Gurugram, July, 2019.
TCI Express Ltd. (“TCI Express”), market leader in express distribution in India, today announced its financial results for the quarter ended on June 30, 2019.
Commenting on the performance, Mr. Chander Agarwal, Managing Director, said, “I am pleased to report that despite a subdued economic environment, TCI Express has delivered a resilient performance. During Q1 FY2020, Revenue from operations increased by 3.5% to Rs. 256 crores compared to Q1 FY2019. The Company delivered an EBITDA of Rs. 29.6 crores and margins expanded by 67 bps to 11.6% during the same period. Profit after tax of Rs. 18.4 crores in Q1 FY2020, represented an increase of 14.2 % on Y-o-Y basis. The revenue growth was driven by an increase in customers from the Small and Medium Enterprises (SME) sector. The margin improvement was attributable to operational efficiency and better working capital management.
In line with our long-term strategic objective, we are investing in our sorting centers. Approval for Pune and Gurgaon sorting centers are in place, the construction is expected to be completed by the end of the fiscal year and operations will commence from the beginning of FY2021. We have incurred capex of Rs. 2 crores during the quarter and reduce our target to Rs. 60 crores from earlier Rs. 80 crores for the full year. The capex will be incurred primarily for automation at our sorting center and will result in improving turnaround time, overall efficiency, enhanced profitability in the long run. The Company continues to strengthen its balance sheet and has repaid its entire debt. As a debt free entity, we will continue to generate superior returns for our shareholders with an optimum capital structure.
FY2020 started on a mixed note with major economic indicators remaining muted for the quarter. However, with the return of stable government at the center and specific policy initiatives for the logistics industry, we anticipate the industry to benefit from the economic revival post-election and budget. TCI Express continues to benefit from its diversified client base of SMEs and Corporates, strong partnership arrangement with Vendors and use of advanced business intelligence tools. We will continue to leverage our position to utilize and grow on the back of upcoming opportunities with our asset light model, customized solution offerings and superior customer support services.
The Company continues to move on its strategic path through its differentiated offerings and with the onset of festive season we look forward to deliver robust growth in the coming quarters.”