TCI Express (TCIEXP) Q4 17/18 earnings summary

Executive summary

• FY2017-18 delivered 18.03% revenue growth, with stronger operating leverage lifting EBITDA 46.56% and net profit 55.71% YoY.

• Network expanded to 650+ branches, 28 sorting centres and 704 of India’s 712 districts; almost 100 branches were commissioned during the year.

Financial highlights

• Total income rose 18.03% to ₹887.16 crore in FY2017-18 from ₹751.63 crore; revenue from operations was ₹885.08 crore.

• EBITDA increased 46.56% to ₹92.73 crore from ₹63.26 crore; EBITDA margin rose to 10.45% from 8.42%.

• Profit after tax increased 55.76% to ₹58.40 crore from ₹37.49 crore; basic EPS was ₹15.25 versus ₹9.79.

• Operating cash flow was ₹73.87 crore; investing cash outflow was ₹62.85 crore, primarily reflecting property, plant and equipment purchases.

Outlook and guidance

• A ₹400 crore five-year expansion programme targets roughly 10 additional owned sorting centres, doubled sorting capacity and upgraded equipment and technology.

• Management targeted doubling revenue in four years, supported by the planned capacity expansion and investment.

• Management expected logistics-sector growth at twice national GDP growth and anticipated continued demand from infrastructure, manufacturing and express cargo customers.

• FY2018-19 priorities include customer additions, broader pan-India reach, shorter parcel turnaround times and higher sorting capacity; B2C expansion would prioritize profitable propositions.