Concor reported strong results which were better than I-direct estimates on all fronts. On the volume side, the Exim segment increased by 19% QoQ (still down 10% YoY) while domestic volumes increased by 35% QoQ (leading to a stable YoY). As a result, Exim’s revenue increased by 26% QoQ to Rs. 1130 crore while domestic revenue increased by 29% to Rs. 373 crore. Autonomous EBITDA margins increased by 745 basis points QoQ to 20.8% due to a better measure of cost control by the company and absolute EBITDA doubled. For the quarter, the company recorded Rs. 113 crore as a Land License Fee (LLF) for all terminals in other expenses.
Assessment and outlook
Concor plans to achieve higher realization by offering a complete logistics package to customers and not participating in low margin short haul freight. It has launched logistics from the first mile to the last mile in 15 of its terminals (also creating a mobile application to facilitate customer attachment). From mid-June, she also began her coastal services. In addition, distribution logistics is expected to gain ground during FY21 in a context of weaker development during FY20. Despite the challenges in the short and medium term, Concor remains a story of structural growth which will play a central role in the evolution of the Indian logistics landscape (DFC, freight containerization). We maintain BUY with TP of Rs. 450.
For more details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_ContainerCorp_Q2FY21.pdf
Shares of CONTAINER CORPORATION OF INDIA LTD. Last traded on BSE at Rs 377.95 from the previous close of Rs. 406.85. The total number of shares traded during the day was 290,435 in over 10,741 trades.
The stock hit an intraday high of Rs. 410 and intraday low of 372. Net turnover during the day was Rs. 110,304,830.