Transport Corp of India's profit falls due to higher costs, slowing demand

Transport of India

18/05/2023 12:58

May 18 (Reuters) - Transport Corp of India  TCIL.NS , reported a 4.6% fall in quarterly profit on
Thursday, hurt by slowing demand and higher costs.
    The logistics service provider's consolidated net profit fell to 814.8 million rupees (nearly $10 million)
in the fourth quarter, from 854 million rupees a year ago.
    The company's revenue rose 9.5%, the slowest quarterly pace last fiscal, while total expenses jumped about
11%.
    For further earnings highlights, click (Full Story)
    
    WHY IT MATTERS
    Logistics providers have seen a pandemic-led demand boom during lockdown. However, they now face the double
hit of high fuel costs and softening demand amidst a challenging demand environment.
    Transport Corp's revenue grew 15%-30% in the first three quarters of last fiscal year, compared with
revenue growth of 34%-72% in the first half of 2021.
    
    PEERS COMPARISON
    
                                  Valuation (next    Estimates (next 12   Analysts' sentiment          
                                    12 months)            months)                                      
                      RIC        PE         EV/EBI  Revenue    Profit     Mean     # of     Stock to   Div
                                            TDA     growth     growth     rating*  analyst  price      yield
                                                                                   s        target**   (%)
 Transport             TCIL.NS       16.07   10.57    11.87      9.73     Strong         6    0.82         0.96
 Corporation of                                                           Buy                          
 India Ltd                                                                                             
 Container             CCRI.NS       27.24   15.72    16.82      21.25    Buy           16    0.87         1.76
 Corporation of                                                                                        
 India Ltd                                                                                             
 Mahindra Logistics    MALO.NS       46.54    8.17    18.66      91.15    Buy           12    0.83         0.69
 Ltd                                                                                                   
 Blue Dart Express     BLDT.NS       31.22   14.54    11.73      22.00    Buy            6    0.83         0.50
 Ltd                                                                                                   
    
 ** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    JAN-MARCH STOCK PERFORMANCE
    
    
    -- All data from Refinitiv
    -- $1 = 81.7930 Indian rupees

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Transcorp shares vs peers    https://tmsnrt.rs/3MdDlxf
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 (Reporting by Ashna Teresa Britto; Editing by Savio D'Souza)
 ((AshnaTeresa.Britto@thomsonreuters.com;))