Transport Corporation shares hit 20% upper circuit post Q4 results

Shares of Transport Corporation of India (TCI) were locked in 20 per cent upper circuit at Rs 366.90 on the BSE on Wednesday after the company reported 69 per cent year-on-year (YoY) growth in standalone profit after tax (PAT) in March quarter (Q4FY21) at Rs 52.86 crore, on the back of healthy revenue growth. The company, India’s leading integrated supply chain and logistics solutions provider, had PAT of Rs 31.28 crore in Q4FY20.

The stock, at its 52-week high level, was trading close to its record high level of Rs 376, touched on August 29, 2018. Till 02:52 pm, a combined 2.8 million equity shares had changed hands and there were pending buy orders for around 300,000 shares on the NSE and BSE.

In Q4FY21, TCI's revenues grew strong 27 per cent YoY to Rs 797 crore. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins expanded 147 basis points (bps) YoY to 10.7 per cent, mainly due to a combination of higher gross margins, lower employee to sales ratio and lower other expense ratio.

As per management, in spite of challenges posed by the pandemic in FY21, the company was able to sustain its revenues and margins due to its diversified portfolio of value-added services. All segments have performed well due to continuous focus on building strong customer relationships, superior multimodal network, diversified portfolio of value-added services from design to execution. The emerging business units have also shown good traction, TCI said.

TCI, through its subsidiary TCI Cold Chain Solutions Limited, has entered into a joint venture with MITSUI & Co. Limited (MITSUI). MITSUI has global expertise in logistics & supply chain management and the company believe that the synergies created by bringing together the respective resources and capabilities will create more value for its customers.