The company took a Rs 120 crore charge in the quarter related to LLF, which coupled with a weak volume performance, dented its operating performance. Due to this, the operating profit margin fell 11 percentage points to 13.4 per cent in the quarter.
Lack of operating leverage was also reflected on revenues, which fell 27 per cent YoY on account of Covid-related disruptions and the lockdown.
Export-import volumes fell 20 per cent, while realisations dipped 10 per cent YoY.
Analysts at ICICI Securities believe in an environment of steep volume contraction, the fixed nature of expense is expected to create margin pressure for the company.
The other worry for the Street is intensifying competition as road container operators vie for volumes with Concor and, in the process, offer steep discounts.
While the company expects things to stabilise over the next couple of quarters in terms of volumes, in the near term, there can be some pressure on pricing impacting realisations and margin.
While there are long-term triggers, such as a dedicated freight corridor, which would help increase volumes in FY22, the near term could see volume pressures and further erosion in the margin.
Despite the sharp fall, the stock is trading over 40 times its revised FY22 estimates.