Container Corporation of India (Concor) reported a jump in third-quarter profit on Wednesday, supported by growth in volumes of cargo handled that eclipsed higher freight prices being passed to consumers.
The state-owned company reported a consolidated net profit of 3.31 billion rupees ($39.8 million) for the quarter ended Dec. 31, up 12% from last year.
Revenue from operations rose more than 10% to 22.11 billion rupees, signalling higher demand for cargo transporters during a period that coincided with festivities and related purchasing in the country.
KEY CONTEXT
Container Corp’s total volumes handled rose about 6.1% year-on-year, despite passing higher freight charges on to customers, with volumes in its mainstay export-import (EXIM) segment up 8.3%. EXIM segment contributes two-thirds of the cargo operator’s revenue.
Dedicated freight corridors, which analysts expect to aid rail connectivity, is boosting the company’s volumes and helping it regain market share, which were stressed due to heated competition from private cargo firms.
Concor’s market share stood at 65%-70%, JM Financial analysts noted in November, after healthy demand lifted the company’s Q2 profit.
Its earnings were also boosted by India’s festival season, which shifted into the third-quarter, analysts said.