Container Corporation of India (CONCOR), a leading multi-modal logistics company, has announced its expansion into liquid cargo transport, diversifying its service offerings while maintaining its overall growth guidance.

Expansion into Liquid Cargo

CONCOR is set to enter the liquid cargo transport market using specialized tank containers. This strategic move will enable the company to handle products such as caustic soda and benzene, broadening its cargo portfolio and potentially opening up new revenue streams.

Investment in Equipment

To support this expansion, CONCOR has placed significant orders for tank containers:

• 5,500 tank containers ordered from Braithwaite
• An additional 500 tank containers ordered from the open market

Deliveries of these specialized containers are expected in the coming months, signaling the company's readiness to commence operations in the liquid cargo segment.

Capital Expenditure and Financial Outlook

Despite this expansion, CONCOR is maintaining its capital expenditure (capex) budget guidance:

• Capex budget for the financial year: INR 860.00 crores
• The company plans to review this budget after the second quarter

Growth Projections

CONCOR has reaffirmed its growth targets for different segments:

These projections suggest that the company expects its domestic operations to outpace its international business in terms of growth rate.

Long-term Targets

The company remains committed to its 2028 targets, which include:

• 100 terminals
• Over 500 rakes
• More than 70,000 containers

These ambitious goals underscore CONCOR's long-term vision for expansion and market leadership in the logistics sector.

The move into liquid cargo transport represents a significant diversification for Container Corporation of India, potentially enhancing its competitive position in the multi-modal logistics market. By maintaining its growth guidance and capex plans while expanding its service offerings, CONCOR demonstrates a balanced approach to growth and investment in the evolving logistics landscape.

Container Corporation of India Ltd (CONCOR), a leading logistics company, has reported experiencing lower demand during the April to June period. The information was shared during a conference call update with stakeholders, highlighting challenges faced by the company in the first quarter of the fiscal year.

Financial Performance

Despite the lower demand, CONCOR's financial results for the quarter ended June 30 show resilience:

• Revenue from operations stood at ₹2,153.63 crore, compared to ₹2,103.13 crore in the same quarter of the previous year, indicating a slight increase.
• Profit before tax was ₹349.04 crore, up from ₹347.11 crore in the corresponding quarter of the previous year.
• The company reported a consolidated net profit of ₹267.28 crore for the quarter, compared to ₹259.42 crore in the same period last year.

Segment Performance

CONCOR's business is divided into two main segments:

1. EXIM (Export-Import): This segment generated revenue of ₹1,400.97 crore, showing growth from ₹1,321.54 crore in the same quarter of the previous year.
2. Domestic: The domestic segment reported revenue of ₹752.66 crore, compared to ₹781.59 crore in the corresponding quarter of the previous year, reflecting the impact of lower demand.

Interim Dividend Declared

In a positive move for shareholders, CONCOR's Board of Directors has declared an interim dividend of 32% (₹1.60 per equity share). The total dividend payout amounts to ₹121.86 crore.

Operational Challenges

The company noted that it has booked a Land License Fee (LLF) amount of ₹110.61 crore for the quarter, based on its own assessment following a new Master Circular issued by Railways. This circular revised the policy for management of Railway land, potentially impacting CONCOR's operational costs.

Looking Ahead

While CONCOR faced lower demand in the April-June quarter, the company's financial results demonstrate its ability to maintain profitability. The declaration of an interim dividend suggests confidence in the company's financial position despite the challenging environment.

As the logistics sector continues to navigate post-pandemic recovery and global economic fluctuations, CONCOR's performance in the coming quarters will be closely watched by investors and industry analysts alike.