India's Container Corp's Q4 profit rises on strong domestic demand

Container of India

18/05/2023 15:00

BENGALURU, May 18 (Reuters) - State-owned Container
Corporation of India Ltd  CCRI.NS  reported a 7.7% rise in its
fourth-quarter profit on Thursday, as robust domestic demand
outpaced an increase in costs.
    The logistics operator's consolidated net profit rose
to 2.79 billion rupees ($34.12 million) in the three months
ended March 31, from 2.59 billion rupees a year earlier.
    Revenue from operations rose 6% to 21.84 billion rupees. The
jump was aided by a more than 23% increase in its domestic
revenue, which outweighed a 2% drop in the EXIM (export-import)
segment.
    Domestic trade constitutes about 40% of the company's
revenue.
    Container trade faced global headwinds as Chinese New Year
factory closures disrupted supply chains and demand was weak in
the U.S. and European markets, according to analysts.
    Container Corp's total expenses rose 6% during the period.
Its rail freight costs, which constitute over 64% of total
expenses, rose 9%.
    Separately, a panel headed by India's cabinet secretary was
to invite initial bids for selling the government's 31% stake in
the company, which has been delayed since 2020, two government
officials had told Reuters last month.
    Shares of Container Corp settled over 1% lower before the
results were announced. The stock has lost 14.5%
so far this year.

($1 = 81.7800 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru; Editing by Shilpi
Majumdar)
 ((varunvyas.hebbalalu@thomsonreuters.com;))