CONCOR reports lower-than-expected Q1 results, stock down 4%

Shares of Container Corporation of India (NSE: CONCOR), a state-owned logistic solution provider, fell as much as 4 per cent in the morning deals. The stock experienced a free fall after the company posted below-than-estimated June quarter (Q1FY24) numbers.

At the time of filing this report, around 11:40 am, the CONCOR shares traded at Rs 678.25 apiece, down 2.62 per cent or Rs 18.25 on the bourse. CONCOR shares have lost nearly 5 per cent in the three trading sessions. The market capitalisation of the company stood at Rs 41,325.39 crore.

How did the company perform in Q1?

The company posted a standalone profit after tax (PAT) of Rs 244 crore against an estimate of Rs 296 crore. The revenue for the quarter ending June was logged at Rs 1919.3 crore, against the estimate of Rs 2072 crore.

The company's margin, a key measure of profitability, came in at 20.4 per cent against the estimate of 23.07 per cent. The earnings before interest, taxes, depreciation, and amortisation, or EBITDA, stood at Rs 392 crore, against the estimate of Rs 472.5 crore.

The board has declared an interim dividend for FY2023–24 of 40 per cent which is Rs 2 per equity share with a face value of Rs 5 each, amounting to Rs 121.86 crore.

Brokerage's views

Global brokerage Macquire has maintained a 'Neutral' rating on the stock with a target price of Rs 620 apiece, which implies a downside of 11 per cent.

According to the brokerage, weaker realisation and high land licence fees led to an all-around miss in the financial result.

CONCOR share price: Past performance

CONCOR shares have lost over 8 per cent in the year so far against the Nifty 50's rise of over seven per cent.

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