Container Corporation of India - Q4FY20 First Cut - ICICI Securities

(CMP: Rs. 426; MCap: Rs. 25956 crore)

Concor reported strong set of numbers with revenues and profitability higher than our estimates. Net profit was negatively impacted by one offs of Rs. 21 crore due to provision provided towards impairment of wholly owned subsidiary Fresh and Healthy Enterprises Limited (FHEL). The company did not record any SEIS incentive (exceptional income) during the quarter vs Rs. 84 crore in Q4FY19). The company has filed an appeal against the amount that has been termed as ineligible under the SEIS Scheme which amounts to Rs. 861 crore.

Q4FY20 Earnings Summary

- Revenues de-grew 10% YoY to Rs. 1569 crore (I-direct estimate: Rs. 1543 crore). While the Domestic revenues remained flat YoY at Rs. 438 crore, EXIM revenue de-grew 14% YoY to Rs. 1131 crore

- EBITDA margins grew 837 bps YoY to 30.2% (I-direct estimate: 23.5%) mainly due to lower rail freight expense as a percentage of sales (51.8% in Q4FY20 vs 55.1% in Q4FY19). Subsequently, absolute EBITDA grew 24% to Rs. 475 crore (I-direct estimate: Rs. 363 crore)

- PBT (without exceptional income/loss) grew 6.5% to Rs. 425 crore as strong operational performance was negated to a limit by higher depreciation and interest expense and lower other income YoY

- Reported PAT declined 16% to Rs. 295 crore due to an exceptional loss of of Rs. 21 crore in Q4FY20 (provision related to FHEL) and an exceptional income of Rs. 84 crore in the base quarter (SEIS income)

We would be coming out with an update soon.

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.426.2 as compared to the previous close of Rs. 417.95. The total number of shares traded during the day was 90403 in over 4337 trades.

The stock hit an intraday high of Rs. 429.25 and intraday low of 411. The net turnover during the day was Rs. 38400486.

Source : Equity Bulls

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