Concor has reported a 15 per cent drop in net profit for the second quarter of the current fiscal due to provisioning for a deferred tax liability.
The company registered a net profit of Rs 175.42 crore for the second quarter ended September 30, 2011, down 15 per cent against Rs 206.73 crore recorded in the same period last fiscal. This is due to provisioning of a deferred tax liability of about Rs 46.8 crore during the quarter under review.
The container train operations company has registered a 5.3 per cent growth in income from operations at Rs 994.55 crore for the second quarter of this fiscal against Rs 944.18 crore in the same period of 2010-11.
“We have provided Rs 46.8 crore in the current fiscal's second quarter as deferred tax liability of last fiscal. This was the differential between the minimum alternate tax (MAT) rate with surcharges against our average tax rate,” Mr Anil Gupta, Managing Director, Concor, told
The company does not have any further deferred tax liability, he added.
The export-import (EXIM) traffic segment, which is a relatively high margin operations area for Concor, registered a 9 per cent growth in income from operations at Rs 799.93 crore.
The domestic traffic segment, which is the relatively low margins segment, went down by 7.7 per cent against last year, touching Rs 194.61 crore in q of current fiscal.
For the last three quarters, Concor's domestic traffic segment has been impacted due to a Railway Ministry's move of sudden increase in freight charges for domestic container train movement.
Concor is the incumbent container train operator, and still accounts for a significant cargo handling share. In twenty feet equivalent unit (TEU) terms, from containers handled by rail mode at the various Western ports, Concor accounted for 52 per cent share at Mundra Port, 90 per cent share at Pipavav Port, and about 76-77 per cent share at JN Port.