Container Corporation of India has reported a 7.8 per cent increase in net profit for the first quarter ending June 2008, reports the Myiris financial news site.
During the quarter, profits rose to INR2.01 billion (US$46.9 million) year on year with the earnings per share of standing at INR15.53, but registering a 46.06 per cent drop from prior year period.
Revenues for the quarter rose 6.05 per cent to INR8.2 trillion. The company also reported a fall in its operating margin of 370.04 basis points to 25.7 per cent because of higher production cost and depreciation, which rose 6.37 per cent to INR274.6 million over previous year period.
Karvy Stock Broking analysts maintain an outperform rating on Container Corporation of India with a target price of INR956 in its July 18 research report.
Revenue from the import-export business (contributed 80.76 per cent of revenue) increased marginally by 8.9 per cent to INR6.64 billion, while domestic business declined by 4.3 per cent to INR1.58 billion. "The revenue was lower by 14.3 per cent than our expectations of INR9.6 billion," said the report.
"For FY09, we expect the revenue to increase by 15.2 per cent to INR38.48 billion and net profit to grow by 16.4 per cent to INR8.82 billion. Overall, we expect revenue growth of 16.9 per cent to INR45.6 billion in FY10 and net profit to increase 17 per cent in FY10," says Karvy's research report.
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