TCI Express Ltd reports stable top-line growth with 22.3% PAT Growth in FY2020, declares of Rs. 4 per share.

Myequity news | Date : 08-05-2020 19:30:00 IST

TCI Express Ltd. (“TCI Express”), market leader in express distribution in India, today announced its financial results for the quarter and fiscal year ended on March 31, 2020. 

Performance Highlights: FY2020 vs. FY2019 

  • Revenue from operations of Rs. 1,032 Crores in FY2020 from Rs. 1,024 Crores in FY2019, growth of 0.8% 
  • EBITDA of Rs. 126 Crores in FY2020 from Rs. 122 Crores in FY2019, growth of 2.9% 
  • EBITDA margin at 12.1% in FY2020 compared to 11.9% in FY2019 
  • PAT of Rs. 89 Crores in FY2020 from Rs. 73 Crores in FY2019, growth of 22.3% 
  • PAT Margin at 8.6% in FY2020 compared to 7.1% in FY2019 
  • Total Dividend of Rs. 4 per share and Pay out of 17.2% for FY2020 

Performance Highlights: Q4 FY2020 vs. Q4 FY2019 

  • Revenue from operations of Rs. 238 Crores in Q4 FY2020 from Rs.266 Crores in Q4 FY2019, decline of 10.5% 
  • EBITDA of Rs. 28 Crores in Q4 FY2020 from Rs. 35 Crores in Q4 FY2019, decline of 20.4% 
  • EBITDA margin at 11.7% in Q4 FY2020 compared to 13.1% in Q4 FY2019 
  • PAT of Rs. 19 Crores in Q4 FY2020 from Rs. 22 Crores in Q4 FY2019, decline of 12.5% 
  • PAT Margin at 8.0% in Q4 FY2020 compared to 8.1% in Q4 FY2019 

Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “I am happy to report an encouraging performance during FY2020 despite a very challenging economic and business environment. Revenue from operations increased marginally to Rs. 1,032 crores, as our business was impacted during March 2020 due to the outbreak of COVID-19. We delivered EBITDA of Rs. 126 crores with stable margins at 12%. Profit after tax of Rs. 89 crores in FY2020 represented an increase of 22% on Y-o-Y basis. Our stable margin profile is attributable to higher capacity utilization, operational efficiency and efficient working capital management. The momentum that we had gained during FY2020 was lost in March 2020 with the unfortunate outbreak of coronavirus. The closure of factories and offices along with the inter-state movement has clearly impacted the transportation and logistics sector. Although the nationwide lockdown brought businesses to a halt and disrupted the economy, we stand in full support with the decisions taken by the government. During this time, health and safety of fellow Indians is utmost important. 

Amidst this pandemic, we have put the well-being of our employees, customers, vendors and all other stakeholders as our top priority. We have been strictly following health and safety guidelines issued by the government. We have implemented various preventive measures such as work from home, promotion of digital communication mediums, sanitization and social distancing at workplace, employee screening at regular intervals and are extending full support to vendor partners. 

During the year, TCI Express has added 70 new branches to penetrate deeper in selected geographies. We also held official ground-breaking ceremony for two new sorting centres in Gurgaon and Pune. These new centers are established in line with our strategic objectives of augmenting the Company’s growth, achieving higher utilization and delivering higher operational reliability. We are expecting to commence commercial operations from the third quarter of fiscal year FY2021. During FY2020, we have incurred a capex of Rs. 32 crores and our focus remain on increasing automation at our sorting centres to improve turnaround time and overall efficiency.

I am also proud to report that TCI Express has been recognized as a ‘Great Place to Work’ by Great Place to Work Institute Inc. We are humbled and honored with the achievement. It is a testimony of our strong human resource principles and re-affirm our focus of maintaining a culture that values entrepreneurial spirit, diversity, innovation and teamwork.

The Company is closely monitoring the impact of this pandemic on the economy and business. The actual impact on the business will depend on the severity and course of the COVID-19 in the near term and we shall have a better clarity in the coming days once lockdown is lifted.

I would like to highlight we have recently started collaborating on various projects to deliver health equipment such as ventilators and medicines as part of essential services. The upcoming quarter looks challenging due to the ongoing lockdown. However, our asset light model coupled with a strong balance sheet will not only allow us to navigate through these unprecedented times but also emerge stronger. We are confident that we will remain the preferred partner of choice for offering time definite services to our clients.”

About TCI Express:
TCI Express is India’s leading time-definite express distributor, based on its unparalleled experience and deep domain-expertise that enables it to offer customized solutions to express delivery. The company has been growing rapidly and expanding its distribution network locally, with its current 800 offices covering more than 40,000 locations. TCl Express is well-equipped to offer time-definite solutions to 704 out of 712 districts in India with its wide spectrum of services comprising surface, domestic and international air, e-commerce, priority, and reverse express services. The company has special expertise in enabling solutions for clients in sectors like consumer electronics, retail, apparel &, lifestyle, automobile, pharmaceuticals, engineering, ecommerce, energy/power, and telecommunications. With a proven commitment to excellence and the pursuit of value-based policies to satisfy the aspirations of customers, vendors, employees, shareholders, and all other stakeholders in the express delivery industry, TCl Express has emerged as a frontrunner in a segment that is here to grow in the long-term.

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