Weak volumes cast a shadow on growth guidance:
Container Corp’s (Concor) FY20 volume growth guidance of 10-12% now looks even more difficult to achieve with August 2019 container rail volumes falling 3%. YTD, overall container rail volume is up mere 3% y-o-y, which poses risk to the company’s FY20/21E earnings. Moreover, Concor’s recent market share loss has added to investors’ concerns.
Despite this near-term pain, the Western DFC has the potential to double India’s container rail ecosystem, in our view. This long-term promise balances the near-term concerns, to an extent. However, as the DFC’s ...
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