Popularly recognized as Concor, it is a subsidiary of the ministry of railways. It is the only major player in India involved in moving containerised cargo via railways. The company’s financial performance on a YoY has been good but QoQ has not been too encouraging. But the company has explained that the slip in the performance has been mainly on account of the Gujjar agitation which rocked Rajasthan and this resulted in a higher turnaround time. The operations of the company was affected for almost a full month.
YoY, net sales of the company rose 6.04% at Rs.822.84 crore though QoQ it was down 8.94%. The QoQ performance was affected due to the 4% fall in domestic revenue but for the exim segment, it reported a 9% rise. The main source of revenue for the company is from exim and this still continues to contribute around 80% to the total revenue of the company.
The company managed to reduce its operating expenses by 8.92% on QoQ and this helped the EBIDTA regain a bit of the lost ground, yet it was down 0.89% at Rs.284.22 crore. Its OPM was down to 29% and once again, this was attributed directly to the fall in the domestic sales.
QoQ, PBT was down 0.69% at Rs.256.76 crore while YoY, it was up 8.16%. PAT, QoQ was down 0.57% at Rs.201.83 crore while YoY was up 7.88%.
Indian Railways is expected to increase its haulage charges by about 14-16% from August and Concor is expected to pass on this higher cost to customers.
The company acts as a one-stop shop for co-coordination with different players in the logistics chain like customs, railways, ports and road transporters. Hence, its margins are much higher than that of other players in the logistics business. But with around 14 private sector players now allowed to enter this field of logistics, competition is hotting up for the company. It already has 58 terminals, a fleet of 8000 wagons and 1200 containers and any amount of competition would take a while to eat away its current market share of 90%.
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