TCI Express - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 765; MCap: Rs. 2941 crore)

TCI Express reported a mixed performance. While the revenues were below I-direct estimates, the results were higher on the profitability front.

Q2FY21 Earnings Summary

- Q2FY21 witnessed broad based recovery across all major industries due to latent demand and upcoming festive season which led to sequential recovery in revenues. Revenues for Q2FY21, however, de-grew 21% YoY to Rs. 213 crore (I-direct estimate: Rs. 256 crore)

- Effective cost control measures led to lower operating expenses and employee expense which led to EBITDA margin expansion 389 bps to 15.3% (I-direct estimate: 11%). The resultant EBITDA grew 6% YoY to Rs. 33 crore (I-direct estimate: Rs. 28 crore)

- Subsequently net profit declined by 10% YoY to Rs. 24 crore (I-direct estimate of Rs. 20 crore), due to lower tax rate in the base quarter (14% vs current quarter 26%)

Covid-19 continues to impact express logistics, however, TCI express continues to remain a technology led low leverage, asset light model, that would help it in weathering the crisis better than other heavy asset owners and levered players.

We will be coming out with a detailed report post the management conference call.

Shares of TCI Express Ltd was last trading in BSE at Rs.767.75 as compared to the previous close of Rs. 792.3. The total number of shares traded during the day was 2015 in over 365 trades.

The stock hit an intraday high of Rs. 800 and intraday low of 761.9. The net turnover during the day was Rs. 1581381.

Source : Equity Bulls

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