Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q2 FY2023 Earnings Presentation
35 slides from Tci Express's earnings presentation, Oct 31, 2022
Slide 1: Intimation under Regulation 30 to stock exchanges
Date: October 31, 2022 Listing Department, Listing Department, The National Stock Exchange of India Ltd., BSE Ltd., “Exchange Plaza”, Phiroz Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street Mumbai – 400051 Mumbai-400001 Scrip Symbol: TCIEXP Scrip Code: 540212 Sub: Intimation unde
Slide 2: Stable. Scalable. Sustainable. Q2 FY2023 Earnings Presentation
STABLE. SCALABLE. SUSTAINABLE. Q2 FY2023 Earnings Presentation
Slide 3: Q2 FY2023 Highlights
Q2 FY2023 Highlights Delivered highest quarterly performance with topline increase of 13.2% on Y-o-Y basis EBITDA of Rs. 54 Cr. and its margins improved to 17.2%, and Net Profit up by 21.8% on Q-o-Q basis Rs. 312 Cr Rs. 54 Cr Key Highlights ▪ Revenue growth is driven by demand from both Corporate 13
Slide 4: Management Perspective
Management Perspective Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “Q2 FY2022 started on a positive note with strong economic and business activities. The recovery trend was visible in many internal & external economic indicators and parameters. During the quarter, w
Slide 5: Fastest Express Delivery Company in India
Fastest Express Delivery Company in India TCI Express has successfully completed 6 years post Year of Listing 2016 the demerger and has become industry leading and fastest delivery company in India Locations Serviced 50,000 Specialized in offering time definite solutions with focus on Tier II and II
Slide 6: Why TCI Express?
Why TCI Express? Ranked 412 in Top 500 Companies based on Market Cap, as on March 31, 2022 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 7: Geographical Footprint
Geographical Footprint Fastest Delivery Company in India Company Surface Branches Express 900+ Pharma Cold 500+ Chain Rail Express Express Express Services Domestic and E Commerce International Air Express C2C Express 6 www.tciexpress.in
Slide 8: Financial Performance
Financial Performance Q2 Y-o-Y Q1 Q-o-Q H1 Y-o-Y Particulars (in Cr) FY2023 FY2022 Growth (%) FY2023 Growth (%) FY2023 FY2022 Growth (%) Income from Operations 309.9 273.4 13.3% 290.4 6.7% 600.3 496.4 20.9% Other Income 2.3 2.4 1.9 4.2 4.0 Total Income 312.2 275.8 13.2% 292.4 6.8% 604.5 500.4 20.8%
Slide 9: Q2 FY2023 Performance Discussion
Q2 FY2023 Performance Discussion • Total Income for the quarter stood at Rs. 312 Crores, registering an increase of 13.2 % y-o-y. This growth was driven by strong recovery in economic activities and growing demand from both Corporate and MSME customers • Focusing on revenue quality and continued pro
Slide 10: 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) Sep-21 Mar-22 Sep-22 Long Term Debt 0.5 0.2 0.0 Payables Days Short Term Debt 0.9 0.8 0.5 46 Total Debt 1.5 1.0 0.5 35 35 Less: Cash & Ca
Slide 11: Quarter Performance Trends
Quarter Performance Trends Consistent performance track record backed by resilient margin profile Total Income EBITDA and Margins 300.3 312.2 52.3 53.7 275.8 289.0 292.4 49.3 47.6 44.7 17.3% 17.0% 17.4% 17.2% 15.3% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 PBT a
Slide 12: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Sustainable cash flow over the years with focused approach on generating free cash flows which enables to deliver consistent shareholder return 127.6 118.9 77.5 81.1 63.5 53.2 49.2 47.5 46.2 (3.5) FY2019 FY2020 FY2021 FY2022 H1FY2023 Cash Flow from Operat
Slide 13: Balance Sheet
Balance Sheet Particulars (Rs Crores) H1 FY2023 FY2022 Particulars (Rs Crores) H1 FY2023 FY2022 Assets Equity and Liabilities Non-Current Assets EQUITY Property, Plant and Equipment 314.5 314.7 Equity Share Capital 7.7 7.7 Right of Use Assets 28.5 2.0 Other Equity 578.9 528.5 Capital Work in Progres
Slide 14: Strategy and Outlook
Strategy and Outlook TCI Express Offering Capital Expenditure ❑ Added new value added services such as Pharma Cold Chain and C2C express ❑ Planned CapEx of Rs. 500 crores in 5 years (FY23-FY28) ❑ Launch and expand Rail service offerings ❑ Investment in sorting centres ❑ Continuous focus on volume gr
Slide 15: Strategic Priorities by 2025
Strategic Priorities by 2025 New value-added services is Maintain high expected to contribute 25% to return ratios and top-line: consistent • Rail Express dividend pay-out • C2C Express • Pharma Cold Chain Express • Air Express Create Wealth for Full focus on all Stakeholders technological advanceme
Slide 16: Largest B2B Sorting Center
Largest B2B Sorting Center Company has made significant progress in each of its strategic focus areas, has successfully commissioned India's first and largest automated B2B sorting center in Gurgaon in March 2022 reducing parcel handling time and vehicle halting time Gurgaon Sorting Centre Location:
Slide 17: Expanding Service Offering: Rail Express
Expanding Service Offering: Rail Express Rail Express service is a unique service offering aimed at providing high value service at a lower cost Expanded customer base from 250 to 1500 and presence from 10 routes to 100 routes since inception ✓ TCI Express to buy space on the trains to ensure higher
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: Last 5 Year Key Takeaways
Last 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 pr
Slide 21: H1 FY2023 Highlights
H1 FY2023 Highlights Continued to deliver accelerated business growth with consistent return on capital and a revenue growth of 20.8% on Y-o-Y, Announced interim dividend of Rs. 3 per share, and payout of 150% on the face value for H1 FY2023 Total Income 20.8% 35.8% Rs. 604 crore Y-o-Y H1 FY2022: Rs
Slide 22: Annual Performance Trend
Annual Performance Trend Strong track record of consistently delivering, enhanced margins and profitability Total Income from Operations EBITDA Margins 1,090 182.9 1,036 852 142.0 125.7 605 98.5 500 81.3 16.7% 16.8% 16.3% 16.3% 12.1% FY2020 FY2021 FY2022 H1 FY2022 H1 FY2023 FY2020 FY2021 FY2022 H1 F
Slide 23: 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 (%) 8.0 38.3% 34.3% 35.5% 29.9% 28.1% 4.0 4.0 3.0 3.0 23.9% 17.2% 20.0% 16.8% 15.3% FY2020 FY2021 FY2022
Slide 24: Leading Margins and Profitability in the Industry
TCI Express – Leading Margins and Profitability in the Industry EBITDA Margins % EBIT Margins % 16.9% 16.6% 15.9% 13.2% 12.7% 10.5% 7.8% 6.4% 5.4% 3.3% 2.1% 1.0% TCI Express Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 TCI Express Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 PAT Margins % Key Highlights: 11.8% ▪ TCI Ex
Slide 25: Express Industry – An Outlook
Express Industry – An Outlook Logistics as % of GDP 60% 15% India GDP $3.2 Tn Road $17,734 Bn Total Logistics Spend $448 Bn 31% Rail 14% Road Transportation $210 Bn Indian Logistics Market $3,173 Bn Un-Organised Segment 95% Split 9% Water 8% TCI Express Carries $16 Bn 0.1% $24,994 Bn TCI Express Mar
Slide 26: Indian Logistics Industry
Indian Logistics Industry Greater Push on Manufacturing and Infrastructure Sector Logistics Policy Support from the Government Make In India initiative provides focused expenditures to encourage local product manufacturing and infrastructure development Benefits - Demand for freight mobility and sup
Slide 27: 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 53 years. He has been contributing in developing the unorganized logistics sector into an organized one. Mr. Agarwal is
Slide 28: 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 29: 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 • TCI Foundation, the social arm of TCI Express, is • Focused on implementing robust environmental practices across operations
Slide 30: 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 31: Awards & Recognition
Awards & Recognition Corporate Governance Corporate Governance Award Awards Ranked 418 in Top 500 Credit Instruments rated by Companies based on Market two leading Credit Rating Cap, as on March 31, 2022 Agencies Latest Award Image required Industry Recognition Building a high trust The Economic Bus
Slide 32: Awards & Recognition
Awards & Recognition Awards “Most Preferred Brands 2021” award within the category of “Express Logistics Company” SCALE award for the best “Express Courier” company by CII Institute of Logistics in Dec-2021 31 www.tciexpress.in
Slide 33: Capital Market Information
Capital Market Information Share Price Information, as on 28th September 2022 2,750 CAGR Return: TCI Express +40% S&P BSE Sensex +17% Key Facts 28th September 2022 2,300 BSE / NSE Ticker 540212/ TCIEXP Rebasd to TCI Express Share Price 1,850 CMP (Rs.) 1,891 1,400 Shares O/S (Cr) 3.85 Market Cap (Rs.
Slide 34: 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 35: 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 34 www.tciexpress.in