scorecardresearch
Govt receives Rs 134 cr dividend from Concor after strong Q2 earnings

Govt receives Rs 134 cr dividend from Concor after strong Q2 earnings

DIPAM Secretary Tuhin Kanta Pandey says the strategic sale of Concor will not take place this year as the railway land usage policy is yet to be finalised.

Container Corporation of India reported strong Q2 FY22 earnings with Rs 430 crore EBITDA and a 21 per cent YoY rise in revenue to Rs 1,820 crore Container Corporation of India reported strong Q2 FY22 earnings with Rs 430 crore EBITDA and a 21 per cent YoY rise in revenue to Rs 1,820 crore

The government has received Rs 134 crore from the Container Corporation of India (Concor) as a dividend tranche. The government had also received Rs 1,074 crore and Rs 74 crore from SAIL and RCFL, respectively, as dividend tranches.

Last month, the Container Corporation of India reported strong Q2 FY22 earnings with Rs 430 crore EBITDA and a 21 per cent YoY rise in revenue to Rs 1,820 crore. According to rating agency Motilal Oswal, CONCOR’s Q2 results are driven by the better-than-expected realisation and operational efficiency due to the dedicated freight corridor.

The dedicated freight corridor will benefit Concor via double stacking, higher load capacities and reduced turnaround time, thus leading to improved volumes and profitability.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey has said the strategic sale of Concor will not take place this year as the railway land usage policy is yet to be finalised. Concor has built terminals to house containers on land leased from the Indian Railways on a per container licence fee basis.

It also gets land from the Indian Railways at a concessional rate as compared to other inter-modal operators, an arrangement that can be altered when the firm is privatised.

“Container Corp is not happening this year. From expression of interest (EOI) to conclusion, it takes about nine months to one year. We were hoping that the expression of interest will be issued but that is linked to the land policy. As soon as we resolve that, we will move forward,” Pandey told news agency PTI.

Also read: Govt to table bill to amend banking law in winter session; privatise 2 public sector banks