Concor Q3 Results Review - Weakness In EXIM Volumes Hurts profitability: Motilal Oswal

Motilal Oswal Report

Container Corporation of India Ltd. reported weak operational performance with 5% volume growth in Q3 FY23. Revenue grew ~4% YoY (flat QoQ) to ~Rs 19.9 billion during the quarter, 10% below our estimate. 

Concor’s Ebitda declined ~6% YoY and was 18% below our estimate. Profit after tax was flat YoY, 13% below our estimate. Ebitda margin was at 21.4% (down 230 bp YoY/ ~down 390 bp QoQ) in Q3 FY23.

Total volumes rose ~5% YoY to 1.08 million twenty-foot equivalent units with Exim/domestic volumes at 0.83 million/0.25 million TEUs, respectively, (up 1%/up 24% YoY).

Blended realization dropped ~2% YoY to Rs 18,324/ TEU. Exim/domestic realisations stood at Rs 15,228/Rs 28,593 per TEU, down 5%/2% YoY, respectively, in Q3 FY23.

Land license fee for Q3 FY23 stood at Rs 0.97 billion. Concor expects to incur Rs 4.5 billion of LLF in FY23.

Concor has been facing significant constraints in incurring capex for rolling stock, rakes and containers. Hence, out of the capex guidance of Rs 6 billion for FY23E, only Rs 2.2 billion has been spent in nine months-FY23.

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