Tci Express Ltd. · NSE:TCIEXP
Tci Express — Investor Presentation (August 2019)
44 slides from Tci Express's investor presentation, August 2019
Slide 1: Investor Presentation Aug 2019
Investor Presentation Aug 2019 1 www.tciexpress.in
Slide 2: Table of Content
Table of Content 1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 2 www.tciexpress.in
Slide 3: 1. Business Overview
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 3 www.tciexpress.in
Slide 4: Vision and Mission
Vision and Mission Vision TCI Express should be a customer oriented, multi-technology, multi specialist transport system in the Indian and International markets, with a proven commitment to excellence in every facet of activity and pursuit of value-based policies to satisfy aspirations of society, c
Slide 5: We Are - Fastest Express Delivery Company in India
We Are - Fastest Express Delivery Company in India India’s leading Express logistics player providing Door-to-Door Express Distribution Services Specialized in offering time definite solutions with focus on Tier II and III cities ERP enabled operations, Barcoding on packaging, GPS enabled vehicles a
Slide 6: Why TCI Express?
Why TCI Express? Ranked 457 in Top 500 Companies based on Market Cap, as on March 31, 2019 Asset Light High Value Cargo No Franchise: Lowest Cost Business Model (Low volume, high All owned Structure margins) Branches API based back- Containerized Superior end technology Movement Customer Support Ser
Slide 7: Asset Light Business Model
Asset Light Business Model Key Characteristics • 5,000+ vehicles from 1,500+ vendors and 18 out of 28 sorting centres are on lease • An asset light business model facilitates scalability through partnerships with asset owners Benefits and Competitive Advantages • Does not require large capital expen
Slide 8: Service Offering
Service Offering (95%) B2B Surface Express Domestic Air Express International Air Express Reverse Express • 40,000 Pickup & Delivery Locations • Connecting 34 domestic airports • Servicing 202 countries • Customized Reverse pick ups • Fully containerized fleet • 24hr delivery into Tier 1 cities • 3r
Slide 9: TCI Express Network
TCI Express Network 500+ 700+ Express Routes Company Branches 28 2,500+ Sorting Centres Feeder Routes 50 8 Zonal Offices Regional Offices 708 Districts Served Strictly Private and Confidential 9 www.tciexpress.in
Slide 10: Value Added Services
Value Added Services Out of Delivery Area Scheduled Delivery Strictly Private and Confidential 10 www.tciexpress.in
Slide 11: Business Update
Business Update Industry Vertical Product Mix Surface Express accounts for 86% of Revenue share; Government push to improve road infra would augment TCI Express’ business objective Strictly Private and Confidential 11 www.tciexpress.in
Slide 12: Our Esteemed Clientele – Vertical wise
Our Esteemed Clientele – Vertical wise 50 % 50 % Small and Medium Enterprises Strictly Private and Confidential 12 www.tciexpress.in
Slide 13: TCI Express Infrastructure
TCI Express Infrastructure New Age Sorting Centres Package Handling Strictly Private and Confidential 13 www.tciexpress.in
Slide 14: Vendor Management (Fleet)
Vendor Management (Fleet) Better Fleet Control, Back up vehicles available without adding per Lane Cost 2,000 Inter-state Vehicles Performance monitoring, Lanes wise Analysis Per KM Model, fluctuates based on Increase/ Decrease of Diesel Prices 1,000 Intra-state Vehicles Always New Fleet, Change veh
Slide 15: TCI Express Tech-Vantage
TCI Express Tech-Vantage Hand Held GPS- Ground Barcoding & RFID Mobile Apps CCTV Surveillance API Terminals Technical Support (Accurate dispatch & billing) (Scanning for speed & accuracy ) (Real-time shipment visibility) (Higher efficiency & accessibility) (Safety & Security of cargo) (Enterprise Re
Slide 16: Hub and Spoke Model
Hub and Spoke Model Customer Branch Customer Branch Branch (spoke) Sorting Sorting (spoke) Centre (Hub) Centre (Hub) Branch Branch Customer Customer Branch A centralized and integrated logistics system • Increased transit dependability and performance • Opportunity for rapid geographical expansion •
Slide 17: Shipment Process Flow- Using Technology
Shipment Process Flow- Using Technology Strictly Private and Confidential 17 www.tciexpress.in
Slide 18: 2. Logistics Industry Overview
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 18 www.tciexpress.in
Slide 19: Express Industry – An Outlook
Express Industry – An Outlook Logistics as % of GDP 60% 14% India GDP $2.7 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 20: Government of India - Logistics Infrastructure Initiatives
Government of India - Logistics Infrastructure Initiatives Road infrastructure development Infrastructure status for logistic Make in India initiatives industry ▪ Bharatmala Pariyojna to provide 50 • Flagship project of Gov. of India to • Easy and economical financing for national corridors transfor
Slide 21: Premium Vs Conventional Distribution
Premium Vs Conventional Distribution Express (Premium) Conventional Hub & Spoke (Small Pkgs) Full-truckload (FTL) Operating model ▪ Plying on Key routes ▪ Catering to Industrial towns/ Rural locations Key Presence ▪ Metros and Tier- I cities ▪ Tier-II to Tier-IV cities Key Industrial Sectors ▪ IT &
Slide 22: Comparing parameters- Industry Listed Players
Comparing parameters- Industry Listed Players Express FTL/LTL Express Player 1* Express Player 2 Conventional Player Ground Express Air Express Ground Non-express Ground Express Contract Logistics Ground Express Full Truckload Primary Service Etail Express E-tail Logistics E-tail Logistics Transit W
Slide 23: Express Industry – Technological Disruptions
Express Industry – Technological Disruptions Big data service ▪ Forecast changes in volume and customer On-demand marketplaces demands by analyzing original data ▪ Improve efficiencies by disintermediation ▪ Provides solutions based on real time data ▪ Address information asymmetry analysis for impr
Slide 24: 3. Financial Performance
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 24 www.tciexpress.in
Slide 25: Key Metrics of last 3 Years
Key Metrics of last 3 Years All numbers in Crores unless specified Revenue EBITDA and Margins PAT and Margins 16.8% CAGR 38.7% CAGR 39.3% CAGR 1023.8 885.1 750.3 119.0 72.8 90.7 58.4 1% 8% 11.6% 61.9 10.2% 37.5 8.3% 7.1% 6.6% 5.0% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 Strict
Slide 26: Key Metrics of last 5 Quarters
Key Metrics of last 5 Quarters All numbers in Crores unless specified Revenue EBITDA and Margins PAT and Margins 3.5% Y-o-Y 9.8% Y-o-Y 14.2% Y-o-Y 263.2 265.8 256.2 247.6 247.2 33.8 31.0 29.6 12.7% 27.0 27.3 21.7 1% 11.8% 8% 18.7 18.4 11.6% 16.1 16.3 11.0% 10.9% 8.2% 7.2% 6.5% 6.6% 7.1% Q1 FY19 Q2 F
Slide 27: Key Balance Sheet Items
Key Balance Sheet Items All numbers in Crores unless specified 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 Total Debt 8.7 41.1 39.8 32.9 Cr during FY2019 Less: Cash & Cash The Company became debt free during 17
Slide 28: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows All numbers in Crores unless specified 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
Slide 29: Return to Shareholders
Return to Shareholders All numbers in Crores unless specified Return on Equity (%) Return on Capital Employed (%) 42.8% 38.2% 31.8% 30.7% 31.5% 26.1% 1% 8% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 Consistent returns to shareholders resulting in wealth creation Notes: 1. RoE= PAT/Average Total Equit
Slide 30: Leverage Ratios
Leverage Ratios All numbers in Crores unless specified Net Debt/Equity (x) Interest Coverage Ratio (x) 29.6x 23.1x 22.3x 0.14x 0.13x 1% 8% FY2017 FY2018 FY2019 (0.03)x FY2017 FY2018 FY2019 Notes: 1. Net Debt/Equity: (Total Debt – Cash and Cash Equivalents)/Total Equity Strictly Private and Confident
Slide 31: Key Efficiency Ratios
Key Efficiency Ratios All numbers in Crores unless specified Asset Turnover Ratio (x) Current Ratio (x) Cash Conversion Ratio (%) 84.6% 81.5% 3.34x 65.1% 3.01x 2.83x 1.69x 1.86x 1% 1.35x 8% FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 Notes: 1. Asset Turnover Ratio: Revenue from Op
Slide 32: Financial Performance
Financial Performance All numbers in Crores unless specified Q1 Y-o-Y Q4 Q-o-Q Full Year Y-o-Y Particulars (in Cr) FY2020 FY2019 Growth (%) FY2019 Growth (%) FY2019 FY2018 Growth (%) Income from Operations 256.2 247.6 3.5% 265.8 (3.6)% 1,023.8 885.1 15.7% EBITDA 29.6 27.0 9.8% 33.8 (12.4)% 119.0 90.
Slide 33: Capital Expenditure Plan
Capital Expenditure Plan Fixed Assets as Fixed Assets as Addition (Net) Proposed Cap-Ex (In Rs. Cr) on Mar 31, 2018 on Mar 31, 2019 during FY 2019 for FY 2020 Strategic Objectives: Sorting Centres: Land and Construction 137.6 146.4 +8.8 ~40-45 • Owned Sorting Centres in lieu of leased and rented , w
Slide 34: 4. Way Forward
Table of Content 1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 34 www.tciexpress.in
Slide 35: Post - GST Integration
Post - GST Integration Operations Information Technology Accounts Marketing Aligned with GST Registration/ In house ERP has been upgraded State wise set of books of Post implementation of GST, Billing needs and E-Waybill to facilitate the state wise accounts have been started and customers have real
Slide 36: Important Macro-Economic changes In India
Important Macro-Economic changes In India GST DFC/Diamond Quadrilateral • Rationalizing the impact of taxes on Production, • Creation of additional dedicated rail freight capacity Distribution and Inventory management resulting in reduction of unit cost of transportation • Would lead to faster movem
Slide 37: Key Challenges
Key Challenges Diesel Price Fluctuation • Most uncertain cost of production • Sporadic over the past four years • Impact Mitigation by TCI Express through Diesel Fuel Surcharge in contracts with both vendors and customers Lack of Infrastructure • Cargo terminals and road conditions have remained a c
Slide 38: 5. Corporate Governance
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance Strictly Private and Confidential 38 www.tciexpress.in
Slide 39: Board of Directors
Board of Directors Jane Doe Jane Doe Jane Doe Jane Doe DP Agarwal Chander Agarwal Phool Chand Sharma Vineet Agarwal CHAIRMAN & DIRECTOR MANAGING DIRECTOR WHOLE TIME DIRECTOR &CEO NON- EXECUTIVE DIRECTOR Jane Doe Jane Doe Jane Doe Jane Doe Murali Krishna Chevuturi Ashok Kumar Ladha Taruna Singhi Pras
Slide 40: Shareholding Pattern
Shareholding Pattern Shareholding pattern as on 30th June 2019 4% 21% Promoter Mutual Fund Foreign Institutional 4% Individuals 4% Others 67% Strictly Private and Confidential 40 www.tciexpress.in
Slide 41: Awards and Recognitions
Awards and Recognitions Won ET Now Stars of the Industry Awards Received Best CFO Award 2019 by for Excellence in CSR in 2018 Financial Express Mr. Chander Agarwal, MD, awarded Won India Cargo Awards as India's Inspirational Business Leaders 2019 in London ‘Best Express Distribution Company’ 2018 St
Slide 42: Corporate Governance
Corporate Governance Business Superbrand The Economic Times of 2019 Iconic Brands Of India LISTED ENTITY ISO CERTIFIED IATA CERTIFICATE Ranked 457 in Top 500 Companies based on Market Cap, as on March 31, 2019 RATED BY Strictly Private and Confidential 42 www.tciexpress.in
Slide 43: Key Associate Company & other group Companies
Key Associate Company & other group Companies SBUs and Services Engaged in areas of FTL/FCL, LTL & Over- A single-window Leading player in education, women and dimensional cargo solutions enabler from Coastal shipping, child health, disability services through road, conceptualization to NVOCC & Proj
Slide 44: The Journey Continues…
The Journey Continues… 44 www.tciexpress.in