Transport Corporation of India Q2 Results Review - Performance Inline; Outlook Bright: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Transport Corporation of India Ltd.'s revenue grew 7% YoY to ~Rs 9.9 billion in Q2 FY24 (in line), driven by the Supply Chain and Seaways segments (up 9% YoY each). Its freight division reported 3% YoY growth.Ebitda margin came in at 10.1% (our estimate: 11%), down 20 basis points YoY/50 bp QoQ. Ebitda grew 5% YoY to Rs 1 billion and adjusted profit after tax rose 20% YoY to Rs 870 million (6% above our estimate). Ebit margin for freight/supply chain/seaways stood at 3.4%/6.7%/22.9%. Ebit margin for freight/seaways contracted 70 basis points/160 bp YoY, whereas Ebit margin for the Supply Chain division improved 40 bp YoY. The company declared an interim dividend of Rs 2.5 per share. Transport Corporation of India recently entered into an agreement to buy two new ships of ~7,300 million tonne each for a consideration of $34 million (~Rs 2.7 billion). These vessels are slated for delivery on or before June 30, 2026. The purchase would be funded through internal accruals and debt.Since the Seaways segment earns the highest margin, new capacity in this segment would improve the company’s overall profitability. While this segment is expected to report muted growth in FY25/FY26 as new ships will be delivered only in mid-CY26, we believe it will contribute well to total earnings from FY27 onward. We have largely retained our estimates for FY24/FY25 and maintain our 'Buy' rating with a target price of Rs 930 (based on a price/earning multiple of 16 times FY25E earnings per share)..Click on the attachment to read the full report:.Mahindra Logistics Q2 Results Review - Express's Weak Show Hurts Overall Performance: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Transport Corporation of India Q2 Results Review - Performance Inline; Outlook Bright: Motilal Oswal

Strong performance in supply chain segment; Seaways to see flat growth in FY24 due to capacity constraints.

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