Container Corporation (CONCOR) Research Report By ICICI-Direct

GST implementation to buoy volumes…

The Cabinet recently approved the Constitution Amendment Bill on Goods and Services Tax (GST), thereby paving way for the bill to be introduced in Parliament. In a major breakthrough, the Centre was able to keep petroleum and petroleum products under GST through states will be allowed to levy tax for the first few years. Subsequently, the entry tax was subsumed within GST while the Centre agreed to pay GST compensation for five years. With these contentious issues being ironed out, it is now anticipated that GST can be rolled out from April 1, 2016. With the introduction of GST it is expected that the goods movement as well as volume will increase manifold in the country. Concor with its countrywide network and footprints at all container ports including private is expected to be a major beneficiary of the same. Also, in FY15, container volume at all major ports has grown nearly 8% YoY on a YTD basis. Further, with the economic scenario expected to improve, Exim container volumes are anticipated to grow.

Download IDirect Concor CoUpdate_Dec14