Conference Call with TCI Express Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.
Logistics company TCI Express announced Q2FY23 results: H1FY23 vs. H1FY22: Revenue from operations of Rs. 600 crore, growth of 20.9% YoY EBITDA of Rs. 98 crore compared to Rs. 81 crore in H1FY22 EBITDA Margin remains strong at 16.3% PAT of Rs. 69 crore compared to Rs. 58 Core in H1FY22 PAT Margin at 11.4% compared to 11.6% in H1FY21 Q2FY22 vs. Q2FY21: Revenue from operations of Rs. 310 crore, 13.3% of YoY growth EBITDA of Rs. 54 crore compared to Rs. 48 crore in Q2FY22 EBITDA margin at 17.2 % compared to 17.3% in Q2FY22 PAT of Rs. 38 crore compared to Rs. 34 Cores in Q2FY22 PAT Margin at 12.1% compared to 12.3% in Q2FY22 Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “Q2 FY2022 started on a positive note with strong economic and business activities. The recovery trend was visible in many internal & external economic indicators and parameters. During the quarter, we saw an overall improvement in the output for the month of July with a marginal decline in August primarily due to a decline in the manufacturing and mining sector. The E-Way bills generation, a key parameter that measures the performance of the logistics sector, grew by 152% over the pre-Covid period (October 2019-February 2020) in September reaching 7.6 crore. As regards the financial performance of the quarter, TCI Express, being the market leader in express logistics, delivered the highest quarterly revenue of Rs. 312 crores, registering a growth of 13.2% YoY and 6.8% on a sequential basis, primarily driven by growing SME customers, higher volume across the services. Automation of the sorting centres substantially increases the daily capacity by reducing parcel handling time, vehicle halting time and labour involvement resulting enhancement of overall operational efficiency and strong sustainable margin. EBITDA for the quarter was Rs. 54 crores with a strong margin of 17.2% as compared to 15.3% in the preceding quarter. The EBITDA and margins growth was primarily on account of higher capacity utilization and operational efficiencies. Our Profit after Tax stood at 38 crore with a margin of 12.1% compared to a margin of 10.6% in Q1 FY23. In view of our strong performance in the first half of the year, I am pleased to announce that the Board of Directors has recommended an interim dividend of Rs. 3 per share with a pay-out of 150% on the face value. On the investment side, during the first half of the year, we have incurred a total Capex of Rs.50 crores primarily invested for land purchase in Kolkata for setting up an automated sorting centre and network expansion by adding 22 new branches to serve a growing market. The ongoing automation and digitization will enable us to be much more efficient in delivering superior customer experiences and enhance operational efficiencies in the long run which enable us to deliver industry-leading performance. Our newly launched services are going from strength to strength. We expect the service offerings to contribute productively to the top line in the forthcoming quarters enabling us to deliver higher margin levels. Looking ahead, the logistics industry remains poised to grow strong as the growth of the sector is fully aligned with India’s economic growth potential. The recently launched ‘PM Gati Shakti National Master Plan’ by our Prime Minister for multimodal infrastructure connectivity to economic zones will get a further boost with the launch of the National Logistics Policy. The policy will help significantly in terms of transportation, warehousing, and inventory management by creating a roadmap for enabling a seamless, integrated, reliable, and green logistics network, to usher in a greater degree of competitiveness in the market. This will pave way for putting the Indian logistics industry on par with the international players. With a major policy push by the government and aided by strong economic recovery, we remain confident in our ability to provide high-quality, reliable, time-critical services. We would thus be leveraging on the growing opportunities to drive value for our shareholders and deliver sustainable growth.” Result PDF