Q4 2026 Transport Corporation of India Ltd Earnings Call Transcript
Key Points
- Transport Corp of India Ltd (BOM:532349) has successfully passed on increased bunker prices to customers, maintaining profitability in the Seaways segment.
- The company has seen a significant increase in multimodal logistics, with a rise in container and auto logistics movements.
- Investments in technology, including artificial intelligence projects, are strengthening operational capabilities.
- The supply chain business remains the largest segment, with a growth of 14% for the full year.
- The company maintains a strong cash position with INR250 crore surplus, supporting future investments and expansions.
- The company faces margin compression in the freight business due to competitive pressures and increased costs.
- There is a potential demand erosion in consumer durables due to inflation and rate hikes, impacting logistics demand.
- Higher bunker prices are expected to impact Seaways margins in the coming months.
- The freight business experienced a 14% decline in EBIT, with ROCEs at their lowest in six to seven years.
- Supply chain margins are slightly compressed due to ongoing investments in infrastructure and manpower.
(technical difficulty) I think everyone is quite aware of our business and the operations, et cetera. So I will try to keep my commentary a little brief and essentially, we'll take more questions.
Let me just broadly say that, if you go back to the previous slide, Ashish, broadly say that our diversified offerings are really helping us in this current marketplace.
And essentially, what we are feeling is that if the, as the diesel price has come about and the cost structure is increasing on the road transport side, the shift towards multimodal should happen more and more with road replacing rail, sorry, rail replacing, rail and sea replacing road and multimodal will definitely increase.
Broadly speaking, post the war starting, the impact, direct impact has come on essentially on the shipping business where the bunker prices went up by 100%, but we have been able to pass on a lot of that increase. Subsequently also, we are seeing that raw material prices have been up.
And
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