Views on Transport Corporation of India Ltd 2QFY2016 Results: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Research Analyst - Mid Caps, Angel Broking) on Transport Corporation of India Ltd 2QFY2016 Results:

"For 2QFY2016, Transport Corporation of India Ltd (TCIL)'s earnings has come in below our estimates. The top-line, at ~INR 556cr (our estimate was of ~INR 625cr), is flat on a YoY basis, with all business segments posting poor performances, barring Seaways which reported a growth of ~11% YoY to INR 32cr. For the quarter, the company reported an operating profit of ~INR 44cr, up ~7% YoY. Further, the company's operating margin expanded by 53bp YoY to 7.9%, primarily on account of lower operating expenses, which were down 245bp as a percentage of sales. The net profit grew by ~9% YoY to ~INR 23cr (which is below our estimates of INR 25cr) mainly due to lower sales growth during the quarter. Currently, we have a NEUTRAL rating on the stock and will update the same post our interaction with the Management."

Shares of TRANSPORT CORPORATION OF INDIA LTD. was last trading in BSE at Rs.290.4 as compared to the previous close of Rs. 295.1. The total number of shares traded during the day was 37234 in over 1085 trades.

The stock hit an intraday high of Rs. 302 and intraday low of 285.7. The net turnover during the day was Rs. 10966010.

Source : Equity Bulls

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