TCI Express registers 36.4% profit increase in Q3 FY2020

January 29, 2020: TCI Express, the Indian express distributor, announced its financial results with 36.4 percent profit growth for the quarter ended on December 31, 2019, compared to the same period last year.

“We are hopeful that the government in its upcoming budget will introduce major stimulus package to revive manufacturing, address low consumer demand and support MSME’s to improve overall business confidence,” says the release.

Performance highlights: Q3 FY2020 vs Q3 FY2019

• Revenue from operations of Rs 268 crore in Q3 FY2020 from Rs 263 crore in Q3 FY2019, growth of 2.0 percent.

• EBITDA of Rs 35 crore in Q3 FY2020 from Rs 32 crore in Q3 FY2019, growth of 11.2 percent.

• EBITDA margin at 13.1 percent in Q3 FY2020 compared to 12.0% in Q3 FY2019.

• PAT of Rs 26 Crores in Q3 FY2020 from Rs. 19 Crores in Q3 FY2019, growth of 36.4%

• PAT Margin at 9.5 percent in Q3 FY2020 compared to 7.1 percent in Q3 FY2019

• Board recommended second interim Dividend of Rs 1.5 per share

• Total Dividend of Rs. 3 per share and Pay out of 16.4 percent for 9M FY2020

Chander Agarwal, managing director, TCI Express said “I am pleased to report that TCI Express has delivered a resilient performance in the quarter despite a weak macroeconomic environment impacting major sectors of the economy. Revenue from operations was Rs 268 crore in Q3 FY2020, an increase of 2.0 percent on y-o-y basis compared to Q3 FY2019. The company delivered an EBITDA of Rs 35 crore, growth of 11.2 percent and margins expanded by 107 bps to 13.1 percent during the same period. Profit after tax was Rs 26 crore in Q3 FY2020, representing an increase of 36.4 percent on y-o-y basis, with margins of 9.5%. The revenue growth was driven primarily by an increase in Small and Medium Enterprises (SME) customers. The margin improvement is a result of operational efficiency initiatives and better working capital management.”

“We continue to expand our geographical presence and opened 10 new branches in the quarter. The objective is to increase penetration in metro cities and acquire SME customers. During the quarter, we implemented various initiatives to improve operational efficiency which resulted in higher capacity utilization and operational cost reduction. Construction of new sorting centre at Gurgaon was on halt due to NGT order but now the construction is back on track and we expect both of our new sorting centres to commence commercial operations from the second quarter of next fiscal year,” says the release.

“We continue to pursue our long-term growth strategy, staying firmly focused on our unique value proposition, driving operational efficiency, consolidating partnership arrangement with Vendors and growing our SME client base to deliver robust growth in the coming quarters,” the release continued.