Debt-free multibagger stock rallies 238% in 5 years, 150% dividend declared
5 min read . Updated: 02 Nov 2022, 10:37 PM IST
Premium- TCI Express Ltd. is a mid-size firm in the logistics industry with a market worth of Rs. 7,223.49 crore
TCI Express Ltd. is a mid-size firm in the logistics industry with a market worth of Rs. 7,223.49 crores. The foremost acknowledged logistics provider in India is Transport Corporation of India (TCI), which has more than 40.000 pickup and delivery sites. The firm has released its Q2 results and issued an interim dividend for the fiscal year 2022–2023 at a rate of 150% (Rs. 3-) per equity share.
The company has said in a stock exchange filing that its Board of Directors has “Declared Interim dividend for FY 2022-23 @ 150% (Rs.3/-) per Equity Share of Face value of Rs.2/- each to the Shareholders, whose names will appear on the Register of Members on the RECORD DATE i.e. Tuesday, November 08, 2022, which has been decided in due consultation with the Stock Exchanges. The payment of dividend/ dispatch of warrants will be completed within/before 30 days of declaration of Interim Dividend."
In Q2FY23, the company reported a total income of ₹312.2 Cr in Q2FY23, compared to ₹275.8 Cr in Q2FY22 and ₹292.4 in Q1FY23, representing a YoY growth of 13.2% and a QoQ growth of 6.8%. In H1FY2023, the company's net income reached ₹604.5 Cr jumped by 20.8% YoY from ₹500.4 Cr reported in H1FY2022. The company declared an EBITDA of ₹53.7 Cr in Q2FY23 compared to ₹47.6 Cr in Q2FY22 and ₹44.7 Cr in Q1FY23 representing a YoY growth of 12.9% and QoQ growth of 20.2%. In H1FY2023 the EBITDA reached ₹98.5 Cr compared to ₹81.3 Cr in H1FY22, representing a YoY growth of 21.1%.
The company's EBITDA margin reached 17.2% in the quarter that ended September 2022 from 17.3% in Q2FY22, and 15.3% in Q1FY23. The EBITDA margin stood at 16.3% in H1FY2023. The company declared a net profit of ₹37.8 Cr in Q2FY23 compared to ₹34.0 Cr in Q2FY22 and ₹31.0 Cr in Q1FY23, representing a YoY growth of 11.0% and a QoQ growth of 21.8%. In H1FY2023, the company reported a net profit of ₹68.8 Cr, up by 19.0% YoY from ₹57.8 Cr in H1FY22.
Commenting on the performance, Mr. Chander Agarwal, Managing Director, said “Q2 FY2022 started on a positive note with strong economic and business activities. The recovery trend was visible in many internal & external economic indicators and parameters. During the quarter, we saw an overall improvement in the output for the month of July with a marginal decline in August primarily due to a decline in the manufacturing and mining sector. The E-Way bills generation, a key parameter that measures the performance of the logistics sector, grew by 152% over the pre-Covid period (October 2019-February 2020) in September reaching 7.6 crore. As regards to the financial performance of the quarter, TCI Express, being the market leader in express logistics, delivered the highest quarterly revenue of Rs. 312 crores, registering a growth of 13.2% y-o-y and 6.8 % on a sequential basis, primarily driven by growing SME customers, higher volume across the services. Automation of the sorting centres substantially increasing the daily capacity by reducing parcel handling time, vehicle halting time and labour involvement resulting enhancement of overall operational efficiency and strong sustainable margin."
“EBITDA for the quarter was Rs. 54 crores with a strong margin of 17.2% as compared to 15.3% in the preceding quarter. The EBITDA and margins growth were primarily on account of higher capacity utilization and operational efficiencies. Our Profit after Tax stood at 38 crore with a margin of 12.1% compared to a margin of 10.6% in Q1 FY23. In view of our strong performance in the first half of the year, I am pleased to announce that the Board of Directors has recommended an interim dividend of Rs. 3 per share with a pay-out of 150% on the face value," he further added.
“On the investment side, during the first half of the year, we have incurred a total Capex of Rs.50 crores primarily invested for land purchase in Kolkata for setting up an automated sorting centre and network expansion by adding 22 new branches to serve a growing market. The ongoing automation and digitization will enable us to be much more efficient in delivering superior customer experiences and enhance operational efficiencies in the long run which enable us to deliver industry-leading performance. Our newly launched services are going from strength to strength. We expect the service offerings to contribute productively to the top line in the forthcoming quarters enabling us to deliver higher margin levels. Looking ahead, the logistics industry remains poised to grow strong as the growth of the sector is fully aligned with India’s economic growth potential," commented Mr. Chander Agarwal.
"The recently launched ‘PM Gati Shakti National Master Plan’ by our Prime Minister for multimodal infrastructure connectivity to economic zones will get a further boost with the launch of the National Logistics Policy. The policy will help significantly in terms of transportation, warehousing, and inventory management by creating a roadmap for enabling a seamless, integrated, reliable, and green logistics network, to usher in a greater degree of competitiveness in the market. This will pave way for putting the Indian logistics industry on par with the international players. With a major policy push by the government and aided by strong economic recovery, we remain confident in our ability to provide high-quality, reliable, time-critical services. We would thus be leveraging on the growing opportunities to drive value for our shareholders and deliver sustainable growth," said Mr. Chander Agarwal.
The shares of TCI Express Ltd closed today at ₹1,873.60 apiece, down by 0.019% from the previous close of ₹1,873.95. During its trading session, the stock recorded a total volume of 19,861 shares compared to the 20-Day average volume of 24,015 shares. As per its balance sheet, TCI Express is a virtually debt-free company. In the last 5 years, the stock has delivered a multibagger return of 238.50%. In the last 3 years, the stock has delivered a multibagger return of 147.19%. In the last 1 year, the stock has fallen 3.23% and on a YTD basis, the stock has fallen 13.42% so far in 2022.
