Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Exim segment disappoints
Container Corporation of India’s (Concor) reported
lower-than-estimated Q4 numbers on account of the
decline in volumes and profitability. Margins were
impacted due to the annual volume-based discounts,
disruption in operations due to Jat agitation and decline
in synergies between Exim and domestic movement
leading to higher empty running. We have cut our
earnings estimates by 9.4% and 9.1% to Rs66.8 and
Rs73.2 for FY12 and FY13, respectively, factoring lower
volumes and decline in margins.
Q4 results below expectations: Concor’s Q4
standalone revenue at Rs9,954mn was up 4.7% YoY, but
6.7% lower than our estimate. Operating profit, up 5.9%
YoY to Rs2,331mn, was 17.3% below estimate and
margin at 23.4% was 300bp below estimated.
Exim segment add to woes: Exim segment’s revenue
was 7.8% below estimate while domestic revenue was
2.4% lower. Exim volumes were up 5.6% YoY to 518,174
containers, underperforming the industry (12 major
ports’ throughput) growth of 7.1% YoY in Q4. Exim
segment’s PBIT grew 20.1% YoY to Rs1,925mn (down
18% QoQ and 17% below our estimate). Margin at
24.6% was 277bp lower than estimated.
Maintain Hold with a negative bias: At CMP, the stock
trades at 16.4x FY13 earnings and 10.2x FY13
EV/EBITDA and appears fully-valued. Given the low
profitability growth expected (7.1% CAGR over FY11-
13E) and decline in RoE to 16.5% in FY13 from 17.7% in
FY11, we maintain Hold with a with a target of Rs1,170
(earlier: Rs1,290), valuing it at 16x FY13E earnings.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Exim segment disappoints
Container Corporation of India’s (Concor) reported
lower-than-estimated Q4 numbers on account of the
decline in volumes and profitability. Margins were
impacted due to the annual volume-based discounts,
disruption in operations due to Jat agitation and decline
in synergies between Exim and domestic movement
leading to higher empty running. We have cut our
earnings estimates by 9.4% and 9.1% to Rs66.8 and
Rs73.2 for FY12 and FY13, respectively, factoring lower
volumes and decline in margins.
Q4 results below expectations: Concor’s Q4
standalone revenue at Rs9,954mn was up 4.7% YoY, but
6.7% lower than our estimate. Operating profit, up 5.9%
YoY to Rs2,331mn, was 17.3% below estimate and
margin at 23.4% was 300bp below estimated.
Exim segment add to woes: Exim segment’s revenue
was 7.8% below estimate while domestic revenue was
2.4% lower. Exim volumes were up 5.6% YoY to 518,174
containers, underperforming the industry (12 major
ports’ throughput) growth of 7.1% YoY in Q4. Exim
segment’s PBIT grew 20.1% YoY to Rs1,925mn (down
18% QoQ and 17% below our estimate). Margin at
24.6% was 277bp lower than estimated.
Maintain Hold with a negative bias: At CMP, the stock
trades at 16.4x FY13 earnings and 10.2x FY13
EV/EBITDA and appears fully-valued. Given the low
profitability growth expected (7.1% CAGR over FY11-
13E) and decline in RoE to 16.5% in FY13 from 17.7% in
FY11, we maintain Hold with a with a target of Rs1,170
(earlier: Rs1,290), valuing it at 16x FY13E earnings.
No comments:
Post a Comment