NEW DELHI: Container Corporation of India (CONCOR) the leading rail freight transporter, has delivered strong operational performance in the recent few quarters. Higher volumes, along with cost efficiencies, have aided financial performance.
We expect the momentum to continue as the recent changes in business model and strategy will further fortify the company’s market leadership. Completion of the Dedicated Freight Corridor is another long term trigger that needs to be watched out for.
Robust Q1 performance
In Q1 FY19, revenue increased 7 percent year-on-year (YoY) to Rs 1,568 crore. This was aided by higher volumes across both segments as well as SEIS (Service Exports from India Scheme) incentive-related income of Rs 70 crore. Operating margin stood at 24.9 percent compared to 23 percent in the year ago period.
On a segmental basis, domestic volumes grew 9 percent YoY, while export-import (EXIM) segment reported a 11 percent volume jump. Concor’s handling volumes grew 11 percent at 0.9 million TEUs (Twenty-foot Equivalent Unit). During FY18, volumes rose 14 percent, aided by robust performance by both segments.