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P e r f o r m s w e l l …
Transport Corporation of India’s (TCI) Q1FY12 results were above our
estimates. Net sales for Q1FY12 stood at | 416 crore, which was higher
by 5.6% YoY. The company reported a good performance in segments
like supply chain & XPS division, which exhibited a revenue growth of
17.4% and 9.2% YoY, respectively. The EBITDA margin of the company
expanded 99 bps YoY to 8.26%. The ensuing PBT grew 8.2% YoY to |
18.71 crore. However, on the back of higher depreciation (up 28% YoY)
and interest cost (up 39% YoY), the growth in net profit margin was 10
bps YoY at 3.2%.
ƒ Healthy performance from SCS division
Supply chain solution (SCS) division reported a healthy performance
during Q1FY12. Revenues from this division increased 17.4% YoY to
| 90.8 crore. The growth in the SCS division was mainly contributed
by the two-wheeler industry of the auto sector, which contributes
~75% of the total SCS revenue.
ƒ Stable performance from freight division
The freight division reported a stable performance during Q1FY12.
Revenues from this division stood at to | 185.4 crore while the EBIT
margin from this division was maintained at 2.4%.
V a l u a t i o n
In Q1FY12, TCI reported a good performance on the back of strong
revenue growth. Going forward, with increasing contribution from high
margin businesses like XPS and supply chain and with continual and
sustainable margin expansion, we believe TCI will register growth of
12.0% and 10.5% CAGR in topline and bottomline, respectively, during
FY11-FY13E. At the CMP of | 91, the stock is trading at 11.2x its FY12E
EPS of | 8.0 and 10.4x its FY13E EPS of | 8.6. We have valued the stock at
12x FY13E EPS and arrived at a target price of | 104 per share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
P e r f o r m s w e l l …
Transport Corporation of India’s (TCI) Q1FY12 results were above our
estimates. Net sales for Q1FY12 stood at | 416 crore, which was higher
by 5.6% YoY. The company reported a good performance in segments
like supply chain & XPS division, which exhibited a revenue growth of
17.4% and 9.2% YoY, respectively. The EBITDA margin of the company
expanded 99 bps YoY to 8.26%. The ensuing PBT grew 8.2% YoY to |
18.71 crore. However, on the back of higher depreciation (up 28% YoY)
and interest cost (up 39% YoY), the growth in net profit margin was 10
bps YoY at 3.2%.
ƒ Healthy performance from SCS division
Supply chain solution (SCS) division reported a healthy performance
during Q1FY12. Revenues from this division increased 17.4% YoY to
| 90.8 crore. The growth in the SCS division was mainly contributed
by the two-wheeler industry of the auto sector, which contributes
~75% of the total SCS revenue.
ƒ Stable performance from freight division
The freight division reported a stable performance during Q1FY12.
Revenues from this division stood at to | 185.4 crore while the EBIT
margin from this division was maintained at 2.4%.
V a l u a t i o n
In Q1FY12, TCI reported a good performance on the back of strong
revenue growth. Going forward, with increasing contribution from high
margin businesses like XPS and supply chain and with continual and
sustainable margin expansion, we believe TCI will register growth of
12.0% and 10.5% CAGR in topline and bottomline, respectively, during
FY11-FY13E. At the CMP of | 91, the stock is trading at 11.2x its FY12E
EPS of | 8.0 and 10.4x its FY13E EPS of | 8.6. We have valued the stock at
12x FY13E EPS and arrived at a target price of | 104 per share.
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