India's Container Corp posts higher Q3 profit on growing cargo volumes

Container of India

24/01/2024 12:53

BENGALURU, Jan 24 (Reuters) - Container Corporation of India (Concor)  CCRI.NS  reported a jump in
third-quarter profit on Wednesday, supported by growth in volumes of cargo handled that eclipsed higher
freight prices being passed to consumers.
    The state-owned company reported a consolidated net profit of 3.31 billion rupees ($39.8 million) for the
quarter ended Dec. 31, up 12% from last year.
    Revenue from operations rose more than 10% to 22.11 billion rupees, signalling higher demand for cargo
transporters during a period that coincided with festivities and related purchasing in the country. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3EE1BB
    
KEY CONTEXT
   Container Corp's total volumes handled rose about 6.1% year-on-year, despite passing higher freight
charges on to customers, with volumes in its mainstay export-import (EXIM) segment up 8.3%. EXIM segment
contributes two-thirds of the cargo operator's revenue.
    Dedicated freight corridors, which analysts expect to aid rail connectivity, is boosting the company's
volumes and helping it regain market share, which were stressed due to heated competition from private cargo
firms.
    Concor's market share stood at 65%-70%, JM Financial analysts noted in November, after healthy demand
lifted the company's Q2 profit. 
    Its earnings were also boosted by India's festival season, which shifted into the third-quarter, analysts
said.
    
    
PEER COMPARISON
    
                                    Valuation    Estimates (next 12        Analysts' sentiment        
                                    (next 12          months)                                         
                                     months)                                                          
                     RIC          PE     EV/EBI  Revenue     profit   Mean     # of     Stock to      Div
                                         TDA     growth      growth   rating   analyst  price target  yield
                                                                               s                      (%)
 Container            CCRI.NS     32.97   20.41    15.05      17.84   HOLD          12      1.06         1.33
 Corporation of                                                                                       
 India                                                                                                
 Mahindra Logistics   MALO.NS     45.62    8.68    14.81     1636.97  HOLD          10      1.09         0.60
 Aegis Logistics      AEGS.NS     24.87   14.82     8.79      12.53   BUY            5      1.14         1.76
 Allcargo Logistics   ACLL.NS     22.36   10.09     4.16      60.24   BUY            3      0.86         1.05
    
* 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
    
OCTOBER-DECEMBER STOCK PERFORMANCE 
    
    
-- All data from LSEG

-- $1 = 83.0870 Indian rupees

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CONTAINER CORP - OCTOBER-DECEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3ueU0LT
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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Varun H K)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))