CONCOR Q2 net profit up 21% on-year; stock jumps 4%

Shares of Container Corporation of India jumped more than 4 percent in trade on November 3 post registering a 21.8 percent on-year growth in consolidated profits at Rs 481.76 crore.

At 11:01 am the Container Corporation of India stock was trading 4.62 percent higher at Rs 714.23 on NSE.

The consolidated net profit of Container Corporation of India (CONCOR) jumped 21.8 percent on-year to Rs 481.76 crore in the second quarter of the fiscal year 2023-24 (Q2 FY24), according to the financial results declared by the public sector company on November 2.

In the year-ago period, CONCOR had reported a net profit of Rs 303.8 crore. Sequentially, the profit after tax has increased in the September 2023 quarter, as it stood at Rs 252.55 crore in Q1 FY24. Concor’s Q2 revenues rose 10.5 percent year-on-year (YoY) to Rs 2,194.87 crore, due to a 26.13 percent YoY growth in domestic volumes in the September quarter.

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The numbers were also higher sequentially, as the revenue in the June 2023 quarter was Rs 1,922.84 crore. Sanjay Swarup the new Chairman and Managing Director of the company said that CONCOR had reported its highest-ever results in the company’s history in Q2FY24.

Normalized rail operations post the impact of extremely severe cyclonic storm ‘FANI’, 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.

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Price realisation improved during the quarter as CONCOR’s rail freight expenses only rose 12.7 percent in Q2FY24 to Rs 1,203.02 crore despite a 26.13 percent rise in volumes as the company rolled back discounts across geographies.

CONCOR reported an earnings before interest, taxes, depreciation and amortization (EBIDTA) of Rs 536.93 crore in Q2 FY24, which was 17.16 percent higher than Rs 410.56 crore clocked in the corresponding period of the previous year. The company’s margin was up to 34.46 percent in the September 2023 quarter as against 23.07 percent in Q2 FY23.

Apart from releasing the quarterly results, CONCOR informed the stock exchanges that its board has cleared a third interim dividend of “60 percent i.e. Rs 3 per equity share of the face value of Rs 5 each, amounting to Rs 182.79 crore.”

The record date for payment of the interim dividend has been fixed as November 16, 2023, it said, adding that it would be paid to the shareholders on or after November 23. “The payment of dividend will be made within 30 days of its declaration,” the exchange filing further noted.

Also Read: CONCOR Q2 results: Net profit up 21% YoY at Rs 367.31 crore; revenue at Rs 2,194.87 crore

The company also announced that Priya Ranjan Parhi has been appointed as the new Director (International Marketing & Operations) of CONCOR. Concurrently, he holds the post of Executive Director (Infrastructure) in the Railway Board.

Parhi is a key functionary for policy formulation and execution of special projects of national importance such as dedicated freight corridors and high-speed corridors. On March 24, 2022, Parhi, was debarred from central deputation and foreign assignments and consultancies abroad after refusing to join the National Highways Authority of India as the chief vigilance officer.

Further, the Concor stock has given a return of 9.68 percent over the last six months. The benchmark Nifty50 index has given a return of 5.77 percent over the same duration.

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