Transport Corporation of India Limited has informed the Exchange about Investor Presentation
1st August, 2023
The National Stock Exchange of India Ltd., Listing Department, “Exchange Plaza”, Block- G, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
Scrip Symbol: TCI
Dear Sir/Madam,
BSE Ltd. Listing Department, 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 Q1 FY 2023-24.
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
Earnings Presentation Q1 FY24 1st Aug 2023
© 2023 TCI
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
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.
Manages 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
• Diverse consumer base , premium , mid-market and economy segment
• Product loyalty diminishing & putting pressure on supply chains
• Focus on core area of business leading to increased outsourcing
• Increasing
Adoption of tech
• Increased Demand for bespoke and customized solutions
• Shift towards
alternative modes of transportation: Multimodal green logistics
• Large market Size
• 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
360⁰ Technology adoption
Key USPs
Customized solution with wide Range Of Services
Strong Multimodal Capabilities & Network
Unique Positioning To Incubate High Growth Segments
Everything Logistics | 4
Range of services for customized solutions
s e c i v r e S /
s t c u d o r P
Unlock Business Potential
LTL/FTL Warehousing Port Logistics Freight Forwarding Coastal Shipping Domestic Rail: Container & Auto movement CHA International Country Operations ODC/PHH Liquid & Gas Bulk Logistics In/Outbound Logistics Reefer Storage Reefer TPT
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/
• Chemicals
• Industrial &
Engineering
Lifesciences
• 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
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
• End-to-End
multimodal through Rail. Import clearance and Warehousing
•
• Last Mile and
• Offers hub-spoke
Storage
solutions.
• 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
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 | 8
Key Highlights
Growth momentum maintained amidst mixed sectorial trends during the quarter.
Company’s well-diversified service offerings, multi sectorial presence and adherence to
core business fundamentals have contributed to consistency
Our net borrowing remained at zero with additional cash surplus
6%
9583
30%
9082
13%
9395
18%
8281
16%
9737
4%
8430
10%
9914
0.2%
9053
71%
7002
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
2022
2023
2024
Everything Logistics | 9
360⁰ Technology Adoption
Relationship Wheel
Core Business Operations Wheel
Employee Relationship
Digital Governance
Transportation & Logistics
Human Resource & Performance Management
Customer & Supplier Management Application
Web Application Firewall & Security Protocols
Electronic Data Interchange & Android App
Digital Control Tower
Supplier Relationship
Customer Relationship
Rail Logistics
Enterprise Resource Planning
Route Optimization and Planning
Supply Chain Logistics & Warehousing
FMS, WMS, TMS,VTS, E-way, GST, E-Invoicing
Cold Chain Logistics & Warehousing
Endpoint Detection & Response, Advance Threat Protection, High Availability, SOC, Security Protocols
Freight Exchange & Order Management
Multi-modal Logistics
Coastal Shipping
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
• Anywhere to anywhere model
organized with 15% share
• Control Tower enabled customized
Increasing adoption technology like on
demand trucking and real-time pricing
• Growing need for in-transit small storage
Freight solution with end-to-end visibility
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
Our Services
Full Truck Load (FTL)
Less than Truck Load (LTL)
Over-dimensional Cargo (ODC) & Project Heavy Haul (PHH)
Control Tower for Key Account Management
Cross Border
Deliveries across SAARC-BBIN
24X7
Customer Support
Integrated Surface Transport Solution
Hub & Spoke Model
We have a robust set-up of 25 strategically located hubs across India that enables TCI Freight to widen its distribution network and enhance reliability in cargo consolidation and transportation.
25
Strategically located hubs
700+
IT Enabled Owned offices
Control Towers
Single Window Control & Visibility
4,600+
Truck under Operation (4,500+ Owned: 120)
Everything Logistics | 12
TCI Freight Division: Key Operational Highlights
Figures in Mn
Particulars
Q1 FY24 Q1 FY23 Gr%
FY23
FY22
Gr%
Revenue
EBDITA
% to Revenue
EBIT
% to Revenue
3936
3764
4.6%
15970
13716
16%
148
144
3.1%
710
620
15%
3.8%
3.8%
4.4%
4.5%
136
133
2.3%
669
577
16%
3.5%
3.5%
4.2%
4.2%
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%
• Moderate Growth with improvement in LTL segment. Plan to
open 50 new branches to further enhance the network.
• Margins and ROCE remained stable amid benign freight rates and
asset light model.
80%
60%
40%
20%
n M n
I
3,000
2,500
2,000
1,500
1,000
500
-
67%
67%
65%
65%
33%
33%
35%
35%
64%
36%
60%
40%
FY20
FY21
FY22
FY23
Q1 FY24
FY25 ( E)
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
Growth Drivers
Growth Drivers
• Higher demand for integrated and
• Market Size USD 12 Bn
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
• 3PL penetration is 4.5% Vs 11% Globally
technology driven service offerings
• EV/alt fuel impact on 3PL for automotive
Everything Logistics | 14
TCI Supply Chain Division: Core competencies and capabilities
Our Services
• 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
5,000+
Vehicles under Operation Owned:1000 55
Yards Managed
750 Mn
Production Logistics Parts Handled 120+
Trains Operated per Month
14 Mn. Sq. Ft.
Warehousing Space Managed
Everything Logistics | 15
TCIWarehouse TCI Supply Chain Division: Key Operational Highlights
Figures in Mn
Particulars
Q1 FY24 Q1 FY23
Gr%
FY23
FY22
Gr%
Revenue
EBDITA
% to Revenue
EBIT
% to Revenue
3460
2853
21.3% 12763
10015
27%
320
262
21.9%
1201
1069
12%
9.2%
9.2%
9.4%
10.7%
215
155
38.8%
778
614
27%
6.2%
5.4%
6.1%
6.1%
• Growth momentum continued amidst
retention and expansion of business with existing clients and new business acquisitions
• Doing 100+ multimodal auto-rakes operations per month. High traction within customers because of low emission.
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
Our 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
Own Multipurpose Marine Containers
Domestic Coastal Ships
• First-mile and last-mile connectivity via rail &
Total Capacity
road
• Multi-modal solutions with reduced carbon
footprint (Green logistics)
Out of 13 Major Ports Served
Everything Logistics | 18
TCI Seaways Division: Key Operational Highlights
Figures in Mn
Particulars
Q1 FY24 Q1 FY23 Gr%
FY23
FY22
Gr%
•
Lower freight rates on West coast and BIPARJOY cyclone had an impact on revenues.
• Margins and ROCE remained stable amid controlled cost structure
Revenue
EBDITA
% to Revenue
EBIT
% to Revenue
1173
1452
-19.3% 5593
5332
5%
and low fuel price
Fuel Price MT
544
621
-12.4% 2345
2363
-1%
46.4% 42.7%
41.9%
44.3%
366
461
-20.5% 1645
1790
-8%
31.2% 31.7%
29.4%
33.6%
T M / R N
I
100000
80000
60000
40000
20000
0
APR MAY
JUN
JUL
AUG SEP OCT NOV DEC
JAN
FEB MAR
FY22
FY23
FY24
n M n
I
6,000
5,000
4,000
3,000
2,000
1,000
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
Q1 FY24 (FY23)
Revenue
763 (3047)
163 (601)
2253 (6920)
Y-o-Y Growth
-6.8% (1.2%)
1.1% (2.4%)
57.6% (48.2%)
PAT
14 (55)
9 (28)
330 (822)
Capital Employed
358 (314)
362 (360)
3342 (3110)
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
3500
2800
2100
1400
700
0
3500 3000 2500 2000 1500 1000 500 0
16.4%
38128
32766
5.3%
9082
9566
Q1 FY23
Q1 FY24
FY22
FY23
9.3%
2928
3206
6.9%
786
838
Q1 FY23
Q1 FY24
FY22
FY23
9.5%
2674
3035
6.6%
766
834
Q1 FY23
Q1 FY24
FY22
FY23
4900
4200
3500
2800
2100
1400
700
0
40000
35000
30000
25000
20000
15000
10000
5000
0
5600
4800
4000
3200
2400
1600
800
0
19.0%
4216
4689
7.6%
1151
1245
Q1 FY23
Q1 FY24
FY22
FY23
11.2%
34925
8.1%
29357
8231
8853
Q1 FY23
Q1 FY24
FY22
FY23
13.5%
4563
4986
8.8%
1191
1273
Q1 FY23
Q1 FY24
FY22
FY23
Everything Logistics | 21
Consistent performance: Key financial Indicators
Figures in Mn
12.0
10.0
8.0
6.0
4.0
2.0
0.0
3500
3000
2500
2000
1500
1000
500
0
EV/EBIDTA
11.0
10.7
10.2
8.0
6.0
Return on Capital Employed
1323
1269
1263
1346
1444
23.8%
23.9%
23.0%
14.0%
14.7%
1600
1400
1200
1000
800
600
400
200
0
FY20
FY21
FY22
FY23
Q1 FY24
Capital Emp. Excl. Cash
ROCE
FY20
FY21
FY22
FY23
Q1 FY24
Consolidated Profit After Tax
Return on Net Worth
3206
2928
20000
17000
14000
11000
8000
5000
2000
-1000
15678
16514
21.1%
20.2%
11967
22.3%
8935
14.1%
10152
13.3%
FY20
FY21
FY22
FY23
Q1 FY24
1453
1432
1507
1238
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
Avg Net Worth
Return on Net Worth
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
30th Jun 23 55620 938 (3062) 53496 16.7 10.7 727 715
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 30th Jun 2023
2%
12%
1%
3%
13%
69%
PROMOTORS
INDIAN PUBLIC
FOREIGN HOLDINGS
BODY CORPORATE
MUTUAL FUND
OTHERS
• CRISIL Long term Rating : AA ( Positive) •
ICRA Short Term Rating CP : A1+
• Stock returned CAGR of 35% in last 20 years • Stock coverage : 12 Buy Rating :12
Everything Logistics | 23
Corporate Governance: Social Responsibility
E
Environmental पर्यावरण 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 सयमयजिक Road safety and health initiatives across 9 states impacted more than 2.6 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 शयसन
Strong and diverse Board Started BRSR in FY22 voluntarily
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 , and distressed rural demand and delay in
private investments etc.
• Revenue and Profit growth of 10%-15%
• Spill over effect on Capex
Hub Centers & Small warehouses
Ships
Containers
Trucks & Rakes
Others (W/H Equip, Wind Energy, IT etc.
Total
Figures In Mn.
Actual (FY07 to FY23)
FY 24 Budget
Q1 FY24 Actual
5530
980
161
3330
1379
5203
1442
1250
0
340
760
420
113
96
62
16883
3750
432
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
Online Presence
Everything Logistics | 26