• Downside in revenue is largely due to lower revenue of EXIM business. While the segment revenue of EXIM business was down by 7% to Rs 1357.69 crore or 78% of sales, the domestic segment revenue was up by 7% to Rs 380.96 crore.

• Lower EXIM revenue is largely as no SEIS income has been recognized in current quarter (as against Rs 99.63 crore in corresponding previous quarter) as no notification has been issued by Govt. for the same.

• PBIT was a loss of Rs 527.17 crore (against a profit of Rs 406.02 crore). Loss at PBIT was largely due to loss at EXIM business on account of provision towards ineligible SEIS benefits accounted in previous years. The segment loss at EXIM business was Rs 547.17 crore compared to a profit of Rs 406.02 crore in the corresponding previous period. The domestic segment profit was down by 33% to Rs 19.80 crore. Fall in segment profit for domestic despite higher sales is largely due to lower segment margin that declined by 320 bps to 5.2%.

• Contraction in OPM to the extent of 320 bps to 24.5% largely due to rise in all cost heads. Staff cost as % to sales was higher by 40 bps to 4.8%. The other operating expense was up by 160 bps to 12.9%. The rail freight and OE stand higher by 70 bps (to 54.0%) and 50 bps (to 3.8%) respectively. Thus hit by lower sales and lower OPM the operating profit was down by 16% to Rs 425.50 crore.

• Other income was down by 8% to Rs 63.66 crore. The interest cost jumped to Rs 8.12 crore from mere Rs 0.02 crore in corresponding previous period. And the depreciation was higher by 22% to Rs 127.83 crore. Thus the PBT (before EO) was down by 25% to Rs 353.21 crore.

• EO income for the quarter was an expense of Rs 861.05 crore against nil in corresponding previous period. Thus the PBT after EO was a loss of Rs 507.84 crore against a profit of Rs 468.61 crore in the corresponding previous period.

• The taxation in absolute terms was a write back of Rs 185.82 crore as against a provision of Rs 132.56 crore in the corresponding previous period. The company adopted the new corporate tax rate. Thus it was a loss of Rs 322.02 crore compared to a profit of Rs 336.05 crore in the corresponding previous period.

Consolidated sales for the quarter were down by 4% to Rs 1755.61 crore. But with OPM contract by 290 bps to 24.6%, the operating profit was down by 15% to Rs 432.07 crore. After accounting for lower OI, higher interest and depreciation the PBT was down by 27% to Rs 330.67 crore. With EO expense stand at Rs 861.05 crore (against nil in Sep 2018 quarter) the loss at PBT (after EO) was Rs 530.38 crore against a profit of Rs 453.58 crore. With taxation (net of deferred tax) being a write back of Rs 186 crore (against a provision of Rs 132.89 crore), the PAT was a loss of Rs 344.38 crore against a profit of Rs 320.69 crore. After accounting for lower share of profit from associate (down 8% to Rs 11.67 crore) and lower minority interest (down 54% to Rs 0.76 crore) the net profit was a loss of Rs 331.95 crore compared to a profit of Rs 335.10 crore in the corresponding previous period.

Half yearly performance

Standalone sales for the period was flat at Rs 3377.58 crore. The OPM was 24.5% down from 26.4% in corresponding previous period and thus the OP was down by 7% to Rs 828.77 crore. After accounting for lower OI, higher interest and depreciation, the PBT was lower by 17% to Rs 678.18 crore. With EO expense stand at RS 861.05 crore against nil in corresponding previous quarter, the PAT after EO was a loss of Rs 182.87 crore against a profit of Rs 818.63 crore in the corresponding pervious period. With taxation being a write back of RS 88.68 crore (against a provision of Rs 230.21 crore) the loss at PAT moderated to RS 94.19 crore (against a profit of RS 588.42 crore in corresponding previous period).

Consolidated sales for the period was lower by 1% to RS 3410.37 crore. But with OPM stand lower by 170 bps to 24.5%, the operating profit was down by 7% to Rs 836.54 crore. Eventually the net profit attributable to owners was a loss of Rs 87.94 crore compared to a profit of Rs 593.91 crore in the corresponding previous period.

Other Developments

The company had recognized during the financial year 2015-16 to 2018-19 an amount totaling to Rs 1044.03 crores as the income on account of benefit available under Service Export from India Scheme (SEIS). The availability of this benefit to CONCOR was also confirmed through legal opinions, including from Additional Solicitor General (ASG). Vide letter no. F.No.O 1 / 6 l / 180 / 351 / AM 16 /PC-3 / 786, dated 26th September 2019 received from Directorate General of Foreign Trade (DGFT), the Company has been informed that services towards customs transit of foreign liners sealed containers by rail transport placed under customs control to/from ICDs are not eligible for SEIS. Consequently, an estimated amount of Rs 861.05 crore for ineligible SEIS benefit has been provided for in the current quarter. The Company is in the process of filing appeal in the above matter. Further, other expenses include an amount of Rs. 9.15 crore provided for as estimated discount on the eligible amount of Rs 182.98 crore. No income has been recognized on account of SEIS benefits in current quarter/period as no notification has been issued by Govt. for the same, which in Quarter ended and Period ended September 2018 was Rs 99.63 crore and Rs 170.39 crore respectively.