Container Corporation Of India Ltd

Dear Shareholders,

It is my privilege to communicate with you through my first letter after taking over. My heartiest greetings to all of you. I am delighted to share this 36th Annual Report of the Company giving insights into the performance and achievements of the Company during 2023-24 and its plans going forward.

During the year, the global uncertainty stemming from adverse geopolitical developments remained elevated. As per the World Economic Outlook April 2024 from International Monetary Fund (IMF), the global economy registered a growth of 3.2 per cent in 2023 though marginally lower than 3.4 percent in 2022. Despite the global challenges, the Indian economy carried forward the momentum it built in previous year into FY 2023-24. The focus on maintaining macroeconomic stability ensured that external challenges had minimal impact on our economy. India continues to be an outlier in terms of growth as its GDP grew by a robust 8.2% driven primarily by strong growth in investments, manufacturing and government spending.

In the backdrop of international supply chain vulnerabilities caused by geopolitical instability, it is comforting to note that your company has delivered robust performance on all fronts during the year. It has handled 4.72 million TEUs with an increase of 8.23% over the previous year. Gross revenue earned was Rs.9010 crores with an increase of 6.9% over previous year driven by a surge in container handling and transportation volumes. The net profit was Rs.1230.79 crores with an increase of 5.2% over previous year reflecting our focus on operational efficiency and cost optimization. The throughput, revenue and net profit achieved by the Company were highest ever in any financial year.

The Company has rewarded its shareholders by paying dividend every quarter. During the year three interim dividends totalling to 180% (Rs.9.00 per share) were paid and a final dividend of 50% (Rs.2.50 per share) has been recommended. The total dividend for the year would be Rs.700.69 Crores which would be 56.93% of the net profit. The market capitalization of the Company at the end of the year was Rs.53,746 crores.

The company is fully convinced about the long term sustainable economic growth of our country fostering bright prospects for logistics sector which is vital for trade and commerce. Therefore, the Company is continuing with the strategy of expanding its infrastructure and entering into new alliances. The capital expenditure incurred on development/ expansion of terminals, acquisition of wagons, handling equipments and IT infrastructure during the year was Rs.745 crores. Three new terminals at Jajpur, Kodakola and Paradeep were developed during the year. To promote Atmanirbhar Bharat in container manufacturing, orders were placed on domestic manufacturers who are now supplying containers for Company's business needs. The Company with its strong capabilities in the form of network of 66 Terminals; 16,997 wagons; 44,492 Containers; 108 RSTs etc. is well poised to achieve its objectives and retain its leadership position in the industry.

The Government of India is creating infrastructure in a big way with massive investment in the Railways and Road sectors. This will ensure supply chain efficiency and is likely to reduce logistics costs in the country. Indian Railways as a mode of transport can play an important role in lowering the logistics cost as it is significantly cost and time efficient over medium to long distances. With the thrust on investment in infrastructure in the union budget, Rs.11 lakh crores which is 3.4% of the GDP, has been allocated towards capital expenditure in which Rs.2.55 lakh crore is for Railways. This reflects Government's resolve to develop a world-class logistics ecosystem in the country that can support growing trade. The National Logistics Policy (NLP) is a great enabler helping in streamlining the processes for seamless coordination. The Gati Shakti Cargo Terminal policy of Indian Railways for multi-modal connectivity has promoted private investment in cargo terminal development.

The Government's clear focus on infrastructure development, productivity linked incentives, digital connectivity and improving the ease of doing business and a stable policy environment will play a significant role in driving India's rise as a global supplier of goods and services. Aided by various initiatives of the Government, India's rank in Logistics Performance Index (LPI) of World Bank has jumped 6 places to 38 out of 139 countries.

Your Company is steadily marching ahead on the path of growth with its mantra of ‘Think Logistics Think CONCOR'. The strategy is focused on setting up Multi Modal Logistics Parks (MMLPs) along Dedicated Freight Corridors (DFCs), increase in double stack haul of containers, value added services, innovative use of technology, expanding warehousing business, venture internationally, development of Rail Transshipment Hubs (RTH), operating State-of-the-Art Warehouses under PPP mode, movement of Bulk Cement in Tank Containers, storage and transportation of Liquid Cargo, etc.

The Company has taken a significant leap towards sustainable logistics by signing MOUs with IOCL & IGL, aiming to mutually explore opportunities in the use of LNG as fuel. The Company is now enhancing its First Mile and Last Mile (FMLM) service capability by adding 200 Liquified Natural Gas (LNG) Trucks to its fleet of 100 Trucks. The green logistics initiatives of the Company include deployment of LNG trucks and setting up solar based infrastructure at various terminals. Keeping in pace with the dynamics of the logistics industry, your company has also adopted various technological advances in logistics such as digital solutions in operations, launch of logistics apps, adoption of ice-battery technology in cold chain logistics, AI based Terminal management contributing towards enhanced productivity, customer centric services and logistics efficiency.

The HR strategy in the organisation promotes diversity, equality and inclusivity taking care of the health and safety needs of its employees who are working relentlessly towards achieving the mission and objectives of the company. They are imparted necessary training for skill upgradation thereby updating them with the changing requirements of the business. The work culture is open and dynamic enabling employees to take initiative in jobs with active support of the top management. The process of development of HR delivery mechanism has been democratized by providing accessibility to all employees to HRMS and Mobile Apps based HR applications ushering an era of developing digital mind-set within the organisation.

The Corporate governance, transparency and ethics have been fundamental pillars of your Company's success. As testimony to this, the Company has been rated outstanding by DPE on Corporate Governance parameters and it has received "NIL" comments from Comptroller & Auditor General of India (CAG) on the financial statements of the year 2023-24. The CSR activities of the Company are inter-alia focused on education, skill development, environment sustainability, sports and infrastructure development. Through its initiatives under CSR, it has impacted positively the lives of a large number of beneficiaries in the country and the work done by it has been appreciated by the stakeholders.

To conclude, I express my sincere appreciation to my fellow Board members for their valuable inputs and guidance. I am grateful to our shareholders for their trust in the management. I also thank Ministry of Railways, Department of Customs (Ministry of Finance), Central and State Governments, Value Chain partners, Customers, Regulators, etc., for their encouragement and support. I would like to place on record my appreciation for team CONCOR for their outstanding performance and with their commitment and talent, the Company is well positioned to achieve new pinnacle of success in future.

My best wishes to you and your family members !