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CONCOR reports strong volumes in Q1

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Container Corporation of India (CONCOR) has reported strong YoY increase in volume in exim at 794,402 TEUs (+11.4 per cent YoY) and similar growth in domestic at 142,559 TEUs (+9.7 per cent YoY) in the first quarter of 2018-19.

Key highlights

  • As per an analysis by Kotak Securities, CONCOR’s Q1FY19 result highlights include 1) healthy improvement in volumes in the ex-im segment with market share gains on YoY basis; 2) recovery of volumes in the domestic segment post implementation of GST; 3) falling lead distance which impacted revenue per TEU; 4) reduction in empty running cost and benefit of double stacking accruing to the company which supported the margins.
  • Sales growth to Rs 15.6 billion (+7.7 per cent YoY), improvement in gross margins, higher other income, higher depreciation and higher effective tax rate led to recurring PAT of Rs 2.53 billion in line with estimate.
  • Management has guided an overall volume growth of 10 per cent in FY19. Increased double stacking, higher number of operational logistics parks and improvement in business prospect bodes well for CONCOR.

Further benefits of double-stacking, lower empty running, higher number of operational logistics parks, improvement in business prospects with Dedicated Freight Corridor (DFC) in FY20 and improvement in global and domestic trade is estimated to improve the business prospects, revenues and operational performance for CONCOR. The analysis expects the next few years to be game changer for CONCOR, especially FY20 when the DFC is expected to be partially operational.

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