TCI Express Limited has informed the Exchange about Investor Presentation
To, Dated: February 06, 2025 Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street-Mumbai-400001
Listing Department National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E) Mumbai-400051
Scrip Code: 540212
Scrip Symbol: TCIEXP
Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015
Dear Sir/Madam,
In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please find enclosed Earning/Investment Presentation being made to the investors to overview on Company performance and un-audited Financial Results for Q3/9M 2024-2025.
This Presentation is also available on the website of the Company at https://www.tciexpress.in/investor- analyst-corner.aspx?invid=15&key=9bf31c7ff062936a96d3c8bd1f8f2ff3
We request you to kindly take the above information on records.
Thanking you, For TCI Express Limited
PRIYANKA (Company Secretary & Compliance Officer) Encl: as above
91 40 27840104
Website: www.tciexpress.in Corporate Office: Plot No. 84, 3rd Floor, Sector 32, Institutional Area, Gurugram - 122001, India Tel.: +91-124-2384090-94 • Email: info@tciexpress.in • CIN: L62200TG2008PLC061781 Registered Office: Flat Nos. 306 & 307, 1-8-273, Third Floor, Ashoka Bhoopal Chambers, S. P. Road, Secunderabad – 500003 • Tel.: ++91 40 27840104
0
X
Q3 & 9M FY25 Earnings Presentation
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TCI Express | Fastest Express Delivery Company in India
o Completed 8 years post demerging, positioning itself as a leading B2B delivery company in India. Ranked 713 by market capitalization as of March 31, 2024
o Serves 97% of B2B customers and 3%
of B2C customers
o ERP enabled operations, automated processes, barcoding on packaging, GPS enabled vehicles, AI and Machine enhance systems Learning operational efficiency and accuracy
to
o Leading sustainability by focusing on reducing energy, renewable emissions, and while ensuring strong ethical governance and diverse leadership
o The only express cargo company in India with own set up across nation. Offers services on Sunday, Holiday and late pickup
o Specialized in offering time-definite solutions with focus on Tier II and III cities
2016 Year of Listing
60,000+ Location Served
73+ Air Gateways
970+ Branch Setup
200+ Countries
5,500+ Containerized Vehicles
3,000+ Work Force
28 Sorting Centers
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TCI Express | Why TCI Express?
Asset Light Business Model: Operating with an asset-light model, optimizing efficiency and flexibility without heavy investments in physical assets
No Franchise, All owned Branches: All branches owned and operated directly, ensuring consistent quality and control across its network
High Value Cargo (Low volume, high margins): Transporting compact, high-value goods for maximum profitability, with specialized handling and security for efficient, secure shipments
Low Working Capital Requirement: Minimized working capital needs, enhancing financial stability and operational agility
Lowest Cost Structure: Lowest cost structure in the industry, ensuring cost-effective solutions for our clients
API based backend technology: Streamlining processes and integrating seamlessly with client systems for enhanced operational efficiency
Containerized Movement: Containerized movement for secure and efficient transport, minimizing handling and reducing the risk of damage
Superior Customer Support Services: Delivering exceptional customer support, providing responsive and personalized service to meet diverse client needs
Expansion of Services: Expanding service offerings to meet evolving market needs and provide comprehensive logistics solutions
Focus on Automation: Prioritizing automation to optimize processes, increase efficiency and ensure timely delivery of services
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TCI Express | Geographical Footprint
Navigating complex Industry Landscapes With Agility and Innovation
Company Branches 970+
Express Services
500
Surface Express
Domestic and International Air Express
C2C Express
Rail Express
Pharma Cold Chain Express
E Commerce Express
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TCI Express | Automated Sorting Centers
GIGA Sorting Centre, Gurugram
Chakan Sorting Centre, Pune
Location:
Area:
Gurugram
2 lakh sq.ft
Location:
Pune
Area:
1.40 lakh sq.ft
Solar Panel:
600 KW
Solar Panel:
280 KW
Operational:
India's first and largest automated B2B sorting center operational from March 2022
Operational:
Equipped with AI cross-belt sorter speeds up sorting, minimizing errors for faster deliveries and reduced inventory times
GIGA Sorting Centre, Gurugram
Chakan Sorting Centre, Pune
The company achieved full automation at GIGA Sorting Centre, Gurugram and Chakan Sorting Centre, Pune resulting in turnaround time reduction and enhanced operational efficiency with AI-enabled technology
Inhouse ERP and Automation
Shorter Turnaround Time
24x7 Higher Capacity Utilization
Enhance Customer Satisfaction
Enhanced Profitability
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TCI Express | Expanding Service Offering: Surface Express
Express solutions with over 60000 locations with fully containerized fleet of vehicles, offers customized value-added services to meet customer's requirements
Over 50K pickup locations and 60K delivery locations ensuring seamless nationwide coverage
Fully containerized vehicles for secure and efficient transportation
Fast, time-definite deliveries tailored to customer needs
Committed to delivering top-notch service that meets and exceeds expectations
Key Differentiators ✓ Extensive Reach: Delivery across 60,000+ locations in 750+ districts, covering 29,000+
PIN codes with time-definite services
✓
✓
✓
✓
✓
✓
✓
Robust Pickup Network: Cargo pickup from 50,000+ locations, including multi-location pickup through company-owned branches
Comprehensive Connectivity: 500+ express and 2,500 feeder routes ensuring seamless transportation
Advanced Fleet: 5,500+ fully containerized vehicles with 24x7 GPS tracking for real-time monitoring
Efficient Reverse Logistics: Swift reverse pickups within 24 hours of request and day- definite pickup/delivery across ODA (Extn) networks
Enhanced Customer Services: Collection on delivery (COD), Sunday & holiday deliveries, and 24/7 customer support with Auto-MIS, E-Billing, E-PODs & Online Payment
Tech-Enabled Logistics: API-integrated business intelligence software for an optimized customer experience
Flexible & Priority-Based Services: Multimodal transport and priority-based delivery solutions tailored to business needs
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TCI Express | Expanding Service Offering: Domestic Air Express
Domestic Air Express solutions offer round-the-clock time-sensitive express delivery with doorstep service, ensuring delivery within 24 hours in major metros and 48 hours in Mini Metros and A-class cities
Domestic Air Express
Key Differentiators
Presence at 72+ air gateways
48-hour delivery to all mini metro and A-class cities
24-hour delivery to all Metro and Tier 1 cities
Connections to all domestic airports
➢ Comprehensive Service Options: Reliable Door-to-Door and Door-to- Airport services; Flexible Airport-to-Airport and Airport-to-Door solutions
➢ Seamless Multimodal Connectivity: Integrated air and surface transport for optimal efficiency and Multi-modal options ensuring reach to small towns
➢ Exclusive Airline Partnerships: Exclusive access to space arrangements with all major domestic carriers and strategic alliances with multiple air carriers for reliability
➢ Time-Sensitive & Flexible Operations: Time-sensitive distribution, late pickups and deliveries to meet client schedules and services available on Sundays and holidays
➢ Enhanced Customer Convenience: Collection on Delivery (COD) for all shipments and Proof of Delivery (POD) available in both hard and soft formats
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TCI Express | Expanding Service Offering: International Air Express
International Air Express services to over 200 countries and territories, connecting all major Indian airports with 3,000+ pickup points, ensuring seamless global reach
International Air Express
Key Differentiators
Facilitate third-country shipment services
Customized pricing based on transit time and client requirements
Expertise in handling door-to-door heavy commercial shipments (inbound & outbound)
➢ Comprehensive Export & Import Solutions: Flexible import/export options with seamless interlining and trans-shipment services. Pickup from the exporter's premises for airport-to-airport shipments.
➢ Optimized
shipment Logistics & Consolidation: Streamlined consolidation to support exports. Customizable bulk mailer services tailored for exporters
➢ Priority & Time-Sensitive Services: First Flight Out Service for urgent
shipments. Charter services for specific transportation needs
200+ Countries
3,000+ Pickup Points
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➢ Value-Added Services & Compliance Support: AD Code Registration, legalization,
issuance, Document
Country of Origin Certificate Fumigation, and GSP Certificate assistance.
➢ Enhanced Security & Risk Management: Insurance coverage for added
shipment security
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TCI Express | Expanding Service Offering: Rail Express
Expanding Horizons with Rail: Faster, Greener, and Cost-Effective Freight Solutions
Shorter Turnaround Time
Synergistic with Existing Express Business
Higher Margin Business
Uninterrupted Transportation
Bridging the Gap between Air & Surface
Infrastructure Backed by Government
✓
✓
✓
Asset Light Business Model
Planning to secure dedicated train space to optimize capacity utilization
Independent team to manage this business offering
Advantages
Optimize economies of scale at branches and routes
Use of strong railway network and faster transit time at a lower cost substituting Air
Cargo✓
✓
Direct transfer of goods from the consignor to the train, followed by delivery from the train to the consignee
Infrastructure Development backed by government
✓
Indian railways aims to increase its freight traffic from 1.2 billion tons in 2019 to 3.3 billion tons in 2030. It is promoting lower carbon footprint and sustainable mode of transport
5,000+ Customer Base
150+ Route Presence
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TCI Express | Expanding Service Offering: C2C Express
TCI Express offers India’s first C2C Express service, utilizing an asset-light business model
Full truckload services nationwide with expedited trucking
Advanced API solutions for seamless integration with logistics systems
Transportation Mode – Milk Run
✓
Comprehensive transportation from origin to multiple destinations with pickup and drop-off services
Comprehensive GST and GTA compliance services
A single point of contact for all queries
✓
Temperature-controlled logistics, supporting a range of vehicles from 1 ton to 18 tons
✓
Real-time GPS tracking along with temperature monitoring using specialized devices
Transportation Mode – Fast Trucking
✓
✓
Secure transportation of high-value goods
Multimodal transport options, including road, air, and rail services
Versatile fleet, including open and containerized vehicles for diverse transport
needs✓
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TCI Express | Expanding Service Offering: Pharma Cold Chain Express
TCI Express has effectively implemented the Pharma Cold Chain Express Service, utilizing an asset-light approach
Standard Operating Procedures followed by TCI Express
TCI Express Pharma Cold Chain Transportation
Temperature monitoring during loading and unloading
Additional data loggers at doors for extra checks
Minimizing time for loading and unloading
Vehicles are pre- cooled to -18°C
Real-time temperature tracking with advanced systems
Performing regular pull-down and holding tests
Conducting air leakage inspections
➢ TCI Express continues to use the asset-light model for
Cold Chain logistics in the pharma sector
➢ Ensuring temperature stability for pharma shipments like frozen blood plasma or vaccines, adhering to industry standards
➢ Frozen products are dispatched according to FSSAI
guidelines, maintaining temperature consistency
➢ Temperatures are monitored via data loggers, with real- time tracking provided through advanced tracing technology
➢ GPS tracking and real-time data are available for
customers
➢ Proper handling during loading and unloading to ensure
no temperature deviations
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TCI Express | Q3 FY2025 Highlights
Total Income
Rs. 298.9 Cr
EBITDA
Rs. 33 Cr 11% Margin
Profit After Tax
Rs. 20.7 Cr 6.9% Margin
Dividend per Share
Rs. 3.0
Key Highlights
▪ November and December month saw a degrowth in performance, primarily driven by a seasonal reduction in inventory levels
▪ Capital expenditure of Rs. 9.38 Crores in Q3 FY25 for expansion of our branch network, construction of sorting centers and ramping up
our IT infrastructure
▪ The company successfully expanded its multimodal services. The growth of Rail Express significantly optimized transport times and opened new avenues for enhancing margins, positioning the company for stronger long-term performance and operational resilience
▪ The capacity utilization during the quarter was at 82.0%
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TCI Express | Management Perspective
Commenting on the performance, Mr. Chander Agarwal, Managing Director, said:
“TCI EXPRESS continued to demonstrate operational resilience and strategic agility in a dynamic market environment. During the quarter, we enhanced our multimodal logistics capabilities, strengthened our metro-city delivery network in the Air Express segment, and advanced automation initiatives to deliver exceptional service to our customers. These efforts underscore our commitment to meeting evolving market needs while maintaining operational efficiency.
However, the logistics sector continues to navigate a challenging business landscape with moderating manufacturing activity and evolving consumer trends impacting demand. India’s Manufacturing PMI showed some fluctuations with a slight dip in the index towards the later months, reflecting a marginal slowdown in production levels, while festive season demand in October was softer than expected. November and December experienced a slight slowdown. Additionally, inflationary factors, including annual toll revisions of 8-10%, influenced operating costs in the Surface Express segment. The Air Express division also adjusted to shifts arising from airline consolidations and airport privatization.
We are honored to have received significant recognition during the quarter, including the prestigious ‘CII SCALE Award 2024’ from the CII Institute of Logistics for Supply Chain and Logistics Excellence, highlighting the strength of our infrastructure and innovation. Being featured in Forbes India’s Select 200 Companies with Global Business Potential in DGEMS 2024 reflects our growing global presence and strategic positioning. Our CSR efforts were recognized with the ‘Indian CSR Award 2024’ by Brand Honchos, and our workplace culture continues to be acknowledged with the ‘Great Place to Work 2025-26’ certification for the fifth consecutive year, emphasizing our focus on employee well-being and growth.
As part of our ongoing commitment to shareholder value, we are pleased to announce a second interim dividend of ₹3.00 per share taking the total dividend to Rs. 6.00 per share for the 9M FY25, representing a payout of 300% on the face value, reflecting our confidence in the company’s financial strength and consistent performance.
Looking ahead, we remain cautiously optimistic as the anticipated rebound in economic activity, supported by government infrastructure investments and a renewed focus on manufacturing, is expected to create favorable conditions for the logistics sector. The company anticipates a demand recovery with the upcoming budget, expecting fiscal measures to boost industrial output, infrastructure investments, and consumer spending, which will positively impact transportation and logistics activities. We are confident that our ability to leverage technology, enhance our services, and expand our offerings will enable us to continue delivering sustainable value to all stakeholders.”
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TCI Express | Q3 FY2025 Performance Discussion
•
•
•
•
•
•
•
Total Income for the quarter stood at Rs. 299 Crores
Lower than expected demand in sectors such as Automobile, Consumer goods contributed to softer revenues and reduced profit margins
In the Surface Express segment, the company faced increased costs due to inflationary pressures, particularly from annual toll hikes of 8-10%
The Air Express division faced cost pressure due to airline consolidation and airport privatization. To enhance service levels and customer reach, the company has launched direct delivery services in metro cities significantly strengthening our metro city delivery network
The contribution to revenue from extended services, particularly from rail express, has been steadily increasing
The contribution from Multimodal express services is steadily increasing positioning us to increase their revenue contribution to 20-22% over the next 2-3 years, thereby enhancing competitiveness
The rise in labor, toll, insurance, driver and transport cost led to increased transportation expenditure
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TCI Express | Quarter Performance Trends
Resilient financial performance while sustaining a healthy margin profile amidst market dynamics.
Total Income
EBITDA and Margins
313.8
313.9
298.9
47.5
15.1%
40.5
12.9%
33.0
11.0%
Q3 FY24
Q2 FY25
Q3 FY25
Q3 FY24
Q2 FY25
Q3 FY25
PBT and Margins
PAT and Margins
42.4
13.5%
35.0
11.1%
27.4
9.2%
32.2
10.3%
26.3
8.4%
20.7
6.9%
Q3 FY24
Q2 FY25
Q3 FY25
Q3 FY24
Q2 FY25
Q3 FY25
Notes: 1. 2.
EBITDA includes other income All Margins are calculated on Total Income
* All numbers in Crores unless specified
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TCI Express | Q3 and 9M FY25 Financial Performance
Particulars (in Cr)
FY2025
FY2024
(%)
FY2025
(%)
FY2025
FY2024
Q3
Y-o-Y
Q2
Q-o-Q
9M
Income from Operations Other Income Total Income
EBITDA Margin (%)
EBIT Margin (%)
PBT Margin (%)
PAT Margin (%) EPS
Notes: 1. 2.
EBITDA and EBIT includes other income All Margins calculated on Total Income
296.3 2.6 298.9
33.0 11.0%
27.7 9.3%
27.4 9.2%
20.7 6.9% 5.4
312.0 1.97 313.8
47.5 15.1%
42.8 13.6%
42.4 13.5%
32.2 10.3% 8.4
(5.0)%
(4.8)%
(30.5)%
(35.3)%
(35.4)%
(35.7)%
(35.7)%
311.5 2.5 313.9
40.5 12.9%
35.2 11.2%
35.0 11.1%
26.3 8.4% 6.9
(4.9)%
(4.8)%
(18.5)%
(21.3)%
(21.7)%
(21.3)%
(21.7)%
908.1 7.3 908.1
109.3 12.0%
93.6 10.3%
92.9 10.2%
70.1 7.7% 18.9
936.7 5.2 941.9
147.6 15.7%
133.5 14.2%
132.5 14.1%
100.1 10.6% 26.1
Y-o-Y
(%)
(3.8)%
(3.6)%
(26.0)%
(29.9)%
(29.9)%
(30.0)%
(27.8)%
* All numbers in Crores unless specified
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TCI Express | 9M FY2025 Highlights and Outlook
Maintained stable Gross margins and showcasing our resilience through consistent capacity utilization and operational efficiencies
Total Income
Rs. 908.1 Cr
EBITDA
Rs. 109.3 Cr 12.0% Margin
EBIT
Rs. 93.6 Cr 10.3% Margin
Profit After Tax
Rs. 70.1 Cr 7.7% Margin
Key Highlights
Outlook
▪
▪
▪
▪
▪
The capacity utilization during 9M FY25 was at 82%
The automation of sorting centers in Gurugram and Pune has boosted efficiency and streamlined processes
Strong cash flow from operation of Rs. 40 crores
Proposed a cumulative dividend of Rs. 6 per share for 9M FY25
The revenue mix comprised a 49% contribution from SME customers, with the remaining 51% from other customers
▪ Achieved cash profit* of Rs. 85.8 Crores in 9M FY2025 compared to
Rs. 114.2 Crores in 9M FY2024
▪
▪
Surface Express segment saw higher costs due to inflationary pressures
Significant strides were made in automation, with sorting centers in Gurugram and Pune demonstrating improved efficiency. The extension of these enhancements to Ahmedabad and Kolkata is planned to further boost performance
▪ Anticipated budgetary announcements are expected to drive economic growth, ease inflation, and influence monetary policy rate will shape market dynamics
▪
Expansion of SEZs and Multimodal Logistics Parks, along with a strong push for green logistics, will enhance efficiency and sustainability in the sector
*Cash Profit = Net Profit + Depreciation
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TCI Express | Nine Months Performance Trend
Strong track record of consistently delivering an industry-leading margin profile
Total Income from Operations
EBITDA Margins
920.2
941.9
908.1
789.4
9M FY22
9M FY23
9M FY24
9M FY25
PBT and Margins
133.7
132.5
14.5%
14.1%
123.2
15.6%
92.9
10.2%
130.6
16.5%
145.8
147.6
15.8%
15.7%
109.3
12.0%
9M FY22
9M FY23
9M FY24
9M FY25
PAT and Margins
92.9
100.8
100.1
11.8%
11.0%
10.6%
70.1
7.70%
9M FY22
9M FY23
9M FY24
9M FY25
9M FY22
9M FY23
9M FY24
9M FY25
Notes: 1. 2.
EBITDA includes other income All Margins are calculated on Total Income
* All numbers in Crores unless specified
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TCI Express | Key Ratios
Delivering consistent growth and profitability for our shareholder
Dividend per Share (Rs) & Payout (%)
Return on Capital Employed (%)
8.0
8.0
8.0
6.0
6.0
24.0%
22.0%
17.0%
23.0%
31.7%
44.1%
39.4%
39.0%
27.8%
22.3%
FY22
FY23
FY24
9M FY24
9M FY25
FY22
FY23
FY24
9M FY24
9M FY25*
Return on Equity (%)
Cash Conversion Ratio (%)
27.0%
25.0%
70.0%
73.0%
70.0%
20.3%
20.9%
12.8%
50.1%
37.0%
FY22
FY23
FY24
9M FY24
9M FY25*
FY22
FY23
FY24
9M FY24
9M FY25
H1 FY25 ratios are not annualized ROCE has been calculated on the basis of core assets only
• • • Other Income has been excluded from EBIT for calculating ROCE
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TCI Express | Cash Flow from Operations vs Free Cash Flows
Unmatched combination of scale, expertise and technology resulting sustainable cash flow from operations
128.0
147.0
136.0
89.7
48.0
22.0
40.6
33.5
FY22
FY23
FY24
9M FY25
Cash Flow from Operations
Free Cash Flows
•
•
•
Cash flow from operations of Rs. 40 crore for 9M FY2025
During 9M FY2025, the company incurred capital expenditure of Rs. 20 Crores for expansion of our branch network, construction of sorting centers and ramping up our IT infrastructure
Efficient working capital management, along with debt free capital structure contributes to generating sustainable free cash flow and attractive returns to shareholders
* All numbers in Crores unless specified
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TCI Express | Leverage Profile and Working Capital Cycle
Credit rating of A1+ Short Term (ICRA) and AA- Long Term (CRISIL)
Stable Working Capital Management
Particulars (in Cr)
Long Term Debt
Short Term Debt
Total Debt
Dec-23
Sep-24
Dec-24
0.0
0.2
0.2
0.0
0.93
0.93
0.0
0.0
0.0
Less: Liquid Assets
73.4
109.56
119.12
Net Debt
Total Equity
Net Debt/Equity
(73.2)
681.9
(0.11x)
(108.63)
(119.12)
749.30
(0.15x)
758.78
(0.16x)
Receivables Days
52
57
58
Payables Days 36
36
35
Q3 FY23
Q3 FY24
Q3 FY25
Net Working Capital Days
21
23
16
Q3 FY23
Q3 FY24
Q3 FY25
Q3 FY23
Q3 FY24
Q3 FY25
Note: Receivable Days has been calculated on Revenue from Operations inclusive of GST for the respective quarters
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TCI Express | TCI Express – Leading Margins and Profitability in the Industry
EBITDA Margins %
EBIT Margins %
16.9%
12.9%
12.1%
9.3%
5.1%
4.4%
11.2%
10.8%
8.9%
2.3%
0.9%
0.3%
TCI Express
Peer 1
Peer 2
Peer 3
Peer 4
Peer 5
TCI Express
Peer 2
Peer 1
Peer 3
Peer 5
Peer 4
PAT Margins %
8.4%
8.1%
4.5%
TCI Express
Peer 2
Peer 1
Peer 3
Peer 4
Peer 5
0.4%
nm
nm
Notes: 1. 2.
All financials are based on Q2 FY2025 reported numbers EBITDA and EBIT including Other Income
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TCI Express | Last 8 Year Key Takeaways
Inherent Business Strength
✓ Fastest B2B Express Delivery Company in India
✓ Asset light model allows the Company to maintain higher utilization and drive strong cash flows
✓ No franchise model. All branches are company owned which ensures the adoption of best standard operating procedures
✓ Diversified business model catering to all the major manufacturing industries
Expanding Business
✓ Locations servicing from 32,000 locations in FY 2017 to 60,000 locations in FY 2024
✓ Branch offices increased from 500 in FY 2017 to 970+ branches in FY 2024
✓ Sorting centers increased from 26 in FY 2017 to 28 in FY 2024
✓ Customers count increased from 1.6 Lakh in FY 2017 to 2.25 Lakh in FY 2024
Generating Returns for Stakeholders
✓ Strong track record of consistently delivering enhanced margins and profitability post-demerger. EBITDA growing at a CAGR of
17% and net profit is at a CAGR of 20%
✓ Consistently paying dividends for the last 8 years and generating a high return on capital employed
✓ Debt-free company, maintaining a strong balance sheet and flexible capital structure
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TCI Express | Strategy and Outlook
Highly diversified client base of corporate and SME customers. Well spread across industry verticals
Continuous expansion in metro and tier I cities through new branch offices
Contribution of new value-added and to service offerings drive growth
Automation at owned sorting centers to drive efficiency operational and enhance profitability
the
Government Initiatives to logistics strengthen focus sector on and to provide infrastructure seamless connectivity to remote rural areas
✓ Planned CapEx of Rs. 500 crores in 5
years (FY23-FY27)
FY23
FY24
FY25 (9M)
119.55
46.07
22.00
Q4 FY25, FY26 and FY27
312.38
✓ Future capex plans
construction Kolkata and Ahmedabad
and
include similar in automation
✓ Capex from FY23 till 9M FY25 was allocated towards branch network expansion and automation
Capital Expenditure
Enhanced Offering
✓ Launch and expansion of Rail service
offerings
✓ Emphasis on Extended and Value-Added services such as Pharma Cold Chain and C2C express
✓ Continuous focus on volume growth
through B2B client acquisition
✓ Money Back Guarantee Scheme
✓ Investment in sorting centers
✓ Automation and enhancing technological
capabilities
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TCI Express | Strategic Priorities by 2030
Expansion into New Markets
Sustainability Initiatives
• TCI Express aims to grow its network further by increasing the number of service locations, pickup points, and delivery centers. This includes in both domestic and its footprint extending international markets, enhancing connectivity across 200+ countries and territories
•
A major focus is on reducing environmental impact by investing in renewable energy and sustainable practices. TCI Express has installed solar panels at its Pune and Gurugram sorting centers, generating over 1.7 million kWh of clean energy. This aligns with the company’s goals of minimizing carbon emissions and promoting eco-friendly logistics
Technology Driven Operations
New and Enhanced Services
•
•
to
AI-driven systems, like the automated cross-belt sorter, have reduced turnaround times by 40%. The company plans similar technologies at key sorting centers, further enhancing operational efficiency and accuracy is enhancing The company posture and investing capabilities
its cybersecurity recovery
in disaster
implement
•
Tailoring services for specific industries like Pharma Cold Chain, Aerospace, and Engineering is a priority. TCI Express’s ability to deliver customized, sector- specific solutions positions it as a reliable partner for industries with complex logistics needs
• New services such as Rail Express, C2C Express, Pharma Cold Chain Express, Air Express are expected to contribute one-fourth of the top-line
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TCI Express | Express Industry – An Outlook
India GDP $3.55 Tn
Total Logistics Spend $448 Bn
Road Transportation $210 Bn
TCI Express Carries $14 Bn
Un-Organised Segment 90%
TCI Express Market Share 7%
Logistics as % of GDP
15%
14%
8%
$17,795 Bn
$3,550 Bn
$27,361 Bn
4%
Water
5%
Air
18% Rail
Indian Logistics Market Split
73% Road
Notes: 1. Source : World Bank Database, Department of Commerce – Gov. of India, IBEF
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TCI Express | Growth Drivers: Logistics' Industry
Infrastructure Development
Technology Integration
Sustainability
Growing Demand
• Road
Networks:
under Bharatmala and PM Gati Shakti reduces bottlenecks and enhances connectivity
Expansion
• Airports: Rapid evolution of air cargo systems and their widespread adoption across global airports would enable smooth cargo movement
• Railways:
India's
dedicated
freight corridors are significantly enhancing rail logistics with impressive growth in gross tonne kilometers (GTKMs), reflecting a sharp rise in freight transport efficiency
• Digitalization: IoT, RFID, GPS trackers, and automated sorting systems streamlines logistics, reducing operational time and boosting efficiency
• ESG Practices: As more companies adopt Environment, Social, and Governance (ESG) frameworks, sustainable logistics practices are gaining prominence
• AI-based
toll management and GPS- allow tolls intervention, reducing
truck passage
like GNSS
through
enabled payments seamless without manual delays significantly
• Pharma
cold
chains: Use advanced refrigeration and real-time temperature monitoring to maintain required conditions for sensitive pharmaceuticals during transit
• Green Logistics: There’s a rising demand for green logistics solutions, including the use of electric vehicles, biofuels, and energy-efficient warehousing. By 2024, sustainability will play an even greater role as businesses seek to minimize their carbon footprints while maintaining logistics efficiency
• B2B and E-Commerce: The B2B supply chain and logistics market is projected to grow from USD 2,223 bn in 2024 to USD 3,344 bn by 2032, with a CAGR of 4.64% driven by factors such as globalization, e- technological and commerce, advancements
• Global Trade: Expansion of international markets requires faster and more efficient logistics solutions
• Manufacturing
Expansion:
in sectors production, particularly automotive, and demands reliable and efficient networks
electronics,
Increased like FMCG, logistics
Source: 1.
EY- Logistics Report 2. Dhristi IAS 3. Devdiscourse 4. Business Research Insights 5. Railway Supply
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TCI Express | Growth Drivers: Logistics' Industry
National Logistics Policy (NLP)
Launched in 2022, this policy is key to transforming India’s logistics sector. It aims to cut logistics costs from 13-14% of GDP to 8% by 2030, aligning with global standards. It emphasizes seamless coordination across transport modes, minimizing bottlenecks, and boosting supply chain efficiency.
PM Gati Shakti National Master Plan Launched in 2021, Gati Shakti enhances connectivity by integrating over 1,300 GIS data layers. The recent Budget aims to improve route planning and connectivity by granting access to the PM Gati Shakti database, including urban land records. The GCT policy encourages private investment by allowing non-railway agencies to develop cargo terminals, further boosting private sector involvement in Indian Railways.
Trade Infrastructure for Export Scheme (TIES) The TIES scheme provides grants-in-aid for infrastructure projects with significant export linkages. The infrastructure includes Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, export warehousing and packaging, SEZs, and ports/airports cargo terminuses.
to government-owned agencies
National Infrastructure Pipeline (NIP) Launched in 2019, the initiative focuses on enhancing India’s logistics infrastructure— roads, ports, and transport networks to reduce costs and transit times. With ₹111 trillion planned investments, 21% of projects are completed, and 46% are underway. An extension of NIP is set to include new sectors like electric mobility and green energy. Other Green initiatives like alternative fuels adoption are driving sustainability in logistics.
UDAN Scheme and Air Infrastructure The 2025 Budget strengthens India's aviation sector by enhancing air cargo infrastructure and streamlining cargo screening and customs processes, improving efficiency and reducing transit times and costs for exporters and importers. The introduction of 120 new UDAN destinations will boost connectivity and create growth opportunities for logistics companies.
Bharatmala Project Launched in 2017, the scheme aims to enhance existing infrastructure, ensure multi- modal integration, bridge gaps for seamless movement, and integrate National and Economic Corridors. The Logistic Efficiency Enhancement Programme (LEEP) focuses on improving freight transportation by optimizing cost, time, tracking, and transferability.
Dedicated Freight Corridors (DFC)
Dedicated Freight Corridors (DFC) It is a high-speed and high-capacity railway corridor that is exclusively meant for the transportation of freight. DFC involves the seamless integration of better infrastructure and state of the art technology.
Rural Logistics & Workforce Initiatives The government's initiative to transform 1.5 lakh rural post offices and leverage 2.4 lakh Dak Sevaks into a logistics hub is set to redefine last-mile delivery and rural connectivity. Additionally, the new social security scheme for gig workers is set to improve job security and welfare, attracting skilled talent and enhancing workforce quality in the logistics sector.
Collectively shaping a promising outlook for India’s logistics industry
Source: 1. Drishti IAS 2. PIB 3. Drishti IAS 4. Financial Express 5. Drishti IAS 6. Driver Logistics 7. Bizzbuzz 8. ET 28
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TCI Express | Management Team
Mr. D P Agarwal, Chairman & Director
Mr. D P Agarwal has been associated with the transport industry for more than 51 years. He has been contributing to developing the unorganized logistics sector into an organized one.
Mr. Agarwal is also associated with various Chambers of Commerce including CII, FICCI & PHDCCI. He also takes active participation in many social and philanthropic activities for the common good.
Mr. Chander Agarwal, Managing Director
Mr. Chander Agarwal is a Bachelor of Science from Bryant College, Smithfield, RI. He joined TCI Group as Summer Intern and worked in various departments including operations, logistics and marketing etc. thereby getting fair amount of exposure to the key functions in the Company. His hands-on experience with Transfreight USA, a 3PL specializing in 'lean logistics' for Toyota Motor vehicles, USA, has given him unmatched knowledge of the Supply Chain Management.
Mr. Pabitra Mohan Panda, Sr. Chief Sales & Marketing Officer
Mr. Pabitra Mohan Panda has joined the TCI Group in the year 1998 and has distinguished service record of 26 years to the company.
Over the years, he has worked across multiple functions and departments, ascending to the role of Sr. Chief Sales and Marketing Officer.
Before this, he served as the Regional Express Manager for the Delhi Region.
Mr. Mukti Lal, Chief Financial Officer
Mr. Mukti Lal, a seasoned Chartered Accountant, has been associated with TCI Group for over 2 decades in various capacities. He has been serving as the company’s CFO since TCIEXPRESS’s demerger from TCI Group in 2016. Previously, he served as CFO-XPS, Division of Transport Corporation of India Limited. As an experienced finance professional, Mr. Mukti's finance acumen and strategic vision have taken TCIEXPRESS to new heights.
Mr. Ashok Pandey, Chief Operating Officer Multimodal Express
Mr. Ashok Pandey, serves as the Chief Operating Officer (Multimodal) at TCI EXPRESS. He leads strategic management for Air domestic/International, Rail, Cold Chain, and C2C verticals. With over two decades at TCI Group, he held key roles in operations, last-mile delivery, and project management, including Zonal and Regional Express Manager. Across his 28-year career, Mr. Pandey garnered vast experience working in prominent regions spanning East to West and North to South India.
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TCI Express | Overview of Market Challenges Impacting Logistics Sector
Key Factors Contributing to the Logistics Sector’s Challenges
Purchasing Manager Index (Index Points)
Transportation Cost Surge: The rise in labor, toll, insurance, driver and transport cost led to increased transportation expenditure
Impact on Profit Margins: Increased input costs in transportation and logistics operations reduced profitability
Decline in Manufacturing Output: The India Manufacturing PMI dropped to 56.4 in December 2024, signaling slower manufacturing activity and reduced demand for logistics services related to transport and distribution.
Lower Consumption: Despite some growth in rural consumption, India’s consumer goods sector grappled with inflation leading to weak urban demand
Economic Slowdown: India’s GDP growth for FY25 is projected at 6.4%, down from 8.2% in FY24, with key sectors like manufacturing, trade, and financial services seeing slower growth
Lower CCI: Index led to decreased demand for goods, which in turn slowed down growth in the logistics sector additionally driving higher operational costs and inefficiencies
Jul Aug Sep Oct Nov Dec
Consumer Confidence Index (Index Points)
Nov’23 Jan’24 Mar’24 May’24 Jul’24 Sep’24 Nov’24
Source : 1. PMI 2. DEA 3. Mint 4. CNBC
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TCI Express | Sectoral and Economic Dynamics Influencing Logistics
Broader Economic and Sector-Specific Headwinds
• Vehicle Sales: The 2W segment, which had driven growth in the auto sector during 1HFY25, experienced a slowdown in 3Q, while CV demand also remained weak thus adding to the challenges
YoY growth of ICRA Business Activity Monitor
• Weak Performance across sectors: The ICRA Business Activity Monitor showed a marginal 0.2% sequential growth in December 2024, marking the lowest growth in December over the past four years. This was driven by weaker performance in auto-related sectors and lower growth in diesel consumption, coal, and steel. However, traffic, and GST e-way bills saw improvements, suggesting a positive trend in freight movement. Despite challenges in the auto sector and steel consumption, logistics-related sectors like rail and port traffic indicate some stability and potential recovery in the coming months
freight
rail
• Stagnant Diesel Consumption: With a sequential contraction in diesel consumption, it signals a slowdown in material movement and logistics activities, indicating reduced transportation demand
Source : 1.
ICRA Research 2. Motilal Oswal
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TCI Express | ESG Initiatives
Environmental
Waste Management
The Company has adopted the 3R approach—Reduce, Reuse, Recycle—for efficient waste management. Most waste is sent to authorized recyclers or SPCB-approved landfills. In the year, 4.81 metric tons of waste was recycled.
Renewable Energy Generation
Installed additional solar panels at the Pune sorting center, collectively generating over 1.7 million kWh of clean energy within two years
GHG Emission Reduction
several measures
Implemented reduce GHG emissions including route planning using GPS, fleet modernization with more fuel-efficient and alternative fuel vehicles, and retrofitting older vehicles with efficient engines.
to
Social
Governance
TCIEXPRESS Foundation
Board Composition and Diversity
CSR continues to be a core focus at TCI Express, resulting in the formation of the Foundation. It has received the ‘Indian CSR Award 2024’ for its various CSR initiatives.
Employee Training and Development
TCI Express invests in the continuous development of its employees through structured training programs covering technical leadership development, and cultural awareness.
functional
expertise,
skills,
CSR Policy
Our CSR policy is well-defined and managed by a dedicated CSR Committee. This policy encompasses a wide range of areas, including healthcare, education, and sports development.
The Board of Directors is a balanced mix of executive, non- executive, and independent directors, bringing diverse expertise and perspectives to the table. With a majority of independent directors, we uphold our commitment to strong independent oversight. The Board is supported by various committees, each focusing on specific areas of Governance. Risk Management and Internal Controls
We have a robust risk management policy to identify, assess, and mitigate potential risks. Regular audits and internal controls ensure compliance and the effectiveness of these strategies. Ethics and Compliance
We have established a Code of Conduct that outlines the ethical principles and standards expected from all employees and business partners. Our whistleblower policy provides a secure and confidential platform for reporting any unethical behavior or misconduct.
4.18 Metric Tonnes
Waste Recycled
https://bit.ly/2LmB6fd
412.62 Metric Tonnes
Reported Scope 1 Emissions of CO2 Equivalent
32
1.7 million kWh
Generated clean energy through solar panels
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TCI Express | ESG Profile – Consolidating all ESG Disclosures
4
6
3
2
1
5
Visit ESG Profile on our Website in Investor Relation Section or click here - https://bit.ly/2LmB6fd FY2023 ESG Report Link click here: https://bit.ly/3MiMHbL
TCI Express has established and continuously enhanced a dedicated section focused on its Environmental, Social, and Governance (ESG) initiatives. This comprehensive section highlights the company’s commitment to sustainability and responsible business practices across all aspects of ESG. It details various initiatives undertaken to minimize environmental impact, foster social well-being, and uphold strong governance standards. Through this platform, TCI Express transparently showcases its efforts in areas such as carbon footprint reduction, energy efficiency, community engagement, employee welfare, ethical business conduct, and regulatory compliance. By integrating ESG principles into its core operations, the company reinforces its dedication to creating long-term value for stakeholders while actively contributing to a more sustainable and equitable future.
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TCI Express | Awards and Recognition
Awards
Iconic Brand of India
ET Business Leader Award 2024
has
TCIEXPRESS been recognised as one of the ‘Iconic Brands of India 2024’ for its commitment top-notch express delivery service, values, legacy, and sustainability.
to
Mr. Chander Agarwal, MD, TCIEXPRESS has been awarded the prestigious ET for Business Leaders Award 2024 in Express Logistics'. The 'Excellence recognition to his testament is a innovative leadership and visionary acumen, which have been the driving force of TCIEXPRESS.
Times Now Sustainable Organization 2024 TCI EXPRESS has been honored as a “Sustainable Organisation 2024” by Times Now, for its dedication to sustainability and environmental stewardship. recognition This reflects the company’s commitment logistics practices to eco-friendly and responsible operations.
‘SCALE Award 2024’ under
CII SCALE Award 2024 TCI EXPRESS has been recognized with the prestigious the Express/Courier category for Supply Chain and Institute of Logistics Excellence by Logistics. This accolade highlights the company’s exceptional infrastructure, extensive network, and and steadfast technological advancements, solidifying its position as a leader in the express delivery sector in India.
commitment
innovation
the CII
to
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TCI Express | Awards and Recognition
Corporate Governance
Sustainability Awards
Ranked 713 based on Market Capitalization, as on March 31, 2024
Credit Instruments rated by two leading Credit Rating Agencies CRISIL Rating: AA- ICRA Rating: A1+
Industry Recognition
Forbes Select 200 - 2024
The Economic Times Iconic Brands of India -2024
Certified as Great Place to Work (2025-26) for 5th consecutive year
International Air Transport Association
The USGBC has awarded TCI Express’s two Leadership in Energy and Environmental Design (LEED) Gold certifications: • GIGA Sorting Centre: Gurugram earned LEED Gold in June 2023, featuring solar power, LED lighting, for sustainability
and waste management
• Pune Sorting Centre: Achieved LEED Gold
certification in March 2024
impactful healthcare
TCI EXPRESS has been honored with the Indian CSR Award 2024 by Brand Honchos, recognizing including its KAVACH, Jaipur Foot & Rehabilitation Centre, nationwide blood donation drives, COVID-19 vaccination programs etc.
initiatives,
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TCI Express | Capital Market Information
Share Price Information, as on 31st December 2024
CAGR Return: TCI Express 11% S&P BSE Sensex 14%
Key Facts 31st December 2024
BSE / NSE Ticker
540212/ TCIEXP
CMP (Rs.)
813.05
Shares O/S (Cr)
3.83
Market Cap (Rs. Cr)
3,120
52 Week H/L (Rs.)
1,437.95/801
Note:
Source: Factset CAGR calculated from 15 Dec 2016
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TCI Express | Contact Information
This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to TCI Express’ future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
TCI Express undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.
For further information, please contact:
Mukti Lal Chief Financial Officer, TCI Express
+91 124 238 4090-4094 mukti.lal@tciexpress.in
Jahanvi Mittal / Atul Modi Churchgate Partners
+91 22 6169 5988 tciexpress@churchgatepartners.com
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TCI EXPRESS LIMITED Flat Nos. 306 & 307, 1-8-201 to 203, 3rd Floor, Ashoka Bhoopal Chambers, S . P. Road, Secunderabad-500 003 P: +91 124 2384090-94 • E: info@tciexpress.in W: www.tciexpress.in • Toll free: 1800 2000 977
TCI Express | Earnings Presentation
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