Container Corporation of India

Container Corporation of India (Concor), the rail container logistic major has registered 6% growth in its net profit for the quarter ended Dec 2011 to Rs 241.24 crore on a sales of Rs 1046.25 crore, which was up by 8%. The growth in bottomline was largely facilitated by higher other income (up 46% to Rs 69.83 crore) and lower tax incidence (down 1.1% points) as the gains of 8% topline growth was negated by 240 bps contraction in operating margin which dragged down the operating profit by 1% to Rs 277.45 crore.

• Upside in revenue was largely triggered by EXIM business with domestic business continue to feel the impact of Indian Railway's commodity specific haulage charges effective Oct 1, 2010, that increased the haulage charegs for Cement, iron & steel etc. While the Segment revenue of EXIM business was higher by 12% to Rs 851.35 crore while that of domestic was lower by 7% to Rs 194.90 crore.

• Segment profit of EXIM, despite revenue growth for the quarter, was lower by 3% to Rs 227.29 crore with operating margin contracting by sharp 410 bps to 26.7%. The pressure on margin seems largely on account of short lead with import cargo moving to Gujarat Ports and significant empty running. The segment profit of domestic was lower by 10% to Rs 21.45 crore impacted by both lower sales and lower margin.

• Other income was higher by 46% to Rs 69.83 crore. It seems the benefit of higher interest rate kicks in with higher interest income of deposits. The interest cost was nil for the quarter as well as corresponding previous period. The depreciation was up by 23% to Rs 41.27 crore. Thus the PBT was up by 4% to Rs 306.0 crore.

• The taxation (including deferred tax) in absolute terms was lower by 1% to Rs 64.65 crore and the tax rate too was lower at 21.1% compared to 22.2% in corresponding previous period. Thus the PAT was up by 5% to Rs 241.36 crore.

• The prior period adjustment was lower at Rs 0.12 crore, down 89%. After accounting for lower PPA the net profit was higher by 6% to Rs 241.24 crore.

Nine month performance

Sales was higher by 6% to Rs 2989.83 crore. With OPM contract by 110 bps to 26.8% the growth at operating profit level was limited to 1% to Rs 799.91 crore. But the PBT was higher by 10% to Rs 885.11 crore spurred by 67% jump in other income to Rs 203.96 crore. Gained by lower tax incidence the PAT was higher by 11% to Rs 697.75 crore. But impacted by higher prior period item the growth at net profit was muted at 4% to Rs 650.80 crore.

The prior period adjustment was higher at Rs 46.94 crore compared to mere Rs 1.12 crore in the corresponding previous period. Prior period item include Rs 46.8 crore of additional tax liability under MAT for FY2010-11.

Other developments

To pay interim dividend at the rate of Rs 7.50 per share (75%). The record date for Interim dividend is fixed as Feb 17, 2012.

The stock hovers on 953.15.

Container Corporation of India: Result

Container Corporation of India: Segment Results