Transport Corporation of India Q1 Results Review - Inline Performance: ICICI Securities

ICICI Securities Report

Transport Corporation of India Ltd. Q1 FY25 Ebitda of Rs 1,038 million was broadly in line with consensus estimates.

Key points:

1. Overall revenue/Ebitda grew 10%/3% YoY, respectively; however, it declined 3.1%/5.1% QoQ mainly due to subdued industry demand;

2. blended Ebitda margin declined QoQ to 9.9% (10.1% in Q4 FY24; 10.6% in Q1 FY24);

3. share of JVs/associates rose 21% YoY;

4. chemical logistics business with a revenue of Rs 990 million was sold to wholly-owned subsidiary to provide focused leadership to a non-core business and

5. TRPC has executed an agreement with Taizhou Sanfu Ship Engineering Co. Ltd. for supply of two ships at an estimated capex of $38.8 million.

Management has guided for revenue growth of 10-15% for FY25. We maintain 'Buy' on Transport Corp. of India, valuing the stock at 22 times FY26E earning per share with an unchanged target price of Rs 1,200/share.

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