Transport Corporation of India Q3 Results Review - Minor Miss On Profitability; Outlook Bright: Motilal Oswal

Motilal Oswal Report

Transport Corporation of India Ltd.'s revenue grew 4% YoY to ~Rs 10 billion in Q3 FY24 (in line). The freight and supply chain division clocked ~1%/16% YoY growth in Q3 FY24, while the seaways division posted a decline of ~16% YoY.

Ebitda margin came in at 10% in Q3 (down 190 basis points YoY/10bp QoQ) versus our estimate of 10.5%. Overall margin was hit by lower seaways’ margin. Ebitda declined 13% YoY to Rs 1 billion, while adjusted profit after tax dipped 7% YoY to Rs 794 million (11% below our estimate).

Ebit margin for freight/supply chain/seaways divisions stood at 3.1%/ 6.5%/22.1% in Q3 FY24. Ebit margin for the freight and seaways businesses contracted 260bp and 480bp YoY, respectively; while it improved 50bp YoY for the supply chain division.

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