Shares of Navratna PSU Container Corporation of India slipped almost seven percent in early trade on January 31, after reporting a muted earnings show for the quarter ended December 31, 2024.
The PSU's net profit rose around 11 percent on-year to Rs 366.65 crore for the quarter, as against Rs 330.74 crore during the previous quarter ended December 2023. However, its revenue declined by 10 basis points to Rs 2,208.31 crore for the period under review, as compared to Rs 2,210.57 crore reported during the same quarter last year.
CONCOR's EBITDA tumbled 10.1 percent on-year to Rs 465 crore, compared to RS 517.5 crore recorded the same quarter last year. As a result, the firm's EBITDA margin slipped to 21.1 percent for the quarter, from 23.4 percent YoY.
At 10.30 am, CONCOR shares were quoting Rs 730 on the NSE, lower by 3.5 percent compared to the previous session's closing price.
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The firm also announced its third interim dividend for FY25 at Rs 4.25 per equity share of face
value of Rs 5 each, which amounts Rs 258.95 crores. The record date for the purpose of payment of the interim dividend has been fixed as February 6, 2025.
Last month, international brokerage Goldman Sachs had reiterated its bearishness on the logistics player. Goldman Sachs believes that the firm's results have further downside risk, which is driven by weak growth for rail container traffic and the earnings downgrade cycle is likely to continue. Further, there are concerns on market share erosion amid rising competition.
Previously, CONCOR had set a target of 15 percent growth for Exim and 25 percent for the domestic segment in FY25. To achieve this annual guidance, the company needs to realize growth rates of 26 percent in Exim and 35 percent in the domestic segment during the second half of the fiscal year.
CONCOR is a public sector undertaking (PSU) engaged in the transportation and handling of containers. Its core business is characterised by three distinct activities, that of a carrier, a terminal operator, a warehouse operator and Multi-Modal Logistics Parks (MMLP) operation.
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