Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q1 FY2025 Earnings Presentation
40 slides from Tci Express's earnings presentation, Aug 13, 2024
Slide 1: Intimation under Regulation 30 to BSE and NSE
To, Dated: August 13, 2024 Listing Department Listing Department BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street-Mumbai-400001 Bandra Kurla Complex, Bandra (E) Mumbai-400051 Scrip Code: 540212 Scrip Symbol: TCIEXP Sub: Intimation
Slide 2: Q1 FY2025 Earnings Presentation
Q1 FY2025 Earnings Presentation www.tciexpress.in 11
Slide 3: Fastest Express Delivery Company in India
Fastest Express Delivery Company in India Successfully completed 8 years post the demerger and Serves 97% of B2B customers and 3% of B2C has become one of the leading delivery companies in customers 2016 India Year of Listing The only express cargo company in India with own set Ranked 713 based on m
Slide 4: Why TCI Express?
Why TCI Express? Asset Light Business Model: No Franchise, All owned Branches: Operating with an asset-light model, optimizing efficiency All branches owned and operated directly, ensuring consistent and flexibility without heavy investments in physical assets quality and control across its network
Slide 5: Geographical Footprint
Geographical Footprint Fastest Delivery Company with Unmatched Network and Efficiency Company Branches Express Services 970+ Surface Express 500+ Domestic and International Air Express C2C Express Rail Express Pharma Cold Chain Express E Commerce Express 4 www.tciexpress.in
Slide 6: Sorting Centers
Sorting Centers The company achieved full automation at pune sorting centre, delivering 40% turnaround time reduction and enhanced operational efficiency with AI-enabled technology GIGA Sorting Centre, Gurgaon Sorting Centre, Pune Location: Gurgaon Location: Pune Area: 2 lakh sq.ft Area: 1.40 lakh s
Slide 7: Expanding Service Offering: Rail Express
Expanding Service Offering: Rail Express ❑ Asset Light Business Model ✓ TCI Express to buy space on the trains to ensure higher 5000+ 150 capacity utilization Customer Base Route Presence ✓ Independent team to manage this business offering Centralized and integrated express logistics ❑ Advantages sy
Slide 8: 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 – Milk Run ✓ End-to-end transportation with multi-location pickup and delivery Temperature-controlled transportation, with vehicles
Slide 9: 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 express logistics Standard Operating Procedures followed by TCI Express TCI
Slide 10: Expanding Service Offering: Money Back Guarantee
Expanding Service Offering: Money Back Guarantee TCI Express Introduces Industry-First Money Back Guarantee Scheme Ensures that all shipments are delivered within the promised time frame Offers a full refund of the basic freight charges if the delivery is delayed beyond the guaranteed time Applies t
Slide 11: Q1 FY2025 Highlights
Q1 FY2025 Highlights SME Businesses were Impacted Due to Increase Costs including Inflation, Labor Costs and Interest Rates Key Highlights ▪ The general elections led to a temporary reduction in volumes, as political uncertainties and shifts in market dynamics affected overall Total Income EBITDA bu
Slide 12: Management Perspective
Management Perspective Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “Q1 FY2025 presented various challenges, including market fluctuations and increased costs due to ongoing multimodal enhancements as well as inflation, labor costs, and interest rates impacted our SME
Slide 13: Financial Performance
Financial Performance Q1 Y-o-Y Q4 Q-o-Q Y-o-Y Particulars (in Cr) FY2025 FY2024 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) Income from Operations 293.0 304.9 (3.9)% 317.1 (7.6)% 1,253.8 1,241.0 1.0% Other Income 2.3 1.5 1.9 7.2 7.2 Total Income 295.3 306.4 (3.6)% 319.0 (7.5)% 1,261.0 1,24
Slide 14: Q1 FY2025 Performance Discussion
Q1 FY2025 Performance Discussion • Total Income for the quarter stood at Rs. 295 Crores, registering a decrease of 3.6% Y-o-Y • Temporary Decline in EBITDA margin: o Volumes temporarily declined due to the general elections, impacting utilization levels and margins. A recovery in EBITDA margin is ex
Slide 15: Q1 FY2025 Performance Discussion
Q1 FY2025 Performance Discussion • SME customers experienced financial strain due to high inflation, elevated interest rates, and increased labor costs. These factors contributed to reduced business activity and lower demand, which in turn affected overall volume • The Air Express segment saw a rise
Slide 16: Quarter Performance Trends
Quarter Performance Trends Resilient financial performance and profitability by maintaining industry leading margin profile Total Income EBITDA and Margins 306 319 295 48 47 36 15.6% 14.7% 12.1% Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 PBT and Margins PAT and Margins 32 32 43 42 23 30 14.0% 1
Slide 17: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Unmatched combination of scale, expertise and technology resulting sustainable cash flow from operations 46 32 34 27 18 14 11 4 4 (72) Q1FY2021 Q1FY2022 Q1FY2023 Q1FY2024 Q1FY2025 Cash Flow from Operations Free Cash Flows • Cash flow from operations of Rs
Slide 18: Comparative Analysis of Margins and Profitability
Comparative Analysis of Margins and Profitability EBITDA Margins % EBIT Margins % 13.7% 12.1% 10.4% 10.9% 10.1% 9.1% 5.8% 5.4% 5.0% 3.8% 1.2% 0.7% TCI Peer 5 Peer 1 Peer 2 Peer 4 Peer 3 TCI Peer 1 Peer 5 Peer 2 Peer 3 Peer 4 Express Express PAT Margins % Key Highlights: 8.7% ▪ Market Leader in Expre
Slide 19: FY2024 Highlights
FY2024 Highlights Maintained stable Gross margins and showcasing our resilience through consistent capacity utilization and operational efficiencies Key Highlights ▪ The capacity utilization during FY2024 was at 84.0% ▪ The efficiency of our operations has been significantly Total Income EBITDA enha
Slide 20: Annual Performance Trend
Annual Performance Trend Strong track record of consistently delivering an industry-leading margin profile Total Income from Operations EBITDA Margins 1,248 1,261 1,090 202 194 183 852 142 16.7% 16.8% 16.2% 15.4% FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 PBT and Margins PAT and Margins
Slide 21: Key Ratios
Key Ratios Delivering consistent growth and profitability for our shareholder Dividend per Share (Rs) & Payout (%) Return on Capital Employed (%) 8.0 8.0 8.0 34% 36% 33% 26.9% 4.0 24% 22% 23% 15% FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 Return on Equity (%) Cash Conversion Ratio (%) 2
Slide 22: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle Credit rating of A1+ Short Term (ICRA) and AA- Long Term (CRISIL) Stable Working Capital Management Particulars (in Cr) Mar-23 Mar-24 June-25 Long Term Debt 0.0 0.0 0.0 Payables Days Short Term Debt 0.7 2.7 0.0 37 39 35 Total Debt 0.7 2.7 0.0 Less: Cash & C
Slide 23: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs Crores) FY2024 Q1 FY25 Particulars (Rs Crores) FY2024 Q1 FY25 Assets Equity and Liabilities Non-Current Assets EQUITY Equity Share Capital 7.7 7.7 Property, Plant and Equipment 418.5 415.2 Other Equity 696.4 719.9 Right of Use Assets 28.6 29.8 Total Equity 70
Slide 24: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Unmatched combination of scale, expertise and technology resulting sustainable cash flow from operations 147 136 128 119 90 64 48 22 FY2021 FY2022 FY2023 FY2024 Cash Flow from Operations Free Cash Flows • Cash flow from operations of Rs. 136 crore for FY2
Slide 25: TCI Express – Leading Margins and Profitability in the Industry
TCI Express – Leading Margins and Profitability in the Industry EBITDA Margins % EBIT Margins % 13.9% 15.4% 14.2% 9.9% 11.2% 6.8% 6.7% 4.5% 4.0% 0.7% nm nm TCI Peer 5 Peer 1 Peer 2 Peer 3 Peer 4 TCI Peer 1 Peer 5 Peer 3 Peer 4 Peer 2 Express Express PAT Margins % Key Highlights: 13.8% ▪ Market Leade
Slide 26: Last 8 Year Key Takeaways
Last 8 Year Key Takeaways ✓ Fastest B2B Express Delivery Company in India Inherent ✓ Asset light model allows the Company to maintain higher utilization and drive strong cash flows Business Strength ✓ No franchise model. All branches are company owned which ensures the adoption of best standard oper
Slide 27: Strategy and Outlook
Strategy and Outlook Revenue Growth Drivers ✓ Planned CapEx of Rs. 500 crores in 5 years (FY23- FY27) Highly diversified client base of corporate and SME customers. ✓ In FY2024 incurred capex of Rs. 46 Crores 1 Well spread across industry verticals Capital ✓ The remaining capex of Rs. 329 crores wil
Slide 28: Strategic Priorities by 2030
Strategic Priorities by 2030 New services are expected to Maintain high contribute one-fourth of the return ratios and top-line: consistent • Rail Express dividend pay-out • C2C Express • Pharma Cold Chain Express • Air Express Create Wealth for all Full focus on Stakeholders technological advanceme
Slide 29: Express Industry – An Outlook
Express Industry – An Outlook Logistics as % of GDP 73% 15% India GDP $3.42 Tn Road $17,963 Bn Total Logistics Spend $448 Bn 18% Rail 14% Road Transportation $210 Bn Indian Logistics Market $3,417 Bn Un-Organised Segment 90% Split 5% Air 8% TCI Express Carries $14 Bn 4% $25,440 Bn TCI Express Market
Slide 30: Indian Logistics Industry
Indian Logistics Industry Growth Drivers for the Indian Logistics Industry The National Logistics Policy (NLP) assists states and union territories (UTs) in creating their Comprehensive Logistics Action Plan (CLAP), which emphasizes integrated digital logistics systems, standardized physical assets,
Slide 31: Growth Drivers
Growth Drivers Digital Transformation • Digitalisation, through technologies like IoT devices, RFID tags, GPS/GSM trackers, and automated sorting systems, significantly reduces operational times and streamlines procedures, boosting overall efficiency in logistics 01 • The integration of digital plat
Slide 32: 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 52 years. He has been contributing in developing the unorganized logistics sector into an organized one. Mr. Agarwal is
Slide 33: 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 19 years. He was working
Slide 34: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy Environment Governance Water Conservation Board Composition and Diversity Implemented rainwater harvesting and various water-saving Safety, Environment, and 4 out of 8 directors on the board are independent, and there initiatives, including aerator taps, sens
Slide 35: ESG Profile – Consolidating all ESG Disclosures
ESG Profile – Consolidating all ESG Disclosures 1 5 4 3 2 6 Consolidates all ESG disclosures on a single ESG disclosures mapped with International ESG 1 platform, enabling stakeholders to conveniently 4 Reporting Frameworks conduct their due diligence 2 Highlights – Captures qualitative ESG content
Slide 36: Awards and Recognition
Awards and Recognition Awards Certified as Great Place to Work (2024-25) TCIEXPRESS has been once again certified as a Asia’s Greatest Brand & Leader for Sustainable Practices 2023 Great Place to Work for 2024-2025, reaffirming its commitment to fostering a positive and inspiring work environment. T
Slide 37: Awards and Recognition
Awards and Recognition Corporate Governance SORTING CENTER AWARDS The USGBC has awarded TCI Express’s Pune Sorting Centre with the 'Gold' Ranked 713 based on Market Credit Instruments rated by two leading Credit Rating Agencies rating under the LEEDv4 BD+C Cap, as on March 31, 2024 CRISIL Rating: AA
Slide 38: Capital Market Information
Capital Market Information Share Price Information, as on 28th June 2024 CAGR Return: TCI Express +16.9% S&P BSE Sensex +14.6% 2,500 Key Facts 28th June 2024 BSE / NSE Ticker 540212/ TCIEXP 2,000 CMP (Rs.) 1,222 1,500 Shares O/S (Cr) 3.83 1,000 Market Cap (Rs. Cr) 4,680 52 Week H/L (Rs.) 1,683/1,000
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: TCI Express Limited
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