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Business News/ Companies / News/  TCI Q2: Strong automotive sector, festive season to boost growth in H2, says MD Vineet Agarwal
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TCI Q2: Strong automotive sector, festive season to boost growth in H2, says MD Vineet Agarwal

Transport Corporation of India reported a 20% rise in net profit to ₹87.8 crore in the September quarter of FY24, with consolidated revenue jumping by 7% at ₹1,005 crore.

TCI reported a net profit of ₹87.8 crore in the September quarter of FY24.Premium
TCI reported a net profit of 87.8 crore in the September quarter of FY24.

Transport Corporation of India reported a 20% rise in its consolidated net profit to 87.8 crore in the September quarter of FY24. The company earned a profit of 73 crore in the September quarter of the previous financial year. Its consolidated revenue jumped by 7 percent at 1,005 crore, the company said in an exchange filing.

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During the second half of current financial year, TCI is expected to witness robust growth led by strong automotive sector and festival season demand, said Vineet Agarwal, Managing Director of Transport Corporation of India.

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In an exclusive conversation with Mint, Vineet Agarwal said that the company’s performance was affected by factors like the onset of monsoon season during the April-September period of FY 23-24. However, TCI's supply chain business is set to grow in the upcoming quarter. 

“The next half of the year will be better. We have a guidance of 10%-15% on a top line and about 10%-15% on a bottom line, which we would be able to achieve," said the Managing Director of Transport Corporation of India.

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The company works in a range of segments. Its freight, supply chain solutions, and cargo business are expected to get good traction in the year ahead.

“We have a good pipeline available in the supply chain business. We do a lot of work in the automotive sector, it has a strong run right now. It is expected to continue usually with the festival season in place. The end of the year is also coming up. Typically, there's a lot of push towards sales from our customers. So, we believe that will continue and help us in the quarter," Vineet Agarwal told Mint. 

On being asked about the impact of India’s shrinking import-export trade on business, Vineet said that TCI’s 99% of revenues come from the domestic market.

“We are into some amount of imports and forwarding, but that much will not affect our business," said Vineet Agarwal. However, he underlined the indirect impact of the shrinking import-export trade of the country on TCI’s business. The decline in import/export trade is expected to slow down the business of domestic companies that are also clients of TCI, explains Vineet Agarwal.

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Published: 31 Oct 2023, 09:18 PM IST
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