Transport Corp. of India Q4 Results Review - Inline; Lower Tax Outgo Leads To APAT Beat: Motilal Oswal

Motilal Oswal Report

Transport Corporation of India Ltd.’s revenue grew 10% YoY to ~Rs 10.8 billion in Q4 FY24 (inline). The freight and supply chain division clocked ~10%/13% YoY growth in Q4 FY24, while the seaways division posted a decline of ~2% YoY.

Ebitda margin came in at 10.1% in Q4 (down 90 bp YoY/up 20 bp QoQ) versus our estimate of 10.6%. Overall margin was impacted by lower seaways margin and freight segment margin. Ebitda was flat YoY at Rs 1.1 billion, while adjusted profit after tax grew 23% YoY to ~Rs 1 billion (20% above our estimate).

The beat in adjusted profit after tax during Q4 FY24 was primarily driven by higher other income and a lower tax outgo.

Ebit margin for freight/supply chain/seaways divisions stood at 3.2%/ 6.4%/26.4% in Q4 FY24. Ebit margin for the freight and seaways businesses contracted 100 bp and 130 bp YoY, respectively, while Ebit margin for the supply chain division was flat YoY.

During FY24, revenue increased 6% YoY to Rs 40.2 billion, Ebitda decreased 3% to Rs 4.1 billion, and Ebitda margin stood at 10.2%. APAT increased 10% YoY to Rs 3.5 billion.

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