- 11 Nov 2022
- ICICIdirect Research
CONCOR SHOWS SPURTS OF DFC TRANSITION IN NUMBERS
CONCOR - 703 Change: 28.15 (4.17 %)News:
Revenues grew 8% YoY to Rs 1971 crore (I-direct estimate: Rs 1998 crore), led by growth in domestic revenues, which grew 23% YoY to Rs 652 crore while Exim revenues remained flattish at Rs 1319 crore. EBITDA margins expanded 192 bps YoY to 25.3% and were higher than I-direct estimate of 22.6%, mainly due to higher operating leverage. Subsequently, absolute EBITDA grew 17% YoY to Rs 499 crore and was better than I-direct estimate of Rs 452 crore. Consequently, PAT grew 15% YoY to Rs 303 crore and came in higher than I-direct estimate: Rs 279 crore. The company has also declared an second interim dividend of Rs3 per share (60%). The record date for the interim dividend has been fixed as November 23, 2022
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While Exim volumes grew 18% during the quarter to 9.4 lakh TeUs (82% of Concor overall volumes), its realisation declined 14% to Rs 14073 per TeU (indicating higher empty container movement). However, owing due to likely higher double stacking movement, higher operating leverage played out for Concor in Q2FY23 (higher absolute EBITDA, with same fixed costs). However, the theory is yet to be confirmed by the management on conference call. Any timeline for privatisation of the company is another key monitorable on the conference call
Impact:
Positive