Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q2 FY2024 Earnings Presentation
37 slides from Tci Express's earnings presentation, Oct 17, 2023
Slide 1: Exchange intimation under Regulation 30
Date: October 17, 2023 To, To, The Listing Department, The 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 Su
Slide 2: Q2 and H1 FY2024 Earnings Presentation
Q2 and H1 FY2024 Earnings Presentation
Slide 3: Q2 FY2024 Highlights
Q2 FY2024 Highlights Another quarter of sustained performance with Revenue of Rs. 322 Cr, up by 5.0% Q-o-Q and 3.1% on Y-o-Y basis EBITDA of Rs. 52 Cr. and Net Profit of Rs. 36 Cr, with improved margins to 16.2% and 11.1% respectively, on sequential basis Key Highlights Total Income EBITDA ▪ Improve
Slide 4: Management Perspective
Management Perspective Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “Despite the delay in festive season, we are delighted to announce that TCI Express delivered another quarter of consistent performance with Improved sequential margins. The growth and margin improvem
Slide 5: Fastest Express Delivery Company in India
Fastest Express Delivery Company in India Successfully completed 7 years post the demerger 1 and has become industry leading and fastest delivery 200+ 2016 company in India Countries Year of Listing The only express cargo company in India with own set 2 up across nation. Offers services on Sunday, H
Slide 6: Why TCI Express?
Why TCI Express? Ranked 438 in Top 500 Companies based on Market Cap, as on March 31, 2023 1 2 3 4 5 High Value Cargo Low Working Asset Light (Low volume, Lowest Cost Expansion of Capital Business Model high margins) Structure Services Requirement 6 7 8 9 10 No Franchise: API based Superior Containe
Slide 7: Geographical Footprint
Geographical Footprint Fastest Delivery Company with Unmatched Network and Efficiency Company Surface Branches Express 950+ 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) FY2024 FY2023 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) Income from Operations 320.0 309.9 3.3% 304.9 5.0% 624.9 600.3 4.1% Other Income 1.8 2.3 1.5 3.3 4.2 Total Income 321.8 312.2 3.1% 306.4 5.0% 628.1 604.5 3.9% EBIT
Slide 9: Q2 FY2024 Performance Discussion
Q2 FY2024 Performance Discussion • Total Income for the quarter stood at Rs. 322 Crores, registering an increase of 5.0% Q-o-Q. This growth was driven by recovery in economic activities and growing demand from MSME customers • EBITDA margins improved over the sequential basis due to: o The contribut
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-22 Mar-23 Sep-23 Long Term Debt 0.0 0.0 0.0 Payables Days Short Term Debt 0.5 0.7 0.1 Total Debt 0.5 0.7 0.1 46 35 35 Less: Cash & Ca
Slide 11: Balance Sheet
Balance Sheet Particulars (Rs Crores) FY2023 H1 FY2024 Particulars (Rs Crores) FY2023 H1 FY2024 Assets Equity and Liabilities Non-Current Assets EQUITY Equity Share Capital 7.7 7.7 Property, Plant and Equipment 343.9 342.8 Other Equity 588.7 652.3 Right of Use Assets 27.2 31.0 Total Equity 596.4 659
Slide 12: Quarter Performance Trends
Quarter Performance Trends Resilient financial performance and profitability by maintaining industry leading margin profile Total Income EBITDA and Margins 328 322 56 312 316 306 54 52 47 48 17.2% 15.0% 17.0% 15.6% 16.2% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Slide 13: Strategy and Outlook
Strategy and Outlook Revenue Growth Drivers ✓ Planned CapEx of Rs. 500 crores in 5 years (FY23- FY28) Highly diversified client base of corporate and SME customers. ✓ In FY2023 incurred capex of Rs. 125 Crores 1 Well spread across industry verticals Capital ✓ The remaining capex of Rs. 375 crore wil
Slide 14: Strategic Priorities by 2025
Strategic Priorities by 2025 Maintain high New services is expected to return ratios and contribute 25% to 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 advancement and autom
Slide 15: 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 GIGA Sorting Centre, Gurgaon Loc
Slide 16: 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 3,000 125 capacity utilization Customer Base Route Presence ✓ Independent team to manage this business offering Centralized and integrated express logistics ❑ Advantages sy
Slide 17: 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 18: 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 19: Last 6 Year Key Takeaways
Last 6 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 20: H1 FY2024 Highlights
H1 FY2024 Highlights Focused on balanced growth and revenue quality, expanding our margins, and sustainable returns on capital Announced interim dividend of Rs. 3 per share, and payout of 150% on the face value for H1 FY2024 Total Income 3.9% 29% Rs. 628 crore Y-o-Y H1 FY2023: Rs. 605 crore H1 FY202
Slide 21: Financial Performance Trend
Financial Performance Trend Long track record of consistently driving stable margins and profitable growth Total Income from Operations EBITDA and Margins 605 628 98 100 500 81 305 38 16.3% 16.3% 15.9% 12.3% H1 FY2021 H1 FY2022 H1 FY2023 H1 FY2024 H1 FY2021 H1 FY2022 H1 FY2023 H1 FY2024 PBT and Marg
Slide 22: Key Ratios
Key Ratios Strong track record of balanced growth to create long term wealth for all stakeholders Dividend per Share (Rs) & Payout (%) Return on Capital Employed (%) 33% 33% 3 3 3 29% 2 19% 31% 20% 17% 17% H1 FY2021 H1 FY2022 H1 FY2023 H1 FY2024 H1 FY2021 H1 FY2022 H1 FY2023 H1 FY2024 Return on Equi
Slide 23: 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 147 119 128 78 81 64 53 49 48 39 22 17 FY2019 FY2020 FY2021 FY2022 FY2023 H1 FY2024 Cash Flow from Operations Free Cash Flows • Cash flow from operati
Slide 24: TCI Express – Leading Margins and Profitability in the Industry
TCI Express – Leading Margins and Profitability in the Industry EBITDA Margins % EBIT Margins % 16.2% 14.9% 13.1% 9.9% 9.9% 11.9% 1.9% 1.8% 5.5% 5.3% nm nm TCI Express Peer 1 Peer 2 Peer 4 Peer 5 Peer 3 TCI Express Peer 1 Peer 2 Peer 5 Peer 4 Peer 3 PAT Margins % Key Highlights: ▪ Market Leader in S
Slide 25: Express Industry – An Outlook
Express Industry – An Outlook Logistics as % of GDP 66% 15% India GDP $3.38 Tn Road $17,963 Bn Total Logistics Spend $448 Bn 31% Rail 14% Road Transportation $210 Bn Indian Logistics Market $3,385 Bn Un-Organised Segment 90% Split 3% Water 8% TCI Express Carries $20 Bn 1% $25,463 Bn TCI Express Mark
Slide 26: 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 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 52 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 Educational Aid and Safety, Environment, and Empowerment Health Implemented diverse social Implemented accident prevention initiatives, including educational aid measures, abided by labor laws for for 1,500+ children, underprivileged fair wages, maintained ze
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 and Recognition
Awards and Recognition Awards Most Trusted Brand of India 2023 Awarded the prestigious title of the "Most Trusted Brand of India 2023" by Team Marksmen. This recognition reflects company’s commitment to providing reliable and secure pickup and delivery solutions to its customers across the country.
Slide 32: Awards and Recognition
Awards and Recognition Sustainable Awards Greatest Sustainable Brand and Leader 2023 In recognition our steadfast commitment to sustainability, TCI EXPRESS has proudly received the esteemed title of Sustainable Organization 2023 from the Economics Times This prestigious accolade acknowledges our ded
Slide 33: Awards and Recognition
Awards and Recognition Awards Asiaone Youth Icon of the Year 2022-2023 Iconic Brands of India 2023 Recognized as one of the ‘Iconic Brands of India 2023’ for its commitment to values, legacy, and sustainability. It signifies TCI Express as a symbol of excellence in the Indian express delivery indust
Slide 34: Awards and Recognition
Awards and Recognition Corporate Governance SORTING CENTER AWARDS Complementing India’s Sustainability Movement TCI Express Ltd. GIGA Sorting Centre in Tajnagar has received the GEM 5 Ranked 438 in Top 500 Credit Instruments rated by two Certification Companies based on Market leading Credit Rating
Slide 35: Capital Market Information
Capital Market Information Share Price Information, as on 29th Sept 2023 3,000 CAGR Return: TCI Express +24.4% S&P BSE Sensex +15.0% Key Facts 29th September2023 2,500 BSE / NSE Ticker 540212/ TCIEXP 2,000 CMP (Rs.) 1,448 Shares O/S (Cr) 3.83 1,500 Market Cap (Rs. Cr) 5,548 1,000 52 Week H/L (Rs.) 1
Slide 36: 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 37: 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 36 www.tciexpress.in