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Entry Price

250.00

Target

320.00

Recommend Date

04-02-2021

Return

28.0 %
BUY

Date : 04-02-2021

Transport Corporation (TCI) reported a strong set of Q3FY21 numbers. Revenues grew strongly QoQ (up 17%) and YoY (10.5%) to | 715 crore. SCM segment reported strong growth both QoQ and YoY (up 19% QoQ, 24% YoY), followed by the freight division (up 18% QoQ, 2% YoY) and shipping division (up 11% QoQ, 5% YoY). EBITDA margins expanded 86 bps YoY to 10.5% mainly due to higher gross margins (19.5% vs. 19% in Q3FY20) and lower employee to sales ratio (5% vs. 5.7% in Q3FY20). Resultant EBITDA grew 20% YoY to | 75 crore. Further, PAT grew 25% YoY to | 40 crore (exceptional expense of | 10 crore impacted profitability to certain extent).