Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q2 FY2022 Earnings Presentation
40 slides from Tci Express's earnings presentation, Oct 22, 2021
Slide 1: TCI Express exchange filing cover letter
TC!EXPRESS LEADER IN EXPRESS October 22, 2021 To, Listing Department Listing Department BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers Exchange Plaza, C-l, Block G, Dalai Street - Bandra Kurla Complex, Mumbai-400001 Bandra (E) Mumbai - 400 051 Scrip Code: 540212 Scrip S
Slide 2: Q2 FY2022 Earnings Presentation
Q2 FY2022 Earnings Presentation
Slide 3: Q2 FY2022 Highlights
Q2 FY2022 Highlights Delivered strong quarterly performance with Revenue increase of 28.4% on Y-o-Y and 22.7% on sequential basis EBITDA of Rs. 48 Cr. and EBITDA margins improved to 17.3%, with the normalization of business activities post second wave of Covid-19 Key Highlights Rs. 276 Cr Rs. 48 Cr
Slide 4: H1 FY2022 Highlights
H1 FY2022 Highlights Strong performance with Revenue growth of 64.2% on Y-o-Y, despite first quarter being impacted due to second wave of Covid-19 Announced interim dividend of Rs. 3 per share, and payout of 150% on the face value for H1 FY2022 Total Income 64.3% 33.3% Rs. 500 crore Y-o-Y H1 FY2021:
Slide 5: Management Perspective
Management Perspective Commenting on the results, Mr. Chander Agarwal, Managing Director, said: Q2 FY2022 started on a strong note with robust pick-up in the economic and business activities after a subdue first quarter due to the impact of second wave of Covid-19. Strong recovery in demand and supp
Slide 6: Fastest Express Delivery Company in India
Fastest Express Delivery Company in India TCI Express has successfully completed 5 years post the demerger and have become industry leading and Year of Listing 2016 fastest delivery company in India Locations Serviced 40,000 Specialized in offering time definite solutions with focus on Tier II and I
Slide 7: Why TCI Express?
Why TCI Express? Ranked 448 in Top 500 Companies based on Market Cap, as on March 31, 2021 Asset Light High Value Cargo Low Working Lowest Cost Business Model (Low volume, high Capital Structure margins) Requirement API based back- Containerized Superior No Franchise: Customer All owned end technolo
Slide 8: Geographical Footprint
Geographical Footprint Fastest Delivery Company in India Company Surface Branches Express 825+ Pharma Cold 500+ Chain Rail Express Express Express Services Domestic and E Commerce International Air Express C2C Express 7 www.tciexpress.in
Slide 9: Financial Performance
Financial Performance Q2 Y-o-Y Q1 Q-o-Q Six Months Y-o-Y Growth Growth Particulars (in Cr) FY2022 FY2021 FY2022 FY2022 FY2021 Growth (%) (%) (%) Income from Operations 273.4 212.9 28.4% 222.9 22.7% 496.4 301.7 64.5% Other Income 2.4 1.5 1.6 4.0 2.9 Total Income 275.8 214.4 28.6% 224.6 22.8% 500.4 30
Slide 10: Q2 FY2022 Performance Discussion
Q2 FY2022 Performance Discussion • Total Income for the quarter stood at Rs. 276 Crores, registering an increase of 28.4% y-o-y and an increase of 22.7% on q-o-q basis due to significant recovery in economic activities post the impact of second wave and high growth in demand from SME customers • EBI
Slide 11: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle Efficient Working Capital Management resulting in decline in Credit rating of A1+ Short Term (ICRA) and AA- Long Term (CRISIL) Receivable and Payable days Particulars (in Cr) Sep-20 Mar-21 Sep-21 Long Term Debt 1.4 1.0 0.5 Receivables Days Short Term Debt 0
Slide 12: Quarter Performance Trends
Quarter Performance Trends Significant improvement in performance has resulted in improving and maintaining strong margin profile Total Income EBITDA and Margins 282.9 275.8 57.4 264.2 214.4 224.6 34.0 47.0 47.7 20.3% 17.8% 33.7 17.3% 15.9% 15.0% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY
Slide 13: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Consistent cash flow generation over the years with focused approach on generating free cash flows 118.9 77.5 81.1 73.9 63.5 53.2 49.2 49.7 11.2 4.6 FY2018 FY2019 FY2020 FY2021 H1 FY2022 Cash Flow from Operations Free Cash Flows • Cash flow from operation
Slide 14: Balance Sheet
Balance Sheet Particulars (Rs Crores) H1 FY2022 FY2021 Particulars (Rs Crores) H1 FY2022 FY2021 Assets Equity and Liabilities Non-Current Assets EQUITY Property, Plant and Equipment 235.6 224.4 Equity Share Capital 7.7 7.7 Right of Use Assets 2.1 2.2 Other Equity 478.9 426.2 Capital Work in Progress
Slide 15: Strategy and Outlook
Strategy and Outlook Revenue Growth Impacted in line with overall economic slowdown however it is expected to growth with: ❑ Highly diversified client base and well spread across industry verticals ❑ Continuous expansion in Metro and Tier I Cities through new branch offices ❑ Contribution of new and
Slide 16: Capex Plan
Capex Plan Company continue to invest in automation at Gurgaon sorting centre and it should be operational by Q3 FY2022 Pune sorting centre is operational, and TCI Express remains committed to improve turnaround time Gurgaon Sorting Centre Pune Sorting Centre Location: Pune Location: Gurgaon Area: 1
Slide 17: Expanding Service Offering: Rail Express
Expanding Service Offering: Rail Express TCI Express to launch successfully tested surface express asset light model into rail transportation called Rail Express Rail Express service is a unique service offering aimed at providing high value service at a lower cost ✓ TCI Express to buy space on the
Slide 18: Expanding Service Offering: Pharma Cold Chain Express
Expanding Service Offering: Pharma Cold Chain Express TCI Express successfully launched Pharma Cold Chain Express Service, an asset light model and use existing hub and spoke network to meet the growing demand for Cold Chain logistics TCI Express Pharma Cold Chain Transportation Standard Operating P
Slide 19: Expanding Service Offering: C2C Express
Expanding Service Offering: C2C Express TCI Express launched India’s first customer to customer C2C Express service, implementing asset light model Transportation Mode – Fast Trucking Transportation Mode – Milk Run Minimizes connections and travel time Pick up from multiple locations and delivery at
Slide 20: Strategic Priorities for Next 5 Years
Strategic Priorities for Next 5 Years New value-added services is Maintain high expected to contribute 25% to return ratios and top-line: consistent • Pharma Cold Chain Express dividend pay-out • C2C Express • Rail Express • Air Express Create Wealth for Full focus on all Stakeholders technological
Slide 21: 5 Year Key Takeaways
5 Year Key Takeaways ✓ Fastest B2B Express Delivery Company in India Inherent ✓ Asset light model allows Company to maintain higher utilization and drive strong cash flows Business Strength ✓ No franchise model. All branches are company owned which ensures adoption of best standard operating procedu
Slide 22: FY2021 Highlights
FY2021 Highlights Strong finish to a challenging year, delivered EBITDA of Rs. 142 Crores and Net Profit of Rs. 101 Crores with improved margins Announced quarterly dividend of Rs. 2 per share, taking full year dividend to Rs. 4 per share, payout of 200% on face value for the full year Total Income
Slide 23: Annual Performance Trends
Annual Performance Trends 5 Year track record of consistently delivering enhanced margins and profitability Total Income from Operations EBITDA and Margins CAGR +3.0% CAGR +22.4% 1,027.0 1,036.3 142.0 887.2 851.6 122.2 125.7 751.6 92.7 16.7% 63.3 11.9% 12.1% 10.5% 8.4% FY2017 FY2018 FY2019 FY2020 FY
Slide 24: Key Ratios
Key Ratios Maintaining the track record of consistently generating high returns with focus on creating wealth for all stakeholders Dividend per Share (Rs) & Payout (%) Return on Capital Employed (%) 4.0 4.0 30.0% 44.3% 25.0% 39.9% 38.3% 3.0 3.0 20.0% 34.3% 33.3% 2.5 20.0% 15.0% 16.4% 17.2% 15.8% 15.
Slide 25: Leading Margins and Profitability in the Industry
TCI Express – Leading Margins and Profitability in the Industry EBITDA Margins % ROCE % 16.7% 34.3% 27.7% 11.8% 10.1% 15.2% 10.8% 10.5% 6.5% 4.6% 2.8% nm TCI Express Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 TCI Express Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 EBIT Margins % 15.6% ROE % 7.6% 5.7% 26.1% 3.8% 1.9%
Slide 26: Express Industry – An Outlook
Express Industry – An Outlook Logistics as % of GDP 60% 14% India GDP $2.9 TN Road $2,726 Bn Total Logistics Spend $360 Bn 31% Rail Road Transportation $210 Bn Indian 15% Logistics Market $13,608 Bn Un-Organised Segment 95% Split 9% Water 8% TCI Express Carries $10 Bn $20,494 Bn 0.1% TCI Express Mar
Slide 27: Indian Logistics Industry
Indian Logistics Industry Recent Logistics Sector Transformation Initiatives Infrastructure Development Formalization of Sector Operational Efficiency • Launch of PM Gati Shakti Master • Goods and Service Tax – pre filled • Automation of Sorting Centres Plan to improve seamless movement numbers of g
Slide 28: Management Team
Management Team Mr. D P Agarwal, Chairman & Director Mr. D P Agarwal is the Chairman and Director of TCI. Mr. Agarwal has been associated with the transport industry for more than 51 years. He has been contributing in developing the unorganized logistics sector into an organized one. Mr. Agarwal is
Slide 29: Management Team
Management Team Mr. Mukti Lal, Chief Financial Officer Mr. Mukti Lal is the Chief Financial Officer at TCIEXPRESS. He is a qualified Chartered Accountant and has been associated with Transport Corporation of India Limited (the Demerged Company) in various capacities for last 17 years. He was working
Slide 30: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy Committed to manage environmental and social footprint in our operations and build long term sustainable business Environment Social • Focused on implementing robust environmental • TCI Foundation, the social arm of TCI Express, is practices across operations
Slide 31: Environment
Environment Committed towards aligning its operational activities with the environment and sustainable practices • Environment Strategy: Committed to manage environmental and social footprint in our operations. We are focused on enhancing operational efficiencies through automation and digitization.
Slide 32: Environment
Environment Committed towards aligning its operational activities with the environment and sustainable practices • Energy Efficiencies: Engaged in providing Integrated Logistics Services and it is committed to investing in the latest energy-efficient technologies. o Implemented various energy-saving
Slide 33: Social
Social TCI Foundation is committed to serve the nation with a motto of equality and better life for all citizens • Social Strategy: Focused on the needs and aspirations of its’ people and of the larger communities, taking sustainable development initiatives in the areas of health, education, sports
Slide 34: Social
Social TCI Foundation is committed to serve the nation with a motto of equality and better life for all citizens • Service Quality: Quality control inspections at various stages of service help to ensure that the requirements of customers are being met and to support on-time delivery o E-Invoicing:
Slide 35: Social
Social TCI Foundation is committed to serve the nation with a motto of equality and better life for all citizens • Talent Attraction and Retention: o The Company provides best growth opportunities to employees through internal and external training, development and mentorship programmes. This enable
Slide 36: Governance
Governance Focus on Transparency, Accountability, Excellence, Business Ethics, Social & Environment Responsibility • Board of Directors: The Board of Company consists of an optimal blend of Executive and Non-Executive Directors with an appropriate balance of skills, experience, diversity and indepen
Slide 37: Awards and Recognitions
Awards and Recognitions Logistics Excellence Tech innovator of The Year Best Express Logistics Services Provider of the Year TCI Express is now certified as Great Place to Work 13th Express , Logistics & Supply chain Leadership Awards At India Logistics Summit & Awards 2019 Bharariya Manvata Vikash
Slide 38: Corporate Governance
CORPORATE GOVERNANCE Corporate Governance LISTED ENTITY ISORATED BY CERTIFIED Business Superbrand of 2021 Ranked 448 in Top 500 Companies based on Market Cap, as on March 31, 2021 IATA CERTIFICATE The Economic Times Iconic Brands Of India 37 www.tciexpress.in
Slide 39: Contact Information
Contact Information This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to TCI Express’ future business developments and economic performance.
Slide 40: www.tciexpress.in
TCI EXPRESS LIMITED TCI house, 69 Institutional area, Sector - 32, Gurgaon 122001, Haryana, India P: +91 124 2384090-94 • E: info@tciexpress.in W: www.tciexpress.in • Toll free: 1800 2000 977 39 www.tciexpress.in