CP said total carloads, the amount of freight loaded into freight cars during a specified period, rose 2 percent.

The Calgary-based company said revenue from grains jumped 2.5 percent to C$372 million in the reported quarter, while revenue from potash rose 6.4 percent.

However, the company saw an 8.8 percent increase in expenses largely driven by a rise in fuel costs.

CP's net income fell to C$436 million ($331.08 million), or C$3.04 per share, in the second quarter ended June 30, from C$480 million, or C$3.27 per share, a year earlier.

On an adjusted basis, the company earned C$3.16 per share, beating analysts' average estimate of C$3.12, according to Thomson Reuters I/B/E/S.

The company's revenue rose to C$1.75 billion from C$1.64 billion.

(Reporting by Anirban Paul in Bengaluru; Editing by Shounak Dasgupta)