Slide 1: Investors Presentation May 2019
Investors Presentation May 2019
Slide 2: Mission Statement
Mission Statement Strictly Private and confidential 2
Slide 3: Vision and Quality Statement
Vision and Quality Statement Strictly Private and confidential 3
Slide 4: Company overview
Year of Commencement 1997 An Independent Company listed with stock Exchange of India since 15th Locations Serviced 40000 Dec 2016, having credit rating of A1+ Short Term (ICRA) and AA- Long Term (CRISIL) with Robust revenue growth. Countries Serviced 202 B2B-Surface Express, Air Express B2C – Last M
Slide 5: Organization Setup
Organization Setup Corporate Office 8 Regional Offices 50 Zonal Offices 700+ Branches Zonal Offices Branch offices 5
Slide 6: Business Update
Business Update 13% 10% 50% 6% 13% 8% 6
Slide 7: Service Offerings
Service Offerings SURFACE EXPRESS * 40,000 Pickup & Delivery Locations. Fully containerized fleet. * Customized Value added services. DOMESTIC AIR EXPRESS * Connecting 24 domestic airports. 24hr delivery into Tier 1 Cities. * Multimodal options for small towns. * Time sensitive distribution. INTERNA
Slide 8: Express Network
Express Network Company Branches 700+ 500 8
Slide 9: Value Added Services
Value Added Services Out of Delivery Area 9
Slide 10: Vendor Management (Fleet)
Vendor Management (Fleet) Better Fleet Control, Back up vehicles available without adding per Lane Cost • Inter- 2000 state Vehicles Performance monitoring, Lanes wise Analysis Per KM Model, fluctuates based on Increase/ Decrease of Diesel Prices 1000 • Intra-state Vehicles Always New Fleet, Change
Slide 11: Tech-Vantage
Tech-Vantage Barcoding & RFID Hand Held Terminals (HHT) GPS: Ground TechnicalSupport Accurate dispatch & billing Scanning for speed and accuracy Real-time Vehicle & shipment visibility Barcoded Labels Onsite Booking, Delivery, GPS in all vehicles for real printing for Accuracy. In/Out Scan
Slide 12: New Age Sorting Centers
TCIEX@HESS LEADER IN EXPRESS New Age Sorting Centers A® TCl Company
Slide 13: Packages Handling
TCOIEX@FESS Packages Handling LEADER IN EXPRESS A® TCl Company
Slide 14: Shipment Process Flow- Using Technology
Shipment Process Flow- Using Technology 14
Slide 15: Corporate Governance
Corporate Governance LISTED ENTITY ISO CERTIFIED RATED BY Ranked 457 in Top 500 Companies based on Market Cap, as on March 31, 2019 IATA CERTIFICATE Business Superbrand The Economic Times Iconic of 2019 Brands Of India 15
Slide 16: Express Industry- An Outlook
Express Industry- An Outlook Logistics as % of GDP 60% 13% India GDP $2.3 TN Road $2,308 Bn Total Logistics Spend $300 Bn 32% Rail Road Transportation $180 Bn Indian 18% Logistics Market $11,285 Bn Un-Organised Segment 95% Split 8% Water 8.5% TCI Express Carries $9 Bn $18,287 Bn 0.1% TCI Express Mar
Slide 17: Investment in Road Infra In India
Investment in Road Infra In India Road Express Small but Premium and significant segment of the Logistics Industry. Fastest Growing and expecting 17% YOY in next 3 years. Express industry is also expected to receive a fillip from the higher level of consumption demand in the country. The c
Slide 18: Premium Vs Conventional Distribution
Premium Vs Conventional Distribution Express (Premium) Conventional Key Differentiator Hub & Spoke Full-truckload (FTL) (Small Pkgs) FTL Branch A Branch B Door to Door Delivery Spot Buying, Un organized Time Definite Non Containerized vehicles High Value Cargo Movement Non time Definite
Slide 19: Comparing parameters- Industry Listed Players
Comparing parameters- Industry Listed Players Express FTL/ LTL Express Player 1 Express player 2 Conventional player Primary ▪ GROUND EXPRESS ▪ GROUND EXPRESS ▪ AIR EXPRESS ▪ GROUND NON-EXPRESS Service ▪ Etail Express ▪ CONTRACT LOGISTICS ▪ GROUND EXPRESS ▪ Full Truckload ▪ E-TAIL LOGISTICS ▪ E-TAIL
Slide 20: Live on GST
Live on GST Operations : Aligned with GST Registration/ Billing needs and E-Waybill generation for Intra/ Inter State movement of goods . Information Technology : In house ERP has been upgraded to facilitate the state wise Revenues/Expenses recognition, reports, and other requirements to upload retu
Slide 21: Impact on Macro economic changes In India
Impact on Macro economic changes In India 21
Slide 22: Key Challenges
ro ——— LEADER IN EXPRESS———— © Delay in Inter State Check Posts * The inter-state movement of goods in India is subject to multiple taxes and clearances. Implementation of GST is expected to streamline the processes and reduce a lot of these delays Lack of infrastructure * Infrastructure has remaine
Slide 23: Financial Performance of last 3 Years
Financial Performance of last 3 Years Revenue EBITDA and Margins 16.8% CAGR 38.7% CAGR 1023.8 885.1 750.3 119.0 90.7 1% 8% 11.6% 61.9 10.2% 8.3% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 * All numbers in Crores unless specified Strictly Private and confidential 23
Slide 24: Financial Performance of last 3 Years
Financial Performance of last 3 Years PBT and Margins PAT and Margins 40.7% CAGR 39.3% CAGR 111.9 83.8 72.8 1% 8% 58.4 56.5 10.9% 9.5% 37.5 7.5% 6.6% 7.1% 5.0% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 * All numbers in Crores unless specified Strictly Private and confidential 24
Slide 25: Financial Performance of last 5 Quarters
Financial Performance of last 5 Quarters Revenue EBITDA and Margins 6.6% Y-o-Y 18.9% Y-o-Y 263.2 265.9 249.3 12.7% 247.6 247.2 11.8% 28.4 33.8 1% 8% 27.0 27.3 31.0 11.4% 11.0% 10.9% Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 * All numbers in Crores unless specifi
Slide 26: Financial Performance of last 5 Quarters
Financial Performance of last 5 Quarters PBT and Margins PAT and Margins 24.9% Y-o-Y 22.2% Y-o-Y 32.8 28.9 26.3 24.8 25.3 1% 12.3% 8% 11.0% 21.7 10.5% 10.0% 10.2% 17.8 18.7 16.1 16.3 8.2% 7.1% 6.5% 6.6% 7.1% Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 * All number
Slide 27: Key Balance Sheet Items
Key Balance Sheet Items Particulars (in Cr) Mar-19 Sep-18 Mar-18 Long Term Debt 2.3 2.5 1.7 Short Term Debt 6.4 38.7 38.2 o Repayment of Debt amounting to Rs 32.9 Cr during FY2019 Total Debt 8.7 41.1 39.8 o Nominal Debt in the books of Rs. 8.7 Cr at the end of March 2019 Less: Cash & Cash 17.1 18.7
Slide 28: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Continue to Generate Strong Cash Flows 77.5 73.9 58.1 52.3 14.3 11.0 FY2017 FY2018 FY2019 Cash Flow from Operations Free Cash Flows • Track record of consistent generation of cash flows with a focus on enhancing free cash flows • High EBITDA to cash flow
Slide 29: Key Metrics of last Quarters
Key Metrics of last 5 Quarters Return on Equity (%) Return on Capital Employed (%) 45.4% 40.1% 31.8% 30.7% 33.3% 26.1% 1% 8% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 * All numbers in Crores unless specified Strictly Private and confidential 29
Slide 30: Financial Performance
Financial Performance Q4 Y-o-Y Q3 Q-o-Q Full Year Y-o-Y Particulars (in Cr) FY2019 FY2018 Growth (%) FY2019 Growth (%) FY2019 FY2018 Growth (%) Income from Operations 265.9 249.3 6.6% 263.2 1.0% 1,023.8 885.1 15.7% EBITDA 33.8 28.4 18.9% 31.0 9.1% 119.0 90.7 31.3% Margin (%) 12.7% 11.4% 11.8% 11.6%
Slide 31: Capital Expenditure Plan
Capital Expenditure Plan Fixed Assets as on Addition (Net) Fixed Assets as on Proposed CAPEX 31st Mar, 2018 during FY 2019 31st Mar, 2019 for FY2020 Sorting Centres - Land and 137.6 8.8 146.4 55 Construction Cars 4.3 1.8 6.0 3 Plant & Machinery 8.3 (0.5) 7.9 15 IT (Hardware & Software) 4.3 0.1 4.4 2
Slide 32: Our Esteemed Clientele – Vertical wise
Our Esteemed Clientele – Vertical wise 50 % 50 % 32
Slide 33: Board of Directors
TCIEX@HESS LEADER IN EXPRESS Board of Directors Phool Chand Sharma Whole Time Director & CEO 27 A TCI Company
Slide 34: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on 31st March 2019 4% Promoter 22% Mutual Fund Foreign Institutional Investor 4% 3% Individuals 67% Others 34
Slide 35: Key Associate Company & other group Companies
Key Associate Company & other group Companies 35
Slide 36: Strategy and Outlook
Strategy and Outlook Revenue Growth Negligible impact expected on Express due to economic slowdown Highly diversified client base and well spread across industry verticals Continuous expansion in Metro and Tier I Cities through new branch offices Capital Expenditure Planned CapEx of Rs. 400 cror
Slide 37: Key Takeaways
Key Takeaways TCI Express revenue has grown at CAGR of 16.8% in last 3 years Asset light model continues to drive strong cash flows Consistently paying dividend for last 3 years and generating high return on capital employed Strong balance sheet and flexible capital structure Continued foc
Slide 38: The Beginning
TCIEX-"HESS LEADER IN EXPRESS ‘The Beginning saa A® TCl Company