TCI Express (TCIEXP) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a 3.6% year-over-year decline in total income to Rs. 295 Cr, with EBITDA margin at 12.1% and PAT margin at 7.8%, impacted by market fluctuations, high interest rates, inflation, and temporary volume declines due to general elections and adverse weather.

• Volumes were temporarily impacted by general elections, inflation, higher labor costs, and elevated interest rates, especially affecting SME customers.

• Strategic initiatives included automation at the Pune sorting center, launch of a Money Back Guarantee scheme, and expansion of multimodal and rail express services.

• The company remains optimistic about stabilization and growth in coming quarters, focusing on multimodal business, automation, and evolving logistics demand.

• Independent auditors reviewed both standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, in accordance with SEBI regulations and Indian Accounting Standards, finding no material misstatements or non-disclosures.

Financial highlights

• Total income for Q1 FY2025 was Rs. 295.3 Cr, down 3.6% year-over-year and 7.5% sequentially.

• EBITDA for Q1 FY2025 was Rs. 35.8 Cr (12.1% margin), down 25.2% year-over-year; PAT for Q1 FY2025 was Rs. 23.1 Cr (7.8% margin), down 28.5% year-over-year.

• Operating cash flow for the quarter was INR 11 crore.

• The company remains debt-free as of June 30, 2024, with Net Debt/Equity at (0.15x).

• FY2024 total income was Rs. 1,261 Cr, EBITDA Rs. 194 Cr (15.4% margin), and PAT Rs. 132 Cr (10.4% margin).

Outlook and guidance

• Management expects margins to normalize to 14%+ from Q2 onwards, with double-digit volume growth targeted for FY25 and 12%-15% for FY26.

• Anticipates improved volumes in the pre-festive season and continued growth in the second half of the year.

• Multimodal business targeted to contribute 20-22% of total revenue in 2-3 years.

• Planned capex of Rs. 500 Cr over FY23-FY27, with Rs. 329 Cr to be spent in FY25-FY27 on automation and network expansion.

• New services (Rail, C2C, Pharma Cold Chain, Air Express) expected to contribute one-fourth of top-line by 2030.