State-owned rail hauler Container Corporation of India Ltd (CONCOR) posted a net profit of ₹1,288.75 crores in FY25, 3.35 percent more than a year ago.
The company’s revenue from operations rose 2.7 percent to ₹8,887.02 crore in FY25 from ₹8,653.41 crore a year earlier, it said in a regulatory filing after the board approved the financial results.
The board approved the issue of bonus equity shares in the ratio 1:4 (one equity share of ₹5 each for every four fully paid-up equity shares of ₹5 each held by the shareholders of the company. The bonus shares will be issued out of retained earnings (free reserves) of ₹10,335.67 crore as on March 31, 2025.
The issue of bonus shares is subject to the approval of shareholders (through postal ballot) and other requisite approvals as may be applicable.
The Board has declared a final dividend of Rs2 per equity share.
In FY25, CONCOR paid ₹370.09 crore as land license fee to the Ministry of Railways for running 26 terminals built on land leased from Indian Railways, a drop of 12.71 percent on the ₹424 crore paid last year on this account. The 26 terminals account for more than half of the annual revenue of CONCOR.
Bonus shares are issued by companies primarily to distribute accumulated profits to shareholders without making a cash payout, as well as to increase share liquidity and potentially lower the share price. This can make the stock more accessible to retail investors and boost investor confidence in the company’s financial health.
Bonus shares are an alternative to cash dividends, allowing companies to reward shareholders without needing to release significant cash reserves.
The company uses accumulated profits (retained earnings) to issue new shares, effectively “capitalizing” the profits.
This avoids draining the company’s cash flow, which can be beneficial if the company needs to invest in other areas.
Issuing bonus shares increases the total number of shares outstanding, making the stock more liquid, and hence easier to buy and sell, potentially lowering the share price.
The government holds 54.7986 percent stake in CONCOR.
The shares of CONCOR closed at ₹739.40 a share on the Bombay Stock Exchange on Thursday.
