EUR 120.00 For Business Accounts Only

MOSL: CONTAINER CORPORATION (Buy)-Market share loss continues

CONTAINER CORPORATION: Market share loss continues

(CCRI IN, Mkt Cap USD4.9b, CMP INR573, TP INR660, 15% Upside, Buy)

 

DFCC commissioning remains key

• Container Corporation's (CCRI) results highlight its market share loss v/s peers. CCRI's market share has reduced from 73% last year to 67% currently. However, margins have improved for the company by 3pp YoY.
• We maintain our FY20/FY21 est. and Buy rating. The commissioning of DFCC should be a key volume/margin growth trigger for the company. 

Volumes lower than estimate

• Total volumes were down 2% YoY to 910,407 TEUs (v/s est. 971,301 TEUs). EXIM volumes came in at 766,822 TEUs (-2% YoY) and domestic volumes at 143,585 TEUs (+2% YoY).
• CCRI's 3QFY20 reported revenues were at INR15.2b (-3% YoY, -12% QoQ) below est. INR17.3b. EXIM revenues stood at INR11.7b (-4% YoY, -14% QoQ) while domestic revenues came in at INR3.5b (flat YoY; -6% QoQ).
• Realization per TEU for EXIM stood at INR15,275 (-1% YoY, -7% QoQ) while that for domestic stood at INR24,810 (-1% YoY, -7% QoQ).
• EBITDA stood at INR3.7b (+11% YoY, -13% QoQ) below est. INR4.3b. EBITDA margins were at 24.3% (+3pp YoY, flat QoQ).
•  Tax rate was higher at 42% (v/s est. 25%) as against 29% in 3QFY19. Hence, reported PAT was at INR1.7b (-36% YoY) (v/s est. INR2.6b).