Container Corporation of India (Concor) announced a surge in its third-quarter earnings on Wednesday, driven by increases in the volume of cargo handled, which outpaced the increase in freight rates that were passed on to customers.
12% more than the previous year, the state-owned business declared a consolidated net profit of Rs 331 crore ($39.8 million) for the quarter that concluded on December 31.
The country's celebrations and associated purchases coincided with an increase in demand for cargo transporters, as seen by the over 10% increase in operating revenue to Rs 2,211 crore.
Despite passing on higher freight costs to customers, Container Corp.'s overall volumes handled increased by around 6.1% year over year, with volumes in its core export-import (EXIM) sector rising by 8.3%. The freight operator receives two thirds of its revenue from the EXIM market.
The company's volumes and market share are increasing thanks to dedicated freight lanes, which analysts believe will improve rail connectivity. These factors were previously strained by fierce rivalry from private cargo companies.
Analysts at JM Financial observed in November that Concor's market share was between 65% and 70% following the company's Q2 profit being boosted by strong demand. Further, analysts noted that the Indian festival season, which extended into the third quarter, contributed to the company's increased profits.
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