Tci Express Ltd. · NSE:TCIEXP
Tci Express — Q4 FY2023 Earnings Presentation
34 slides from Tci Express's earnings presentation, May 2023
Slide 1: Q4 & FY2023 Earnings Presentation
STABLE. SCALABLE. SUSTAINABLE. Q4 & FY2023 Earnings Presentation
Slide 2: FY2023 Highlights
FY2023 Highlights Total Income ▪ Record financial performance for the full 14.5% 33% year, with strong quarterly results driven Rs. 1,248 crore Y-o-Y by successful strategic initiatives and FY2023 ROCE operations excellency FY2022: Rs. 1,090 crore ▪ Maintained strong capital structure which allows u
Slide 3: Q4 FY2023 Highlights
Q4 FY2023 Highlights Strongest quarter on record, leading to highest ever quarterly revenue of Rs. 326 crores EBITDA of Rs. 56 crores, up by 18% and Net Profit of Rs. 38 cores, up by 20% on Q-o-Q basis Key Highlights Rs. 328 Cr Rs. 56 Cr ▪ Successfully closed the year with highest ever quarterly 9.2
Slide 4: Management Perspective
Management Perspective Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “FY2023 has been a year of growth acceleration for TCI Express. Despite macroeconomic challenges and inflationary trends across the industry, we take pride in consistently outperforming the industry w
Slide 5: Fastest Express Delivery Company in India
Fastest Express Delivery Company in India TCI Express has successfully completed 7 years post Year of Listing 2016 the demerger and has become industry leading and fastest delivery company in India Locations Serviced 60,000 Specialized in offering time definite solutions with focus on Tier II and II
Slide 6: Why TCI Express?
Why TCI Express? Ranked 438 in Top 500 Companies based on Market Cap, as on March 31, 2023 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 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 7 www.tciexpress.in
Slide 8: Financial Performance
Financial Performance Q4 Y-o-Y Q3 Q-o-Q Y-o-Y Particulars (in Cr) FY2023 FY2022 Growth (%) FY2023 Growth (%) FY2023 FY2022 Growth (%) Income from Operations 326.2 298.2 9.4% 314.4 3.8% 1,241.0 1,081.5 14.8% Other Income 1.7 2.1 1.3 7.2 8.2 Total Income 327.9 300.3 9.2% 315.7 3.9% 1,248.2 1,089.7 14.
Slide 9: Q4 FY2023 Performance Discussion
Q4 FY2023 Performance Discussion • Total Income for the quarter stood at Rs. 328 Crores, registering an increase of 9.2% y-o-y. This growth was driven by strong recovery in economic activities and growing demand from both Corporate and MSME customers • EBITDA margins remained stable: o Despite infla
Slide 10: Quarter Performance Trends
Quarter Performance Trends Improvements in financial performance and profitability by maintaining industry leading margin profile Total Income EBITDA and Margins 312 316 328 52 54 56 300 292 47 45 17.4% 17.2% 17.0% 15.3% 15.0% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q
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) Improving efficiency in working capital management Particulars (in Cr) Mar-21 Mar-22 Mar-23 Receivables Days Long Term Debt 1.0 0.2 0.0 Short Term Debt 0.9 0.8 0.7 61 Total Debt 2.0 1.0 0.7 48
Slide 12: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows The consistent increase in Cash Flow from operations indicates effective management of operational expenses 147 119 128 74 78 81 53 64 49 48 22 11 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Cash Flow from Operations Free Cash Flows • The company has strong
Slide 13: Balance Sheet
Balance Sheet Particulars (Rs Crores) FY2022 FY2023 Particulars (Rs Crores) FY2022 FY2023 Assets Equity and Liabilities Non-Current Assets EQUITY Equity Share Capital 7.7 7.7 Property, Plant and Equipment 314.7 343.9 Other Equity 528.5 588.7 Right of Use Assets 2.0 27.2 Total Equity 536.2 596.4 Capi
Slide 14: Strategy and Outlook
Strategy and Outlook Capital Expenditure TCI Express Offering ❑ Launch and expand Rail service offerings ❑ Planned CapEx of Rs. 500 crores in 5 years (FY23-FY28) ❑ Added new services such as Pharma Cold Chain and C2C ❑ In FY2023 incurred capex of Rs. 125 Crores express ❑ Remaining capex of Rs. 375 c
Slide 15: 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 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 2,200 and presence from 10 routes to 125 routes since inception ✓ TCI Express to buy space on the trains to ensure highe
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: Annual Performance Trend
Annual Performance Trend Strong track record of consistently driving higher margins and profitability Total Income from Operations EBITDA and Margins CAGR +7% CAGR +17% 1,248 202 1,090 183 1,027 1,036 887 852 142 122 126 93 17% 17% 16% 12% 12% 10% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2018 FY2
Slide 22: Key Ratios
Key Ratios Increased cash conversion cycle has improved operational efficiency and financial health Dividend per Share (Rs) & Payout (%) Return on Capital Employed (%) 8.0 8.0 44% 40% 38% 34% 36% 4.0 4.0 33% 3.0 24% 2.5 22% 17% 15% 16% 16% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2018 FY2019 FY20
Slide 23: 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 24: 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 25: 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 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 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 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 Corporate Governance Corporate Governance Award AWARDS SORTING CENTER Complementing India’s Sustainability Movement TCI Express Ltd. GIGA Sorting Centre in Tajnagar has received the GEM 5 Certification ASSOCHAM GEM Sustainable Warehouse and Logistics Hub Ranked 438 in Top 500
Slide 31: Awards and Recognition
Awards and Recognition Awards Conferred with the Supply Chain and Logistics Excellence (SCALE) awards for the best “Express Courier” 2022 by the prestigious Confederation of Indian Industry (CII) Launch of "Express Delivery Services” The Economic Times Most Promising Business Leader of Asia 2022-23
Slide 32: Capital Market Information
Capital Market Information Share Price Information, as on 25th May 2023 3,100 CAGR Return: TCI Express +26.1% S&P BSE Sensex +14.1% Key Facts 25th May 2023 2,600 BSE / NSE Ticker 540212/ TCIEXP 2,100 CMP (Rs.) 1,554 1,600 Shares O/S (Cr) 3.83 Market Cap (Rs. Cr) 5,954 1,100 52 Week H/L (Rs.) 2,010 /
Slide 33: 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 34: 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