BENGALURU (Reuters) – State-owned Container Corporation of India (CONCOR) reported a 21% rise in second-quarter profit on Thursday, helped by healthy logistics demand.
The freight operator’s consolidated net profit rose to 3.67 billion rupees ($44.11 million) for the three months ended Sept. 30 from 3.03 billion rupees a year earlier.
Revenue from operations climbed about 10.5% to 21.95 billion rupees, while higher rail freight costs pushed total expenses by more than 11% to 18.18 billion rupees.
The company also declared a dividend of 3 rupees per share.
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An industry-wide increase in exports and imports in the country benefitted the cargo operator, whose two-thirds of revenue comes from the segment, according to analysts.
Jefferies had earlier flagged that dedicated freight corridors (DFCs) are likely to improve rail connectivity and help the state-run company regain market share, which came under stress due to increased competition from private cargo terminal operators.
Strong demand also led peer Transport Corporation of India to post a 20% rise in Q2 profit last month.
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBITDA Revenue profit Mean # of Stock to Div
growth growth rating analyst price yield
s target (%)
Container 29.08 17.45 11.99 15.98 HOLD 11 0.95 1.63
Mahindra Logistics 52.18 7.77 13.58 372.01 HOLD 10 0.87 0.71
Aegis Logistics 19.00 11.89 10.54 9.91 HOLD 5 0.72 2.38
Allcargo Logistics 15.36 6.45 -5.55 0.14 BUY 3 0.74 1.29
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.2100 Indian rupees
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sohini Goswami)