- 01 Nov 2022
- ICICIdirect Research
TCI EXPRESS REPORTS IMPROVED OPERATIONAL PERFORMANCE
TCIEXP - 790 Change: -21.40 (-2.64 %)News:
The company delivered highest ever quarterly revenues, which grew 13% YoY to Rs 310 crore (I-direct estimate: Rs 311 crore), driven by increased SME customers and higher volume across services. The tonnage for the quarter grew 12.3% YoY to 2,47,000 tonnes. EBITDA margins remained flattish YoY at 16.6% (Q1FY23: 14.7%) but was higher than I-direct estimate of 15% mainly due tohigher operational efficiencies. The company has been able to improve its capacity utilisation by 50 bps QoQ to 85%. Absolute EBITDA grew 14% YoY to Rs 51 crore (QoQ increase of 20%) and came above I-direct estimate of Rs 47 crore. Consequently, PAT grew 11% YoY to Rs 37.8 crore (QoQ increase of 22%) and above I-direct estimate of Rs 34 crore.To further expand its presence among the SME customers, TCIEL has added 22 new branches during H1FY23 and the company is targeting opening around 50 more branches during H2FY23. The company has also incurred a capex of Rs50 crore primarily towards the land purchase in Kolkata for setting up automated sorting centre. The company’s newly launched services have received a good response and expected to add to the revenues and generate better margins. The company has announced interim dividend of Rs 3 per share (payout of 150% on the face value of Rs 2 per share)
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TCIEL continues to target revenue growth of 18-20% annually with margin in range of 17-19% over next two years. The company has launched several new value added services like Pharma Cold Chain and C2C express and is also planning to expand its Rail service offerings which should aid the revenue growth. The company is also enhancing its Automation and technological capabilities and investing in sorting centres which would aid in improving the operational efficiency and improving the margin profile for the company
Impact:
Positive