa, it is 48%.
Achalkumar Lohade
And is it possible to get the market-share for the — this is nine months, I presume right, sir, or this is for the 3rd-quarter?
Anurag Kapil
This is for nine months period.
Achalkumar Lohade
Nine months only. Okay. And in terms of the port mix, if you could help us with?
Sanjay Swarup
Okay, that volumes that we are getting from port,
Achalkumar Lohade
Yes, yes.
Sanjay Swarup
Okay. JNPT, we are getting 33%, Mundra port 38%, Pipawa 10%, Vishaka Patnam 5.5%, Chennai 3.8% down 4.5%, I think that should be enough almost 95% I have told.
Achalkumar Lohade
Understood. Sir, if I put the originating volume along with the revenue number, the segment revenue, I see that the realization for domestic has gone up from 56,000 to INR69,000 quarter-on-quarter. So can you can you help us understand what has driven this? Is there a significant change in terms of the mix or anything?
Sanjay Swarup
Basically it is because of the reduction in empty running in domestic. We are getting very good circuits and traffic on both the sides. Sides and our domestic team has worked very hard. And one very good initiative that we took was the containers which were coming running empty in empty direction. We have given very competitive rates so that at least we get some money. So all these steps have really done — given excellent results and you can see the realization gaining in domestic.
Achalkumar Lohade
Right. Sir, just one question if I may. Overall market-share, would you have — what was it in 2Q and what is it in 3Q, sir? The overall market-share on the CTO basis, overall rail volume and
Sanjay Swarup
I got it. I got it. I have a nine-month period I can give. Yes, quarterly I don’t write nine months period for — yeah, Nine-Month period, I can give our market-share is 55.28% and domestic it is 58%, total 56%.
Achalkumar Lohade
Understood. And just last question if I may, sir. You mentioned about and you’ve started the train from JNPT. Is it possible to get some sense in terms of what is the benefit in terms of A, the operational side and B, the financial side, what kind of price reduction or cost-reduction one can look at?
Sanjay Swarup
It has both the benefits, operational as well as commercial, I will tell you in brief. A Mundra port, sorry, Dadri from where we are running the service and. These are the two MMLPs in North India from where we are running double-stack service to Vanama. From there, if we run on double-stack, then the speed, which is because up to DFC, up to Vanama, it is going on DFC, which is giving a very good speed to us. And almost in Indian Railways, we are getting a speed of around 20 kilometer per hour, whereas from Dadri to Vanama, if we run on DFC, then we get a speed of — average speed of 65 to 70 kilometer per hour, which is almost three times speed. So it is taking one-third of the time in reaching. And, we split into two and this double-stack is done — is made single stack of train up to Navashiva for the last 400 kilometers of the journey. So it is giving us the benefit in terms of transition time, number-one.
Number two, commercially also, we have not revised our tariff till now. So we are just — we just started in the month of December. So we have not revised our tariff. But because on the upper deck, we have to pay 50% of rail to Indian Railways. So it is making a positive contribution towards my bottom-line at present.
Achalkumar Lohade
Understood. And just sorry, one more question, sir. Is it possible to get a sense as to how much of the JNPT volume is testing for North India and how much of that is going on rail?
Sanjay Swarup
See at this moment, it will not be possible for me to elaborate on this question, but I can answer you separately afterwards.
Achalkumar Lohade
Sure, sir. Thank you. I’ll fall-back in the queue for follow-up. Thank you.
Sanjay Swarup
Thank you.
Operator
Thank you. The next question is from the line of Mukesh Serra from Avendus Spark. Please go-ahead.
Mukesh Saraf
Yes, sir, good afternoon and thank you for the opportunity. Sir, you mentioned about the rail coefficients in this quarter and what I see it is it has largely stayed the same, say, over the last few quarters. And when I look at the port volumes, the container volume growth at say Mungra or JNPT, it is up double-digit in this quarter as well. It’s up 10% or so. But our originating volumes are flat this quarter. So just trying to understand our originating volumes are flat, but the pulp volumes are up and the rail coefficients are flat. So this either points out to a market-share loss, but you’re clearly saying that you’ve gained market-share or you kept it flat. So could you help understand the relationship between these three data points, sir?
Sanjay Swarup
Yeah, actually you are not comparing the corresponding data. The real coefficient numbers that I told you that are not for the quarter, that are for the nine months period and market-share also I’m telling you for the nine months period. And there has been a drop-in volumes in the 3rd-quarter only. If you see nine-month period, our volumes in fact have increased and okay. So yeah, that is the reason.
Mukesh Saraf
So if I look at — I mean, obviously, not given this quarter numbers, but this quarter probably there have been a drop-in market-share, sir then?
Sanjay Swarup
Not exactly, because actually volumes were — in this quarter, the volumes were not very good. So everybody has experienced a drop, not only Concor. So market-share market-share drop is not there in this quarter.
Mukesh Saraf
Okay. So there is a rail coefficient drop-in this quarter basically.
Sanjay Swarup
No, no. The inward also come down. Inward at the port has also come down.
Mukesh Saraf
Okay. Okay. All right, sir. I’ll probably kind of try and ask this question later on so that separately.
Sanjay Swarup
Yeah, surely, because quite detailed.
Mukesh Saraf
Sure. Thanks a lot, sir. That’s it from my side. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may press Tar and one now. The next question is from the line of Sumit from Axis Capital. Please go-ahead.
Sumit Kishore
Good afternoon, sir. Over the past 3/4, we have been listening to your commentary around drivers of volume growth around the Barnama double stacked trains NCR to. We have been hearing about the transportation of cement in-tank containers and the pickup in rice exports. So exactly how much volume you know in these three buckets, are you likely to clock or expect to clock? Could you give us some sense in terms of PEUs in these three categories would be very useful, say, over the next one year.
Sanjay Swarup
At this moment, I don’t have the numbers with me. I can share with you separately.
Sumit Kishore
Thank you so much.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question now. The next question is from the line of Achal Lohade from Nuvama Wealth. Please go-ahead.
Achalkumar Lohade
Sir, can you help us with the rail coefficient for each of the port?
Sanjay Swarup
Already I have told you in the earlier question.
Achalkumar Lohade
But mix, I think you had said, sir.
Sanjay Swarup
Now I can tell you at JNPT, your rail coefficient you want, okay, rail coefficient at JNPT in nine months period was 15.7%, Mundra port, it was 24% and Port, it was 58%.
Achalkumar Lohade
Understood. And how about the land license fee? Because I remember last quarter we had some reversal that’s why the number was lower. This quarter the number is little higher Q-o-Q, but it is still lower than what it was last year. So if you could help us what is the number as an expense we can look at as a land license fee expense in the P&L for full-year FY ’25, sir?
Sanjay Swarup
The land license fees, as I told you for the terminals that we are operating on railways, it is increasing 7% every year. So — but we are taking steps and whatever terminals are not useful to us, we are surrendering. So that is stabilized with the railways. There is no issue on that. So it will be around the same — in the same, you know direction, it will move like 7% increase and maybe it may not increase every year also. Like in this, you have seen from INR287 crore, I think it has gone to INR262 crores. It has reduced in this financial year. I mean, but the projects will further. Quarter if you see Q-on-Q, December quarter ’23, it was INR71.95 crores and in the current quarter, we have booked INR89.42 crores so and the adjustment whatever we did earlier in the — in the current financial year, this quarter there has not been any adjustment.
Achalkumar Lohade
So is it fair to say that this is the run-rate one could expect and see a 7% escalation?
Sanjay Swarup
This is the trajectory in which we are going. We hope to close by INR350 crores in the current financial year.
Achalkumar Lohade
Right. But in the next financial year, there will be 7% escalation to that, right? Is that I.
Sanjay Swarup
We are looking at some surrenders — some adjustments. So let us see right now, yes, 7% growth will be there in the next financial year, but still we want to contend that. So we are looking at some other options. So-far they are not materialized. But if they materialize, we may have little less growth next year. But the 350 for this year, you can say.
Achalkumar Lohade
Understood. Any update on the TKD, we were looking at switching under the policy.
Sanjay Swarup
That so-far that we are discuss on stage only that discussion has not concluded with Ministry of Railways. And so right now, we are paying the LLS. But we have 60% 10% land. So that we are surrendered part we are not paying. So we have contained that expenditure by surrendering partially from 14. And we’ll — as we go-forward, we’ll look at alternatives. It’s a dynamic thing. Every year there will be some small developments in some place so that way and we are trying to content that expenditure as much as possible.
Achalkumar Lohade
Understood. And just last one, in terms of the volumes of our total exam volume, let’s say, if I were to ask on an originating volume basis, how much would currently be on the — in the regions where the DFC is going to be operating in like the Northwest pocket?
Ajit Panda
You mean to Mundhra Pipawa and Navashiva. How much volume we are doing?
Achalkumar Lohade
No, no, so of the you know northwest volumes, which is NCR, Punjab, part of Rajasthan etcetera, which would potentially be catered by DFC once it is fully operational, how much volume are okay. Okay. And what kind of volume we are doing right now out of our total volume? Is it 50%, is it 60%, 40%, et-cetera?
Anurag Kapil
It is around 60%.
Achalkumar Lohade
60% of our volumes are from these areas. Have I understood right, sir?
Anurag Kapil
55% to 60%,
Achalkumar Lohade
55% to 60%. Understood. Understood. And if you could comment, sir, in terms of specifically, Punjab market or NCR market, how the demand is shaping up? You gave some numbers with respect to imports and exports commodity-wise, but broadly, are you seeing a pickup in terms of the inquiries, et-cetera from these particular pockets or it’s still — things are still weak.
Sanjay Swarup
No, no, this is actually demand is already there. A lot of demand is there in imports, lot of demand is there in exports. That is a continuous exercise like and it is actually international trade dynamics when suppose, for example, iron scrap rates suppose internationally they increase, then iron scrap imports will come down. After some time, it is a cyclical thing. After some time international rates become less, it becomes competitive. So iron scrap imports will increase. So these are the market dynamics you all of — all of you guys are very well aware. So at present that I was telling you in the opening remarks, we are getting very good demand at all the places in — around the country, we are having the demand in domestic as in both. So that is a general statement I was making. And across the country in all the sectors, there is a very robust demand now.
Achalkumar Lohade
Got it. And just a clarification, the 4Q double-digit growth, are you also meaning on the originating basis or just the handling basis, sir? And was it an aggregate or just the exam part?
Sanjay Swarup
Both.
Achalkumar Lohade
4Q volume growth, you said double-digit in your opening remarks for 4Q FY ’25. It is both. Okay, handling. Yes. Originating as well as handling. On an aggregate basis, right, sir?
Sanjay Swarup
Correct. Okay. All right, sir. Thank you so much. Thank you.
Operator
Thank you. The next question is from the line of Akash Mehta from Canada HSBC Life. Please go-ahead.
Akash Mehta
Hi, thank you for taking my question. So basically, I just wanted to check-in terms of like if the geopolitical issues kind of get resolved to some extent, what kind of growth we could see in terms of and are you seeing anything, I mean in the near, near-term that is happening on that front. So yeah,
Sanjay Swarup
The geopolitical, if it is stabilized, then it will be very good because the vessel schedules, which are quite erratic now and sometimes vessels will stop coming, then after some months suddenly lot of vessels will be coming. So all these things, uncertainties will be over and we will be — vessels will be running as per scheduled. Secondly, for catering to the same volume of traffic, less equipment will be required because now transit time is more, so equipments are also — more equipments have to be deployed by shipping lines. Then thirdly, there will be a correction in the ocean freight also because now they have to take a longer route and when the geopolitical issues are resolved, then they don’t have to take that long do. So they will charge less. So there will be very good growth in the market. How much growth it is very difficult to predict and when it will be resolved, that also I cannot predict right now. It has. It is dependent on so many factors.
Akash Mehta
Sure, that’s it from my side. Thank you thank you.
Operator
MR. Mehta, does that answer your question?
Akash Mehta
Yes, yes. Thank you.
Operator
Thank you. The next question is from the line of Priyankar Vishwas from BNP Paribas. Please go-ahead.
Priyankar Biswas
Thanks, sir. Most of my questions are answered. Just one follow-up question here. So since we were discussing Gathi Shakti in that, so if some of the key terminals were to shift to Gathi Shakti, so can you just quantify for us like how much can be the LLF linked savings, especially particularly TKD goes there? That’s all I have to ask.
Ajit Panda
So see, at present, our management has taken a decision that we will not be going for that option because there is a lot of uncertainty involved in — if we — if brownfield terminals are migrating to Gatti Shakti, then there is a big element of uncertainty. So we have decided that we will not be using that facility provided by Indian Railways. But for greenfield projects, we are going for only.
Priyankar Biswas
So what’s the competitive intensity in this Gatish bids? I mean, what sort of TSE shares people are typically bidding, if you can shed some light?
Sanjay Swarup
What is your question? What is the TSE? Can you please that
Priyankar Biswas
What is the TSE share that people are bidding in these Gathi Shakti projects? If you can share some light. Like is the bids aggressive on that?
Sanjay Swarup
Yeah. That depends on the terminal where they are getting traffic. I cannot speculate how much they will be bidding. That is not within my of discussion.
Priyankar Biswas
Okay, sir. Thank you so much.
Sanjay Swarup
Thank you.
Operator
Thank you. The next question is from the line of Pratik Maheshwari from Tree Line Advisor. Please go-ahead.
Prateek Maheshwari
Hi, thank you. Actually, just I had two questions, but I have another one. Just to clarify. You said we are not going with the bidding process for and the other terminals which we have on the railway land. Is that right?
Sanjay Swarup
Yes. Brownfield projects.
Prateek Maheshwari
For the brownfield projects. I see. Okay. And also like on the EBITDA, like if I just look at the EBITDA level for this quarter, right, if I understand correctly, if I look at EBITDA per ton, excluding the other income, it looks like it’s dropped by almost 18% to 19% year-over-year. So I’m just trying to understand what has happened? Because I understand lead distances have not come down, pricing has not come down. So any light on that?
Anurag Kapil
What number are you talking? EBITDA per ton?
Prateek Maheshwari
Yes. Just looking at our EBITDA per ton overall EBITDA for
Anurag Kapil
EBITDA per TU or EBITDA per ton,
Prateek Maheshwari
Sir, it’s our EBITDA per TU,
Anurag Kapil
Sorry. EBITDA per TU, you have calculated.
Prateek Maheshwari
Okay, okay. Yes, yes. You have taken originating to you or the handling volumes, handling volumes?
Anurag Kapil
No, you should take originating volume actually. That is a clear indicator because handling, if we do double-stack, then same containers we handle two times. So I will request you to take the originating numbers, then it will not be so much drop.
Prateek Maheshwari
And just one final question, if I may. So on the depreciation front, right, I think this was already asked earlier. But just to clarify, I think if I understand correctly, depreciation this quarter was about INR86 crores. And I think last quarter it was about INR166 and I understand that INR25 crore drop can be explained by that wagon life extension thing, but I didn’t really understand the explanation that you gave earlier. So if you could please clarify again, that would be really helpful. Thank you.
Anurag Kapil
Yeah. If you see what we are requesting is that in this financial year, this calculation of life of Wagon has been — there was some anomaly and the anomaly has been removed and it has been brought in-line with the actual life of the wagon that are being used in the railway system. So now you should see the EBIT as a depreciation figure for the nine-month period, not the quarter period, because once the adjustment has been done for the full-year, it was — the booking may look little more in first two quarters and less in 3rd-quarter. But if you add all the three, then the correct picture emerges. There will be drop-in the depreciation figure for the Nine-Month period. And so you kindly see the Nine-Month period.
Prateek Maheshwari
Oh, I see. I see. Understood. Okay. Perfect. Thank you very much.
Anurag Kapil
Thank you.
Operator
Thank you. The next question is from the line of Shah from JM Financial. Please go-ahead.
Vaibhav Shah
Yeah. Sir, just to continue on depreciation part. So if you look at nine-month period is INR408 crores. So going-forward, quarterly number should be INR130 crores per quarter
Anurag Kapil
Yes, like that, yes.
Vaibhav Shah
Okay. Okay. And sir, secondly, if you look at the volume growth in domestic, in terms of handling volume, it is 25% up, while in terms of the hand — originating volume is 7% growth. So there is a sharp increase in the handling sector for on the domestic side. So what could be the reason for that? Or just a sharp variation in the growth numbers?
Sanjay Swarup
My director — I will request my Director domestic to explain.
Mohammad Shams
Actually, in handling, that some of the containers volume we have taken from our PFTs, whatever PFT rates we are handling, we have taken those volume also. So that is the reason that the handling figure has gone up very sharply and the originating is only TEU volume whatever we are doing. So that is the main reason. You know that at Paradi, we are handling around 60 rates 50 to 60 rates per railway wagons. And at other PFPs also we are handling one or two rates. So that rate we charge higher — access charges and then handling charges also. So we have been adding those volumes. So that is the reason basically.
Vaibhav Shah
Yeah. So for Q4, the growth — if you look at the originating — the handling growth in Q3 is 25%. So if we assume that a similar growth comes in Q4. So the difference of the process in Q4 for on the originating side or it will minimize?
Mohammad Shams
No, no, actually originating we are going to increase from 7% what has been there, but keeping in the volume and all those things is originating volume will increase. Now the handling volume will depend that how many rates we handle in our PFT locations that is there. This quarter number has been quite good. So that’s why our handling number has gone up to 24. It may come down also and it may increase also, keeping on — keeping the numbers are the railway rates we handle at like Para Deep and then and all those PFP locations.
Vaibhav Shah
Okay. Okay, sir. So lastly, if you want to look at the Q4 numbers, so in terms of volumes, so if we are guiding for a 10% growth in terms of double-digit growth in terms of ex-Im, so it should be both in XIM and handling as well, assuming a similar handling factor would be there.
Ajit Panda
Exactly, exactly, exactly.
Vaibhav Shah
And similar could be the case for domestic as well.
Mohammad Shams
In domes for the originating parts? Yeah, yeah. Actually domestic and in originating and, both will be double-digit only. We are quite confident on that.
Vaibhav Shah
Okay. Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Amit Dixit from ICICI Securities. Please go-ahead.
Amit Dixit
Now, sir, just one follow-up question, if I may. Now since this particular quarter numbers and segment have been adjusted with the depreciation, is it possible to give the unadjusted EBIT number segment-wise for this quarter?
Sanjay Swarup
Way, but why do we want those numbers? These are the actual numbers which have been approved by CAG auditor. Why is it
Amit Dixit
Comparison — comparison purpose because these numbers are not comparable with the earlier numbers.
Sanjay Swarup
No, but we give only one set of numbers. We don’t give two sets of numbers. The nine-month period is there, man. We give only one set of numbers and which have been approved by our auditors. We don’t give two, three sets of numbers for your analysis. Sorry.
Amit Dixit
Okay. Okay, no problem. Okay.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Sandesh from HSBC. Please go-ahead.
Sandesh Shetty
Am I audible? Am I audible?
Sanjay Swarup
Yes, please. Thank you, sir. All my questions have been answered. Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may press star on one. The next question is from the line of Nair from DAM Capital. Please go-ahead.
Bhoomika Nair
Yes, sir. Sir, just one data point that I just wanted was the lead distance for the domestic side, if I could get that please?
Sanjay Swarup
Yeah, for domestic for nine months period, lead distance was 1317 kilometers.
Bhoomika Nair
Okay. Okay. Great, sir, I think there’s no more questions in the queue. So we can end the call. Thank you so much to all the participants and the management for giving us an opportunity to host the call. Wishing you all the very best, sir. Thank you.
Sanjay Swarup
Thank you very much.
Operator
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. Thank you.