Transport Corporation of India - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 314, MCap: Rs. 2400 crore)

Transport Corporation of India (TCI) reported strong numbers for the quarter, which were higher than I-direct estimates on all fronts. The company has also repaid ~Rs. 160 crore of debt (LTD and STD) during the year FY21 and the gross debt now stands at ~Rs. 200 crore, with ~Rs. 30 crore of cash balance and ~Rs. 120 crore of loans and investments (as on March, 21)

Q4FY21 Earnings Summary

- Revenues grew strong 27% YoY (11% QoQ) to Rs. 797 crore (I-direct estimate: Rs. 705 crore). Seaways segment reported strong growth both sequentially (up 25% QoQ) and YoY (up 24% YoY), followed by the Freight division (up 18% QoQ and up 20% YoY) and SCM division (flat QoQ and up 41% YoY, due to low base in Q4FY20)

- EBITDA margins expanded 147 bps YoY to 10.7%, and came above I-direct estimate of 9.1%, mainly due to a combination of higher gross margins (19.5% vs 19% in Q4FY20), lower employee to sales ratio (5.3% vs 6% in Q4FY20) and lower other expense ratio. The resultant EBITDA grew 48% YoY to Rs. 86 crore, and came above I-direct estimate of Rs. 64 crore

- Further, PAT grew by 69% YoY to Rs. 53 crore (exceptional expense of Rs. 3.5 crore due to impairment in wind power plant and investment in a subsidiary, impacted profitability to certain extent), and came above our estimate of Rs. 37 crore

As per the management, in-spite of the challenges posed by the pandemic, the company was able to sustain its revenues and margins due to its diversified portfolio of value-added services, spread across varied customers & industry sectors. The company's' strategy of providing multimodal logistics solutions helped it cater to not just its existing customers but also acquire several new engagements during the quarter.

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.304.65 as compared to the previous close of Rs. 311.55. The total number of shares traded during the day was 2752 in over 208 trades.

The stock hit an intraday high of Rs. 317.15 and intraday low of 301.1. The net turnover during the day was Rs. 855403.

Source : Equity Bulls

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