Ladies and gentlemen, good day and welcome to Adani Ports and SEZ Limited Q1 FY25 Earnings Conference Call hosted by PhillipCapital (India) Private Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital. Thank you, and over to you, sir. Thank you, Dale. Good afternoon and a very warm welcome to everyone. On behalf of PhillipCapital, I'm pleased to welcome you all on the earnings call of Adani Ports and SEZ Limited for the first quarter of financial year 2025. We are happy to have the management with us here today for a question-and-answer session with the investment community. Management is represented by Mr. Ashwani Gupta, Whole-time Director and CEO of Adani Ports and SEZ. Mr. Pranav Choudhary, CEO, Ports Business Adani Ports and SEZ. Mr. Divij Taneja, CEO, Adani Logistics. Mr. D. Muthukumaran, CFO, Adani Ports and SEZ. Mr. Rahul Agarwal, Head of Investor Relations and ESG, Adani Ports and SEZ. We'll begin with the opening remarks from the management, followed by an interactive question-and-answer session. With this, I hand over the call to Mr. D. Muthukumaran. Over to you, sir. Hi, thank you. Thank you very much. Good afternoon, all of you. Thank you very much for your time. I'm Muthukumaran. I just wanted to take a moment to bring on board and introduce Rahul Agarwal. He has taken over investor relations and ESG from Charanjit. He will moderate this call, and he'll be the point of contact for investor relations. Over to Rahul. Thank you, Muthu. Good afternoon, everyone, and a very warm welcome to our earnings call for Q1. We will commence with Ashwani's opening remarks. Over to you. Good evening and welcome to APSEZ earnings conference call for the quarter ended 30th June 2024. FY25 began on a stellar note on both the growth and the financial fronts. On the growth front, we handled 109 million metric tons of cargo in the first quarter, which is up 8% YoY, excluding the impact which we had because of non-operational days in Gangavaram. We won two concession agreements to operate terminals in Tanzania and the Deendayal Port. In addition, we won an O&M contract for a container facility at Syama Prasad Mookerjee Port, Kolkata. Also, we welcomed the first mothership at our Vizhinjam Port and our marine services business deployed tugs in Mexico and Sri Lanka. We feel immensely proud to announce that four of our ports got featured in World Bank's Container Port Performance Index 2023. Now, moving to the logistics business, our logistics business reported rail cargo at 0.16 million TEUs and GPWIS volume at 5.56 million metric tons. We added four rigs and expanded our warehousing capacity to 2.9 million sq ft. Agri-silo capacity was at 1.2 million metric tons and is expected to increase to 4 million metric tons on completion of the projects underway. On the financial front, Q1 FY25 has been our strongest quarter till date, with highest-ever revenue, EBITDA, and PAT. Our operating revenue for the quarter stood at INR 7,560 crores, representing a 21% YoY increase. Our EBITDA, excluding forex impact for the quarter, stood at INR 4,848 crores, up 29% YoY. Domestic ports' EBITDA inched higher by 32 basis points to 72%. Profit after tax stood at INR 3,107 crores, up by 47% YoY. CARE and ICRA upgraded APSEZ's credit rating to AAA, while S&P upgraded its outlook to positive from stable, driven by improving scale and diversification. We also draw your attention to the fact that, based on in-depth legal and accounting review undertaken by the Adani Group and considering all other relevant factors, the auditors have dropped the qualification, and it is now an EOM Emphasis of Matter. During the quarter, we won several awards, notably APSEZ clinching the prestigious title of Best Port for the Year Containers in the Private Sector and AICTPL being honored as the Best Container Terminal of the Year at the India Maritime Awards. Overall, a very strong start to the year. Thank you. We now open the forum for Q&A. Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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 Parash Jain from HSBC. Please go ahead. Thank you for taking my question. I have two, I believe. So first, on SEZ and port development, we have seen that we have reported about INR 627 crore. Could you give us what are the future potential pipelines in the remainder of the year and the following year for us to understand better on how to think about this line item? And my second question, more pertinent, is more on if you can just give us a quick recap of all your recent investments, particularly the CapEx attributed to Tanzania, the progress that has been made with respect to Colombo, and what is your near-term expectation from Vizhinjam? Thank you. Hi. So, your first question was on port development, the INR 600 crore revenue. It is actually where we have done the stake sale to MSC through their intermediate holding company. Basically, in the past, when we were operating this port, all the sort of expenditure and losses were debited to the P&L account as required by the accounting standard. And therefore, the carrying cost of this in our books had significantly come down on account of the past losses during the ramp-up period. And now, when we have sold it, while we have sold only 49%, we have to, as per the accounting standard, compare the profits with the book value. So, the difference is actually put in there as INR 600 million for development cost. To your following question on this aspect of what is the pipeline, actually, we have been mentioning that we are on the lookout for all strategic opportunities. We develop port inherently on our own strength to run it by ourselves. Every now and then, we get an opportunity to join with incoming interest, and we will actually sort of react, and we'll do a deal based on merits of individual transactions. To your next question on investment in Tanzania and Colombo, Tanzania, we have announced the deal a while ago, and we have been waiting to get the concession agreement. We signed the concession agreement, and all the CPs are over, and therefore, we concluded the deal in the last quarter, I mean, almost towards the end of the quarter, late June. So we have been operating that terminal for the past one and a half years. It is actually a business as usual for us, so we expect that to continue. In the long term, we are sort of planning to actually both enhance the volume as well as actually sort of modernize the port in terms of sort of mechanization. All these, at this point in time, as per our business plan, will be self-funded by the cash generated by Tanzania. There isn't any incremental CapEx that is required to achieve our long-term business plan. Colombo is still under construction at an advanced stage, and it should actually. We have been estimating that it should start sometime late this financial year, FY 2025. And I think, Ashwani Gupta, so I think to answer your last question about upcoming investments, basically, we categorize our investments, A, for improving our operational efficiency in the current assets, B, in CapEx, in our capacity expansion in the existing assets, and three, the new projects. So we keep on investing in a balanced way in all these three categories, keeping the financial discipline, which we have, again, demonstrated in this quarter of 2.1 net debt to EBITDA. Now, in the capacity expansion, because in 2030, our ambition is to reach 1 billion metric tons, we are investing in our ports in West Coast, which is Mundra, Hazira, and so on, in our East Coast, which are really pulling our growth in Dhamra, in Gangavaram, in Krishnapatnam, and, of course, in South, the Ennore and the Kattupalli. So basically, almost all the main ports are having the investment for the capacity expansion. And the third category, which is about the new projects, we just finished the receipt of the first mother vessel in Vizhinjam after having an investment of more than INR 8,000 crore. And in the second phase, we will be investing INR 20,000 crore to develop the second phase of Vizhinjam. So that's how we are managing our CapEx, and that's how we want to reach 1 billion metric tons by 2030. Lovely. Thank you so much. Thank you. The next question is from the line of Pulkit Patni from Goldman Sachs. Please go ahead. Sir, thank you for taking my question. Sir, can you highlight in this year, fiscal 2025, what should we assume for Vizhinjam as volume? And also for any other upcoming port, what should be the volume expectation based on when you are starting those ports? That's question number one. Yeah. So I think with the quarter one results, where we have Gangavaram challenge, we didn't operate for 36 days in Gangavaram. So that definitely is coming now and 3 quarters. Also, Gopalpur Port, which will be also coming in. So with the quarter one performance and looking at the global trade and Indian trade and in the Indian trade, the quarter one, India grew by 4.3%, and we grew by 8.8%. So as you know, we always keep on saying that we grow 2 x more than the India growth. And if I include Gangavaram and Gopalpur Port, we should be roughly around 2.5-2.6 times, which means the next 3 quarters, we look in a very positive way, which means we are on track to deliver our guidance, which we issued at the time of start of the financial year. Okay, sir. So basically, Vizhinjam and Gopalpur Port are the new port that will contribute this year. Is that a third quarter? Yeah. Gopalpur Port, yes. Vizhinjam, we already received the mother vessel. Since then, we have received a couple of more. As you would have seen, the nameplate capacity for Vizhinjam Port is 1 million, but because it's automated, we can go up to 1.5 million. This port will be fully operational starting October. So this year, we will not see the full capacity utilization. But yet, in FY26, we are expecting the full utilization of the Vizhinjam Port for phase one, which is the 1 million nameplate capacity. But this year, we will see Gopalpur Port in the rest of the year and Vizhinjam after October. Sure. That's helpful, sir. So my second question is on the logistics business. What we've seen is that our margins fluctuate quite a bit. I mean, they are on the higher side, but between 25%-28%, they keep fluctuating. This quarter, if I remember correctly, it's about 25%. What drives this variation in margins for us in the logistics business? Parash, actually, you summarized it very well when you said that it fluctuates during the year, and actually, what is important is to see the full year. So that covers half the point that we want to mention. Having said that, in this particular quarter, there are two sort of factors. The first one is the same thing that we explained in the last quarter call, which will continue for one or two more quarters, actually. The SCI, some contracts have come up for repricing as per the original contract itself after the 10 years. There is a step-down pricing after 10 years, and the step-down pricing has actually come into work on certain things. So it is part of the original contract, and it is part of the original business model. So it doesn't change anything except the number. In terms of returns, it has already factored in. There is a second factor, which is busy season surcharge, which we have been able to pass on. You will find the full, I mean, the full effect of that is not in this quarter, and you will find that the next quarter, actually, this issue is sorted, and you will find that next year, we'll have a margin which is higher than what we have today. Sure, sir. Thank you. The person you are speaking with has put your call on hold. Please stay on the line. [Foreign language]. Sorry to interrupt, sir. I request the management to please keep their lines on hold. The next question is from the line of Mr. Achal Lohade from Nuvama Institutional Equities. Please go ahead. Yeah. Good afternoon, team. Thank you for the opportunity. Sir, if you could comment on the CAPEX, how do we look at the CAPEX for the current year in which ports and to what extent and in which category? Yeah. So yeah, I will just give from the business perspective. As I said before, all the three categories we are investing. We are investing heavily on the digitalization because that's where the operational efficiency is brought in. We are starting the world-class software Navis in most of our container ports. We are also going to start a Port Community System, which is also totally in-house developed. And we are also revamping our TAS because, as I explained in last call, we are getting into the technology platform, which will give end-to-end solution with full integrated logistics, which means from vessel to the berth to the yard to railways to warehouse to ICD terminals and to the trucks because we also got into the last mile to get to the customer. So we are investing on technology platform. So that brings operational efficiency. The second on the capacity expansion, as you would have seen, that we have grown significantly on the West Coast, mainly driven by the container increase. In the East Coast, we have grown significantly, excluding Gangavaram. There also, we are driven mainly by the dry cargo. In the South, we have grown in container and in the dry cargo. Of course, in the liquid, our in Hazira and so on have also grown. So if you look at our business portfolio today, all the three main commodities, which is container, liquid, and dry, all three have grown. The maximum growth which we saw was in container, where we really increased our market share by more than 2.5%. That mainly comes on the West and in the South. But when it comes to dry, there also, we increased our market share, but it is mainly driven by East. Hence, to answer to your question, we are investing in all these ports and the berth related to container, dry, and liquid. Understood. Sir, just wanted to check if we look at the volume growth for coal for the quarter, it seems to be reasonably weak. So when we talk about the volume for the full year, how do we look at coal as a segment? Are we looking at a substantial growth, or it will be all driven by container for this year? See, I would take it at a much more bigger picture. The bigger picture is about the India growth story, which is driven by infrastructure and energy and the Atmanirbhar Make in India. So if I look at Atmanirbhar, which is industrialization, this is about containerized cargo. If I look at energy, this is mainly the coal. And if I look at the infrastructure, it's all about steel and so on. So all the three focus of India is helping us growing the India trade. And our strategic positioning of the ports and warehouses and logistics is helping us in growing the trade by two times. So that's why the business mix for us is so important that if in one of the ports, one of the commodities goes up and down, it does not change the whole business portfolio dynamics for APSEZ. That's the first question. The second question about the coal, even if it is not growing, but it is also not flattening, there is a growth. For example, quarter one, all India import NC coal was roughly 56, and we did 26 out of it, which means we increased our market share by 1%. In terms of coastal, which is also on the increase, we kept the market share. And most important, the coking coal, also we kept our market share. And I think the coking coal, all India has grown by 5%-6%. So I would say the growth for us is coming from containers, liquid, and so on, whereas coal, I would say, is the normal growth. And in the normal growth, we have a normal market share. So that's why it's not a risk, and it's not a great opportunity for us, which can change our business dynamics in next quarter. The only other aspect I wanted to add is actually you mentioned in the beginning of your question that this quarter one is a muted growth. But actually, I just wanted to draw your attention to the actual volume, which is 8% growth, as well as the proforma volume of 13% growth, which is actually more than the annual volume growth that we have sort of indicated to you. So we are on track. Gangavaram is fully restored. Gopalpur will get added soon, as soon as the closing happens, and Vizhinjam will get onboarded. So our volume growth still is on track if you factor all these things. That's very helpful, sir. If I may ask just a clarification on the stake sale, you said that there were losses, and with the stake sale, it's basically valuing at the fair value. I was just curious, if you look at the standalone, the revenue, the income recognized is INR 95 crore, while in consolidated, it is close to INR 600-odd crore. So could you please clarify, is this to do with the equity sales, or it is to do with the infra income recognition? No, no. It is actually to do with equity sales, number one. And number two, the loss that I talked about is not the loss on the transaction of the sale. It is actually during ramp-up period, we have had past losses, particularly high depreciation and interest in the particular unit, which is, again, as you know, part of the model that we do when we do investment. Actually, you have caught on to the right part. The standalone says INR 95 crore, which is a transaction gain, and the INR 600 crore in the consolidated, the difference between 600 and 95 are the past losses. According to the accounting standard, the carrying value of these investments will keep going down in the consolidated books because of the losses. So therefore, it has gone down. So when we actually sold it, it is now at INR 600 crore profit. Understood. That's very helpful, sir. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. The next question is from the line of Asmita Sadhu from MetLife Investment Management. Please go ahead. Hello, management. Thank you very much for taking my question. I do have two questions. So I'll start with the first one. This is regarding a couple of news articles regarding the land recovery situation with the Gujarat State Government. Could we just have a quick rundown on sort of the history and where we currently are and what the next steps are from the company's point of view? Sorry, what was the second question? One was around land recovery. What was the second? No, that's the first question. I'll take the second one after this one. Oh, okay. So you're talking about the land recovery issue in Gujarat, Mundra, correct? SEZ. Yes, that's right. Okay. So we have contested. It is actually a frivolous case the way we look at it. So we have contested that, and the Supreme Court has actually taken action. So to that extent, we'll follow the due process of law to sort of complete this. Otherwise, in substance, there is really nothing more than what we have already said to the Court of Law. All right. Thank you very much. And the second question I have was just a quick clarification on the earlier mentioned statement about the auditor's qualification. So correct me if I'm wrong, was it dropped due to the in-depth audit and legal review conducted by the group? Yeah. So what we had done was actually we had undertaken an independent review by a lawyer and an accounting firm. And then we had submitted those reports to the auditors, and the auditors reviewed those reports of that independent review and also taken into account the full context along with this review report. So on that basis, the qualification has been dropped, and it has now become an EOM to actually sort of reflect the significance of the matter. It is no longer a qualification and only an EOM. Okay. Thank you very much. Thank you. The next question is from the line of Nitisha from ICICI Securities. Please go ahead. Thank you so much for taking my question. The first one would be, when do you think Gopalpur would be in full effect? Would we see that in this quarter, or would it be the next one? This quarter. This quarter. Yeah. We are waiting for the final mile, and we will see that in the coming quarter. All right. As per my understanding, the full effect of the revenues would then come from the next quarter onwards, right? That is Q3? Yeah. Full effect from next quarter, yes. Okay. And just, I know that there have been questions on CAPEX already, but my question would be in terms of, so for the full year, if you could quantify what would be the CAPEX that you would do in terms of one: maintenance. Second is increasing capacity at ports and terminals that we already have in our portfolio. And third is if we are looking for any inorganic growth. So do you have any, say, quantified numbers on these three aspects? So let me first talk about organic growth. We have guided in the beginning of the year a range of INR 10,500-INR 11,500 crores, and we gave a breakup of how the INR 11,500 crores will look like. So ports in that is INR 7,300 crores. Marine services in that is INR 400 crores. Logistics is INR 2,300 crores. And the renewables, decarbonization is INR 1,500 crores. In the first year, while we don't publish this number, we are on track. The exact number, we don't think that the requirements go by. It's roughly 2,000-odd crores is what we have spent in the CAPEX in the first quarter. So we are well on track for the guidance. And in terms of proportion, it's pretty much the same as what we have. The best guide on numbers for CAPEX for the year continues to be the page that we have put out in the beginning of the year. On the inorganic growth, we keep our financial discipline, which we said we want to be below 2.5. We finished the quarter with 2.1, which means we always have this room of 0.4 to keep for any opportunity which comes up, which should bring us inorganic growth, either it is in India or it is outside India. All right. Last, just the one last question is that I see that you have given a guidance that for FY 29, you want to significantly increase your one is the rail tracks and the number of trains that the company is operating. As of now, have there been any orders that have already been given for these items? And which are the companies that you are generally looking at to trust your business with? Go ahead. Just that? To entrust your business with, which are the companies that you are probably looking at? So for the rail tracks and probably the trains that you want, what are the companies that you're looking at to procure these from? Actually, you know that we have already one project which will take us up to 4 million for the current 1.2 million. This entire 66 projects, actually 70 projects, are under implementation as we speak. These are being sort of done in-house. Project and all construction, everything is happening in-house. In terms of your question on the railway, so rail tracks and trains, both actually we have EPC. As of today, compared to last quarter, there is no significant order book increase. We expect that order book will come coming quarter. But right now, there is no significant order book increase in the rail tracks or. All right. All right. Thank you so much. Thank you. The next question is from the line of Imtiaz from Barclays. Please go ahead. Thank you. Congratulations on a good set of first-quarter numbers. I have a couple of questions. The first one is with regards to your 2024s, the U.S. dollar 2024 maturity bonds. They matured last week on the 24th of July. Could you provide some color in terms of how you funded that $325 million maturity? And also, if you have any plans to access the U.S. dollar debt capital markets again this calendar year? So we had cash balance in the beginning of the year. We had stated earlier that actually we will use the current cash balance to repay the balance, INR 325 million, which is what we did last week. So that's how we funded the repayment of last week. And we have completed successfully, and we have put out a notice that we have completed the redemption. So that is on the 325. On the question around whether we are going to access, right now, there are no plans for us to actually access the markets. And of course, the situation is always dynamic, but right now, there is no plan. Okay. Thank you. Second question is with regards to your Vietnam project. Reports have mentioned a $2 billion investment. Could you give some color and clarity on these investments and timeline? So as we talked about our international strategy, so after reaching the great penetration of market share in India and also the geographical coverage across 7,500 kilometers of coastline, definitely, we want to expand globally. And to expand, we decided to revitalize the trade route between Southeast Asia, India, Middle East, East Africa, North Africa. And in line with that strategy, we have Tanzania, we have Haifa, we have Sri Lanka. So in line with that strategy, we are exploring the opportunities in Southeast Asia, which includes Vietnam. And Vietnam, we have not decided anything yet. Of course, as I said before, we are exploring all the opportunities. And once we decide, definitely, we will be sharing with you at that time. But at present, it is in the study stage. Great. Thank you. Just if I can just squeeze in one more question. You mentioned speaking you mentioned Haifa. And speaking of Haifa, the increased tensions in the Middle East, any color in terms of how Haifa Port operations are going? So I think on the operations side, our teams are highly engaged, and we are running the port 24/7 in terms of availability of the facility. Our teams are there to take care of it. Now, the challenge which Haifa Port is having is not because of Haifa Port or not because of the situation in Israel, but it is because of the geopolitical sanctions. Some of the countries have stopped the cargo to Israel. So for example, in Haifa, we saw the drop of roughly 42% in the dry bulk and 22% in containers. But on the other side, because of the situation, the car imports inside Israel is increasing significantly. So we captured that market, and our business with the car cargo has grown up by 42%. So the point is there is a shift in the business mix, and we are capturing all the mix. That's the first message. The second message is Haifa Port is safely working with all our teams exposed. And what we see today, a drop in the cargo is the consequence of the geopolitical situation. So we have to keep this on the watch and try to mitigate the risk in terms of business whenever it comes. That's what we can say today. But we are continuing with a great enthusiasm because this is a very strategic location for us as a part of our international strategy. Great. Thank you. Thank you. The next question is from the line of Priyankar Biswas from BNP Paribas Exane. Please go ahead. Congratulations, sir, for the very strong volume delivery. First of all, my question is regarding Mundra. Even on a very large base, you have delivered a very strong volume, especially in containers. Now, given that there is so much Red Sea-related disruptions, so what I wanted to ask is how much sustainable this volume at Mundra is, especially containers? And in your guidance that you gave of 460-480, so what sort of container volumes are you foreseeing at Mundra? So I will hand over to Mr. Pranav Choudhary. But before, we are keeping our guidance. We are very confident about our guidance because, as you saw, quarter one, we did 109 without Gopalpur and without 36 non-operational days of Gangavaram. So we are keeping that. And as we said before, our main growth in this quarter came by container, which is roughly 17.4% growth, whereas our liquid grew by 12%. And Mundra, especially, brought the significant growth. So maybe, Pranav, if you could kindly share your views on container business in Mundra. Yeah. Good afternoon. Am I audible? Yes. Very well. Yeah. So good afternoon, everybody. So just container performance has been very good at Mundra. So by and by, I think we grew by about 23% in Mundra with the overall portfolio growth at about 19% after that interval. So from a container perspective, I think we always grow more than the economy. That's what has been the context for us. And the impact of the Red Sea largely has been on the freight and the cost, the freight cost and the time cost. The movement of containers from a time perspective has increased. The freights have increased, which has now generally been settled between the buyer and the seller of the freight or the goods. From a port perspective, I think the Indian economy is performing robustly, which is growing in the incremental container numbers. Even JNPT actually has grown about 12% or 12.5% during this period, these two corresponding periods. So the impact of Red Sea is there in the sense of incremental liquid transshipment volumes, but generally, it's a function of the way the economy is performing. So, sir, so what sort of TEU volumes do you expect at Mundra containers? So, can you be at 9 million TEU this year itself? I think it is too early for us to give a target for Mundra. But for sure, with the pace which we are going, definitely, that could be the consequence. But as you know, we don't give the target volume. But container growth in Mundra is giving us a significant advantage to hit our guidance, even if, as I said, in quarter one, we missed 36 non-operational days of Gangavaram. Thank you. So just one question from my side, one more. So this is regarding Gopalpur since this is a new asset. So can you give what is there in your strat plan for this asset? You have broadly given what can be the FY 2025 contribution. So what are you expecting it to ramp up to, let's say, FY 2029 or FY 2030? So as per your strat plan. See, as far as Gopalpur, the main focus for the first 2-3 years will be for us to actually change the configuration of the asset, make it far more mechanical, far more updated. And that way, we expect the efficiency will creep in reasonably quickly. In terms of the volume growth, if you take a, I mean, 5-year or 7-year horizon, there is obviously scope to increase the volume there. And that is a very mineral-rich belt. And therefore, actually, volume will grow in tandem with the market. But immediate plan for us, which is very clearly visible, is to actually work on the asset configuration and cost extraction and efficiency extraction and cost reduction. So we should observe a big time margin expansion, possibly, in the next couple of years on this asset. So that's the plan. Yeah. Yeah. I think as we do, we bring our ports to our benchmark EBITDA after we take over. So for sure, we are targeting to be at the benchmark level of the EBITDA very soon. So already, the port was having 38%-42% of EBITDA, and now we are expecting to finish with 54%. And as you know, we are working hard to bring it to a normal level, which is between 65%-70%. So that's what we do with every port, and that's what we are doing with Gopalpur. Thank you, sir. Very clear. Thank you. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead. Good afternoon, everyone, and thank you for the opportunity. The first question that I had from my side was more on port EBITDA margins, which have grown to about 72%. I believe if Gangavaram issues had not cropped up, the margins could have been as high as 73%. Wanted to get a sense of what is driving these margins up because from our checks, we understand that realization has not meaningfully gone up in the quarter. Sorry, repeat the last part of the question. It has reached to 72%. The realization has not gone up that way. So what is the reason of that? Yeah, yeah. It's basically like you mentioned, it's cost. It's gone up by 0.6% compared to the last quarter and the last year's average. So it is actually the creep in the sort of efficiency because we are handling. The person you are speaking with has put your call on hold. I need to interrupt, sir. You can. Yeah. You back? Yeah, I'm there. Yep. Yeah. Okay. So it's basically the increase in the sort of efficiency because we have had a throughput. Container volume has gone up, which has also added to the profitability. So basically, it's around cost and price sort of factors. Understood. Also wanted to kind of extrapolate this question that what we see through is that you have a very, very large capacity land bank, if you can call it that way, on the port side, wherein the company doesn't have to invest meaningfully from a greenfield perspective and can still grow maybe 4-5x the current capacity. Coupled with your focus on digitalization, do you think this port EBITDA margin over the medium term can potentially breach 75%-76% if there's a possibility to think through from a three-year-old perspective? Thank you very much. Our endeavor is to improve every day, and the figures are the consequence. So I think we are focusing on improving our operation efficiency. And quarter by quarter, we will be updating you with the results. Thank you. Understood. The next question that I had was on the logistics business. Now, our reading of the annual report suggests that a lot of CapEx is happening in that zone for the company. A meaningful part of that actually is going inside buying land parcels. Wanted to see or gauge from your sense, how should we be thinking through these kinds of investments, eventually leading to EBITDA? Will they be retained as land for some period of time, or there is a thought process on how to kind of go about it? Yeah. Thank you. I think your observation is correct. As we said, we want to be the largest integrated logistics solution company. On the port side, we have already got strategic locations across 7,500. On the logistics, we have 12 MMLPs. We have warehousing. And at the end, what we want is to offer the full package to the customer for the last-mile delivery, which includes the warehousing and so on. So we are moving ahead in preparation for the future, which includes expansion in our warehousing terminals and so on so that we are able to efficiently and effectively cater to the last mile. Having said that, you can always compare our logistics business with our marine business, where we started it as an incubator, and today, we are close to 70% of market share. So which means all these investments which we are doing on the lands may not be giving us the return in EBITDA in the same quarter. But for sure, these are mid- to long-term investments which we are doing for the strategic growth for our logistics business as a part of integrated logistics solution. Understood. The last question that I had was, as in, we've seen this trend that you're kind of growing 2 x the market and even more at certain times. At least what we could see is that your incremental market share is, again, 2x of your existing market share. And this has been happening for the past few quarters now, pretty broad-based. Could you give us a sense of what is actually clicking for you? Is it that the competition isn't improving as much and we are improving at a fast pace? Is it that we are not taking price increases of the kind that competition is taking? Some more color would be useful for us to understand whether we should be extrapolating these kinds of trends incrementally or not. Yeah. I mean, the point is, at first, the geographical coverage is our advantage, right? The second, we operate port not as a terminal. We operate port as an ecosystem. That is our advantage. And the third is this ecosystem is being connected to the customer using multimodal. And then last but not the least, we are efficient and competitive. No, I get that. Hopefully, these trends would sustain incrementally as well. All the very best to you. Those are my questions. Thank you. Thank you. The next question is from the line of Kshitij Jain from Avendus Spark. Please go ahead. Thank you. Good evening, sir. My question is on your FY 2020 plans where you said that you aim to reach 1,000 million ton volumes. If I do some back calculation and use the utilization at 65%, the capacity comes to at around 1,400-1,500 million tons. Is that assumption right, sir? Is that where you want to go? I think to do the 1 million, sorry, the 1 billion, of course, it includes international. And definitely, this includes the operational efficiency improvement, capacity expansion, and the new projects. Yes. We can expect a capacity of around 1,200-1,400 million tons by FY 2030? It's very difficult to say today because, as you know, that capacity expansion and operation efficiency and the new projects, they are very fine lines. So very difficult to anticipate seven years before. But yes, port by port, we already have the EC approvals, as you know, whether it is Mundra or other ports. And in line with the business growth, we will be investing in the respective ports as per master plan. Understood. Last question is on the recent LOI for Deendayal Port in Gujarat. If you could throw some color on it, the CapEx and the commercial terms of it. I'll give it to Muthu now. Yeah. So we are expecting a total investment of about close to INR 600 crore in that port. Okay. Okay. And the capacity is? Yeah. It's a long-term lease, and we're expecting about 1 million-1.2 million capacity. Okay. [Foreign langauge]. Thank you. Thank you. The next question is from the line of Jayesh Shah from Ohm Portfolio Equity Research. Please go ahead. Hi. Thanks for the opportunity. My question is, how do we look at Vadhavan Port, which is coming up as probably one of the biggest ports in India next to JNPT? Is that potentially a threat to Mundra, or do you work along with Vadhavan Port because it is supposed to be a public-private partnership? Anything which comes up is bringing the complementary growth to the country. And we should not look at today's India's trade, which is roughly 1,500 million metric tons. If India is growing at 5% every year—sorry, 6%-7% every year—with the focus on industrialization, infrastructure, and energy, these sectors will grow higher than the GDP, which means India trade will reach, I don't know, more than 2,500 million metric tons. So we should look at that. That's number one. Number two, because of the industrialization, the exports will also grow. So which means anyhow, the capacities will be needed. And as you know, that 95% of the trade is done by the maritime. So we should clearly link with the growth of India, especially on these three sectors, with the maritime growth, which means we will need capacities. At first, we have to see as India whether we need capacities or not. The answer is yes. Now, in that capacity, who will play which role? And definitely, especially in the maritime sector, the collaboration between the government and the private players like us have proven that these are very efficient and effective. So we welcome the government's initiative on Vadhavan Port. I think it is a great opportunity for India to put it on a capacity expansion map. Now, we are always open for any opportunity because this is our core strength. And definitely, we will study the opportunity for the potential collaboration. Thank you. Mr. Shah, does that answer your question? Yes. This is a follow-up question. Is there a public timeline as to when this port is supposed to have these private partnership offers going around? No. I don't think so. I don't think so if there is a public timeline. Thank you. A question? Sorry to interrupt, Mr. Shah. Your line is coming a bit crackly. Could you come a bit close to the handset? Yeah, I am. Is it clear now? Now it's clear. Yeah. My second question is on the international operations, which is INR 25 crore and INR 87 crore of EBITDA. So is 10%-11% EBITDA a normalized EBITDA? What would be a normalized EBITDA when you see normalized volumes at this international trade? I'm sorry, at the international ports. Yeah, yeah. We expect that actually the 10% will be there for a couple of quarters. We are on the path to improvement. Therefore, it will go up. But yes, that will be the sort of good baseline. Say by the public part of FY 2030 that you said 1 billion tons, where would international operations be in terms of tonnage? Broadly, what margin range then? Approximately 15%-20% can be the international. See, I think margin is one aspect. Whenever we sort of invest in any port, we are very clear that actually we need to get our return on capital employed, which is 16% in rupee terms. Of course, we have to adjust it for dollars. As far as EBITDA percentage concerned for us, actually, that is a little bit of a math because it is possible that we could have a lower and it will be that we will have a lower EBITDA percentage for international operation, but our returns threshold will be met. I see. Understood. Thank you, and that's precise. Thank you. The next question is from the line of Srinath from Barclays. Please go ahead. Hi, Management. I have two questions. So after the payment on the 24 U.S. dollar bond, which was last week, what is your cash balance? What is our current cash balance after payment of the '24 bond U.S. dollar? We are INR 9,000 odd crores cash balance today. Okay. And after S&P's positive outlook, what about the other rating agencies, Moody's and Fitch? Have you been having any conversations with them, or how do they look at your credit? See, there are two buckets, right? International and domestic. As was mentioned in the opening remark by Ashwani, the domestic is already upgraded to AAA. As far as the international is concerned, only S&P had negative outlook. So they have put us into positive outlook. So therefore, others actually we are not expecting any rating action at this point in time. Obviously, we need to remain engaged and in continuous touch with them to keep updating them. Thanks for the answer. Yes. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of our question and answer session. I would now like to hand the conference over to Mr. Vikram Suryavanshi for closing comments. We thank the management of Adani Ports and SEZ Limited for giving us an opportunity to host the call and taking time out for interaction with the stakeholders. Thank you all for being on the call. Thank you. On behalf of PhillipCapital (India) Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your.