Container Corporation - Q4 FY21 first cut: Margins surprise negatively - YES Securities

- Container Corporation (Concor) reported topline growth of ~24% yoy (to Rs.19.3 bn) led by ~13% volume growth and 11% growth in realization. This was marginally higher than estimates of Rs.18.3 bn topline.

- Domestic revenues witnessed strong growth (+30% yoy; contribution: 29%) as compared to the EXIM revenues (+22% yoy).

- CONCOR reported volumes of 1.05 mn TEUs in Q4 FY21 of which 0.85 mn TEUs were of EXIM and balance Domestic. Overall volumes grew by 13% yoy led by 11% yoy growth in EXIM and 21% yoy growth in Domestic volumes. The volume mix of EXIM: Domestic stood at 81:19% vs 83:17% yoy. FY21 volumes declined by 3% yoy driven by 4% fall in EXIM volumes offset by 2% growth in domestic volumes. FY21 volume mix of EXIM: Domestic stood at 83:17% vs 84:16% yoy.

- Operating margin dipped to 9.7%, multi year low margins driven by sharp jump in other operating expenses.

- The company had exceptional item of Rs834 mn in the quarter.

- EBIT margins for EXIM stood at 11.2% vs 30.3% yoy/17.4% qoq while for Domestic EBIT margins stood at -3.3% vs 8.8% yoy/6.7% qoq. Overall EBIT margin stood at 7% vs 24.5% yoy and 14.6% qoq.

- Weak operating performance saw APAT at Rs 995 mn, down 68% yoy and 58% qoq.

- During FY21, the company has provided ~Rs 5.2 bn towards Land License Fee (LLF) for all terminals on Railway Land.

- The company has declared the dividend of Rs2/share.

Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.634.55 as compared to the previous close of Rs. 586.45. The total number of shares traded during the day was 1107656 in over 26984 trades.

The stock hit an intraday high of Rs. 644.95 and intraday low of 555.1. The net turnover during the day was Rs. 687103212.

Source : Equity Bulls

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