Container Corporation of India’s (CONCOR) share price was gaining on Friday after the company posted strong second-quarter results.
What Happened: The state-run firm witnessed a 21.8% year-on-year bump in its consolidated net profit for the second quarter, reaching ₹481.76 crore versus ₹303.8 crore last year.
The company’s Q2 revenue also experienced substantial growth, climbing 10.5% year-on-year to reach ₹2,194.87 crore. This was driven by a notable 26.13% year-on-year surge in domestic volumes during the September quarter.
Sanjay Swarup, the new Chairman and Managing Director of CONCOR, said it marked the firm’s best-ever results.
Why It Matters: Various factors contributed to the company’s performance during the quarter, including normalized rail operations after the impact of the severe cyclonic storm “Fani”, a shift of cargo volumes from road to rail, market share gains, and a recovery in EBITDA margins.
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Its EBITDA came in at ₹536.93 crore in the second quarter, marking a 17.16% increase compared to ₹410.56 crore in the corresponding period of the previous year. The company’s margin improved to 34.46% in the quarter, up from 23.07% in the second quarter.
CONCOR’s board approved a third interim dividend of 60% or ₹3 per equity share, amounting to ₹182.79 crore. The interim dividend’s record date for payment was set as November 16, 2023, with payments to shareholders scheduled on or after November 23.
Price Action: CONCOR’s share price was up 4.82% at ₹715.40 at market open on Friday.
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