Analyst Concall
CONCOR ups FY25 capex target by 40% to INR 8.55 bln
This story was originally published at 14:32 IST on 31 January 2025
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--CONCOR: FY25 capex increased by 40% to INR 8.55 bln
--CONTEXT: Comments by CONCOR mgmt in post-earnings analyst concall
--CONCOR: Gained 73 basis points market share in EXIM segment
--CONCOR: On track to achieve 5 mln TEU target for FY25
--CONCOR: EXIM segment showing double-digit growth in January
--CONCOR: Expect growth in EXIM segment in January to extend till March
--CONCOR: Overall market share in Apr-Dec 56%
--CONCOR: Will only shift greenfield projects to Gati Shakti
By Akshay V. Johnson and Narayana Krishna
MUMBAI – Container Corp. of India Ltd. has increased its capital expenditure target for 2024-25 (Apr-Mar) by 40% to INR 8.55 billion, its management said in a post-earnings analyst conference call on Friday. The capital expenditure target for the current financial year was INR 6.10 billion, of which INR 4.44 billion has already been achieved. The company is planning massive infrastructure creation and by 2028, the company is expecting to have 80 terminals, more than 500 racks, and around 70,000 containers, the management said.
The state-owned company on Thursday reported lower than expected earnings for the December quarter with both the top line and bottom line failing to meet analysts' expectations. The logistics company reported a net profit of INR 3.43 billion for the quarter, up 2.7% on year. The company's revenue for the quarter fell marginally to INR 22.02 billion from INR 22.05 billion a year ago.
In the nine months ended December, the company has commissioned four rakes, taking the total fleet to 382. During the period, the company has procured 6,868 containers, with its total containers in the domestic segment rising to 51,236, the management said.
The company achieved throughput growth of 7.8% in Apr-Dec, with the export import segment registering a growth of 5% and the domestic segment registering a growth of 7.8%. The company's growth in the export import segment is in line with India's international trade, where exports have registered a growth of 1.6% and imports grew 5.1%, the management said.
The company is on track to achieve a record 5 million twenty-foot equivalent units of handling volumes for the current financial year, the management said. For the nine months ended December, the company handled 3.75 million twenty-foot equivalent units, according to an exchange filing by the company.
CONCOR's performance in the export-import segment was relatively subdued in the December quarter, when compared with its domestic performance. This has been due to supply chain disruptions at an international level, due to various geopolitical upheavals, the management said. Despite the subdued performance, the company has increased its market share in the export-import segment by 73 basis points, the management said. The company has been seeing double-digit growth in its export-import segment so far in January and expects the growth to continue till March, the management said.
With the likely commissioning of the Western Dedicated Freight Corridor in FY26, the company expects good growth in volumes and revenue, the management said. The rail corridor will connect Dadri in Uttar Pradesh near Delhi to Jawaharlal Nehru Port in Raigad in Maharashtra. Once operational, the management expects an 11-15% shift to rail mode from road transport between Dadri and Mundra.
The company has decided to shift only greenfield projects to the Prime Minister Gati Shakti programme, which is a digital platform to bring 16 ministries, including railways and roadways, together for integrated planning and coordinated implementation of infrastructure connectivity projects.
The company's total market share in India's logistics space was 56% in Apr-Dec, with a 55.3% market share in the export-import segment and 58% in domestic segments, the management said. The shares of the company, which were trading lower before the start of the conference call, were trading at INR 770.60 on the National Stock Exchange at 1426 IST. End
Edited by Saji George Titus
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