CONCOR shares jump 7% after management raises FY27 guidance; Here's what it said

Shares of Container Corporation of India Ltd. (CONCOR) surged as much as 7% on Monday, July 27, after the management, in its post-earnings interaction with CNBC-TV18, raised its full year guidance on Domestic and EXIM volumes, as well as the overall volumes by nearly or more than 100%.

During the interaction, CONCOR Chairman & Managing Director Sanjay Swarup revised the company's guidance for the full year across these parameters:

• Full year EXIM volume growth guidance raised to 15% from 8% earlier


• Full year Domestic volume growth guidance raised to 25% from 15% earlier


• FY27 total volume growth guidance raised to 18% from 9.5% earlier.

CONCOR CMD Swarup further said that the company is anticipating a major 1 million tonne business from a major contract in the Southern part of India, which will ensure that the west-to-south return journey is not empty.

The company also wants to increase the share of end-to-end solutions from 46% currently to 80% by the end of the current financial year. Swarup went on to add that there has been a shift from road to rail in terms of traffic and that will increase further with the Dedicated Freight Corridor (DFC).

While double stacking is currently 10% to 12% of overall sales, the benefits from the DFC will be reflective from the second quarter onwards, Swarup said, adding that while the company currently has 700 tank containers, it has placed orders for 2,000 more, and these tank containers will be used to transport bulk cement.

For the June quarter, CONCOR Reported 0.3% growth in its revenue to ₹2,159.76, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹444.29 crore, a growth of 2.7% from the year-ago period.

EBITDA margin for the quarter expanded by 50 basis points to 20.6% from 20.1% last year, while net profit went up by 5.1% from last year to ₹272.45 crore.

Revenue from the EXIM business grew by 2.3% from the year-ago quarter to ₹,1434 crore, while domestic revenue dropped 3.5% from last year to ₹726.11 crore.

Total volume growth during the quarter grew by 8.9% during the quarter, while EXIM volumes were up 9.8% on a year-on-year basis.

Shares of CONCOR are trading 7.1% higher after the management raised its guidance at ₹511.7. With this move, the stock has trimmed its year-to-date losses down to 3%.