Container Corp. of India – Volumes Down – Profits Up

In 2QFY09, Concor’s sales growth was a moderate 10% yoy due to a 9% improvement in realizations despite 1% volume growth. According to management, Exim volume grew only 3% due to a global slowdown, while domestic volume fell 8.8%. Domestic volume was hit by lower petrochemical volumes and ban on some commodity exports. The PAT for 1FH-Y09 was Rs 425.7 crore

Cost rationalization helped EBITDA grow 26.6% yoy, expanding margin by 383bps to 29.8%. Deployment of new equipment in ICDs and route rationalization helped Concor reduce costs.

Being zero debt and cash rich, Concor has maintained its capex plans despite the slowdown and liquidity crunch. According to management, this approach should help them once demand picks up.

Expect Concor to report an EPS in the range of Rs 67.50 to Rs 68.30 for full year FY09.