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N o n - f r e i g h t s e g m e n t s d r i v e r o b u s t s h o w …
Transport Corporation of India (TCI) reported its Q3FY12 numbers with
net sales at | 464.4 crore and PAT at | 13.5 crore, a YoY growth of 4.5%
and 14%, respectively. The muted growth can be attributed to the YoY
decline of 7.6% in revenues from the freight division, which contributes
towards 41.4% of the company’s net sales. The revival of the auto sector
led to a YoY revenue growth of 18.4% in the SCS segment with its net
sales at | 118.5 crore. The EBITDA margin remained at 7.7%, an
improvement of 20 bps YoY, mainly due to margin improvement in the
SCM, XPS and Seaways segment. Higher other income and lower tax
outlay also contributed towards the 14% YoY growth in the company’s
profitability.
ƒ Better growth rate from SCS division
The supply chain solution (SCS) division reported slower YoY
revenue growth rate of 8.6% YoY during Q2FY12 on account of
lower volumes in the auto segment (auto sector contributes 75% of
SCS’ revenue). The SCS division grew 18.4% in Q3FY12 on the back
of the revival of the auto sector.
ƒ Sluggish performance of freight division
The freight division reported a sluggish performance during
Q3FY12. The revenue from this division stood at | 193.3 crore,
declining by 7.6% YoY.
V a l u a t i o n
High margin businesses like XPS and SCS with their increased
contribution to the company’s revenues would enhance the profitability of
the company in the coming years. At the CMP of | 69, the stock is trading
at 9.1x its FY12E EPS of | 7.6 and 8.1x its FY13E EPS of | 8.5. We have
valued the stock at 12x FY13E EPS and arrived at a target price of | 102
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
CLICK here for PDF post link
N o n - f r e i g h t s e g m e n t s d r i v e r o b u s t s h o w …
Transport Corporation of India (TCI) reported its Q3FY12 numbers with
net sales at | 464.4 crore and PAT at | 13.5 crore, a YoY growth of 4.5%
and 14%, respectively. The muted growth can be attributed to the YoY
decline of 7.6% in revenues from the freight division, which contributes
towards 41.4% of the company’s net sales. The revival of the auto sector
led to a YoY revenue growth of 18.4% in the SCS segment with its net
sales at | 118.5 crore. The EBITDA margin remained at 7.7%, an
improvement of 20 bps YoY, mainly due to margin improvement in the
SCM, XPS and Seaways segment. Higher other income and lower tax
outlay also contributed towards the 14% YoY growth in the company’s
profitability.
ƒ Better growth rate from SCS division
The supply chain solution (SCS) division reported slower YoY
revenue growth rate of 8.6% YoY during Q2FY12 on account of
lower volumes in the auto segment (auto sector contributes 75% of
SCS’ revenue). The SCS division grew 18.4% in Q3FY12 on the back
of the revival of the auto sector.
ƒ Sluggish performance of freight division
The freight division reported a sluggish performance during
Q3FY12. The revenue from this division stood at | 193.3 crore,
declining by 7.6% YoY.
V a l u a t i o n
High margin businesses like XPS and SCS with their increased
contribution to the company’s revenues would enhance the profitability of
the company in the coming years. At the CMP of | 69, the stock is trading
at 9.1x its FY12E EPS of | 7.6 and 8.1x its FY13E EPS of | 8.5. We have
valued the stock at 12x FY13E EPS and arrived at a target price of | 102
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