Container Corporation of India (CONCOR) has reported a strong performance in the first quarter, achieving an all-time high quarterly throughput and improved margins despite some challenges in the domestic segment.

Record Throughput and Dividend Declaration

CONCOR achieved a record quarterly throughput of 1.29 million TEUs, marking an 11.30% growth compared to the same period last year. The growth was driven by a 12.00% increase in EXIM (export-import) volumes and a 9.00% rise in domestic volumes. In light of this performance, the company's Board of Directors has approved a dividend of INR 1.60 per share, representing a 32.00% dividend on shares with a par value of INR 5.00.

Improved Margins and Financial Performance

The company reported significant improvements in its margins:

• Rail freight margin increased to 26.96% from 24.36% in the previous year
• Operating margin rose to 29.81% from 28.58%

CONCOR's financial results also showed positive trends:

• Operating income grew by 2.50%
• Profit After Tax (PAT) increased by 1.00%

Market Share Dynamics

CONCOR experienced mixed results in terms of market share across different ports:

• Gained 200 basis points at JNPT, reaching 58.39%
• Lost 200 basis points at Mundra, dropping to 36.00%
• Maintained a 49.00% market share at Pipavav

Operational Highlights

The company reported several operational improvements:

• Double stack rakes increased by 11.20% to 1,505 rakes
• Empty running costs decreased by 13.70%, positively impacting the bottom line
• Commissioned 5 high-speed rakes and procured 1,500 containers for domestic use

Challenges and Initiatives

While the domestic segment saw subdued performance due to factors such as delays in tank container supply from Braithwaite and conscious avoidance of low-margin traffic, CONCOR has initiated several measures to boost growth:

• Launched bulk cement transportation in tank containers
• Signed an MOU with RHS Group Dubai for end-to-end logistics services
• Focusing on tie-ups with major corporate houses for increased business

Future Outlook

Despite some challenges, CONCOR's management maintains a positive outlook:

• Volume growth guidance of 13.00% (10.00% for EXIM and 20.00% for domestic)
• Anticipating significant growth with the commissioning of WDFC connection to JNPT by December 2025
• Expecting improved performance in the domestic segment from Q2 onwards

CONCOR's Chairman and Managing Director, Sanjay Swarup, expressed confidence in the company's future performance, citing strong demand in both EXIM and domestic segments and ongoing initiatives to enhance service offerings and operational efficiency.

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.