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Container Corporation Of India Ltd.

BSE: 531344 Sector: Others
NSE: CONCOR ISIN Code: INE111A01017
BSE LIVE 15:40 | 09 Dec 1118.05 9.00
(0.81%)
OPEN

1119.00

HIGH

1129.00

LOW

1111.90

NSE LIVE 15:52 | 09 Dec 1118.50 8.10
(0.73%)
OPEN

1120.95

HIGH

1126.35

LOW

1111.30

OPEN 1119.00
PREVIOUS CLOSE 1109.05
VOLUME 9174
52-Week high 1544.00
52-Week low 1050.85
P/E 31.90
Mkt Cap.(Rs cr) 21798.62
Buy Price 1118.05
Buy Qty 105.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1119.00
CLOSE 1109.05
VOLUME 9174
52-Week high 1544.00
52-Week low 1050.85
P/E 31.90
Mkt Cap.(Rs cr) 21798.62
Buy Price 1118.05
Buy Qty 105.00
Sell Price 0.00
Sell Qty 0.00

Container Corporation Of India Ltd. (CONCOR) - Chairman Speech

Company chairman speech

Dear member

Greetings !

It gives me immense pleasure to share through this letter the achievements andhighlights of your company's performance during the previous year. For the business ofyour company 2015-16 was a tough year as the environment for the external trade i.e.imports and exports of the country faced many challenges in this period. However throughthe framework of your company's strategic vision initiatives and well laid down plansthe management could navigate the company successfully by minimising the adverse impact ofthese challenges on our businesses and the company has moved towards achieving its longterm sustainable growth.

Your company's major business is directly linked to the exports and imports in thecountry which saw continuously decline during the year. In the year 2015-16 IndianRailways registered a marginal growth of 0.6% in originating loading of cargo from1097.58 million tonnes in 2014-15 to 1104.17 million tonnes in the current year.Originating containerized cargo transported by rail decreased from 48.84 million tonnes in2014-15 to 46.18 million tonnes in 2015-16 reflecting a decline of 5.45%. Your company'svolumes also declined from 36.19 million tonnes (74.1%) of containerised cargo to 33.40million tonnes (72.3%). The inland penetration of containers from Ports to hinterland byrails was around 19% which was quite less due to various trade related reasons includinghigh haulage costs involved in rail based multimodal transportation.

In the above environment the physical performance your company dropped to 2.92 millionTEUs as compared to the 3.11 million TEUs in the year 2014-15 registering a decline of 6%over previous year. In the Exim segment the volumes declined by 5.55% due to General EXIMtrade scenario leading to heavy import export imbalances and stiff competition from Roadfollowing lacklustre availability of cargo decline in HSD prices and rise in rail freightcosts. In the domestic segment the volumes declined by 8.42% due to low offering ofmanufactured goods slump in movement of steel and other metals and increase in railhaulage charges by coupled with corresponding reduction in diesel prices that resulted inshifting of cargo from rail to road. During the year the company achieved a grossturnover and net profit of Rs 6087 crores and Rs 787 crores respectively. The net worthof your company increased to Rs 8106 crores from Rs 7636 crores in the previous year.

Inspite of the challenging environment felt during the year the company is fullyconfident about its long term business outlook and has therefore continued to invest inexpanding its infrastructure. In this direction it incurred an amount of Rs 779 croresapprox. toward capital expenditure on creation of new terminals expansion of existingones and has acquired 360 BLC wagons etc. The company has taken major initiatives forexpansion of its infrastructure and development of many MMLPs across India are on anviland during the year MMLP at Khatuwas was inaugurated and MMLP at Pantnagar set up by itssubsidiary M/s SIDCUL CONCOR Infra Company Ltd. has commenced operations. All theseinvestments would augment substantially the handling capacity of CONCOR in the times tocome.

The company has well laid down strategies to face any challenges. In order to expandits business and to be the first choice of its customer for providing logistics servicesit has always laid emphasis on having alliances in the form of joint ventures with reputedplayers in the field having strategic tie-ups with Government companies State IndustrialCorporations and newly emerging ports. The company is well poised to face the challengesand tap new business opportunities including the one arising from the likely increase incontainer volumes due to development of Dedicated Freight Corridors (DFC) as it isdeveloping its infrastructure along the proposed DFC routes. With the positives signalsfrom the Governments on various policy fronts giving priority to investment ininfrastructure particularly in the road and rail sectors and with its emphasis on make inIndia it is expected that in the coming years the business environment and internationaltrade of the country will improve substantially. Implementation of GST would give furtherfillip to the business of your company as it would inter-alia create an environment ofease of doing business and increase the domestic and international trade includingwarehousing activities and avenues for various other value added services.

Your company has followed the best and transparent practices in doing its businessesparticularly in the areas of Corporate Governance and its Social Responsibilities. In thisregard it has been following the best laid down principles in letter and spirit and hasadopted transparent systems and procedures thereby creating an environment of trust amongall its stakeholders. On the CSR front the company has undertaken initiatives in thefield of education/literacy enhancement environment sustainability health and medicalcare sanitation community development and rehabilitation measures conservation ofnatural resources infrastructure and rural development etc. The amount committed for CSRduring the year has been fully utilised by the company in which it has spent an amount ofRs 30.96 crores.

In recognition of your company excellent track record as well as its performance overthe years it has bagged many awards and accolades during the year. Some of the prominentones are ‘Star PSU of the Year award' by Business Standard Group ‘ET LogisticAward' by Economics Times in ‘Logistics Asia Expo' CONCOR has risen in the rankladder of Fortune 500 Indian companies from rank 205 in 2014 to rank 190 in 2015 ranked31 (36 in 2015) in India's Most Profitable PSU by Fortune India etc.

I am grateful to you for your continuous guidance and patronage in all our initiatives.I am very thankful to the company's Board of Directors and Ministry of Railways for theirvaluable guidance and support. I sincerely appreciate our shareholders esteemed customersand our business associates for having reposed faith in our efforts which has helped us toearn their confidence. Let me reiterate that your company is all set to achieve its laiddown goals for the future for which your unwavering support would be a pillar of strength.I am confident that with the hard work and commitment of the entire CONCOR team we wouldsail through all the challenges that would come in our way for reaching new heights in thefuture.

With best wishes
Sd/-
Date: 09.08.2016 (Anil Kumar Gupta)
Place: New Delhi Chairman and Managing Director

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