TCI Express Ltd. Earnings Call Summary (Q4 and FY24)
Earnings Call Overview
• Date: May 17, 2024
• Submitted transcript to National Stock Exchange of India and BSE Ltd.
• Moderated by Navin Agrawal from SKP Securities.
• Key executives present: Managing Director Chander Agarwal.
Financial Highlights
• Total Income: Rs. 320 crores for Q4; Rs. 1,261 crores for FY24 (1% increase).
• EBITDA: Rs. 47 crores for Q4.
• Dividend: Recommended final dividend of Rs. 2 per share, totaling Rs. 8 for FY24 (400% payout).
• Volume: Q4 tonnage of 258,000 tons (2% decline); total of one million tons for FY24.
Business Developments
• Increased customer interest in rail express services.
• Automation advancements at Pune Sorting Centre.
• Sustainability commitment: Gold LEED rating for Chakan sorting facility.
• Plans for technology investment and branch network expansion.
Strategic Direction
• Aim to capture a larger share of the multi-modal services market by 2030.
• Planned capital expenditure of Rs. 500 crores over five years.
• Focus on sustainability and ESG initiatives; first ESG report to be released soon.
Challenges and Market Outlook
• Projected growth of 10-12% for FY25, with stable or slightly improved margins.
• Challenges in consumer demand and inventory levels noted.
• Caution expressed regarding lifestyle and textile sectors; potential in engineering goods and pharmaceuticals.
Pricing and Revenue Strategy
• Gross margin maintained at 32% despite low volumes.
• Pricing strategy includes a price hike clause; minimal price reductions.
• Focus on B2B clients (97% of volumes) while avoiding low-margin B2C market.
Operational Metrics
• Capacity utilization around 83.5% for the quarter.
• Transportation of 258,000 tons in Q4.
• Cost per ton approximately Rs. 8.5, with a goal of achieving 20% margins through sustained volume growth.
Closing Remarks
• Participants encouraged to reach out for further inquiries.
• Management expressed gratitude for attendance and engagement.
• Contact information for key personnel provided for follow-up.

TCI Express Q3 FY24 Earnings Conference Call Summary
Compliance and Key Executives
• TCI Express Ltd. submitted Q3 FY24 earnings transcript to National Stock Exchange and BSE.
• Key executives included Managing Director Chander Agarwal and CFO Mukti Lal.
Financial Performance
• Q3 Revenue: Rs. 312 crores (slight decline from previous quarter).
• Nine-Month Revenue: Rs. 937 crores (year-on-year increase).
• Volume: 2.5 lakh tonnes for the quarter; 7.42 lakh tonnes for nine months.
• Capital Expenditure: Rs. 125 crores for FY23; Rs. 40 crores planned for the current year; Rs. 335 crores allocated for next three years.
• EBITDA Margin: Current margins around 15.5%, improved by 10 basis points year-over-year.
Strategic Focus
• Emphasis on strategic growth, cash flow maintenance, and technology investment.
• Anticipated low single-digit volume growth for Q4; projected 3%-4% increase for the year; 11%-13% growth expected next year.
• Focus on service quality over pricing in a competitive landscape.
Shareholder Concerns
• Concerns raised about stagnant bottom line (Rs. 30-36 crores since December FY 2020).
• Acknowledgment of stagnation but emphasis on consistent performance compared to competitors.
Growth and Expansion
• 85% of business from West, South, and North zones; Eastern zone contributes 15%.
• Importance of owned branch network for SME business and fleet utilization.
Credit and Competitive Edge
• Short-term credit provided to about 30% of key accounts.
• Experience and knowledge cited as key differentiators in the market.
Logistics and Automation
• Need for reduction in unorganized segment for growth and profitability.
• Focus on automation in sorting centers rather than investing in trucks.
Future Plans
• New services expected to contribute slightly higher than 20% margin.
• Future automation plans include hubs in Ahmedabad, Chennai, and Mumbai.
Fleet and Utilization
• Average truck size in mid-mile segment: 15-16 tonnes; approximately 2,000 trucks at 83.5% utilization.
• Long-term payback period for new automated sortation centers projected at six to seven years.
Conclusion
• Commitment to shareholders and customers reaffirmed despite challenging quarter.

TCI Express Ltd. Q2 FY2024 Earnings Conference Call Summary
Earnings Performance
• Date of Call: October 18, 2023
• Revenue: Rs. 320 crores for Q2
• 5% sequential growth
• 3% year-on-year increase
• EBITDA: Rs. 52 crores (16.2% margin)
• Profit After Tax: Rs. 36 crores
• Interim Dividend: Rs. 3 per share
• Future Outlook: Optimism for increased demand and financial performance
Management Insights
• Key Personnel:
• Managing Director: Chander Agarwal
• CFO: Mukti Lal
• Focus Areas:
• Growth in Non-Surface Express segment (targeting 25% of business in 2 years)
• Capital expenditure plans: Rs. 80 crores this year, Rs. 100 crores next year
• Addition of 10-12 new branches and a new COO for expansion
Sector Contributions
• Revenue Distribution:
• Pharma and Auto: 17-18% of revenue
• Garments and lifestyle: double-digit contributions
• Customer Demand: Strong demand from existing customers, particularly in garments and lifestyle sectors
Growth Challenges and Strategies
• Economic Factors: Stagnant growth attributed to cyclical economic nature post-COVID
• Utilization Rates: Increased to around 84%
• Price Hikes: Target of 2% for the year
• Competitive Landscape: Normal competitive intensity, no significant market changes
Customer Selection and Sector Focus
• Selective Operations: Avoiding low-margin sectors to ensure shareholder returns
• Criteria for Customers: Compliance with government policies and financial stability
• Geographic Expansion: Engaging consulting firms for strategic growth
Conclusion
• Final Remarks: Management expressed confidence in long-term strategies and invited further inquiries through the Investor Relations team.

TCI Express Q4 FY23 Earnings Conference Call Summary
Earnings Highlights
• Date of Call: May 29, 2023
• Record Revenue: Rs. 328 crores for Q4, 9% YoY increase
• Net Profit: Rs. 38 crores, 20% growth
• Total Income for FY23: Rs. 1,248 crores, 14.5% increase
• Dividend Recommended: Rs. 2 per share
Strategic Expansions
• New Branches: 35 added, with plans for 50-75 more in FY24
• Investments in Automation: Expected to enhance operational efficiency and profitability
• Railway Segment Growth: Rapidly growing, targeting over 5% revenue contribution by FY25
Growth Outlook for FY24
• Revenue Growth Projection: 15-16% with a target EBITDA margin of 17.5%
• Price Hike: Planned 2% increase to support margin expansion
• Operational Efficiency: Automation expected to improve margins over time
Customer Strategy
• Customer Base: 50-60% growth from existing customers, remainder from new additions
• Customer Retention: Long-standing relationships with SMEs aiding acceptance of price hikes
• Diverse Revenue Sources: No single customer contributes more than 1.5% to total revenue
Future Plans
• New Automated Sorting Centers: 7-8 operational by FY26, with capex of Rs. 45-60 crores each
• Operationalization Time Reduction: From one year to 8-9 months
• Focus on Sectoral Growth: Particularly in pharma and new industries
Competitive Landscape
• Margin Expansion: Not hindered by competitive intensity, influenced by economic conditions
• Customer Acquisition in Rail Segment: Strategy to attract air freight customers with lower costs
Conclusion
• Optimism for FY24: Continued growth anticipated, with a focus on profitability and customer satisfaction.

TCI Express Q3 FY23 Earnings Conference Call Summary
Overview
• Date: February 7, 2023
• Compliance: Submitted transcript to National Stock Exchange of India and BSE Ltd.
• Host: ICICI Securities
• Key Management:
• Chander Agarwal (Managing Director)
• Mukti Lal (CFO)
• Pabitra Panda (COO)
Financial Highlights
• Record Revenue: Rs. 316 crores (9% YoY increase)
• EBITDA: Rs. 47 crores
• Profit After Tax: Rs. 32 crores
• Interim Dividend: Rs. 3 per share
• Share Buyback: 182,500 shares
• Volume: 730,000 tons (up from 630,000 tons YoY)
Strategic Initiatives
• Investments in automation and expansion
• Added 28 new branches; target of 50 new branches
• Focus on long-term strategies, including automation of sorting centers
Market Insights
• Margins affected by cyclical economic conditions, not acquisitions
• Diwali holiday period impacted business performance
• Competitive landscape: Limited competition in SME sector
Growth Projections
• Revenue target: Rs. 2,000 crores by FY25
• Expected growth driven by tonnage and efficiency improvements
• Revenue growth guidance revised to 16-17% for FY23
Operational Challenges
• Current utilization levels dropped to 83% (from 85%)
• Administrative and advertising expenses increased but below pre-COVID levels
• No significant price hikes due to inflation and sluggish demand
Future Outlook
• Expected normalization of gross profit margins to 30-33%
• Revenue guidance for FY25: Rs. 1,900 crores with a target EBITDA margin of 20%
• Plans for international expansion without entering low-margin businesses
Conclusion
• Management expressed optimism about growth potential in the logistics sector amidst ongoing economic transformation.