Concor doubles FY2022 profit to Rs 1,028 crore

Container Corporation of India (Concor), a government-owned multi-modal logistics company, reported more than doubling of net profit to Rs 1,028 crore ($139 million) for the year ended March 31, 2022.

Consolidated revenue from operations increased 19 percent to Rs 7,653 crore ($1.03 billion) on 12 percent increase to Rs 5,290 crore ($715 million) in EXIM trades, according to results announced on May 19, 2022.

Rail freight expenses increased 18 percent to Rs 4,105 crore ($555 million) for the year ended March 31, 2022.

."Till financial year 2019-20, Concor has been paying Land License Fee (LLF) to the Railways on the railway land leased to it on the basis of the number of Twenty Foot equivalent units(TEUs)handled. The Ministry of Railways had communicated that the LLF applicable on the Railway land leased to Concor shall now be charged w.e.f. 01.04.2020 to @6 percent of the value of land, which will be further increased to 7 percent annually.

"Accordingly, on the basis of rates taken from land revenue department{s) and Company's assessment thereof for terminals on Railway land leased to Concor, after surrender of 17 such terminals earlier, an amount of Rs 465.11 crore has been provided as Land License fee payable to Indian Railways in Twelve months Period ended March 2022."

Domestic demand will see 25 percent growth while EXIM will be 15 percent, V. Kalyana Rama, Chairman & Managing Director, Concor, said in an analysts call after the announcement of the results. The target for FY2023 is 5 million tonnes, he added.

"Cement transport via rail will drive the growth, contribution is increasing annually. Shift from road to rail seen, and will improve further with the completion of the Dedicated Freight Corridor (DFC)," according to a note from a domestic brokerage house.

Concor is planning to invest Rs 8,000-10,000 crore towards capital expenditure (new terminals, rakes, containers and equipment) over the next four years, the note added.