• Downside in revenue is largely as both EXIM business and domestic register lower revenue. While the segment revenue of domestic business was down by marginal 2% to Rs 372.72 crore (or 25% of sales), the segment revenue of EXIM business was down by 17% to Rs 1130.01 crore (or 75% of sales). But for SEIS Scrip monetisation of Rs 182.98 crore, the fall in EXIM revenue for the quarter ended Sep 2020 would have been even lower.
• Lower revenue of domestic was largely to lower volume (down 2% to 140885 TEUs) but with its per TEU realization stand lower by 1% to Rs 26455.6. However EXIM revenue was hit by strong fall in volume and lower per TEU realization. While the EXIM volume was down by 10% to 744788 TEUs it's per TEU realization declined by 8% to Rs 15172.2/TEU.
• PBIT was a profit of Rs 209.85 crore compared to a loss of Rs 527.37 crore in the corresponding previous period. The segment profit of EXIM was Rs 188.32 crore compared to loss of Rs 547.17 crore in the corresponding previous period. Segment loss in corresponding previous period for EXIM was largely due to provision towards ineligible SEIS benefits. However the segment profit of domestic was up by 9% to Rs 21.53 crore.

Consolidated sales for the quarter were down by 14% to Rs 1509.30 crore. That together with 370 bps crash in OPM, the operating profit was down by 27% to Rs 315.96 crore. The fall at PBT was 29% to Rs 234.84 crore after accounting for higher OI, flat interest and flat depreciation. After accounting for nil EO expense against Rs 861.05 crore in corresponding previous period, the PBT after EO was a profit of Rs 234.84 crore compared to a loss of Rs 530.38 crore in the corresponding previous period. After accounting for higher taxation (a swing of Rs 245.07 crore to a provision of RS 59.07 crore), the PAT was a profit of Rs 175.77 crore compared to loss of Rs 344.38 crore in the corresponding previous period. Eventually the net profit (after MI & share pf profit from associate) was Rs 184.62 crore (against a loss of Rs 331.95 crore in the corresponding previous period) after accounting for 27% fall in share of profit from associates to Rs 8.54 crore and 59% fall in MI to a share of loss of Rs 0.31 crore.

Half Yearly performance

Standalone sales for the period was down by 20% to Rs 2691.87 crore. The OPM declined by 700 bps to 17.5% and thus the OP was down by sharp 43% to Rs 471.98 crore. The PBT before EO was down by 51% to Rs 331.94 crore after accounting for higher OI, lower interest and flat depreciation. With EO expense being nil compared to RS 881.63 crore in corresponding previous period, the PBT after EO was a profit of Rs 331.94 crore compared to a loss of Rs 182.87 crore in the corresponding previous period. Taxation in absolute terms was Rs 82.69 crore compared to a write back of Rs 88.68 crore in the corresponding previous period. Thus the PAT was a profit of Rs 249.25 crore compared to a loss of RS 94.19 crore in corresponding previous period.

For the period ended Sep 2020, an amount of Rs 233.31 crore has been estimated & provided by the company by applying extant policy of Railways, as LLF for all terminals on Railway Land.

Consolidated sales for the period was lower by 21% to Rs 2703.50 crore. But with OPM stand decline to 17.6% (from 24.5%) the operating profit was down by 43% to Rs 475.05 crore. The PBT before EO was down by 53% to Rs 306.63 crore. After accounting for nil EO expense against Rs 861.05 crore in corresponding previous period, the PBT after EO was a profit of Rs 306.63 crore compared to a loss of Rs 205.04 crore in the corresponding previous period. Eventually the net profit (after MI) was a profit of Rs 245.23 crore compared to a loss of Rs 87.94 crore in the corresponding previous period.

Other Developments

SEIS: 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. In FY-2019-20 Directorate General of Foreign Trade (DGFT}, disallowed Rs.86 1.05 crores of claim for SEIS by stating 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, for which provision was made by the company and it also filed appeal against the same at the appropriate level. The balance claim of SEIS amounting to Rs.182.98 crores for which scrips were issued to the company, the same have been monetized in Current Quarter.

Land License Fee: 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. Ministry of Railways, Government of India vide its order no.2015/LML-II/ 13/4 dated 19.03.2020, had communicated that the LLF applicable on the Railway land leased to CONCOR shall now be charged w.e.f. 01.04.2020 as per extant policy of Railways i.e. @6% of the value of land, which will be further increased 7% annually. 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, CONCOR has received demand letters of Rs 1275.93 crores including GST from Ministry of Railways as the annual LLF for the year 2020-21 for 13 Terminals of CONCOR, 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 233.31 crore has been estimated & provided by the company by applying extant policy of Railways, as LLF for all terminals on Railway Land for P.E. 30.09.2020.

The Board of Directors has declared an Interim Dividend of Rs 3/ -Per equity share(face value of Rs 5/- per equity share) amounting to Rs 182.79 Crore.