• Downside in revenue is largely as both EXIM business and domestic register lower revenue. While the segment revenue of domestic business was down by 22% to Rs 288.47 crore, the segment revenue of EXIM business was down by 29% to Rs 900.67 crore (or 76% of sales).
• Lower revenue of domestic was largely to lower volume (down 25% to 104806 TEUs) but with its per TEU realization stand higher by 5% to Rs 27524.2 the fall in revenue was restricted at 22%. However EXIM revenue was hit by both lower volume and lower per TEU realization. While the EXIM volume was down by 20% to 627905 TEUs it's per TEU realization declined by 11% to Rs 14344/TEU.
• PBIT was down by 71% to Rs 91.72 crore as segment profit of EXIM decline sharply. EXIM business registered a segment profit of Rs 77.02 crore, a fall of sharp 74% hit by lower sales as well as sharp fall in segment margin to 8.6% (from 23% in Q1FY20). The segment profit of Domestic was down by 22% to Rs 14.70 crore largely due to lower sales as its segment margin stay flat at 5.1%.

 Consolidated sales for the quarter were down by 28% to Rs 1194.20 crore. That together with 1110 bps crash in OPM, the operating profit was down by 61% to Rest 159.09 crore. The fall at PBT was 78% to Rest 71.79 crore after accounting for lower OI, lower interest and flat depreciation. After accounting for lower taxation, the PAT was down by 78% to Rs 49.29 crore. Eventually the net profit (after MI & share pf profit from associate) was down by 75% to Rs 60.61 crore with share of profit from associate stand lower by 46% to Rs 8.97 crore and that of MI stand higher by 57% to Rs 2.35 crore.

Yearly performance

Standalone sales for the period was down by 6% to Rs 6473.79 crore. The OPM was flat at 25.9% and thus the OP was down by 6% to Rs 1674.93 crore. After accounting for lower OI, higher interest and depreciation, the PBT was lower by 17% to Rs 1405.59 crore. With EO expense stand at RS 881.63 crore against nil in corresponding previous period, the PBT after EO was down by sharp 69% to Rs 523.96 crore Taxation in absolute terms was lower by 69% to Rs 148.18 crore and the tax rate was at 10.5% compared to 28.0% in corresponding previous period. Thus the PAT was down by 69% to Rs 375.78 crore.

Consolidated sales for the period was lower by 6% to Rs 6539.42 crore. But with OPM stand higher by 20 bps to 25.9%, the operating profit was down by 5% to Rs 1693.80 crore. And the PBT before EO was down by 18% to Rs 1356.78 crore. With EO expense stand at RS 851.82 crore (against nil) the PBT after EO was down by sharp 69% to Rs 504.96 crore. Eventually the net profit attributable to owners was down by 67% to Rs 404.47 crore.

Other Developments

CONCOR had recognized during the financial year 2015-16 to 2018-19 an amount totalling to '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.01/61/ 180/351/AM16/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 !CDs are not eligible for SEIS. Consequently, an estimated amount of ( 861.05 crores for said ineligible SEIS benefit was provided for during the year 2019-20 and the Company had filed appeal against the same at the appropriate level. Further, other expenses for the year 2019-20 include an amount of Rs 9.15 crore provided for as estimated discount on the eligible SEIS benefit amount of Rs 182.98 crore. No income was recognized on account of SEIS benefits during FY 2019-20, as no notification was issued by Govt. for the same. The company has already been issued SEIS Scrips of Rs 182.98 crore and is in the process of selling the same. No income has been recognized on this account in the Q.E. 30.06.2020.

Ministry of Railways, Government of India vide its order no.2015/LML-11/13/4 dated 19.03.2020, had communicated that the LLF applicable on the Railway land leased to CONCOR shall now be charged i.e. 01.04.2020 as per extant policy of Railways i.e. @:6% of the value of land, which will be further increased 7% annually. Till the financial year 2019-20, CONCOR has been paying Land License Fee (LLF) to the Railways on the railway land leased to it on the basis of number of TEUs handled.

As Railway lands leased to CONCOR are prior to year 2006, CONCOR has represented this matter to the Ministry of Railways to continue to charge LLF on the basis of number of TEUs handled till the time it remains a PSU. Railway's response on this representation is awaited. However, recently CONCOR has received a demand of Rs 776.89 crores from Ministry of Railways as the LLF for the year 2020-21 for the Okhla and Tughlakabad Terminals of CONCOR at Delhi, which has been supposedly worked out as per its above order dated 19.03.2020. As per company's assessment, the above demand is not as per Railway's extant policy. The matter is being suitably represented to the Ministry of Railways. However, an amount of Rs 120.67 crore has been estimated by the company by applying extant policy of Railways, as LLF for all terminals on Railway Land for Q.E. 30.06.2020.