Container Corporation of India (CONCOR) on Monday (4 May 2020) said it is surrendering its 15 terminals with a turnover of Rs 277.50 crore to the Indian Railways due to commercial and business viability considerations.
These terminals, spread across various states, have 'net block' worth Rs 64.84 crore, the company said. According to the company's assessment, the surrender or handover of the terminals to the railways will not impact the business of the company materially, it said.The company's Madho Singh (Rajasthan), Rourkela (Odisha), Tatanagar (Jharkhand), and Maharashtra's Chinchwad, Miraj and Bhusawal terminals were found not viable for business. For the Rewari (Haryana) terminal, it said that road-based terminal will continue and traffic will be cleared from Khatuwas railhead; while about the Ballabhgarh (Haryana) terminal, it said that business has been shifted to Delhi.
For the Babarpur (Haryana) terminal, CONCOR said the existing traffic of Babarpur has been diverted to CONCOR's newly developed MMLP Barhi; and for the Desur (Karnataka) terminal, it said the railways has demanded land back. About the Visakhapatnam terminal, it said the existing traffic has been shifted to MMLP/Vishakhapatnam.
Other terminals surrendered included Raipur (Chhattisgarh), Sabarmati (Gujarat), Ratlam (Madhya Pradesh) and Nagpur (Maharashtra). The announcement was made after market hours yesterday, 4 May 2020.
On a consolidated basis, the company's net profit fell 35% to Rs 180.89 crore on a 7.7% decline in net sales to Rs 1,544.74 crore in Q3 December 2019 over Q3 December 2018.
CONCOR is engaged in transportation of containers (rail and road), and handling of containers. The firm is also engaged in the operation of logistics facilities, including dry ports, container freight stations and private freight terminals.
As of 31 March 2020, the Government of India holds 54.80% stake in the company.
Shares of CONCOR added 1.18% to Rs 352.65 on BSE. The scrip hovered in the range of Rs 344.75 to Rs 367.50 so far.
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