Earnings Outlook
CONCOR Q1 net rise seen outrunning volume growth
This story was originally published at 14:38 IST on 4 August 2025
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By Shakshi Jain
NEW DELHI – State-owned Container Corp. of India Ltd. is expected to post steady earnings for the June quarter, driven by higher volume handled during the quarter. While the net profit growth of the company is likely to be twice the volume growth, weaker pricing amid greater competition kept revenue growth slightly below volume growth, according to analysts tracking the company.
The public sector enterprise is expected to post a net profit of INR 3.11 billion for the June quarter, up 22% on year, according to the average of estimates of four brokerages. Sequentially, this would mean a rise of only 3%. The highest estimate for net profit was INR 3.23 billion from Motilal Oswal Financial Services Ltd., while the lowest was INR 2.89 billion from Elara Securities (India) Pvt. Ltd.
The company's revenue for the reporting quarter likely rose just over 9% on year to INR 22.89 billion. Sequentially, this would imply a largely flat performance. The highest estimate for revenue was INR 23.39 billion by Kotak Institutional Equities and the lowest was INR 22.17 billion by Elara Securities.
In the March quarter, the company's bottom line had risen nearly 3% on year to INR 3.02 billion. This was despite a 2% on-year fall in its top line at INR 22.81 billion during the quarter. Sequentially, the Navratna company's net profit fell over 12% while its revenue from operations rose around 4% during the quarter.
The company had said it handled a total volume of 1.29 million twenty-foot equivalent units in the June quarter, up 11.3% from a year ago. Within this, the export and import volume handled by the company during the quarter rose 12% on year to 973,875 TEUs. Meanwhile, domestic volume rose 9.1% on year to 316,226 TEUs.
Container Corp. is expected to post earnings before interest, tax, depreciation, and amortisation of INR 4.71 billion for the June quarter, according to the average of estimates of four brokerages. The estimates were in a tight range of INR 4.23 billion by Elara Securities and INR 4.97 billion by Nuvama Wealth Management Ltd.
Motilal Oswal Financial Services expects the company's margins for the June quarter to improve by 50 basis points on year to 21.1%. This improvement is expected to be aided by lower land licence fee expense, the brokerage said in a report. However, Kotak Institutional Equities expects the public sector enterprise's year-on-year margin to remain flat due to weak pricing trends, as competitive intensity has increased in the domestic market and select pockets of the export-import segment, the brokerage said in note. It is of the view that Container Corp.'s competitor Adani Ports and Special Economic Zone Ltd. gained some market share in the June quarter.
Container Corp. will announce its June quarter results on Tuesday. The growth in export-import trade and divestment of stake by the government are key areas to be monitored, according to Motilal Oswal Financial Services.
At 1300 IST Monday, shares of Container Corp. were at INR 579.10 on the National Stock Exchange, up almost 1%. The stock is down nearly 2% from its closing price on May 22, when the company reported its results for the March quarter. It is also down 29% from its 52-week high of INR 812.08, hit on Aug. 5 last year.
Of the five research reports on the company available with Informist, four have a 'buy' rating on the stock and one has a 'hold' recommendation. The average price target of the buy recommendations is INR 905.
Following are the Apr-Jun earnings estimates for Container Corp. based on reports from four brokerages in the descending order by the estimate of net profit (In INR million):
Brokerage firm | Net sales | Net profit | EBITDA |
Motilal Oswal Financial Services Ltd | 22,852.00 | 3,225.00 | 4,822.00 |
Kotak Institutional Equities | 23,393.00 | 3,202.00 | 4,819.00 |
Nuvama Wealth Management Ltd | 23,125.00 | 3,142.00 | 4,973.00 |
Elara Securities (India) Pvt Ltd | 22,172.00 | 2,892.00 | 4,233.00 |
Average | 22,885.50 | 3,115.25 | 4,711.75 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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