Transport Corporation of India Limited has informed the Exchange about Investor Presentation
19th May, 2023
The National Stock Exchange of India Ltd., The Listing Department, “Exchange Plaza”, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
Scrip Symbol: TCI
Dear Sir/Madam,
BSE Ltd. The Department of Corporate Services, Phiroz Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001
Scrip Code: 532349
Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sir/Madam,
In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the Investors’ Presentation for the Q4/FY 2022-23.
This is for your information and necessary records.
Thanking you,
Yours Faithfully,
For Transport Corporation of India Limited
Archana Pandey Company Secretary & Compliance Officer
Encl: a/a
TCI Consolidated Overview
TCI
Freight Div.
Supply Chain Div.
Seaways
Div.
TCI CONCOR
TCI Cold Chain
TCI Bangladesh
Transystem Logistics
6+
$500+
1800+
Decades of Experience
In Millions
Revenue
Train movement
*per month
650+
160 Refer Vehicles+ 13K+
8K+
ISO Containers
Cold Pallets positions
GP Containers
3.5K+
1K+
10K
Employees Strength
IT Enabled Own Offices
Trucks in Operations
TCI Nepal
06
Standalone SBUs
Subsidiaries /JVs
Coastal Ships
14
Mn sq. ft.
Warehouse Space
2.5%
Moving India’s GDP by Value
Everything Logistics | 2
Logistics industry Growth drivers
Consumer Driven
Customer Driven
Industry Driven
• Growth of omni channel retail prompting supply chain changes
• High Degree of Urbanization
• Product loyalty diminishing & putting pressure on supply chains
• Focus on core area of business leading to increased outsourcing
• Adoption of tech
• Increased Demand for bespoke and customized solutions
• Shift towards
alternative modes of transportation: Multimodal green logistics
• Large market
market opportunity
• Shift in global
supply chains due to China+1 strategy
• National Logistics
Policy giving positive direction (Modal mix change, Digitization, Standardization)
Regulatory & Government Initiatives
• Infrastructure push PM Gati Shakti, Bharat Mala, Sagar Mala, MMLP, DFC
• Boost to domestic supply chain, PLI, Atmanirbhar Bharat
• GST, E-way bill, ULIP and E- invoicing driven governance push and formalization
Everything Logistics | 3
Company Strategy : Everything Logistics
Presence Across All Industry Sectors
Wide Range Of Services
Technology & Automation Driven Operations
Key USPs
Strong Multimodal Capabilities & Network
Unique Positioning To Incubate High Growth Segments
Everything Logistics | 4
Wide Range of Customized Services
LTL/FTL • • Warehousing Port Logistics • Freight Forwarding • • Coastal Shipping • Domestic Rail: Container & Auto
movement
International Country Operations
• CHA • • ODC/PHH • • • Reefer Storage • Reefer TPT
Liquid & Gas Bulk Logistics In/Outbound Logistics
s e c i v r e S /
s t c u d o r P
Unlock Business Potential
d e s i
m o t s u C
n o i t u o S
l
3PL / 4PL • End-to-End Supply Chain Solution • Integrated Multimodal Solution • • Control Tower and Consultancy
Verticals Served/ Products
• Automobiles
• E-Commerce
• Retail and CP
• Hi-tech (ICE)
• Healthcare/
Lifesciences
• Chemicals
• Industrial &
Engineering
• Agri
• Energy & Renewables
• Aviation & Defense
Benefits For Customers
• Single Window Solution
• Operational Cost Efficiencies
• Trusted Delivery & Fulfillment
• Economies of Scale
• Cold Chain
• SAARC+ CHA
Everything Logistics | 5
Strong Multimodal Capabilities &Network Serving multiple sectors , Agri, Metals, Chemical, Automotive etc Incl. Cross border movements
6 Own Ship 8000+ Own GP containers 650+ ISO TTR
3 Own Auto Rail Rakes 60 Yards Managed 55 Terminal managed
TEUs handled: 127298 (FY22) 130773 (FY23)
Full Rail rake movements: 1194 (FY22) 1811 (FY23)
Everything Logistics | 6
Unique Positioning to incubate High Growth Segments
Chemical + Pharma
China +1 Supply chain outlook Government push for local manufacturing Maturing domestic supply chain
•
•
•
• Multimodal solution for movement of Haz. and Non-Haz. bulk liquid and dry chemicals.
• Own strategic assets- Responsible Care, • ITCO, PESO, and Drugs License ,GDP- compliant
Agri. ++
Renewables
Cold Chain
SAARC
•
•
16% of GDP in the farm & food sector Consumption linked sector with shorter cycles
•
•
Increasing awareness on climate related risks Increased shift from fossil fuels to renewable energy
•
•
Growth in the organized food delivery and e- commerce segments. Market maturing to the quality vs. cost
•
•
Increasing bilateral trade between BBIN countries Favorable policy framework from governments
TCI’s approach to these high growth segments
• Multimodal
•
solutions comprising last-mile deliveries. 3PL Solutions, Yard management, OBL, WH
• Offers hub-spoke
solutions.
•
•
•
End-to-End multimodal through Rail. Import clearance and Warehousing Last Mile and Storage
• Quality operations under cold & dry solutions 150+ fleet (100 own), 18000+ Pallet position
•
• Own Subsidiaries in
•
Nepal and Bangladesh. End-to-End multimodal through Road and Rail. • AEO, IATA, CHA, Courier Licenses.
Everything Logistics | 7
Technology Driven Operations
Security & Business Continuity
Value Based Relationship
• Endpoint Detection and Response • Advance Threat Protection • Network & Web Application Firewall • SSL, Security Protocols & Policies • High Availability Disaster Recovery • Secure code Repository
• Customer Relationship Management • Supplier Relationship Management • Order Management System
Configuration & Integration
Decision Support Systems
Location & Route Geofencing
• GPS & GIS enabled Services • • API’s & External Integration with ULIP •
IOT Devices – RFID, Temperature Sensors, Barcode, Scanner
• BOT enabled Logistic Control Tower • Business Intelligence Tools • Route Planning & Optimization • Security Operation Center
IT Infrastructure & Database
Core Business Operations
• Cloud Computing Services and Servers • Data warehousing & Layered Architecture • Communication Tools • WhatsApp Business • Version Control and Repository System
• Enterprise Resource Planning • Fleet Management System • Workforce Management System • Procurement Management System • GST, E-way, E-Invoice
Everything Logistics | 8
Presence across all industry sectors capturing most of economic activities
Engineering and Industrial
Increasing Government spend on infrastructure
• • Growth in size of GDP • PLI, 100% FDI in select sectors
Metals and Construction Material
• •
Increasing Investment in Core sector Infrastructure development
Chemical and Pharma
Automotive (Mobility and Industrial)
Increasing demand for specialty chemicals
• • Rising awareness about health care
• Untapped 4W market, 3% penetration vs 22% in
China. India is 4th largest market
• Rising middleclass population •
Infrastructure spend
Consumption driven sectors: FMCG, Retail, FMCD, Apparel, textiles etc.
Increasing per capital income
• • Rise of middle-class and youth population • Expansion of E-com to tier 3/4/5 cities
Agriculture, Food grains
•
•
Increasing use of technology in crop production , soil fertility Increasing population density and Gov. focus to stabilize supply chains around distribution
Everything Logistics | 9
Key Highlights
Consecutively highest quarter amidst strong sectorial trends.
Company’s well-diversified service offerings, multi sectorial presence and adherence to
core business fundamentals have contributed to our consistent growth
Our net borrowing remained at zero with additional cash surplus
30%
9082
13%
9395
8281
8117
8430
16%
9737
10%
9914
9040
9053
7002
7035
4088
n M n
i
e u n e v e R d e t a d
i l
o s n o C
10000
8000
6000
4000
2000
0
Q1
Q2
Q3
Q4
2021
2022
2023
Everything Logistics | 10
TCI Freight Division: Industry nature and trends
Industry
Growth Drivers
• USD 180 B Freight Transport Market,
• Need for FTL & LTL from a single provider
highly fragmented and unorganized
•
LTL Freight Transport Market, relatively
organized with 15% share
•
Increasing adoption technology like on
• Anywhere to anywhere model
• Control Tower customized Freight
solution with end-to-end visibility
demand trucking and real-time pricing
• Growing need for in-transit small storage
•
Increasing awareness on sustainable
facilities
logistics and demand for multimodal
• Packaging support for high value goods,
fragile items in LTL segment
Everything Logistics | 11
TCI Freight Division: Core competencies and capabilities
Hub Centers
Network/Infrastructure Large Network
•
Large pool of truck supplier/ partner to support asset light model • Trucks operated 4500 • 700+ IT enabled offices • 25 strategic hub locations to support single
window for FTL and LTL Freight solutions for landlocked SAARC countries
•
Best in class IT capabilities Best in class IT capabilities
•
ERP Integration with Customer for Billing and operation
• Mobile App & tablet-controlled operations • Technology Solutions for Large and complex
freight contracts
• Centralized control center operations
Everything Logistics | 12
TCI Freight Division: Key Operational Highlights
Figures in Mn
Particulars
Q4 FY23 Q4 FY22 Gr%
FY23
FY22
Gr%
Revenue
4217
3906
8.0%
15970
13716
16%
EBDITA
201
180
12.0%
710
620
15%
% to Revenue
4.8%
4.6%
4.4%
4.5%
EBIT
191
170
12.3%
669
577
16%
• Moderate Growth in Q4 on an elevated base, however overall, 16% growth momentum amidst improved economic activities and higher volumes from large customers
• Margins and ROCE remained stable amid
revenue growth, benign freight rates and which off-set pressure of general inflation in input prices
69%
31%
67%
33%
67%
33%
65%
35%
65%
35%
60% 40%
% to Revenue
4.5%
4.4%
4.2%
4.2%
FY19
FY20
FY21
FY22
FY23
FY25 ( E)
n M n
I
16,000
13,000
10,000
7,000
4,000
1,000
15,970
10%
12,093
12,474
11,507
13,716
3.2%
3.3%
3.6%
4.2%
4.2%
8%
6%
4%
2%
0%
n m n
I
3,000
2,500
2,000
1,500
1,000
500
-
LTL
FTL
2,420
2,360
2,299
2,225
2,616
25.5%
27.6%
16.4%
17.0%
17.8%
40%
30%
20%
10%
0%
2018-19
2019-20
2020-21
2021-22
2022-23
2018-19
2019-20
2020-21
2021-22
2022-23
Revenue
EBIT
Capital Emp.
ROCE
Everything Logistics | 13
TCI Supply Chain Division: Industry nature and trends
Industry Nature
Industry
• Market Size USD 12 Bn
Growth Drivers
Growth Drivers
• Higher demand for integrated and
customized solutions
• Relatively less fragmented with higher
•
Supply chain network optimization
organized market
especially in warehousing
• 3PL Growth CAGR 15%
• Growth of omni channel in tier 3/4/5 cities
• 60% constitute road movements
•
Increasing demand for automation and
technology driven service offerings
• 3PL penetration is 4.5% Vs 11% Globally
• EV/alt fuel impact on 3PL for automotive
Everything Logistics | 14
TCI Supply Chain Division: Core competencies and capabilities
Own: 1K
4K+ Vehicles under Operation
750 Mn Parts handled in Production Logistics per year
55
Yards managed
100+
trains operated per month
14 Mn SQFT
250 Acres
Warehouse under management
Space under management
Managing several of India’s largest WHs
• Full-stack integrated offering
from Conceptualization, Design, to execution
• High warehouse space utilization
by expanding vertically
• VAS: labelling, repackaging, order processing, payment management
•
Inventory management and visibility through WMS via client’s ERP Integration
• Proprietary TMS for route
optimization
Everything Logistics | 15
TCI Supply Chain Division: Key Operational Highlights
Figures in Mn
Particulars
Q4 FY23 Q4 FY22
Gr%
FY23
FY22
Gr%
Revenue
EBDITA
3303
2552
29.4% 12763
10015
27%
322
292
10.2%
1201
1069
12%
% to Revenue
9.8%
11.5%
9.4%
10.7%
EBIT
216
183
17.7%
778
614
27%
% to Revenue
6.5%
7.2%
6.1%
6.1%
• Growth momentum continued amidst retention and expansion of business with existing clients and new business acquisitions
• Margin remained stable amid inflationary pressure on
inputs cost which was off set by lower depreciation.
15,000
13,000
n M n
I
11,000
10,149
9,000
7,000
7.0%
5,000
12763
9,243
9344
10,015
6.1%
6.4%
6.1%
6.1%
n M n
I
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500
16%
11%
6%
1%
3,134
3,004
3,431
3,237
3650
24.0%
18.3%
18.5%
18.4%
22.6%
50%
35%
20%
5%
-10%
2018-19
2019-20
2020-21
2021-22
2022-23
Revenue
EBIT
2018-19
2019-20
2020-21
2021-22
2022-23
Capital Emp. (In Mn.)
ROCE
Everything Logistics | 16
TCI Seaways: Industry nature and trends
Industry
Jal Marg Vikas Project Rs. 5369 crore
Coastal Shipping to Increase from 86MMT to 215MMT by 2025
Growth Drivers
Waterways : 6% of transportation modal mix
Coastal 6%
Air 1%
Inland 0.3%
Rail 33%
The Sagar mala Project
Road 60%
• •
• US$120 billion Investment 6+ Mega Ports 14+ Coastal Economic Zones Industrial Zones near Ports
•
• GOI push for infrastructure
development around ports and share
of coastal shipping in overall logistics
• More SEZs , Multimodal Logistics Park
and Warehousing zone near ports
•
Push for green logistics
Everything Logistics | 17
TCI Seaways Division: Core competencies and capabilities
Reach & Services
• One of the leading multimodal coastal players having presence along
the Western, Eastern & Southern ports of India
• Expertise in coastal shipping services, container & bulk cargo
movements, and transportation services First-mile and last-mile connectivity via rail & road
• • Multi-modal solutions with reduced carbon footprint (Green logistics)
Own 8000+ marine containers (multipurpose)
06 domestic coastal ships with a total capacity of 77,957 DWT
TCI Anand
TCI Express
Serves 7 of India out 13 ports
Everything Logistics | 18
TCI Seaways Division: Key Operational Highlights
Figures in Mn
Particulars
Q4 FY23 Q4 FY22 Gr%
FY23
FY22
Gr%
• Growth Subdued amid lower freight rates and falling fuel prices
during second half
• Margins impact due to high depreciation and lower Exim business
Revenue
EBDITA
1395
1542
-9.5%
5593
5332
5%
602
716
-15.9% 2345
2363
-1%
% to Revenue
43.1% 46.4%
41.9%
44.3%
EBIT
422
477
-11.6% 1645
1790
-8%
% to Revenue
30.2% 30.9%
29.4%
33.6%
100000
T M / R N
I
80000
60000
40000
20000
0
Fuel Price MT
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
2021
2022
2023
6,000
5,000
4,000
3,000
2,000
1,000
n M n
I
3,326
3,443
3692
33.6%
21.9%
19.9%
22.1%
5,332
5,593
40%
35%
30%
29.4%
25%
20%
15%
2018-19
2019-20
2020-21
2021-22
2022-23
5,000
4,000
3,645
n M n
I
3,000
4,210
3,909
3,780
46.5%
3,593
44.6%
2,000
22.1%
19.2%
18.1%
1,000
2018-19
2019-20
2020-21
2021-22
2022-23
70%
60%
50%
40%
30%
20%
10%
Revenue (In Mn.)
EBIT
Capital Emp. (In Mn.)
ROCE
Everything Logistics | 19
TCI’s Joint Ventures
Figures in Mn
FY23 (FY22)
Revenue
3047 (3010)
601 (587)
6920 (4670)
Y-o-Y Growth
1.2% (-7.1%)
2.4% (62.5%)
42.5% (29.9%)
PAT
54.9 (56.1)
28.2 (27.6)
821 (540)
Capital Employed
314 (419)
360 (336)
3109 (2924)
Strategic Partner’s Share
49%
20%
51%
Key Operational Highlights
Operates on asset- light model Building upon its capabilities of integrated multimodal logistics solutions Chemicals, Food Grains, Metals etc
Cold chain services to cater temperature control Warehousing, Primary & secondary distribution requirements.
Focused on automotive logistics of Japanese clients
Everything Logistics | 20
Financial Highlights
CONSOLIDATED
Figures in Mn
STANDALONE
e u n e v e R
A T I D B E
T A P
45000
36000
27000
18000
9000
0
5600
4800
4000
3200
2400
1600
800
0
3500
2800
2100
1400
700
0
16.4%
38129
32766
9.5%
9053
9915
Q4 FY22
Q4 FY23
FY22
FY23
9.3%
4563
4986
-4.3%
1366
1307
Q4 FY22
Q4 FY23
FY22
9.5%
2928
FY23
3207
-4.6%
864
825
40000 35000 30000 25000 20000 15000 10000 5000 0
4900 4200 3500 2800 2100 1400 700 0
3500 3000 2500 2000 1500 1000 500 0
19.0%
34925
29357
11.8%
8057
9011
Q4 FY22
Q4 FY23
FY22
FY23
11.2%
4689
4216
-3.7%
1214
1169
Q4 FY22
Q4 FY23
FY22
FY23
13.5%
2674
3035
1.4%
731
741
Q4 FY22
Q4 FY23
FY22
FY23
Q4 FY22
Q4 FY23
FY22
FY23
Everything Logistics | 21
Consistent performance: Key financial Indicators
Figures in Mn
EV/EBIDTA
Return on Capital Employed
12.0
10.0
8.0
6.0
4.0
2.0
0.0
3500
3000
2500
2000
1500
1000
500
0
11.0
11.0
10.3
8.0
6.0
FY19
FY20
FY21
FY22
FY23
Consolidated Profit After Tax
3206
2928
1453
1432
1507
1238
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
14000
12000
10000
8000
17000
14000
11000
8000
5000
2000
-1000
13231
12686
12690
12631
13459
16.1%
14.2%
15.0%
24.6%
26.1%
FY19
FY20
FY21
FY22
FY23
Capital Emp. Excl. Cash
ROCE
Return on Net Worth
16.9%
7570
FY19
22.3%
21.1%
14.1%
13.3%
8935
FY20
10152
11967
15256
FY21
FY22
FY23
Avg Net Worth
Return on Net Worth
48%
40%
32%
24%
16%
8%
0%
50%
40%
30%
20%
10%
0%
Everything Logistics | 22
Market Summary
Particulars Market Cap Debt Cash equivalents Enterprise Value P/E EV/EBITDA 52 Week High 52 Week Low
UOM Rs Mn. Rs Mn. Rs Mn Rs Mn. Nos Nos Rs/share Rs/share
31st Mar 23 48,698 846 (1561) 47,983 16.1 10.2 845 555
400%
350%
300%
250%
200%
150%
100%
50%
0%
14%
15%
14%
13%
80%
90%
100%
125%
17.9%
350%
17.3%
300%
20%
18%
16%
14%
12%
10%
FY18
FY19
FY20
FY21
FY22
FY23
Dividend Ratio
Dividend Payout Ratio
# Including final dividend declared on 18th May 2023 @100%
Shareholding Pattern as on 31st Mar 2023
2%
11%
1%
3%
13%
69%
PROMOTORS FOREIGN HOLDINGS MUTUAL FUND
INDIAN PUBLIC BODY CORPORATE OTHERS
• CRISIL Long term Rating : AA ( Positive) •
ICRA Short Term Rating CP : A1+
• Stock returned CAGR of 35% in last 20 years • Stock coverage : 11 : Buy Rating :11
Everything Logistics | 23
Corporate Governance: Social Responsibility
E
Environmental पया(cid:4)वरण Eco-friendly workplaces, Solar Panel use at warehouses.
Push towards green logistics via Rail & Coastal – Approx. 30% of consolidated revenues from Multimodal
Started Sustainable Supply Chain Lab in partnership with IIM-B
Produced 15.9 Mn (LY 16.0 Mn) renewal energy units
200+ CNG vehicles
•
•
•
•
•
S
Social सामािजक Road safety and health initiatives across 9 states impacted more than 2.5 Mn people
Promotion of Education and vocational training amongst underprivileged and rural development programs , 10000+ beneficiaries in FY23
Artificial limb center and preventive healthcare centers. has served 25000+ beneficiaries in FY23
Urmila Sports Academy trained players for National and International sports events
•
•
•
•
G
Governance शासन
Strong and diverse Board Published BRSR in FY22 voluntarily, First in the Logistics Sector.
Long term performance-linked remuneration system
Comprehensive Enterprise risk management and Business continuity plan
• •
•
•
Everything Logistics | 24
Outlook
• Demand momentum to continue but at a slower pace
• Headwinds of the global recession on domestic manufacturing , sub-optimal Monsoon and distressed rural
demand etc.
• Revenue and Profit growth of 10%-15%
• Spill over effect of Capex
Hub Centers & Small warehouses
Ships
Containers
Trucks & Rakes
Others (W/H Equip, Wind Energy, IT etc.
Total
Figures In Mn.
FY 23 Actual
FY24 Budget
Actual (FY07 to FY22)
5198
365
980
3210
1251
4716
0
1250
160
448
340
760
1329
222
420
15704
1195
3750
Everything Logistics | 25
Thank You!
Transport Corporation of India Limited TCI House, 69 Institutional Area Sector 32, Gurugram - 122001 Tel.: +91 - 124 - 2381603-07 | Fax: +91 - 124 - 2381611 E-mail Id: finance.mis@tcil.com | Website: www.tcil.com CIN: L70109TG1995PLC019116