Container Corporation of India (Concor), the rail container logistic major has registered 15% de-growth in its net profit for the quarter ended June 2011 to Rs 175.42 crore even while its revenue for the same period was higher by 5% to Rs 994.55 crore. The benefit of modest topline growth being wiped out by 130 bps contraction in operating margin there by leading to flat growth at operating profit to Rs 262.82 crore, the PBT was higher by 14% to Rs 300.84 crore largely powered by higher other income, which was up by 98% to Rs 75.29 crore. However with higher tax incidence (up 39% to Rs 78.61 crore) the growth at PAT level was limited to 7%(to Rs 222.24 crore). But after accounting for higher prior period tax (up at Rs 46.82 crore against mere Rs 2 lakh in Q2FY11) the net profit was down by 15% to Rs 175.42 crore.

Upside in revenue was largely triggered by EXIM business of the company. While the Segment revenue of EXIM business was higher by 9% to Rs 799.93 crore, that of domestic segment was lower by 8% to Rs 194.62 crore. While the EXIM business got the benefit of increase in tariff as well as double digit growth (up 10.1%) in volume throughput on year on year basis to 543354 TEUs. On the other hand the Domestic througput was down by 14.5% to 112521 TEUs but per TEU realisation of domestic was higher by 8%yoy basis, there by reflecting the fall in domestic revenue was largely on account of volume.

Similarly the growth at PBIT level too was largely on account of EXIM business. While the segment result of EXIM was higher by 7% to Rs 224.08 crore that of domestic was lower by 29% to Rs 14.83 crore. The segment margin of both EXIM as well as Domestic trended down with that of former down by 50 bps and that of latter by 230 bps.

Other income was higher by 98% to Rs 75.29 crore on account of higher interest rate gained by hardened interest rate on year on year basis. The interest cost was nil for the quarter as well as corresponding previous period. The depreciation was up by 2% to Rs 37.26 crore. Thus the PBT was up by 14% to Rs 300.84 crore.

The taxation (including deferred tax) in absolute terms was higher by 39% to Rs 78.61 crore and the tax rate too was higher at 26.1% compared to 21.5% in corresponding previous period. Thus the PAT was up by 7% to Rs 222.24 crore.

The prior period adjustment was higher at Rs 46.82 crore compared to mere Rs 2 lakh in the corresponding previous period. Prior period item include Rs 46.8 crore of additional tax liability under MAT for FY2010-11. But for this the bottomline growth would have been higher.

Half yearly performance

Sales was higher by 4% to Rs 1943.58 crore. With OPM contract by 50 bps to 26.9% the growth at operating profit level was limited to 3% to Rs 522.47 crore. But the PBT was higher by 13% to Rs 579.11 crore spurred by 81% jump in other income to Rs 134.13 crore. Gained by lower tax incidence the PAT was higher by 14% to Rs 456.39 crore but impacted by higher prior period item the net profit was muted with a growth of 2% to Rs 409.57 crore.

The prior period adjustment was higher at Rs 46.82 crore compared to mere Rs 2 lakh in the corresponding previous period. Prior period item include Rs 46.8 crore of additional tax liability under MAT for FY2010-11.

The stock hovers on 970.20.

 Container Corporation of India: Result

Container Corporation of India: Segment Results