Transport Corporation - Q2 FY21 results first cut: Better than expected - YES Securities

- Transport Corporation reported Consolidated topline growth of 1.8% yoy (to Rs.7.0 bn) as festive season pushed up demand for logistics and COVID related impact stabilized. The revenues were better than our estimates of Rs.5.8 bn.

- Freight division moved back on track and reported revenues of Rs.3.5 bn (flat yoy/ +54% qoq) while supply chain solutions business grew by 1.4% yoy/+120% qoq.

- Seaways division posted 9.2% revenue growth (to Rs.682 mn).

- EBIT margins saw marked improvement in Freight segment (biggest revenue contributor). It stood at 3.4% during Q2 FY21 (2.9% in Q2 FY20).

- Overall Operating margin stood at 8.9% (+35 bps yoy).

- APAT stood at Rs.373 mn (-22.5% yoy).

- JV revenues during 1H FY21 stood as follows a) TCI Concor (Rs.1.5 bn; +69% yoy) b) TCI ColdChain (Rs147 mn; +22% yoy) c) Transystem (Rs.12 bn; -52% yoy)

We currently have an ADD rating on the stock. We would revise our forecasts post the Earnings Call.

Shares of TRANSPORT CORPORATION OF INDIA LTD. was last trading in BSE at Rs.226.2 as compared to the previous close of Rs. 226.35. The total number of shares traded during the day was 875 in over 113 trades.

The stock hit an intraday high of Rs. 229.15 and intraday low of 226. The net turnover during the day was Rs. 199182.

Source : Equity Bulls

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