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Container Corporation : A disappointing quarter - Views on News from Equitymaster
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Container Corporation : A disappointing quarter
Aug 17, 2016

Container Corporation of India Ltd has announced its results for the quarter ended June 2016 (1QFY17). The company has reported 5.7% year on year (YoY) decline in the topline and 13.7% YoY decline in the bottomline for the quarter. Here is our analysis of the results.

Performance Summary

EXIM volumes for the quarter grew around 3% while domestic volumes declined 4% YoY. Overall realisations declined due to shortening of the lead distances. Both EXIM and domestic segment witnessed degrowth in the operating profits. This was mainly due to high empty running charges on account of overall export import imbalance and imbalance at ports. Because of these issues, profits were lower despite increase in double stacking and lower discounts

Financial performance snapshot
(Rs m) 1QFY16 1QFY17 Change
Sales 14,204 13,392 -5.7%
Expenditure 11,353 10,773 -5.1%
Operating profit (EBDITA) 2,851 2,619 -8.1%
EBDITA margin (%) 20.1% 19.6%
Other income 808 692 -14.4%
Depreciation 883 841 -4.8%
Interest (net) 0 0 NM
Profit before tax 2,775 2,470 -11.0%
Pretax margin (%) 19.5% 18.4%
Tax 703 685 -2.5%
Effective tax rate (%) 25.3% 27.7%
Normal Profit after tax/(loss) 2,073 1,785 -13.9%
Normal Net profit margin (%) 14.6% 13.3%
No. of shares (m) 195
Diluted earnings per share (Rs)* 38.9
Price to earnings ratio (x)* 36.0

*trailing twelve-month earnings

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