RAIL freight transporter Container Corporation of India (Concor) posted robust profit for the second quarter of its 2019 fiscal year with EBITDA of US$5
RAIL freight transporter Container Corporation of India (Concor) posted robust profit for the second quarter of its 2019 fiscal year with EBITDA of US$5.57 million, up from $4.2 million last year. The jump in its operating profit was attributed to better operating efficiencies as well as a higher market share of double stack container trains, reported Moneycontrol.com.
For the quarter ended September, Concor's total revenues rose by 26 per cent year on year to $25.1 million. The company's top-line growth was mainly due to higher volumes and realisations across both the segments it operates in, and SEIS incentives-related income of $1.3 million.
Export-Import (EXIM) volumes account for the majority of Concor's revenue and continue to propel business growth. EXIM volumes for Q2 FY19 increased by 13 per cent year on year, while domestic volumes were up 19 per cent.
Handling volumes for the quarter stood at one million TEU, which translates into a volume growth of 14 per cent for the overall business.
During the last quarter, the company realigned its business strategy and decided to offer 45 days of free storage for import/direct port delivery-loaded containers as well as export/direct port entry-loaded containers. The new business strategy reinforces its focus on gaining more market share by utilising idle capacity.
Looking ahead, increased economic activity is expected to keep domestic volumes strong for the company, while the improvement in international trade dynamics will continue to support EXIM volumes.
The management has maintained its volume and revenue growth guidance of 10-12 per cent for FY19.
