Q3FY21 Result Update - Container Corporation of India - ICICI Direct

Q3 ended on a strong note, with 6% volume growth and 8-9% jump in realisation (revenues grew 15% YoY). The realisation growth was mainly due to a one-off 15 days from Indian Railways for free movement of empties, along-with higher lead distance and cargo movement. While domestic revenues grew 28% YoY to Rs. 455 crore (volume growth of 12%), Exim revenue grew 11% YoY to Rs. 1299 crore (volume growth of 5%). Standalone EBITDA margins contracted 313 bps YoY to 21.2% but adjusting for higher expected liability of employees (actuarial valuation), margins came at 24.1%. Subsequently, absolute unadjusted EBITDA remained flat at Rs. 372 crore and PAT grew 36% YoY to Rs. 238 crore.

Valuation & Outlook

In Q4, Concor is expected to run trials for bulk transportation for FCI (saves time, resources by eliminating the traditional bagging-Debagging process). Also, on the distribution logistics front, the management will utilise the existing major terminals and not embark on new facilities (currently started operations at Ennore). With the expected diversification of services, we expect Concor to retain pricing power over other plain vanilla players, by providing end to end logistics solution for the clients. Despite the challenges in the near to medium term, Concor stays a structural growth story that will play a pivotal role in the changing Indian logistics landscape (DFC, cargo containerisation). We maintain BUY with TP of Rs. 560 (earlier Rs. 450).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_ContainerCorp_Q3FY21.pdf

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.466.8 as compared to the previous close of Rs. 478.45. The total number of shares traded during the day was 186778 in over 6116 trades.

The stock hit an intraday high of Rs. 491.05 and intraday low of 462. The net turnover during the day was Rs. 89516955.

Source : Equity Bulls

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