Gurugram, January 27, 2020: TCI Express Ltd. (“TCI Express”), market leader in express distribution in India, today announced its financial results for the quarter ended on December 31, 2019.

Performance Highlights: Q3 FY2020 vs. Q3 FY2019

·         Revenue from operations of Rs. 268 Crores in Q3 FY2020 from Rs. 263 Crores in Q3 FY2019, growth of 2.0%

·         EBITDA of Rs. 35 Crores in Q3 FY2020 from Rs. 32 Crores in Q3 FY2019, growth of 11.2%

·         EBITDA margin at 13.1% in Q3 FY2020 compared to 12.0% in Q3 FY2019

·         PAT of Rs. 26 Crores in Q3 FY2020 from Rs. 19 Crores in Q3 FY2019, growth of 36.4%

·         PAT Margin at 9.5% in Q3 FY2020 compared to 7.1% in Q3 FY2019

·         Board recommended second interim Dividend of Rs. 1.5 per share

·         Total Dividend of Rs. 3 per share and Pay out of 16.4% for 9M FY2020

Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: “I am pleased to report that TCI Express has delivered a resilient performance in the quarter despite a weak macroeconomic environment impacting major sectors of the economy. Revenue from Operations were Rs. 268 crores in Q3 FY2020, an increase of 2.0% on Y-o-Y basis compared to Q3 FY2019. The Company delivered an EBITDA of Rs. 35 crores, growth of 11.2% and margins expanded by 107 bps to 13.1 % during the same period. Profit after-tax was Rs. 26 crores in Q3 FY2020, representing an increase of 36.4 % on Y-o-Y basis, with margins of 9.5%. The revenue growth was driven primarily by increase in Small and Medium Enterprises (SME) customers. The margin improvement is a result of operational efficiency initiatives and better working capital management.

We continue to expand our geographical presence and opened 10 new branches in the quarter. The objective is to increase penetration in metro cities and acquire SME customers. During the quarter, we implemented various initiatives to improve operational efficiency which resulted in higher capacity utilization and operational cost reduction.

Construction of new sorting centre at Gurgaon was on halt due to NGT order but now the construction is back on track and we expect both of our new sorting centres to commence commercial operations from the second quarter of next fiscal year. The domestic economy in the third quarter of FY2020 continued to face slowdown due to weakening industrial activity across sectors. Index for Industrial Production (IIP) turned positive in November after three months of contraction yet number of key use-based sectors such as consumer durables, capital goods, basic goods and infrastructure goods are still showing degrowth.

Tighter credit conditions in the non-banking sector also resulted in the weakening of domestic demand and subdued private consumption. Along with economic slowdown, Logistics the sector also saw moderation due to political disturbance and protest in North and Eastern region. We are hopeful that the government in its upcoming budget will introduce a major stimulus package to revive manufacturing, address low consumption demand and support MSME’s to improve overall business confidence. We continue to pursue our long-term growth strategy, staying firmly focused on our unique value proposition, driving operational efficiency, consolidating partnership arrangement with Vendors and growing our SME client base to deliver robust growth in the coming quarters.”