Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q3 FY2024 Earnings Presentation
35 slides from Tci Express's earnings presentation, Feb 12, 2024
Slide 1: Exchange intimation under Regulation 30
Date: February 12, 2024 To, To, The Listing Department, The Listing Department, The National Stock Exchange of India Ltd., BSE Ltd., “Exchange Plaza”, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street Mumbai – 400051 Mumbai – 400001 Scrip Symbol: TCIEXP Scrip Code: 540212
Slide 2: Q3 and 9M FY2024 Earnings Presentation
Q3 and 9M FY2024 Earnings Presentation
Slide 3: Q3 FY2024 Highlights
Q3 FY2024 Highlights Maintained stable profitability and margins, outperforming the industry average and showcasing our resilience in higher capacity utilization and operational efficiencies Key Highlights Total Income EBITDA ▪ Despite continued headwinds on account of muted festive demand and long
Slide 4: Management Perspective
Management Perspective Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “In the face of continued headwinds on account of muted festive demand and long holiday season during the quarter, our commitment to operational excellence, along with a strong customer mix base, and
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 Branches Surface 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 Q3 Y-o-Y Q2 Q-o-Q 9M Y-o-Y Particulars (in Cr) FY2024 FY2023 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) Income from Operations 311.9 314.4 (0.8)% 320.0 (2.5)% 936.7 914.8 2.4% Other Income 2.0 1.3 1.8 5.2 5.5 Total Income 313.8 315.7 (0.6)% 321.8 (2.5)% 941.9 920 2.4
Slide 9: Q3 FY2024 Performance Discussion
Q3 FY2024 Performance Discussion • Total Income for the quarter stood at Rs. 314 Crores, registering a decrease of 0.6% Y-o-Y • EBITDA margins remained stable: : o Despite the economic headwind on account of muted festive demand due to long holiday season during the quarter, we were able to maintain
Slide 10: Quarter Performance Trends
Quarter Performance Trends Resilient financial performance and profitability by maintaining industry leading margin profile Total Income EBITDA and Margins 316 322 314 52 47 48 15.0% 16.2% 15.1% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 PBT and Margins PAT and Margins 47 43 42 32 36 32 13.5% 1
Slide 11: 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) Dec-22 Sep-23 Dec-23 Long Term Debt 0.0 0.0 0.0 Payables Days Short Term Debt 18.6 0.1 0.2 Total Debt 18.7 0.1 0.2 42 Less: Cash & Cash 3
Slide 12: 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 FY2023 incurred capex of Rs. 125 Crores 1 Well spread across industry verticals Capital ✓ The remaining capex of Rs. 375 crore wil
Slide 13: Strategic Priorities by 2025
Strategic Priorities by 2025 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 14: 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 15: 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 4,000 125 capacity utilization Customer Base Route Presence ✓ Independent team to manage this business offering Centralized and integrated express logistics ❑ Advantages sy
Slide 16: 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 17: 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 18: 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 19: 9M FY2024 Highlights
9M FY2024 Highlights Announced 2nd interim dividend of Rs. 3 per share in Q3 FY24, taking 9 months dividend to Rs. 6 per share representing a payout of 300 % on the face value for 9M FY2024 Total Income 2.4% 27.8% Rs. 942 crore Y-o-Y 9M FY2023: Rs. 920 crore 9M FY2024 ROCE EBITDA | Margins% 20.9% Rs
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 1,090 202 183 920 942 852 142 146 148 16.7% 16.8% 16.2% 15.8% 15.7% FY2021 FY2022 FY2023 9M FY23 9M FY24 FY2021 FY2022 FY2023 9M FY23 9M FY24 P
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 6.0 6.0 34% 36% 33% 31.6% 4.0 27.8% 24% 22% 23% 23% 15% FY2021 FY2022 FY2023 9M FY23 9M FY24 FY2021 FY2022 FY2023 9M FY23 9M FY24 Return on Equity
Slide 22: 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 147 128 119 81 75 64 49 48 50 22 FY2020 FY2021 FY2022 FY2023 9M FY24 Cash Flow from Operations Free Cash Flows • Cash flow from operations of Rs. 75 c
Slide 23: TCI Express – Leading Margins and Profitability in the Industry
TCI Express – Leading Margins and Profitability in the Industry EBITDA Margins % EBIT Margins % 14.2% 15.7% 9.8% 14.3% 6.9% 11.1% 6.5% 0.7% 0.6% 4.6% 3.5% nm TCI Express Peer 5 Peer 1 Peer 2 Peer 3 Peer 4 TCI Express Peer 1 Peer 5 Peer 3 Peer 4 Peer 2 PAT Margins % Key Highlights: ▪ Market Leader in
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: Awards and Recognition
Awards and Recognition Awards India's Top 500 Value Creator 2023 TCIEXPRESS has been named as India's Top 500 Value Creator 2023 by Dun & Bradstreet for outstanding business productivity, resilience, and commitment for sustainable practices, consistently delivering exceptional value for stakeholders
Slide 31: Awards and Recognition
Awards and Recognition Awards Iconic Brands of India 2023 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 ackn
Slide 32: Awards and Recognition
Awards and Recognition Corporate Governance SORTING CENTER AWARDS Complementing India’s Sustainability Movement TCI Express Ltd. GIGA Sorting Ranked 438 in Top 500 Credit Instruments rated by two Centre in Tajnagar has received the GEM 5 Companies based on Market leading Credit Rating Agencies Certi
Slide 33: Capital Market Information
Capital Market Information Share Price Information, as on 29th Dec 2023 3,000 CAGR Return: TCI Express +21.5% S&P BSE Sensex +15.4% Key Facts 29th December 2023 2,600 BSE / NSE Ticker 540212/ TCIEXP 2,200 CMP (Rs.) 1,374 1,800 Shares O/S (Cr) 3.83 1,400 Market Cap (Rs. Cr) 5,263 1,000 52 Week H/L (R
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