Container Corporation of India - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 452; MCap: Rs. 27586 crore)

Concor reported Q1FY21 numbers, which were in line with I-direct estimates on the revenue front, while lower on the profitability front. For the quarter, the company has recorded Rs. 121 crore as Land License Fee (LLF) for all terminals in other expenses, as per the new policy of railways applicable from 1st April, 2020 (rent payable at 6% value of the land), which has negatively impacted the operational performance.

Q1FY21 Earnings Summary

- Revenues de-grew 27% YoY to Rs. 1189 crore (I-direct estimate: Rs. 1168 crore), led by volume de-growth of 21% (7.33 lakh TEUs). While the Domestic revenues de-grew 22% YoY to Rs. 289 crore (volume de-growth of 25%), Exim revenue de-grew 29% YoY to Rs. 901 crore (volume de-growth of 20%)

- EBITDA margins declined 1123 bps YoY to 13.4% (I-direct estimate: 21%) mainly due to higher other expense as a percentage of sales (25.1% in Q1FY21 vs 15.8% in Q1FY20). Subsequently, absolute EBITDA de-grew 61% to Rs. 159 crore (I-direct estimate: Rs. 245 crore)

- Reported PAT de-grew 73% to Rs. 62 crore mainly due to weak operational performance

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.453 as compared to the previous close of Rs. 458.7. The total number of shares traded during the day was 31723 in over 1522 trades.

The stock hit an intraday high of Rs. 462 and intraday low of 449.45. The net turnover during the day was Rs. 14457280.

We would be coming out with an update soon.

Source : Equity Bulls

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