Despite the 12% revenue growth that we saw, EBITDA margin remained a bit under pressure. What led to that and do we expect that margins could scale back to that 38-40% level, at least in the coming quarters?
Sanjay Kumar Jain: EBITDA margin has also improved. There was no pressure on the EBITDA margin. And in fact, you see the net profit has increased by more than 30% this year. If you see our CAGR growth of margin, it is around 20-21%, this quarter we have made 30%. But we will try to maintain this margin and we will further improve it.
Your catering business has performed well this quarter. Help us understand what led to the growth, the increase in revenue from the existing trains or is it an addition of new ones that is adding to the pie?
Sanjay Kumar Jain: Because of election specials and cluster tendering and an increase in the number of trains during the last quarter, we have got revenue in the catering business, and our e-catering business has also grown by around 40%.
What is the revenue share coming from Vande Bharat trains? Can you provide some more details about the revenue share and performance of e-catering services?
Sanjay Kumar Jain: We are running 48 Vande Bharat trains out of 117 prepaid trains. So, the majority of the prepaid trains earnings come from Vande Bharat train at the moment. Also, e-catering is growing very fast. The numbers are not very high at the moment, but the growth is exponential.
What about the growth opportunity in Rail Neer because that posted a good set of numbers and you have been talking about how you are exploring further growth opportunities in packaged drinking water. What shape could that take?
Sanjay Kumar Jain: First of all, we want to add capacity. We have already added capacity by installing three new plants last year and one more plant is going to come this quarter. And additionally, we have enhanced our capacity utilisation from 73% to 86%. And only challenge for improving our Rail Neer revenue is to enhance our capacity as quickly as possible. We are strategically doing something looking into this aspect.
You mentioned earlier that you are looking to enhance your passenger experience via special trains as well as tourism products. What are the plans here?
Sanjay Kumar Jain: We have launched rail-based tourism packages. Earlier it was around 60-70, we have launched 100 such packages. We are running Bharat Gaurav trains both for the state government and through packages also. And we have launched quite a couple of such packages for the next three to four months.