TCI Express Q2 FY21 First Cut - Strong performance - YES Securities

- Revenue declined by 21% YoY (higher 140% QoQ) to Rs 2.1 bn. This was marginally lower than our estimates

- The company reported gross margin of 32.2% vs 28.4 % YoY/ 34.8% QoQ. Operating profit also saw sharp improvement (6% YoY) to Rs 326 mn as against a Rs 20 mn in Q1 FY21 which was impacted due to lockdown. Operating Margins improved to 15.3% vs 11.4% YoY/2.3% QoQ.

- Higher operating profit saw APAT grow to Rs 235 mn during Q2 FY21 (Rs 261 mn in Q2 FY20). This was higher than our estimate of ~Rs.190 mn

We currently have a BUY rating on the stock. We would review our estimates post Earnings 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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