TCI Express Ltd financial results – Stable Top-line Growth with 22.3% PAT Growth in FY2020

Total Dividend of Rs. 4 per share and Payout of 17.2% for FY2020

TCI Express Ltd. (“TCI Express”), the market leader in the 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 Payout 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, a decline of 12.5%
• PAT Margin at 8.0% in Q4 FY2020 compared to 8.1% in Q4 FY2019

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 a 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, the 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 the 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 an official ground-breaking ceremony for two new sorting centers 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 centers to improve turnaround time and overall efficiency.