CONCOR Reports 21.8% YoY Profit Growth in Q2, Shares Surge Over 4%

3 Nov 2023 , 01:12 PM

Container Corporation of India (CONCOR) shares surged over 4 % on November 3 after the company reported a 21.8 % year-on-year increase in consolidated profits, reaching Rs 481.76 crore. The consolidated net profit for Q2 FY24 marked a substantial 21.8 % YoY growth from the previous year, where the company had reported a net profit of Rs 303.8 crore.

CONCOR’s Q2 revenues also showed a positive trend, rising 10.5 % YoY to Rs 2,194.87 crore, largely attributed to a 26.13 % YoY growth in domestic volumes in the September quarter.

The company’s Chairman and Managing Director, Sanjay Swarup, highlighted that CONCOR achieved its highest-ever results in the company’s history during Q2FY24.

Factors contributing to the strong performance included normalized rail operations after the impact of the cyclonic storm ‘FANI,’ the shift of cargo from road to rail, market share gains, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin recovery.

CONCOR’s price realization improved as rail freight expenses increased by 12.7 % in Q2FY24, despite a 26.13 % rise in volumes, as the company reduced discounts across geographies.

The company reported an EBIDTA of Rs 536.93 crore in Q2 FY24, a 17.16 % increase from the previous year, with a margin of 34.46 % in the September 2023 quarter, compared to 23.07 % in Q2 FY23.

In addition to the quarterly results, CONCOR announced a third interim dividend of 60 %, amounting to Rs 3 per equity share, with a total of Rs 182.79 crore. The record date for dividend payment was set for November 16, 2023.

CONCOR also appointed Priya Ranjan Parhi as the new Director (International Marketing & Operations), who concurrently holds the position of Executive Director (Infrastructure) in the Railway Board.

Over the last six months, the Concor stock has provided a return of 9.68 %, outperforming the benchmark Nifty50 index’s return of 5.77 % during the same period.

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