TCI Express Ltd stands as a prominent player in India's express logistics sector, providing comprehensive logistics solutions to its customers. The company's services encompass freight forwarding, express cargo, warehousing, supply chain management, and other specialized offerings.
Operating across various lines of business, TCI Express excels in surface transportation, air cargo, and international freight forwarding. It also delivers value-added services such as door-to-door delivery, warehousing, and custom clearance, ensuring a seamless logistics experience. The company boasts a wide range of products, including parcels, documents, and cargo, alongside special services like temperature-controlled and hazardous cargo. Its popular brands include TCI XPS, TCI Freight, TCI Air Cargo, and TCI International.
The company's core philosophy is speed, reflecting its unwavering commitment to delivering efficient logistics solutions across both domestic and international markets.
TCI Express has navigated challenging market conditions, with its financial performance reflecting resilience amidst external pressures.
The revenues of TCI EXPRESS stood at ₹12,217 million in FY2024-25, experiencing a slight decline of -3.1% compared to ₹12,610 million reported in FY2023-24. Despite this, the company has demonstrated robust growth over the past five years, with revenue growing from ₹8,516 million in FY2020-21 to ₹12,217 million in FY2024-25, representing a Compound Annual Growth Rate (CAGR) of 9.4%.
However, profitability faced challenges in FY2024-25. The net profit of TCI EXPRESS stood at ₹858 million, down -34.8% compared to ₹1,317 million in FY2023-24. Operating performance also witnessed pressure, with the company's operating profit decreasing by 33.4% year-on-year. Operating profit margins fell to 10.3% in FY2024-25, as against 14.9% in FY2023-24.
In the quarter ending December 2024 (Q4 FY2023-24), TCI Express Ltd reported a net profit of ₹19.19 crore, marking a -40.39% fall since the same period last year. On a quarterly growth basis, the company generated a -23.02% fall in net profits since the prior quarter. The company anticipates a 2% decline in Q4 revenue and a 28% drop in EBITDA due to competitive pressures and a slowdown in consumption.
• Market Capitalization: ₹2,855 Crore (as of recent data, down -38.8% in 1 year)
• Revenue: ₹1,208 Crore (annual)
• Profit: ₹90.8 Crore (annual)
• Q4 FY2023-24 Revenue: ₹296.47 Crore
• Q4 FY2023-24 Net Profit: ₹19.19 Crore
• Trailing Twelve-Month EPS: ₹22.4 (decline from ₹34.3 last year)
• Price to Earnings (P/E) Ratio: 33.7 times (at current price of ₹752.6)
• Promoter Holding: 69.5%
TCI Express continues to bolster its operational capabilities through strategic investments and diversification.
The company has made significant capital expenditure, with ₹10.62 crore invested in Q2 FY2024-25 for the expansion of its branch network, construction of sorting centers, and enhancement of IT infrastructure. Significant strides have been 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 and operational output.
TCI Express is actively diversifying its service offerings, with plans to increase the revenue contribution from multimodal express services to 20-22% over the next 2-3 years. This strategic focus aims to enhance competitiveness, strengthen the company's market position, and reduce dependency on traditional services.
The company has faced several operational challenges in recent periods, impacting its financial performance:
* Inflationary Pressures: Persistent inflation led to higher transportation costs, consequently compressing margins.
* Monsoon Impact: Heavy monsoon conditions resulted in waterlogging, causing longer delivery lead times and operational setbacks. Prolonged monsoon rains led to supply chain disruptions and delivery delays.
* Lower Demand: Reduced demand, particularly in production-dependent sectors such as Automobile and Textile, contributed to softer revenues and reduced profit margins.
* Geopolitical Tensions: Lower activity in manufacturing and automotive sectors, coupled with geopolitical tensions, further softened logistics demand.
Despite operational challenges, TCI Express has maintained its reputation for excellence and commitment to social responsibility.
* CII SCALE Award 2024: Received from the CII Institute of Logistics for Supply Chain and Logistics Excellence, highlighting the strength of its infrastructure and innovation.
* Forbes India's Select 200 Companies: Featured in Forbes India's Select 200 Companies with Global Business Potential in DGEMS 2024, reflecting its growing global presence and strategic positioning.
* Indian CSR Award 2024: Recognized by Brand Honchos for its corporate social responsibility efforts.
* Great Place to Work 2025-26: Achieved certification for the fifth consecutive year, emphasizing its focus on employee well-being and growth.
TCI Express demonstrates strong promoter confidence with a promoter holding of 69.5%. The company has maintained its dividend distribution policy, with a dividend of ₹3 declared in the quarter ending December 2024, translating to a dividend yield of 1.44%.
Looking ahead, TCI Express anticipates a recovery in demand with the upcoming festive season. The company remains steadfast in its commitment to leveraging its strengths, seizing growth opportunities, and maintaining a customer-centric approach. Its focus on operational efficiency and strategic positioning suggests potential for recovery as market conditions improve, making it a compelling investment opportunity in the Indian logistics sector.
