Container Corporation of India (CONCOR) Q4 01/02 earnings summary

Executive summary

• FY02 operating income rose ~20% YoY to Rs. 1,286.46 crore; profit before tax reached Rs. 389.17 crore and net profit Rs. 249.48 crore.

• Handling volume increased 18% to 1,231,833 TEUs amid weak manufacturing and nearly stagnant world trade, supported by EXIM growth and network expansion.

Financial highlights

• Other income increased ~29% YoY to Rs. 42.82 crore; expenditure rose to Rs. 946.24 crore from Rs. 780.91 crore.

• Profit after tax was Rs. 249.48 crore versus Rs. 216.65 crore; FY02 includes a Rs. 19.23 crore deferred tax provision that reduced net profit by the same amount.

• Terminal and other service charges grew 20% YoY; terminal and other service expenses rose 21%, while employee costs increased 13%.

• Operating cash flow was Rs. 207.51 crore, compared with Rs. 249.64 crore in FY01; closing cash and cash equivalents were Rs. 370.02 crore.

Outlook and guidance

• Procurement of the remaining 1,320 Tranche I wagons was to proceed using internal resources after the World Bank declined to extend the loan beyond 31 Dec 2001.

• Four handling machines ordered for Tughlakabad at Rs. 19.89 crore were expected to be commissioned in FY03; new domestic service streams and higher frequencies were also being introduced.

• Management identified development of Pipavav and Mundra and restored eastern-port links as potential longer-term ways to ease port-related bottlenecks.