Transport Corp of India's Q1 profit climbs on strong demand

Transport of India

31/07/2023 10:24

BENGALURU, July 31 (Reuters) - Transport Corporation of India  TCIL.NS  on Monday reported a 5.8% rise in
first-quarter profit, as strong demand in its supply chain segment outweighed higher freight costs.
    The logistics service provider's consolidated net profit rose to 823 million rupees ($10 million) for the
quarter ended June 30.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN39H1EH
    
    KEY CONTEXT
    TCIL's supply chain solutions business is experiencing growth on the back of a demand recovery in the automotive
sector, which accounts for about 80% of the division's revenue.
    Freight rates, however, were elevated in April-June on high operational costs and elevated retail fuel prices,
driving up expenses for fleet operators. TCIL's freight division constitutes roughly half the company's net sales.
    Slowed demand in the e-commerce segment has impacted logistics companies during the June quarter, with Blue Dart
Express  BLDT.NS  reporting a drop in profit and Mahindra Logistics  MALO.NS  posting a loss.
    
    PEER COMPARISON
                                Valuation (next    Estimates (next 12    Analysts' sentiment                
                                  12 months)            months)                                             
                       RIC      PE      EV/EBIT  Revenue      Profit     Mean      # of      Stock to       Div
                                        DA       growth       growth     rating*   analysts  price          yield
                                                                                             target**       (%)
 Transport             TCIL.NS   16.08    11.48     10.19       8.87     Strong           7      0.87           0.94
 Corporation of India                                                    Buy                                
 Ltd                                                                                                        
 Blue Dart Express     BLDT.NS   36.75    15.85     11.61       20.75    Buy              5      0.95           0.43
 Ltd                                                                                                        
 Mahindra Logistics    MALO.NS   41.52     9.29     14.20       97.49    Hold            11      0.84           0.69
 Ltd                                                                                                        
 Container             CCRI.NS   29.53    17.54     13.21       18.21    Buy             15      0.97           1.63
 Corporation of India                                                                                       
 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
    
    APRIL-JUNE STOCK PERFORMANCE
    

        
    -- All data from Refinitiv
    -- $1 = 82.2650 Indian rupees

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APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/45al8J1
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 (Reporting by Varun Vyas in Bengaluru; Editing by Varun H K)
 ((varunvyas.hebbalalu@thomsonreuters.com;))