Container Corporation of India - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 588 MCap: Rs. 35710 crore)

Concor reported Q4FY21 numbers which were below I-direct estimates on profitability front. Concor reported contraction in margins (down 2050 bps) to 9.7%, led by higher payment of LLF charges (6% on the value of land) by Concor (paid annualised ~Rs. 870 crore) versus its own internal estimates (Rs. 450-480 crore).

Q4FY21 Earnings Summary

- Revenues grew 24% to Rs. 1939 crore (I-direct estimate: Rs. 1915 crore), led by volume growth of 13% (10.6 lakh TeUs). While the Domestic revenues grew 27% YoY to Rs. 556 crore (volume growth of 21%), EXIM revenue grew 22% YoY to Rs. 1384 crore (volume growth of 11%)

- EBITDA margins contracted 2050 bps YoY to 9.7% and came below I-direct estimate of 22.7% mainly due to higher payment of LLF charges by Concor. Employee expense was inflated higher by higher actuarial valuation led expected liability of employees. Subsequently, absolute EBITDA declined 60% to Rs. 189 crore and came below I-direct estimate of Rs. 435 crore

- PAT de-grew 96% YoY to Rs. 16 crore ( I-direct estimate: Rs. 278 crore), as weak operational performance was further impacted by an exceptional expense of Rs. 83 crore (nature of expense is yet to be ascertained on conference call)

We would be coming out with an update soon.

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.586.45 as compared to the previous close of Rs. 591.9. The total number of shares traded during the day was 166041 in over 5893 trades.

The stock hit an intraday high of Rs. 608.85 and intraday low of 582.85. The net turnover during the day was Rs. 98785901.

Source : Equity Bulls

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