Transportation & Logistics company TCI Express announced Q2FY25 results Financial Highlights: Total Income for the quarter stood at Rs 313.9 crore, registering an increase of 6.3%, if compared with Q1FY25 and a decrease of 2.4% YoY. Sustaining margins: EBITDA and PAT margins demonstrated an upward trend, having increased since the previous quarter. The contribution to revenue from extended services, particularly from rail express, has been steadily increasing. Capital expenditure of Rs 10.62 crore in Q2FY25 for expansion of our branch network, construction of sorting centers and ramping up our IT infrastructure. Other Highlights: Multimodal express services continues to diversify its service offerings, with plans to increase their revenue contribution to 20-22% over the next 2-3 years, thereby enhancing competitiveness. Persistent inflation led to higher transportation costs and compressing margins. Heavy monsoon conditions resulted in water logging, causing longer delivery lead times and operational setbacks. Lower demand especially in production-dependent sectors such as Automobile, Textile contributed to softer revenues and reduced profit margins. Significant strides were made in automation, with sorting centers in Gurugram and Pune demonstrating improved efficiency. The extension of these enhancements to Ahmedabad and Kolkata is planned to further boost performance. SME performance showed slight improvement, but the overall impact remained limited due to broader economic challenges from high inflation, rising labor costs and elevated interest rates. The company anticipates a demand recovery with the upcoming festive season, supported by ongoing customer-centric approaches and strategic growth initiatives Chander Agarwal, Managing Director, TCI Express ,said: “TCIEXPRESS, showing modest improvement in revenues and maintained its margins sequentially in Q2FY25, reflecting the company's efficient operational strategies, innovative service offerings and market adaptability, strengthening its position as India’s most trusted and fastest-growing express delivery company. However, year-on-year revenue saw a slight dip due to certain factors, including prolonged monsoon rains led to waterlogging and flooding, causing supply chain disruptions and delivery delays. Additionally, lower activity in manufacturing and automotive sectors, coupled with geopolitical tensions, softened logistics demand. We continue to adapt and take proactive steps to mitigate these factors. Amidst these challenges, TCI Express remains focused on driving operational efficiencies and positioning the company for long-term growth. We have made significant strides in automation, with our sorting centres in Gurugram and Pune already demonstrating improved operational efficiency. We are now planning to extend this initiative to our upcoming facilities in Ahmedabad and Kolkata. With a focus on expanding its network, the company has successfully launched three new branches to enhance accessibility and market reach. Additionally, our multimodal express services having both rail and air solutions as major contributors, continue to grow and we aim to increase their contribution to 20-22% of total revenue over the next 2-3 years, further strengthening our service offerings and competitive position. We are pleased to announce our first interim dividend of Rs 3.00 per share for FY25, reflecting our dedication to delivering value to our shareholders. This demonstrates our ongoing commitment to rewarding investor confidence while maintaining a focus on sustainable growth and profitability. CSR continues to be a core focus at TCI Express, resulting in the formation of the CSR arm ‘TCIEXPRESS Foundation’. We recently inaugurated our first Jaipur Foot and Rehabilitation Centre in Lucknow, aimed at improving the lives of physically challenged individuals (Divyang) across the region. This initiative, in collaboration with TCI foundation provides free artificial limbs, crutches, and calipers to those in need. The centre has already served ~100 individuals. Additionally, the foundation organized the Shri P.D. Agarwal Blood Donation Drive 2024, with 1,334 participants nationwide. We are proud to have received the Iconic Brand of India 2024 award and the Rajasthan Business Award for Best in Logistics. Looking ahead, we anticipate a recovery in demand with the upcoming festive season. TCI Express remains steadfast in its commitment to leveraging its strengths, seizing growth opportunities, and maintaining a customer-centric approach. Our strategic initiatives and robust fundamentals will continue to propel us towards sustained growth and enable us to deliver superior value to our customers.” Result PDF