Transport Corporation of India - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 191, MCap: Rs. 1475 crore)

Transport Corporation of India's (TCI) Q1FY21 numbers were above I-direct estimates on all fronts. During the lockdown, TCI remained active by delivering essentials like food grains, farm equipment, pharmaceuticals, polymers for PPEs, sanitisers and chemicals through its diversified multi-modal operations of using road, rail and coastal shipping.

Q1FY21 Earnings Summary

Revenues de-grew 46% YoY to Rs. 328 crore (I-direct estimate: Rs. 267 crore). The Freight, SCS and Shipping division de-grew by 47%, 56% and 14% to Rs. 158 crore (I-direct estimate: Rs. 150 crore), Rs. 106 crore (I-direct estimate: Rs. 72 crore) and Rs. 68 crore (I-direct estimate: Rs. 47 crore) respectively.

EBITDA margins contracted mere 69 bps to 8.5% (I-direct estimate: expected loss at the absolute EBITDA level of Rs. 0.5 crore). Lower than expected margin contraction was mainly due to lower employee expense (declined 23% YoY). Subsequently, absolute EBITDA declined 51% to Rs. 28 crore.

Reported PAT de-grew 67% to Rs. 10 crore but came much above our estimate of a loss of Rs. 24 crore.

We would be coming out with a detailed report post interaction with the management.

Shares of TRANSPORT CORPORATION OF INDIA LTD. was last trading in BSE at Rs.191.9 as compared to the previous close of Rs. 186.8. The total number of shares traded during the day was 10174 in over 570 trades.

The stock hit an intraday high of Rs. 193 and intraday low of 184.4. The net turnover during the day was Rs. 1913964.

Source : Equity Bulls

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