Container Corporation of India (CONCOR) witnessed a substantial surge in its share price, with a gain of over 4 percent on November 3, following the announcement of a 21.8 percent year-on-year growth in consolidated profits, reaching Rs 481.76 crore.
As of 11:01 am, CONCOR’s stock was trading 4.62 percent higher at Rs 714.23 on the NSE.
The second quarter of the fiscal year 2023-24 (Q2 FY24) saw CONCOR achieve a consolidated net profit of Rs 481.76 crore, marking a significant increase compared to the Rs 303.8 crore net profit reported in the corresponding period of the previous year. In a sequential comparison, the profit after tax also rose from Rs 252.55 crore in Q1 FY24. The company’s Q2 revenues recorded a 10.5 percent year-on-year (YoY) increase, reaching Rs 2,194.87 crore, driven by a remarkable 26.13 percent YoY growth in domestic volumes during the September quarter.
Notably, the revenue was also higher compared to the June 2023 quarter, which reported revenues of Rs 1,922.84 crore. Sanjay Swarup, the newly appointed Chairman and Managing Director of CONCOR, noted that the company achieved its highest-ever results in its history during Q2 FY24.
Factors contributing to the positive performance included the normalization of rail operations after the impact of the severe cyclonic storm ‘FANI’, a shift of cargo volumes from road to rail, and market share gains, along with the recovery of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins.
Price realization improved during the quarter, as CONCOR’s rail freight expenses increased by only 12.7 percent in Q2 FY24, amounting to Rs 1,203.02 crore, despite a 26.13 percent rise in volumes, attributed to the company’s rollback of discounts across various regions.
CONCOR reported an EBITDA of Rs 536.93 crore in Q2 FY24, marking a 17.16 percent increase from the Rs 410.56 crore reported in the corresponding period of the previous year. The company’s margin also improved to 34.46 percent in the September 2023 quarter, compared to 23.07 percent in Q2 FY23.
In addition to releasing its quarterly results, CONCOR informed the stock exchanges of its board’s approval for a third interim dividend of “60 percent, i.e., Rs 3 per equity share with a face value of Rs 5 each, amounting to Rs 182.79 crore.” The record date for the interim dividend’s payment is set for November 16, 2023, with shareholders expected to receive their payments on or after November 23.
The company also announced the appointment of Priya Ranjan Parhi as the new Director (International Marketing & Operations) of CONCOR, while concurrently holding the position of Executive Director (Infrastructure) in the Railway Board. Priya Ranjan Parhi is a key figure in policy formulation and the execution of crucial national projects, such as dedicated freight corridors and high-speed corridors. It’s worth noting that Parhi had been debarred from central deputation and foreign assignments and consultancies abroad earlier after declining to join the National Highways Authority of India as the Chief Vigilance Officer.
CONCOR’s stock has also shown an impressive return of 9.68 percent over the last six months, outperforming the benchmark Nifty50 index, which delivered a return of 5.77 percent over the same period.
