Higher cargo volume helped Container Corporation of India (CONCOR) announce a 9% increase in second-quarter profit.
For the three months ended September 30, the state-run logistics company’s consolidated earnings before tax increased from 4.82 billion rupees to 5.26 billion rupees ($62.6 million) compared to the same period last year.
Operational revenue increased 4.2% to 22.88 billion rupees, mostly due to a nearly 6% increase in cargo volume. A one-time cost of 333.2 million rupees was incurred by the business.
India’s largest container train operator, CONCOR, has benefited from sustained increase in freight volume driven by consistent business activity and consumption in the world’s fifth largest economy.
In the reported quarter, the company’s domestic division reported a 14% growth in cargo volume, while its primary export/import (EXIM) segment saw a 3.7% on-year increase.
Given that CONCOR has been losing market share to private competitors in the EXIM segment, analysts anticipate that domestic volume growth, aided by freight corridor connections, will drive volume growth.
