CONCOR Reports Strong Q2 FY25 with 9% Profit Rise and Dividend Declaration

The Container Corporation of India (CONCOR), a state-owned logistics company, announced a 9% increase in its profit before tax for the second quarter, ending September 30. The profit grew to ₹526 crore ($62.6 million) from ₹482 crore in the same period last year, driven by higher cargo volumes.

Revenue Growth Driven by Cargo Demand

CONCOR’s revenue from operations rose by 4.2% to ₹2,288 crore, largely due to a nearly 6% increase in total cargo volumes. This growth reflects steady commercial activity and consumption trends in India, which is the world’s fifth-largest economy.

One-Time Expenses and Increased Domestic Demand

The company reported a one-time expense of ₹33.32 crore during the quarter. However, domestic cargo operations expanded significantly, showing a 14% rise, while its core export/import (EXIM) cargo segment grew by 3.7% compared to the previous year.

Market Dynamics and Future Growth Prospects

Analysts expect that expanding domestic volume, supported by new freight corridor connections, will continue to boost CONCOR’s growth. However, the company faces competition from private sector operators in the EXIM segment, which has led to some loss in market share.

EBITDA Increase Shows Operational Gains

CONCOR reported a 6.5% rise in EBITDA, reaching ₹582 crore in Q2 compared to ₹546.5 crore the previous year. This improvement reflects better operational efficiency within the company.

The company’s EBITDA margin also saw a slight increase, rising to 25.4% from 24.9% year-on-year, indicating effective cost management practices.

Dividend Declaration 

CONCOR declared a second interim dividend of ₹3.25 per share, signalling strong confidence in its cash flow and financial stability.

Net Sales Rise Over 4%

For the quarter ending in September 2024, Container Corporation of India (CONCOR) reported standalone net sales of ₹2,283.03 crore, marking a 4.23% increase from ₹2,190.40 crore in the same quarter last year.

The company’s quarterly net profit rose by 3.73%, reaching ₹371.05 crore compared to ₹357.70 crore in September 2023, showing steady growth in profitability.

Earnings Per Share (EPS) Increases

Earnings per share (EPS) also improved, climbing to ₹6.09 in September 2024 from ₹5.87 in September 2023, indicating better returns for shareholders.

On October 30, 2024, the Concor share price opened at ₹803.95 and touched the day high of ₹843.50 at 12:16 PM on the NSE. 

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