State-run Container Corporation of India (CONCOR) is expected to see a robust volume pick-up, driven by the commissioning of the Dedicated Freight Corridor (DFC), a report said on Tuesday.
Noting that the commissioning of the Dedicated Freight Corridor (DFC) will drive sustainable volumes and earnings performance for the entity, Motilal Oswal Institutional Equities in its report also that the company is witnessing the benefits emanating from the recent commissioning of the Rewari-to-Palanpur DFC stretch.
There has been a significant gain in terms of faster turnaround time and improved efficiency and further benefits are expected once the DFC is connected to Dadri and JNPT, it said.
According to Motilal Oswal, while the construction of DFC has been slow due to the COVID-19 pandemic and land availability issues, it is expected to pick pace going forward.
The company, it said, is targeting an EXIM and domestic volume growth of 12-15 per cent and 25 per cent, year-on-year, respectively, taking total volumes to an estimated around 5-million TEUs this fiscal, as per the report.
The domestic segment is expected to grow faster than EXIM and reach around 25MT by FY25. it added.
Source : newsdrum