The consolidated net profit of Container Corporation of India (CONCOR) jumped 9.5 percent on-year to Rs 333.67 crore in the third quarter of the fiscal year 2023-24 (Q3FY24), according to the financial results declared by the public sector company on January 24.
In the year-ago period, CONCOR had reported a net profit of Rs 304.64 crore. Sequentially, the profit after tax (PAT) fell in the December 2023 quarter as it stood at Rs 367.32 crore in Q2 FY24.
Concor’s Q3 revenues rose 10.3 percent year-on-year (YoY) to Rs 2,210.57 crore, due to a 6.05 percent YoY growth in total volumes in the December quarter.
The numbers were also higher sequentially, as the revenue in the September 2023 quarter was Rs 2,194.87 crore.
In a regulatory filing on January 11, Container Corporation of India (CONCOR) recorded total volumes of 11,50,808 TEUs (twenty feet equivalent units) for the quarter ending December 2023, up by around 6.05 percent YoY. Of this, EXIM volumes grew 8.25 percent to 9,02,582 TEUs and domestic volumes fell 1.25 percent YoY to 2,48,226 TEUs.
Apart from releasing the quarterly results, CONCOR informed the stock exchanges that its board has given the nod for an interim dividend of Rs 4 per share amounting to Rs 243.72 crore
The record date for payment of the interim dividend has been fixed as February 7, it said, adding that it would be paid to the shareholders on or after February 13. "The payment of dividend will be made within 30 days of its declaration," the exchange filing further noted.
Normalised rail operations coupled with the completion of the Eastern Dedicated Freight Corridor, a shift of cargo volumes from road to rail shift coupled with market share and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin recovery helped the company during the quarter.
Price realisation fell during the quarter as CONCOR's rail freight expenses rose 14 percent in Q3FY24 to Rs 1,294.59 crore despite a 6.05 percent rise in volumes as the company rolled out more discounts across geographies during the festive period.
CONCOR reported earnings before interest, taxes, depreciation and amortization (EBIDTA) of Rs 609.01 crore in Q3 FY24, which was 13.5 percent higher than Rs 536.68 crore clocked in the corresponding period of the previous year. The company's margin fell to 27.55 percent in the December 2023 quarter as against 29.67 percent in Q3 FY23.
An industry-wide increase in exports and imports in the country benefitted the cargo operator, whose two-thirds of revenue comes from the segment, according to analysts.
The completion of the dedicated freight corridors (DFCs) helped improve rail connectivity and helped the state-run company regain market share, which came under stress due to increased competition from private cargo terminal operators.
During October-December, CONCOR reported a 13.13 percent on-year growth in revenues from its Export-Import (EXIM) segment to Rs 1,436.65 crore, while segment profit rose to Rs 319.78, an 8.17 percent growth compared to the same period last year.
Earnings before interest and taxes (EBIT) margin from the EXIM segment fell to 22.26 percent when compared to 23.28 percent a year ago and 23.98 percent sequentially a quarter ago in July-September.
Similarly, the company reported a 5.36 percent rise in revenues from its domestic segment to Rs 773.92 crore, while segment profit rose to Rs 74.69 crore, an 86 percent growth, compared to the same period last year.
EBIT margin from the domestic segment rose to 9.65 percent compared to 5.47 percent a year ago and 10.57 percent in the quarter ended September 2023.
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