Concor stock derails on changes in land licence fee payable to Railways

Margins collapse in Q1 due to higher outgo, weak volumes

The Container Corporation (Concor) stock fell over 15 per cent on Monday over weak June quarter results and revision of annual land licence fee (LLF), to be paid by the company to the Railways. While Concor was paying LLF, it was on the basis of volumes and, thus, a variable cost. But now, it has to pay a fixed percentage, which is based on the market value of land. 

This has led to a sharp uptick in payment for 25 terminals, which Concor operates on Railways’ land, from Rs 140 crore paid in FY20 to Rs 450 crore in FY21. The