TCI Express Ltd. share price target

TCI Express’ (TCIE) Q4FY23 EBITDA performance surpassed our estimates by ~12.7% primarily on higher volumes and better capacity utilisation leading to higher margins. Key points: 1) Truck utilisation improved to ~85% in Q4FY23 vs average of 84.25% in FY23; 2) EBITDA margin expanded by 190bps QoQ to 16.6% (vs 16.8% in Q4FY22 and 14.7% in Q3FY23).

TCI Express’ (TCIE) Q3FY23 performance undershot our estimates by 13% primarily on higher cost though revenue was in line. Key points: 1) Weaker-than-expected festive season led to lower utilisation levels; 2) EBITDA margin was down 196bps QoQ to 14.7%- at a similar level as Q1FY23 owing to higher other expenses.

We met the CFO of TCI Express (TCIE), Mr. Mukti Lal (on Dec 20th, 2022), to understand the company’s future prospects and expansion plans.

TCI Express (TCIE) posted its all-time high quarterly revenues at Rs3.1bn (up 13% YoY) primarily on better volumes.