Container Corporation of India posts higher quarterly profit on EXIM strength

Container of India

16/05/2024 15:03

BENGALURU, May 16 (Reuters) - State-run Container
Corporation of India (CONCOR)  CCRI.NS  posted a higher
fourth-quarter profit on Thursday, helped by growing volumes in
its mainstay export/import (EXIM) segment. 
    Consolidated net profit rose nearly 14% to 3.17 billion
rupees (roughly $38 million) in the three months ended March,
the country's largest container train operator said.
    Buoyant commercial activity and robust domestic consumption
in India, along with a resurgence of global trade bolstered
cargo movement in and out of the country, benefiting freight
handling companies, including carriers such as CONCOR. 
    Total revenue rose 6.4% to 23.25 billion rupees, led by a 9%
rise in EXIM revenues. The mainstay segment formed 62% of the
quarterly topline, driven by a 9.7% volume growth. 
    EXIM segment has been recovering after two years of sluggish
performance, helping CONCOR regain market share from competitive
private operators, analysts have noted.
    Analysts said dedicated freight corridor (DFC) connectivity
from Gujarat ports to Delhi hinterlands will aid CONCOR's EXIM
segment. 
    Meanwhile, higher rail freight costs led to a 5.3% uptick in
total expenses.
    Shares of the company ended about 1% higher ahead of results
on Thursday.    

($1 = 83.4877 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))