GICS Industry: Road & Rail l Sub Industry: Railroads l Website: www.concorindia.

com

Container Corporation of India Ltd

Key Stock Indicators
NSE Ticker: Bloomberg Ticker: Face value / Share: Div. Yield (%): CONCOR CCRI: IN 10.0 1.1 CMP (as on 19 Apr 2011Rs/share): 52-week range up to 19 Apr 2011 (Rs) (H/L): Market Cap as on 19 Apr 2011 (Rs mn): Enterprise Value as on 19 Apr 2011 (Rs mn): Div. Yield (%): 0.0 1,256.3 1,500.00/1,058.10 163,297 144,381 Shares outstanding (mn): Free Float (%): Average daily volumes (12 months): Beta (2 year): 130.0 36.9 53,726 0.7

Container Corporation of India Limited (CCIL), majority-owned by the Government of India, was incorporated in March 1988 and commenced operations in November 1989, taking over the seven inland container depots (ICDs) of the Indian Railways. CCILs core business is characterised by three distinct activities that of a carrier, a terminal operator and a warehouse operator.

Key Financial Indicators

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m.: Not meaningful

KEY HIGHLIGHTS
Largest network of ICDs in India CCIL is the undisputed market leader in India with 59 ICDs, the largest network of any player. Of this, 49 terminals are export-import container depots, while 10 are exclusive domestic container depots. CCIL has over 5,200 state-of-the-art high-speed bogies and low-height container flatwagons (type BLC) in service. The company has expanded service offerings to cover management of ports, air cargo complexes and establishing cold chains. Strategic alliances over the years CCIL has formed alliances with United Liner Agencies of India Pvt Ltd, Central Warehousing Corp, JM Baxi &Co, Power Rail Corp and MSC Shipping Line to jointly develop container terminals. In FY06, CCIL partnered with Maersk for construction of a third container terminal at the Jawaharlal Nehru Port Trust at Nhava Sheva (Maharashtra). The company has tied up with Gateway Distriparks to set up a rail-linked logistics park in Garhi Harsaru near Gurgaon (Delhi). It has also entered into a joint venture (JV) with Dubai Port World for setting up and managing container terminal at Cochin Port (Kerala). Capital expenditure during the year During FY10, the company incurred capital expenditure of ~Rs 3.5 bn, mainly on development/ expansion of terminals, acquisition of wagons, handling equipments and IT infrastructure, etc. Two new terminals were commissioned during the year, at Durgapur (West Bengal) in April 2009 and Ratlam (Madhya Pradesh) in November 2009. Expansion works were commissioned at Kota, Whitefield, Dadri, Malanpur, Phillaur, Khemli, Kanpur and Fathua ICDs. During FY10, the company added 720 high-speed BLC wagons to its fleet, taking total number of high-speed wagons to 8,837 and total wagon count to 10,194. The company also expanded its VSAT-based network to 64 locations and added softwares, etc for better warehouse and delivery management.

Mar-08 33,824.8 26.5 7,336.5 21.7 0.1 112.9 15.3 3.6 29.5 25.8 11.0

Mar-09 34,719.5 27.3 7,791.5 22.4 59.9 12.0 2.5 27.2 22.9 8.2

Mar-10 37,468.8 26.0 7,776.3 20.8 59.8 21.0 3.8 23.3 19.6 14.8

Shareholding (As on December 31, 2010)

FII 27% DII 7%

KEY RISKS

Promoter 63%

Others 3%

Lack of trained and skilled manpower Increasing competition from private players in container business Decline in the exim throughput and export-import trade

Indexed price chart

(index) 140 120 100 80 ('000) 800 700 600 500 400 300 200 100 0 Nov-10 Apr-10 Dec-10 Aug-10 Sep-10 Oct-10 Feb-11 Jun-10 Jul-10 May-10 Mar-11 NIFTY Jan-11

Stock Performances vis--vis market

Returns (%) YTD CONCOR NIFTY
Note: 1) YTD returns are since April 1, 2010 to Apr 19, 2011. 2) 1-m, 3-m and 12-m returns are up to Apr 19, 2011.

60

1-m 8 7

3-m 2 1

12-m -7 10

40 20 0

-7 9

Volumes (RHS)

CONCOR

CRISIL COMPANY REPORT | 1

Container Corporation of India Ltd

BACKGROUND
CCIL provides multimodal logistics support services for export, import and domestic trade. The company primarily engages in the carrier business. Its core business is characterised by three distinct activities, that of a carrier, a terminal operator and a warehouse operator. CCIL provides a single-window facility coordinating with all different agencies and services involved in the containerised cargo trade, right from customs, gateway ports and railways to road haulers, consolidators, forwarders, custom house agents and shipping lines. It offers freight transportation services by rail and road. The company also operates container terminals, which provide facilities such as warehousing, container parking, repair facilities and office complexes. In addition, the company provides services like transit warehousing for import and export cargo, bonded warehousing, enabling importers to store cargo and take partial deliveries, less than container load (LCL) consolidation, reworking of LCL cargo at nominated hubs and air cargo clearance using bonded trucking. As of FY10, the company had ~15,754 containers, 49 exim depots and 10 domestic container terminals and 10,194 wagons, of which 8,837 were high-speed wagons. Exim segment contributes the major share of freight revenues for the company. In FY10, the company handled 2,421,247 Twenty-Foot Equivalent Units (TEUs), up from 2,308,232 TEUs in FY09. In the domestic business segment, total handling was 538,970 TEUs, compared with 453,273 TEUs in FY09.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Container Corporation of India Mar-10 37,468.8 26.0 7,776.3 20.8 59.8 21.0 3.8 23.3 19.6 14.8

Allcargo Global Transport Corporation Logistics Ltd Of India Ltd. A B C India Ltd. Dec-09 Mar-10 Mar-10 20,619.5 15,229.2 1,464.7 10.6 7.7 5.8 1,407.1 412.7 8.0 6.8 2.7 0.6 0.3 0.9 0.9 56.4 7.6 7.0 2.4 16.0 13.8 0.4 1.6 2.0 21.7 13.5 7.8 24.2 12.9 2.2 2.0 2.6 86.3 Key Financial Indicators Units Revenue Rs mi ll ion Rs mi ll ion Per cent Per cent Per cent Times Per cent Per cent EBITDA ma rgins Per cent PAT PAT ma rgins EBITDA growth PAT growth Gea ring RoCE RoE

FINANCIAL PROFILE
Revenue growth picks up, but PAT stays flat in FY10 CCILs revenue grew 7.9% in FY10 to Rs 37.4 bn from Rs 34.7 bn in FY09. Increase in business volumes and successful induction of high-speed wagons were the main drivers of growth. EBITDA margin dropped ~130 basis points (26% for FY10) as a result of terminal and other service expenses, which increased 11.13% over FY09. Administrative and employee costs increased ~2.05% and 3.74% during FY10. PAT declined marginally to Rs 7.77 bn from Rs 7.79 bn in FY09. Decline was attributable to lower growth in operating profit coupled with increase in depreciation expenses and decline in non-operating income.

Mar-08
33,824.8 26.5 7,336.5 21.7 10.8 -0.6 4.3 0.1 29.5 25.8

Mar-09
34,719.5 27.3 7,791.5 22.4 2.6 5.5 6.2 0.0 27.2 22.9

Mar-10
37,468.8 26.0 7,776.3 20.8 7.9 3.1 -0.2 0.0 23.3 19.6

Revenue growth Per cent

INDUSTRY PROFILE
Logistics CRISIL Research has estimated the overall Indian logistics spend at Rs 2.7 trillion in 2008-09, which includes only primary transport modes and infrastructure, equivalent to around 8.2 per cent of the Gross Domestic Product (GDP). And if the secondary movement (from the hub to the various depots) is also included, this shoots up to 10.7 per cent, which is significantly higher than those of developed nations where it averages 5-7 per cent. Higher logistics spend as percentage of GDP can be attributed to the overall inefficiency in logistics operations, multiple tax structures, inadequate infrastructure and unorganised nature of the industry in India. With escalating competition and cost pressures, companies are increasingly focusing on their core competencies by outsourcing their logistics requirements to third party logistics (3 PL) players. The future of the Indian logistics industry is currently governed by three key factors viz. increasing domestic demand, reducing logistics cost and improvement in Infrastructure.

CRISIL COMPANY REPORT | 2

Container Corporation of India Ltd

ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 9,256.9 -1,856.4 1,075.8 -15.5 8,460.8 -2,166.3 -236.6 Mar-09 10,088.6 -2,146.9 1,173.9 799.5 9,915.1 -4,699.4 -477.2 Mar-10 9,852.7 -2,027.8 1,352.9 -1,178.6 7,999.2 -2,999.9 -240.8 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 10.8 -0.6 4.3 26.5 19.9 21.7 23.0 26.0 479.1 25.8 29.5 0.1 319.2 0.2 1.6 3.5 179 Mar-09 2.6 5.5 6.2 27.3 21.2 22.4 23.4 14.0 283.3 22.9 27.2 0.0 220.6 0.2 1.4 3.5 201 Mar-10 7.9 3.1 -0.2 26.0 20.3 20.8 23.4 14.0 327.0 19.6 23.3 0.0 249.6 0.1 1.3 4.0 208 Mar-08 33,644.8 33,824.8 8,970.0 26.5 1,075.8 28.1 1,390.8 9,316.6 7,336.5 21.7 65.0 112.9 Mar-09 34,522.5 34,719.5 9,465.0 27.3 1,173.9 42.9 1,840.4 10,139.2 7,791.5 22.4 130.0 59.9 Mar-10 37,306.0 37,468.8 9,758.0 26.0 1,352.9 39.1 1,486.7 9,975.5 7,776.3 20.8 130.0 59.8 Mar-08 649.9 30,485.5 31,135.4 1,736.8 499.2 1,226.6 1,725.8 3,033.9 1,229.2 38,861.1 22,616.5 18,657.4 1,203.6 19,000.1 168.8 163.6 15,225.7 38,861.1 Mar-09 1,299.8 35,523.5 36,823.3 1,937.6 483.6 1,022.4 1,506.0 3,811.0 1,398.1 45,476.0 26,549.3 22,207.8 1,680.8 21,587.4 203.7 182.1 17,666.5 45,476.0 Mar-10 1,299.8 41,203.6 42,503.4 2,109.0 421.2 587.3 1,008.5 4,265.8 1,452.9 51,339.6 30,014.9 23,883.9 1,921.6 25,534.1 197.2 157.6 19,925.0 51,339.6

Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

-2,402.9 0.0 308.9 -1,977.0 60.2

-5,176.6 649.9 -219.8 -2,129.1 -598.7

-3,240.7 0.0 -497.5 -2,125.0 122.5

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

-1,607.9 4,450.0 10,775.7 15,225.7

-2,297.7 2,440.8 15,225.7 17,666.5

-2,500.0 2,258.5 17,666.5 19,925.0

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a tion PBT PAT Dec-10 3 10,190.0 3,285.2 334.7 2,950.4 2,284.8 100.0 32.2 3.3 29.0 22.4 % of Rev Dec-09 % of Rev 3 9,226.1 2,931.1 334.9 2,596.2 2,006.2 100.0 31.8 3.6 28.1 21.7 Sep-10 3 9,822.5 2,999.4 364.6 2,634.8 2,067.3 100.0 30.5 3.7 26.8 21.0 % of Rev Dec-10 % of Rev 9 29,530.2 9,113.2 1,051.5 8,061.7 6,287.3 100.0 30.9 3.6 27.3 21.3 Dec-09 9 28,751.0 8,795.5 978.3 7,817.2 6,058.7 100.0 30.6 3.4 27.2 21.1 % of Rev

CRISIL COMPANY REPORT | 3

Container Corporation of India Ltd

FOCUS CHARTS & TABLES
Rs mn 10,500 10,000 9,500 9,000 8,500 8,000 7,500 Dec-08 Dec-09 Mar-08 Mar-09 Mar-10 Dec-10 Sep-08 Sep-09 Sep-10 Jun-08 Jun-09 Jun-10

Quarterly sales & y-o-y growth

Per cent 20 15 10 5 0 -5

Rs mn 2,500 2,000 1,500 1,000 500 0

Quarterly PAT & y-o-y growth

Dec-08

Dec-09

Mar-08

Mar-09

Sales

Sales growth y-o-y (RHS)

Net Profit

Net profit growth y-o-y (RHS)

Dec-08

Dec-09

Mar-08

Mar-09

Dec-08

Dec-09

Mar-08

Mar-09

Mar-10

Dec-10

Sep-08

Sep-09

Sep-10

Jun-08

Jun-09

Jun-10

OPM

Mar-10

NPM

Shareholding Pattern (Per cent) Mar 2010 Jun 2010 Promoter 63.1 63.1 FII 23.4 24.3 DII 10.1 9.2 Others 3.4 3.4

Sep 2010 63.1 25.9 7.5 3.5

Dec 2010 63.1 27.0 6.9 3.0

Board of Directors Director Name Sya ma l Bhus hal Ghos h Das ti da r (Mr.) Ra kes h Mehrotra (Mr.) Sri ni vas an Ba l a chandra n (Mr.) Pra deep Bha tnagar (Mr.) Sures h Kumar (Mr.) Ra vi nder Kuma r Na ra ng (Mr.) Dani el Babu Paul (Mr.) Shri Prakas h (Mr.) V. Sa njeevi (Mr.) Jana t Ghans hya m Bha i Shah (Mr.) Puthenma na Subra ma ni a Sha rma (Dr.) R.K. Ta ndon (Mr.) Pa ynoor Gopal Thya ga ra ja n (Mr.)

Designation Non-Executi ve Chai rman Mana gi ng Director Di rector Non-Executi ve Di rector Di rector Non-Executi ve Di rector Non-Executi ve Di rector Part-Time Cha i rma n Di rector Di rector Non-Executi ve Di rector Nomi nee Di rector-GOI, NonExecuti ve Di rector Di rector

Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4

Dec-10

Sep-08

Sep-09

Sep-10

Jun-08

Jun-09

Jun-10

Rs/share 20 18 16 14 12 10 8 6 4 2 0

EPS

Per cent 40 35 30 25 20 15 10 5 0

Movement in operating and net margins

Mar-10

Dec-10

Sep-08

Sep-09

Sep-10

Jun-08

Jun-09

Jun-10

-10

Per cent 35 30 25 20 15 10 5 0 -5 -10 -15