Container Corp of India posts rise in Q2 profit on strong logistics demand

Container of India

02/11/2023 12:59

BENGALURU, Nov 2 (Reuters) - State-owned Container Corporation of India (CONCOR)  CCRI.NS  reported a
21% rise in second-quarter profit on Thursday, helped by healthy logistics demand. 
    The freight operator's consolidated net profit rose to 3.67 billion rupees ($44.11 million) for the three
months ended Sept. 30 from 3.03 billion rupees a year earlier. 
    Revenue from operations climbed about 10.5% to 21.95 billion rupees, while higher rail freight costs pushed
total expenses by more than 11% to 18.18 billion rupees. 
    The company also declared a dividend of 3 rupees per share.
    For further earnings highlights, click  nFWN3C3410 
    
KEY CONTEXT 
    An industry-wide increase in exports and imports in the country benefitted the cargo operator, whose
two-thirds of revenue comes from the segment, according to analysts.
    Jefferies had earlier flagged that dedicated freight corridors (DFCs) are likely to improve rail
connectivity and help the state-run company regain market share, which came under stress due to increased
competition from private cargo terminal operators.
        Strong demand also led peer Transport Corporation of India  TCIL.NS  to post a 
    20% rise
     in Q2 profit last month. 
  
    
PEER COMPARISON 

                                   Valuation (next    Estimates (next 12       Analysts' sentiment      
                                     12 months)            months)                                      
                     RIC          PE     EV/EBITDA   Revenue     profit    Mean     # of     Stock to   Div
                                                     growth      growth    rating   analyst  price      yield
                                                                                    s        target     (%)
 Container            CCRI.NS     29.08       17.45    11.99      15.98    HOLD          11    0.95        1.63
 Corporation of                                                                                         
 India Ltd                                                                                              
 Mahindra Logistics   MALO.NS     52.18        7.77    13.58      372.01   HOLD          10    0.87        0.71
 Ltd                                                                                                    
 Aegis Logistics      AEGS.NS     19.00       11.89    10.54       9.91    HOLD           5    0.72        2.38
 Ltd                                                                                                    
 Allcargo Logistics   ACLL.NS     15.36        6.45    -5.55       0.14    BUY            3    0.74        1.29
 Ltd                                                                                                    
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
JULY-SEPTEMBER STOCK PERFORMANCE 
    
    
-- All data from LSEG

-- $1 = 83.2100 Indian rupees

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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sohini Goswami)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))