Total Transport Systems Limited has informed the Exchange about Investor Presentation
One World Logistics Pvt. Ltd. Last mile specialists
Total Transport Systems Limited Result Update Presentation Q4 & FY23
Disclaimer
This presentation has been prepared by Total Transport Systems Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward- looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
2
Table of Contents
01
Executive Summary
02
Consolidated Financial Highlights
03
Company Overview
04
Consolidated Annual Financial Highlights Business Overview
3
Group Structure
Total Transport Systems Ltd
CP World Logistics India Pvt Ltd (100% Subsidiary)
Seedeer India Pvt. Ltd. (Joint Venture)
Total Transport Systems Pvt Ltd – Nepal (64% Subsidiary)
R. N. Freight Forwarders Pvt Ltd (60% subsidiary)
One World Logistics Pvt Ltd. (100% Subsidiary)
New Age Business
Standalone Business • LCL Consolidation • Freight Forwarding • Air Freight
Standalone Business • Custom House
Agents
Last Mile Delivery • Under brand ‘Abhilaya’ • Freight Forwarding • Air Freight • Already ~10% of turnover
4
Executive Summary
Overview
Business Segments
Incorporated in 1994 - among reputed players in Indian Logistics Industry
consolidators network named Represents world’s 5th largest “iCargo Alliance” formed along with CP World Group and Fang Cheng International Transportation Services Co. Ltd. of China - access to over 89 countries across 1,100 locations with 166 offices globally
Member of IATA, FIATA i.e., International Federation of Freight Overseas Freight Association, Bombay
Forwarding Brokers Association, Federation of Freight Forwarder’s Associations in India, Consolidators Association of India and AMTOI
Marquee Clients
Domestic - TATA Motors Ltd., Reliance Industries Ltd., Raymonds Group, IPCA Labs, Cadila Pharmaceuticals Ltd., Axis Electrical Components, etc.
International - Dachser Intelligent Logistics, Hellman, Agility, DHL, Schenkers, etc.
Cargo Consolidation (LCL & FCL)
Freight Forwarding
Air Freight
Last Mile Delivery
Custom House Agents
Total Revenue (Q4 FY23)
1.16%
4.41%
0.27%
20.03%
20.68%
AIR EXPORT
AIR IMPORT
FCL EXPORT
FCL IMPORT
3.31%
Last Mile Delivery
34.61%
15.54%
LCL EXPORT
LCL IMPORT
CHA ACTIVITY
5
One World Logistics Pvt Ltd
New Business Segment
Started Last Mile business in the fist six months itself tied with prominent E-Commerce platforms like or Amazon ,Flipkart, FedEx & SpiceJet since October 2018
New additions to last mile delivery – 80 ODH for Flipkart ,4 for Jio Mart, TataCliq & Snapdeal
“Abhilaya”
Operated under brand “Abhilaya”
India’s fast growing on-demand last-mile delivery solution provider offering tech-enabled delivery solutions for E-commerce, Restaurants, FMCG, Pharma and online & offline retailers
24M+ Shipments
3,500+ Trained Associates
2,000+ Vehicles
1,000+ Pin Codes
As of March 31,2023
6
Consolidated Financial Performance
Managing Director’s Message – Q4 & FY23
Commenting on the results, Mr. Makarand Pradhan, MD, Total Transport Systems Ltd. said:
For the year ended 31st March 2023, our Company recorded a revenue of Rs. 590.27 crores, YoY increase of 1.21%, EBITDA and PAT of Rs. 14.62 crores and Rs. 5.22 crores respectively. During this term, despite nearly a 80% YoY decline in freight rates, our revenue grew slightly on the back of volume growth.
We are delighted to share that our last mile delivery business ‘Abhilaya’ has invested in 50 EV scooters with the long term objective of being an ESG driven Company, being environmentally concerned gradually incorporating green initiatives & reducing our carbon footprint while continuing to be more and more efficient. This will improve business operations by making it more cost effective, deliver orders on time, and provide higher and better operational mix.
I would like to thank the entire team of TTSL for their untiring efforts, hard work, sincerity and dedication. I would also like to thank our valued Stakeholders, whose support and faith in our Company has given us the determination and ambition to set and achieve higher standards and benchmarks.”
8
Consolidated Income Statement – Quarterly
Particulars (Rs. Cr.)
Q4 FY23
Q4 FY22
Y-o-Y (%)
Q3 FY23
Revenue from Operations Other Operating Income Total income Employee Cost Other Expenses Total Expenditure EBITDA EBITDA Margin % Other Income Depreciation Finance Cost Exceptional Item Share of (profit)/loss from investment in associate Profit Before Tax Tax Profit After Tax PAT Margin Add: items that will not be reclassified to P&L Minority Interest Other Comprehensive Income Net Profit Net Profit Margin Basic EPS Rs.
113.16 0.00 113.16 9.77 102.19 111.96 1.19 1.05% 0.19 0.68 0.65 0.00 0.00 0.06 0.95 (0.89) (0.79)% 0.00 (0.04) (0.59) (1.45) (1.28)% (0.59)
172.26 0.00 172.26 9.05 159.24 168.29 3.97 2.31% 0.06 0.49 0.58 0.00 0.00 2.96 1.22 1.73 1.01% 0.00 (0.12) (0.15) 1.71 0.99% 1.21
132.39 0.00 132.39 10.63 118.61 129.24 3.14 2.38% 0.14 0.58 0.90 0.00 0.00 1.80 0.81 0.99 0.74% 0.00 0.25 0.01 0.74 0.56% 0.50
(34.31)%
(33.47)% (69.98)% (126) Bps
(151.55)% (180) Bps
(184.70)%
(148.76)%
Q4 FY23 vs Q4 FY22
due
• Decrease in revenue to mainly decrease in freight rate of more than 86%
• Decrease in EBITDA on account of lower revenue and higher employee expense on account of one time bonus
9
Consolidated Income Statement – Annually
Particulars (Rs. Cr.)
Revenue from Operations Other Operating Income Total income Employee Cost Other Expenses Total Expenditure EBITDA EBITDA Margin % Other Income Depreciation Finance Cost Exceptional Item Share of (profit)/loss from investment in associate Profit Before Tax Tax Profit After Tax PAT Margin Add: Items that will not be reclassified to P&L Minority Interest Other Comprehensive Income Net Profit Net Profit Margin Basic EPS Rs.
FY23
590.27 0.00 590.27 37.30 538.36 575.65 14.62 2.48% 0.43 2.16 3.04 0.00 0.00 9.85 4.63 5.22 0.88% 0.00 (0.02) (0.59) 4.65 0.79% 3.47
FY22
Y-o-Y (%)
583.23 0.00 583.23 30.75 536.07 566.81 16.42 2.81% 0.42 1.34 1.95 0.00 (0.05) 13.50 4.38 9.12 1.56% 0.00 (0.12) (0.17) 9.08 1.56% 6.46
1.21%
1.56% (10.94)% (33) Bps
(42.74)% (68) Bps
(48.75)%
(46.28)%
FY23 vs FY22 –
• Our revenues grew slightly on back of growth, volume despite nearly a 80% decrease in freight rates
• Decrease in PAT is mainly due dip in freight cost
10
Consolidated Annual Highlights
Revenue (Rs. Cr)
EBITDA (Rs. Cr) / Margin (%)
PAT (Rs. Cr) / Margin (%)
583.23
590.27
399.57
314.89
256.19
5.2%
4 . 3 1
1.8%
2 . 7
1.0%
0 . 3
2.8%
2.5%
4 . 6 1
6 . 4 1
18
16
14
12
10
8
6
4
2
0
6%
5%
4%
3%
2%
1%
0%
10
8
6
4
2
0
-2
2.8%
0 2 . 7
0.5%
1 . 2
3%
3%
2%
2%
1%
1%
0%
-1%
1.6%
0.9%
1 . 9
2 . 5
-0.3%
8 . 0 -
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Consolidation (cbms)
256970
258413
222385
211656
196636
148474
138456
146285
152017
113984
Freight Forwarding (TEUs)
22299
Air Freight (Tons)
1128
972
909
848
879
9651
7607
6464
8100
2212
2087
1775
1547
1646
166
203
190
214
69
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Import
Export
Import
Export
Import
Export
11
One World Logistics - Highlights
Revenue (Rs. Cr)
No. of Shipments (in mn) / Delivery Conversion
No. of Pincodes Served
68.00
55.00
37.20
12.60
30
25
20
15
10
5
0
92.0%
94.0%
91.0%
100%
95%
90%
15.0
80.0%
85%
22.0
24.2
80%
75%
70%
3.7
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
1,200
1,000
800
600
400
200
0
1,000.0
892.0
456.0
128.0
FY20
FY21
FY22
FY23
Gross Merchandise Value (Rs. Cr)
No. of Stations
No. of Associates
5,800.00
4,725.00
3,255.00
740.00
186.00
152.00
51.00
250.00
3,500.00
2,109.00
1,215.00
255.00
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
12
Consolidated Balance Sheet as on 31st Mar’23
Particulars (Rs. Cr)
Equity Equity Share Capital Other Equity Minority Interest Non-current liabilities Long term borrowing Deferred Tax Liabilities (Net) Lease Liabilities Provisions Current liabilities Short term Borrowings Lease Liabilities Trade Payables a. Micro and Small Enterprises b. Other than Micro and small Enterprises Other Financial Liabilities Other Current Liabilities Provisions Current Tax Liabilities ( Net )
As on 31st Mar 2023 77.63 16.13 61.19 0.31 6.09 0.26 0.00 0.04 5.79 41.18 16.27 0.01
0.12
14.63
0.00 5.39 4.76 0.00
As on 31st Mar 2022 54.32 14.31 40.30 (0.29) 7.73 3.14 0.00 0.00 4.59 70.43 23.32 0.08
0.12
32.49
0.00 5.14 9.28 0.00
Total Equities & Liabilities
124.89
132.47
Particulars (Rs. Cr)
Non-current assets PPE Right of Use Assets Goodwill Other Intangible Assets Intangible Assets under Development Investments in subsidiaries and associates Non Current Investments Deferred Tax Assets/ (Liability) Long term Loans & Advances Other Non-Current Assets Current Assets Investments Trade Receivables Cash & Cash Equivalents Bank Balance other than Cash Loans & Advances Others Current Tax Assets Total Assets
As on 31st Mar 2023 20.84 12.04 0.05 2.68 0.08
As on 31st Mar 2022 13.79 9.50 0.09 0.00 0.02
0.49
0.00
1.64 1.54 2.32 0.00 104.06 0.98 69.47 10.97 14.15 1.08 1.70 5.70 124.89
0.00
0.00
0.38 1.13 2.67 0.00 118.69 0.60 102.20 6.11 2.63 0.78 1.27 5.10 132.47
13
Company Overview
Key Milestones
Incorporated in
1994
Started
operations in Ahmedabad
Established CP World Global network
Best
Consolidator Award for over 15 years
Awarded 60 new
stations by Flipkart Acquired 60% of R. N. Freight Forwarders Private Limited on Equity & Preference share basis
Flagged off 50 EV scooters under ‘Abhilaya’
Listed on NSE
Emerge Exchange – IPO Oversubscribed 130x
Forayed into Air freight business
1994
1998
2005
2014
2017
2023
1996
2000
2007
2015
2018 - 19
Started
operations in Chennai
Entered North India Market
Revenues
cross INR 1 billion
Revenues cross INR 2 billion
Formed Oneworld
Logistics to enter Last Mile Connectivity business
Entered a joint venture with Seedeer Hongkong
15
Experienced & Professional Board of Directors
Makarand P. Pradhan – Promoter and Managing Director
Director of Company since 1994 and has vast experience in Freight Forwarding and Logistics
Industry, stretching over thirty years
Oversees Business Policies and overall management of Companies Also associated with various Overseas Organisations and is in best position to lead the Company President of Consolidators Association of India Chairman of CP World Group and I Cargo Alliance
Sanjiv A. Potnis – Promoter and Director
Started his career with Dolphin Chartering Services Pvt. Ltd.; Later he joined Forbes Gokak Ltd. Experience of over 25 years in field of Freight Forwarding & Offshore operations and exposure
to shipping industry.
Responsible for Sales & Marketing across India and globe for Company Actively takes part in key managerial decisions of the Company
Shrikant D. Nibandhe – Promoter and CFO
Diverse experience of thirty years in Logistics, Freight Forwarding and Management of Container
Freight Stations (CFSs)
Associated since 1998 and is actively involved in all discussions with International Associates
Also oversees Finance, leads various other functions like Corporate Communication and Human
Resources
Treasurer of Consolidators Association of India since Inception in 2003
16
What makes us different…
Robust International Network
• Robust network of consolidator through CP world • Over 1,100 agents network
Strong Relationships with clients
• Trusted service provider with long term relationships with marquee clients and over 1,000 smaller clients • Alliance of over 500 CHA’s
Functional Expertise
• Strong Employee Network – Over 400 employees (Including contractual) across 11 locations in India • Robust IT System - Web-based, 24x7 real-time tracking and Standardized software
Freight Consolidation is Cost effective
• Freight consolidation services for shipments are cost effective way to transport low volume cargo • By grouping shipments with others to fill standard container, Company avoids cost of shipping an entire container
on a single customer.
Full responsibility of Shipment & Flexible Pricing
• Takes full responsibility to ship product from point of receipt to point of destination • Flexible pricing - Pricing is based on nature of goods, location and type of services and facility given to customers.
Strategic Domestic Footprint
• Present in all major locations including Key hubs, ports
17
Marquee Clients
18
Business Overview
Business Verticals
Consolidation
Freight Forwarding
Air Freight
Imports
37.04%
Exports
62.96%
4,10,430
CBMs
Imports
16.89%
Exports
83.11%
9,746
TEUs
1,124
Tons
As of March 31, 2023
20
Cargo Consolidation
Cargo Consolidation for less than container loads (LCL) is one of core business activities of Company since inception, and
garners good market share in India
Consolidates shipments for more than 1,100 destinations worldwide through its network across 89 countries
Long standing tie-ups with leading shipping lines like CMA–CGM, Maersk, MSC, ONE, Hapag Lloyd, Hyundai & Cosco, etc.
Strong geographies apart from India, are CIS countries, Africa & Afghanistan
21
Freight Forwarding
Leveraging on its LCL leadership to achieve significant presence in Full Container Load (FCL) business as well
Coordinates with various Shipping Lines, CFS agents and Vendors to provide effective and efficient logistic solutions to its end
customers
Strong buying capacity and controlled business enables them to obtain better rates from carriers
Good knowledge and experience of moving cargos in inland Africa
22
Air Freight
TTSL is an international air freight forwarding company providing professional and reliable international air freight import and export services across the globe.
It has centralized pricing and co-ordination desk in Mumbai for pan India operations.
It has strong partners worldwide to provide the best possible solutions to its clients like DDP, DDU and Ex-Works as members of freight forwarding networks.
Specialized team to handle any type of DGR cargo.
Professional Airfreight handling team with over 15 years of experience.
Focused to provide shortest turn around time to get shipments confirmed.
International Air Transportation Association (IATA) Accredited.
Activity started in July 17, currently averaging 75 tons per month
23
CP World Global Network & iCargo Alliance
Greater trust, reliability & exclusivity
Led formation of exclusive networks (Mr Pradhan is Chairman of both networks) CP World Global Network: Formed with Ken Chiang of Singapore in 2005 iCargo Alliance: Formed in 2011 along with CP World Group and Fang Cheng (China)
Global reach through one-to-one relationships
180+ agents connecting 1,100 locations in 89 countries globally that include both key
trading partners of India such as Gulf states as well as rapidly growing EXIM hubs such as S.E. Asia, S. America
Contender for top position
Rapid growth in volumes and revenues with increased access to geographies and cargo Increased profitability on account of longer routes such as US, Canada, Europe are plied
Strong global network Staff of 1,250 personnel Singapore, Hong
Kong, Busan and Jebel Ali - Main trans-shipment hubs
Access to exclusive cargo
from/to S.E. Asia, Australia, Gulf states, Europe, Americas
Registered in Hong Kong Promoted by CP World Group and Eurasia Group Exclusive cargo alliance across 89 countries with 166 offices
Mr. Makarand Pradhan Group Chairman CP World
Mr. Ken Chiang Group CEO CP World
24
TTSL in association with CP / I cargo Network
Europe
North America
South America
Export
Import
Dubai and Upper Gulf
Africa
CP World Contribution
Asia
Oceania
Europe
Africa
America
South America
Middle East
36%
8%
20%
2%
12%
10%
12%
Singapore and Far East
Traditionally major routes: Dubai & Upper Gulf, Singapore & Far East Increasingly plying longer routes: North America, South America, Europe South Africa and other African countries also getting more traffic
TTSL India Presence Major Ports/EXIM hubs Key Cargo Regions
25
One World Logistics Pvt Ltd- Business Model
Shipments Picked from stations for final Delivery
DSP / EDSP
Shipments Delivered
Exclusive Distribution Service Partners (EDSP): EDSP’s are station owned by Company at place where shipments from ecommerce players are last mile delivery. Currently we received for operate through 45 EDSPs
Distribution Service Partners (DSP): These are stations owned as Captive arms by Ecommerce players and Company picks up shipments from respective warehouses for final deliveries. Currently we operate through 60 DSPs
26
One World Logistics Pvt Ltd- Products offered
Last Mile
Rural Mile
Same day Delivery – SDD Scope : Prime ecommerce delivery with in ty municipal limits from single pick up point. Weight limit 2kg. Pin code Delivery and Reverse pick up - LMA Scope : deliveries with in 3 kms to and from origin pick up point, food delivery. Weight limit 2kg.
1. Building delivery stations in Tier II cities – RLMA
Scope : Prime ecommerce delivery and reverse pick up with in the taluka limits from single pick up point . Weight limit 2kg.
2. E-commerce reference Centres
Scope : Creating awareness with local marketing and catalogue promotions at taluka level for online companies
Rural B2B
B 2 B Distribution
Scope : Deliveries within same GST state - LTL , FTL
27
Future Strategy
Large customer base and strong relation with marquee clients
Capitalise on strong base ofover 1,000 plus clients of the Company
Consolidation for E-commerce logistic players
Cross selling of FCL with existing Customers
Strong relationship with over 500 custom brokers
Ramping up the Air freight business through Global Network.
28
Thank You
TOTAL
TOTAL:IN
TOTA.NS
For further information, please contact:
Company :
Investor Relations Advisors :
Total Transport Systems Limited
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Mr. Bhavik Trivedi Company Secretary bhavik.trivedi@mum.ttspl.in
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Mr. Rupesh Rege rupesh.rege@adfactorspr.com
www.ttspl.in
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