Under the Foreign Trade Policy (FTP) 2015-20 of Government of India, CONCOR has filed applications for availing benefits under 'Service Export from India Scheme' (SEIS). An amount of Rs 1044.03 crore from FY 2015-16 to 2018-19 has been recognized towards SEJS benefit in the Books of Accounts. The Company has already provided all requisite information and clarifications to the authorities in respect of its claim for SEIS. Matter is under active consideration of the concerned authorities & Company is following up the same on regular basis. During Quarter ended June 2018, an amount of Rs 70.76 crore was recognized towards SEIS benefit. In view of the fact that no trade circular has been issued by DGFT for giving SEJS benefit for FY 2019-20, no amount on this account has been recognized in the financial results for QE June 2019.

• Upside in revenue is due to growth in revenue of both EXIM and Domestic business. Segment revenue of EXIM business was up by 3% to Rs 1270.42 crore or 78% of sales facilitated by higher realization per TEU as volume handled during the quarter stood lower marginally. While EXIM volume handled was down by 1% to 786442 TEUs the realization increased by 4% to Rs 16154.02/TEU. Similarly despite 1% fall in domestic volume to 140481 TEUs, the 10% jump in realization (to Rs 26232.02/TEUs) facilitated strong 10% growth in Domestic business revenue to Rs 368.51 crore.

• PBIT was flat (up 0%) at Rs 311.43 crore with segment profit of EXIM down by 1% to Rs 292.58 crore. The segment margin was down by 80 bps to 23% and the PBIT/TEU stay flat at Rs 3720.30/TEUs. The profitability seems hit due to non recognition of SEIS benefit for the quarter compared to recognition of Rs 70.76 crore in corresponding previous period. But the segment profit of Domestic was up by 19% to Rs 18.85 crore. Segment margin of Domestic was up by 40 bps to 5.1%.

• Contraction in OPM to the extent of 30 bps to 24.6% largely due to higher staff and other operating cost. Staff cost as % to sales was higher by 40 bps to 4.9%. The other operating expense was up by 90 bps to 12.7%. But with the rail freight and OE stand lower by 100 bps (to 54.6%) and 10 bps (to 3.1%) respectively, the fall in OPM was restricted to just 30 bps. With OPM stand lower the operating profit was up by 3% to 403.27 crore thanks to higher sales.

• Other income was down by 6% to Rs 58.26 crore. The interest cost jumped to Rs 11.23 crore from mere Rs 0.02 crore in corresponding previous period. And the depreciation was higher by 23% to Rs 125.33 crore. Thus the PBT was down by 7% to Rs 324.97 crore.

• EO income for the quarter and corresponding previous period was nil. The taxation in absolute terms was down by 1% to Rs 97.14 crore but the tax rate was higher at 29.9% compared to 27.9% in corresponding previous period. Thus the growth at PAT was down by 10% to Rs 227.83 crore.

Consolidated quarterly performance

Consolidated sales for the quarter were up by 4% to Rs 1654.76 crore. But with OPM contract by 30 bps to 24.4%, the operating profit was up by 3% to Rs 404.47 crore. After accounting for higher OI, higher interest and depreciation the PBT was down by 5% to Rs 325.34 crore. With taxation up by 2% to Rs 99.50 crore the PAT was down by 8% to Rs 225.84 crore. After accounting for higher share of profit from JV/associates and higher minority interest (share of profit), the net profit attributable to owners was down by 6% to Rs 244.01 crore.