JOC Staff | Oct 24, 2011 1:50PM EDT
Container Corp. of India’s profit in the second quarter fell 16 percent to $35 million, as the state-owned rail operator’s rising operating expenses offset intermodal traffic gains.
Operating income from international freight hauling business increased 9 percent year-over-year to $160 million. The company’s income from domestic intermodal traffic dropped 7 percent year-over-year to $39 million from $42 million.
Officials attributed the decline in profit to rising operating expenses, which totaled $154 million in the second quarter compared with $144 million for the same period last year. Rail-haulage costs increased to $112.6 million from $107 million, representing about 55 percent of total sales.
The company’s overall revenue for the first half grew 5 percent year-over-year to $389 million, but net income stayed almost flat at $82 million as operating costs increased.
Concor, an offshoot of Indian Railways, is the largest intermodal logistics provider in the country, operating a network of nearly 60 inland terminals. For fiscal 2010-11 ended March 31, Concor reported net profit of $184 million, up 5.5 percent from $175 million the previous year.