India's Container Corp Q1 profit falls as costs rise, revenue slip

Container of India

10/08/2023 15:04

BENGALURU, Aug 10 (Reuters) - State-owned Container
Corporation of India reported a more than 17% fall in
first-quarter profit on Thursday after costs increased and
revenue fell.        
    The logistics operator posted consolidated net profit of
2.46 billion rupees ($29.8 million) in the three months ended
June 30, compared with 2.97 billion rupees a year earlier.
    Revenue from operations fell 3.6% to 19.22 billion rupees,
with the export-import (EXIM) and domestic segments logging 5.3%
and 0.3% declines, respectively. EXIM accounts for nearly
two-thirds of the revenue. 
    Meanwhile, total expenses rose 1% to 16.85 billion rupees
even as rail freight costs which account for nearly two-thirds
of the expenses fell.
    The New Delhi-based company had in July said it saw an
almost 8% increase in the total volumes handled in the June
quarter on growth in both domestic and international trading.
The increased volume underscored the market share gains for the
company, brokerage ICICI Securities said pointing to the data
    In May, the company warned of pressure on margins as it
sought to recover some of the lost market share. At the same
time, it flagged a shortage in domestic containers as the pace
of container manufacturing in India lagged behind expectations.
    The company's board also declared an interim dividend of two
rupees per share for this fiscal year.
    Meanwhile, the government is looking to sell its 31% stake
in the logistics operator. Reuters had in April reported that
the government plans to invite financial bids to privatise the
company.     
    Shares of the company closed 1.8% lower at 696.55 rupees
ahead of the results.
    

($1 = 82.6360 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))