ComfortDelGro on track for record FY13 profits after strong 3Q13

No roadblocks for transportation firm.

OCBC Investment Research said that on account of the better 3Q13 performance, it has raised its FY13/14 revenue by 3% and incorporated better operating margins, resulting in higher earnings forecasts.

"We expect ComfortDelgro to end FY13 with another record PATMI figure as continued strong performances from its taxi, bus and vehicle inspection operations should offset any weakness in the other segments such as rail (due to the DTL start-up costs) and driving centre operations," said OCBC.

"In addition, recent events in NSW, Australia have been favourable to ComfortDelgro where the tender process for other routes has been delayed and current operators have the opportunity to renegotiate terms. While this means that ComfortDelgro will not secure new bus routes in the near-term, the renegotiation allows them to hold on to existing contracts i.e. stability in Australian operations," it added.

ComfortDelGro’s (CDG) 3Q13 results beat OCBC's expectations, growing 8.6% YoY to S$978.4m on the back of higher bus/rail ridership and taxi rentals while operating profit grew 4.8% YoY to S$122.4m. PATMI for 3Q13 came in 5.4% YoY higher to S$76.7m.