Concor gets a margin boost in Q3

Operating margins of Container Corporation of India, India���s largest multimodal logistics operator, moved up to 29.8% for the quarter ended December ���06, against 27.8% in December ���05. This was still below the 32% it realised in the quarter ended September ���06.

Operating margins improved as a result of strong performances on both its export-import (exim) and domestic segments, whose sales grew 15% to Rs 580 crore and 29% to Rs 166 crore, respectively. Gross margins from these segments also were healthy. The exim segment maintained nearly the same margin as last year at 29%.

It gained from the sustained industrial growth over the quarter, while the domestic segment, involving logistics, warehousing and inland movements had a gross margin of 22.8%, much better than the 18% in the same period last year. These strong performances helped the company tide over the 14% increase in total expenses.

The single largest cost component, railway freight expenses, which Concor pays Indian railways for using its network, rose to Rs 422.5 crore, or 56% of total expenses, from 51% in the same period last year. Concor���s October-December ���06 net sales were Rs 747.2 crore, up 17.5% with net profit up 21% to Rs 165.6 crore.