• Upside in revenue is largely as both EXIM business and domestic register higher revenue. While the segment revenue of domestic business was up by strong 28% to Rs 455.26 crore (or 26% of sales), the segment revenue of EXIM business was up by 11% to Rs 1298.56 crore (or 74% of sales).
  
• Higher sales for the quarter was largely due to 6% rise in volume with EXIM volume up 5% to 804557 TEUs and that of domestic was up by strong 12% to 161458 TEUs. Higher sales together with 6% and 14% rise in per TEU realization in case of EXIM and Domestic respectively has facilitated higher revenue for both EXIM and domestic.
  
• PBIT was a down by 9% to Rs 256.56 crore with EXIM down by 19% to Rs 226.07 crore. But the domestic EBIT was up to Rs 30.49 crore from modest RS 2.56 crore in the corresponding previous period. Sharp fall in segment profit of EXIM was largely due to revised/changed method of LLF charged by IR for terminals of the company in IR land.
  
• Moreover the company in previous years providing for Post-Retirement Medical Benefits (PRMB) of retired employees but it has done actuarial valuation for the expected liability for all the employees of the Company during the quarter. Due to this, during the quarter ended 31st December 2020, an amount of Rs 69.16 crores has been provided out of which Rs 49.60 crores has been charged to Profit & Loss Account and balance Rs 19.56 crore has been included in Other Comprehensive Income. This has impacted the operating margin of the company along with higher LLF due to change in LLF calculations by IR.  

Consolidated sales was up by 14% to Rs 1766.89 crore. But with OPM decline to 21.3% from 24.4% in corresponding previous period, the operating profit was flat at RS 376.07 crore. The PBT was down by 1% to Rs 296.32 crore dragged by higher interest and higher depreciation. The taxation was down by 44% to Rs 70.66 crore and thus the PAT was up by 31% to Rs 225.66 crore. The share of profit from associate was flat at Rs 7.41 crore and the minority interest was down by 23% to Rs 1.20 crore. Thus the net profit after MI was up by 30% to Rs 234.27 crore.

Nine month performance 

Standalone sales for the period was down by 9% to RS 4445.69 crore and the OPM was down by 550 bps to 19%, the operating profit was down by 30% to Rs 843.86 crore. The PBT was down by 35% to RS 641.20 crore after accounting for higher OI, flat interest and higher depreciation. The EO was nil compared to an expense of Rs 861.05 crore in the corresponding previous period. Thus the PBT after EO was up by 438% to Rs 641.20 crore. The taxation was up by 306% to Rs 154.05 crore and thus the PAT was up by whopping 499% to Rs 487.15 crore.  

For the period ended Dec 2020, an amount of Rs 353.81 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 10% to Rs 4470.39 crore. But with OPM stand decline by 550 bps to 19% the operating profit was down by 30% to Rs 851.12 crore. The PBT was down by 37% to Rs 602.95 crore after accounting for higher OI, lower interest and higher depreciation. The EO expense was nil compared to RS 861.05 crore in the corresponding previous period. Thus the PBT after EO was up by 541% to Rs 602.95 crore. The taxation was up by 274% to Rs 152.23 crore and thus the PAT was up by 744% to Rs 450.72 crore. Eventually the net profit after MI was up by 416% to Rs 479.50 crore.  

Other Developments 

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 ₹ 1336.65 crores including GST from Ministry of Railways as the annual LLF for the year 2020-21 for 21 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 ₹ 353.81 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. 31.12.2020. 

SEIS: CONCOR 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. 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 Quarter ended Sep 2020.