ICICI Securities: Container Corp - Land License Fees Remain An Overhang
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ICICI Securities Report
Container Corporation of India Ltd. reported higher than expected numbers for Q2 FY21, with Ebitda at Rs 3.13 billion against our expectation of approximately Rs 2.5 billion.
However, demand letters for land license fee from Ministry of Railways remains the key negative.
While H1 FY21 Ebitda was Rs 4.7 billion, LLF demand is Rs 12.76 billion per annum, that too for only 13 terminals.
The company’s envisaged Ebitda reduces materially, which precludes any constructive view on earnings, if Railways’ demand for LLF is to be factored.
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