Transport Corporation of India Limited has informed the Exchange about Investor Presentation
31st October, 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 H1/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 H1 FY24 31st Oct 2023
© 2023 TCI
TCI Consolidated Overview
TCI
Freight Div.
Supply Chain Div.
Seaways
Div.
TCI CONCOR
TCI Cold Chain
TCI Bangladesh
Transystem Logistics
TCI Nepal
TCI Middle East
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
06
Coastal Ships
14
Mn sqM. fta. nages
Warehouse Space
2.5%
Moving India’s GDP by Value
Standalone SBUs
Subsidiaries /JVs
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
Technology & Automation Driven Operations
Key USPs
Wide Range Of Services
Strong Multimodal Capabilities & Network
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 • Retail and CP
• Hi-tech (ICE) • Healthcare/
Lifesciences
• E-Commerce
• 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
6 Own Ship 8000+
Own GP containers
650+ ISO TTR
3Own Auto Rail Rakes
60 Yards Managed
55 Terminal managed
TEUs handled: 50000 (H1 2022-23) 66041 (H1 2023-24)
Full Rail rake movements: 900 (H1 2022-23) 1165 (H1 2023-24)
Everything Logistics | 6
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
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 | 8
Key Highlights
Growth momentum maintained amidst delayed festive calendar and mixed sectorial
trends.
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
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
10500
9000
7500
6000
4500
3000
1500
0
6%
9583
30%
9082
7%
10048
13%
9395
16%
9737
4%
8430
18%
8281
10%
9914
0.2%
9053
Q1
Q2
Q3
Q4
2022
2023
2024
0
0
Everything Logistics | 9
TCI Freight Division: Industry nature and trends
Industry
Growth Drivers
• USD 180 B Freight Transport Market,
highly fragmented and unorganized
• Need for FTL & LTL from a single provider
• Anywhere to anywhere model
•
•
•
LTL Freight Transport Market, relatively
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
facilities
Increasing awareness on sustainable
logistics and demand for multimodal
• Packaging support for high value goods,
fragile items in LTL segment
Everything Logistics | 10
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
India that enables TCI Freight
We have a robust set-up of 25 strategically located hubs across 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 | 11
TCI Freight Division: Key Operational Highlights
Figures in Mn
Particulars
Q2 FY23 Q2 FY22 Gr%
H1 FY24
H1 FY23
Gr%
Revenue
3990
3944
1.2%
7946
7709
EBDITA
152
168
-9.3%
300
312
% to Revenue
3.8%
4.3%
3.8%
4.0%
3%
-4%
EBIT
141
158
-10.6%
277
291
-5%
• Flattish growth amid late arrival of festival season. improvement in LTL segment. Opened 15 new branches to further enhance the network.
• Margins and ROCE fell marginally due to lower business growth
67%
67%
65%
65%
33%
33%
35%
35%
64%
36%
60%
40%
80%
60%
40%
20%
% to Revenue
3.5%
4.0%
3.5%
3.8%
FY20
FY21
FY22
FY23
H1 FY24
FY25 ( E)
15,970
10%
3,000
16,000
13,000
11,507
13,716
10,000
7,000
4,000
1,000
3.6%
4.2%
7,709
3.8%
4.2%
7,946
3.5%
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
Revenue (mn.)
EBIT (%)
8%
6%
4%
2%
0%
2,500
2,000
1,500
1,000
17.8%
500
-
LTL
FTL
2,299
2,225
2,409
2,616
2,692
25.5%
25.1%
27.6%
20.9%
40%
32%
24%
16%
8%
0%
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
Capital Emp.(mn.)
ROCE (%)
Everything Logistics | 12
TCI Supply Chain Division: Industry nature and trends
Industry
Growth Drivers
• Market Size USD 12 Bn
• Relatively less fragmented with
higher organized market
• 3PL Growth CAGR 15%
• 60% constitute road movements
• Higher demand for integrated and
customized solutions
•
Supply chain network optimization
especially in warehousing
• Growth of Omni channel in tier
3/4/5 cities
•
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 | 13
TCI Supply Chain Division: Core competencies and capabilities
T C I W arehouse
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 | 14
TCI Supply Chain Division: Key Operational Highlights
Figures in Mn
Particulars
Q2 FY24 Q2 FY23
Gr% H1 FY24 H1 FY23
Gr%
Revenue
EBDITA
3721
3421
8.8%
7181
6274
14%
355
322
10.3%
675
584
15%
% to Revenue
9.5%
9.4%
9.4%
9.3%
EBIT
246
220
11.8%
462
375
23%
% to Revenue
6.6%
6.4%
6.4%
6.0%
• Growth momentum continued amidst
retention and expansion of business with existing clients and new business acquisitions.
• Good traction of multimodal
services, 500+ rake
placements Vs 400+ last year during the quarter
13,000
11,500
10,000
8,500
7,000
5,500
4,000
2,500
12,763
10,015
9344
6,274
7,181
6.4%
6.1%
6.0%
6.1%
6.4%
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
Revenue (mn.)
EBIT (%)
22%
17%
12%
7%
2%
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
4,005
4,030
3,650
3,431
3,237
18.5%
18.4%
20.7%
22.6%
24.1%
40%
31%
22%
13%
4%
-5%
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
Capital Emp.(mn.)
ROCE (%)
Everything Logistics | 15
TCI Seaways: Industry nature and trends
Industry
Jal Marg Vikas Project Rs. 5K+ 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%
Road 60%
The Sagar mala Project
•
• •
•
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 | 16
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 | 17
TCI Seaways Division: Key Operational Highlights
Figures in Mn
Particulars
Q2 FY24 Q2 FY23 Gr% H1 FY24 H1 FY23
Gr%
1274
1158
10.1% 2447
2610
-6%
•
• •
Regained growth momentum amidst all operations. Freight rates remained weaker because of lower fuel price. Signed for 2 ship building for 34 Mn USD , total capacity 14600 DWT. Ready by FY26
ships under
Revenue
EBDITA
% to Revenue
EBIT
% to Revenue
6,000
5,000
4,000
3,000
2,000
1,000
-
3692
19.9%
485
481
0.9%
1029
1102
-7%
Fuel Price per MT
38.1% 41.5%
42.1%
42.2%
310
304
1.7%
675
765
-12%
24.3% 26.3%
27.6%
29.3%
T M / R N
I
120,000 90,000 60,000 30,000 -
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
FY22
FY23
FY24
5,332
5,593
60%
40%
2,610
33.6%
29.3%
29.4%
2,447
27.6%
20%
3,909
3,780
3,565
3,593
3,468
46.5%
44.6%
41.7%
38.3%
4,000
3,000
2,000
1,000
18.1%
0%
-
60%
50%
40%
30%
20%
10%
0%
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
2020-21
2021-22
H1 FY23
2022-23
H1 FY24
Revenue (mn.)
EBIT (%)
Capital Emp.(mn.)
ROCE (%)
Everything Logistics | 18
TCI’s Joint Ventures
H1 FY24 (FY23)
Figures in Mn.
Revenue
1563 (3047)
341 (601)
4846 (6920)
Y-o-Y Growth
3.5% (1.2%)
7.9% (2.4%)
49.4% (48.2%)
PAT
26 (55)
20 (28)
701 (822)
Capital Employed
399 (314)
724 (360)
3339 (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 | 19
Financial Highlights
CONSOLIDATED
STANDALONE
Figures in Mn.
e u n e v e R
A T I D B E
T A P
35000
28000
21000
14000
7000
0
3000
2200
1400
600
-200
2500
2000
1500
1000
500
0
6.2%
7.0%
18477
19631
9395
10048
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
3.9%
8.1%
2127
2210
1033
1117
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
12.8%
1710
20.3%
1516
730
878
30000
25000
20000
15000
10000
5000
0
3500
2800
2100
1400
700
0
2000
1600
1200
800
400
0
7.0%
6.2%
16816
17995
8585
9120
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
8.6%
9.2%
2143
2327
992
1083
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
12.2%
1340
1503
16.7%
574
670
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
Q2 FY23
Q2 FY24
H1 FY23
H1 FY24
Everything Logistics | 20
Consistent performance: Key financial Indicators
Figures in Mn
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
3,500
3,000
2,500
2,000
1,500
1,000
500
-
EV/EBIDTA
12.7
11.0
10.2
8.0
6.0
18,000
15,000
12,000
9,000
6,000
3,000
-
Return on Capital Employed
23.8%
23.9%
23.1%
14.0%
14.7%
13231
12690
12631
13459
14677
FY20
FY21
FY22
FY23
H1 FY24
FY20
FY21
FY22
FY23
H1 FY24
Capital Emp. Excl. Cash (mn.)
ROCE (%)
Consolidated Profit After Tax
3206
2928
1453
1432
1507
1238
20,000
17,000
14,000
11,000
8,000
5,000
2,000
(1,000)
Return on Net Worth
15678
21.1%
11967
22.3%
17062
17.6%
8935
14.1%
10152
13.3%
FY20
FY21
FY22
FY23
H1 FY24
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
Avg Net Worth (mn.)
Return on Net Worth (%)
30%
25%
20%
15%
10%
5%
0%
50%
40%
30%
20%
10%
0%
Everything Logistics | 21
Market Summary
Particulars
UOM
30th Sept 23
Shareholding Pattern as on 30th Sept 2023
Market Cap Debt Incl. Leases Cash equivalents Enterprise Value P/E EV/EBITDA 52 Week High 52 Week Low
Rs Mn. Rs Mn. Rs Mn Rs Mn. Nos Nos Rs/share Rs/share
400% 350% 300% 250% 200% 150% 100% 50% 0%
14.6% 14.3%
13.0%
90%
100%
125%
17.9%
17.3%
350%
300%
12.9%
14%
125%
12%
10%
FY19
FY20
FY21
FY22
FY23
FY24
Dividend Ratio
Dividend Payout Ratio
- - - - Board has approved first interim dividend of 125% for FY24
60926 1176 (2807) 59296 20.3 12.7 868 555
20%
18%
16%
3%
12%
1%
3%
13%
69%
PROMOTORS
INDIAN PUBLIC
FOREIGN HOLDINGS
BODY CORPORATE
MUTUAL FUND
OTHERS
ICRA Short Term Rating CP : A1+
• CRISIL Long term Rating : AA ( Positive) • • Stock returned CAGR of 33% in last 20 years • Stock coverage : 13 Buy Rating :13
Everything Logistics | 22
Corporate Governance: Social Responsibility
E
Environmental पर्यावरण Push towards green logistics via Rail & Coastal – Approx. 30% of consolidated revenues from Multimodal
105K eCO2 Tonnes Scope-1&2 Emissions. 111K eCO2 Tonnes Green Points earned from Railways
Produced 15.9 Mn (LY 16.0 Mn) renewal energy units
200+ CNG vehicles
Started Sustainable Supply Chain Lab in partnership with IIM-B
•
•
•
•
•
S
Social सयमयजिक Road safety and health initiatives across 9 states impacted more than 2.6 Mn people
Promotion of vocational training amongst underprivileged, 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 robust remuneration system
Comprehensive Enterprise risk management and Business continuity plan
Everything Logistics | 23
Outlook
• Demand momentum to continue but with a moderation
• Headwinds of geopolitical developments and global recession on domestic manufacturing and distressed
rural demand and delay in private investments etc.
• Revenue and Profit growth of 10%-15%
• With more visibility to the businesses, Capex targets revised
Hub Centers & Small warehouses Ships
Containers
Trucks & Rakes
Others (W/H Equip, Wind Energy, IT etc. Total
Actual (FY07 to FY23)
FY24 Budget
Figures In Mn.
FY24 Rev. Budget
H1 FY24
Actual
5530
980
980
690
3330
1379
5203
1442
1250
340
760
420
630
280
520
0
110
220
340
130
16883
3750
2750
1150
Everything Logistics | 24
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
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