Concor reports steady operating performance
News: Concor revenues grew 9% YoY to Rs 1978 crore which was lower than I-direct estimates. EBITDA margins remained flattish YoY at 23.9%. Absolute EBITDA grew 9% YoY to Rs 472 crore and was better than I-direct estimate of Rs 460 crore. Consequently, PAT grew by 14% YoY to Rs 291 crore and came in higher than I-direct estimate of Rs 285 crore.
View: Concor has been able to maintain its EBITDA margin inspite of marginal miss on revenue front. The domestic revenue is witnessing enhanced traction while EXIM business continues to be softer owing to supply chain bottlenecks. Lower Land License fee charges augurs well for Concor’s margin profile. Various newer initiatives (3PL, distribution logistics, cement and food grain transport, higher terminal utilisation, etc) are expected to diversify Concor offerings to customers and thereby capture higher wallet share. Also higher double stacking, running rakes with higher axle loads, targeting 1 million TeUs container run-rate at Khatuwas (MMLPs), DFC connectivity to Dadri, JNPT and diversification into other logistics verticals are expected provide thrust to its revenues.