TCI Express reports 7.69% decline in Q2 net profit to Rs 24 crore

TCI Express on Monday reported 7.69 per cent fall in profit at Rs 24 crore for the second quarter ended September 30, 2020.

The express distribution company had clocked a profit of Rs 26 crore in the year-ago quarter, it said in a statement.

Revenue from operations was Rs 213 crore.

Company posted EBITDA of Rs 34 crore with improved margins of 16 per cent and Profit After Tax for the period was Rs 24 crore with margins of 11 per cent," Managing Director Chander Agarwal said.

"Our second quarter performance is a clear reflection of the trust TCI Express enjoys among customers and strong operational efficiencies in business due to cost control measures, supported by increased realization highlights the resilience of our business model," he added.

Agarwal said to recognise the support of the employees during the pandemic, it was ensured that no salary deductions were made till now, except in his own case in the senior management.

Moreover, Diwali bonuses have been paid and the company will also start salary increments for the year for all employees, he said.

"We also maintain a strong capital structure and our liquidity position is adequately covered. Our cash flows from operation grew significantly driven by our consistent focus on cash management, with cash balance increasing to Rs 87 crore at the end of September 2020," he said.

Agarwal said the company is committed to continuously investing and augmenting services through automation and technological upgradation and expanding geographically.

"During the quarter, we incurred capex of Rs 9 crore in construction of two new sorting centres in Gurgaon and Pune. The Pune sorting centre construction will be completed by the end of calendar year and Gurgaon centre will be completed in Q4 FY21. We also opened 10 new branches in the quarter," he said.

With the economy opening up and business activities resuming, logistics sector has revived gradually, and the company expects strong growth in second half of this fiscal year, as the country gears up for the upcoming festive season, he said.

"Given our pan-India presence and asset light business model, we are well positioned to address demand recovery as we quickly adapt to a rapidly changing environment. We also believe that the cost control measures and technological changes we are implementing will result in improved profitability during the full year, as we scale up our services to support business activities, he added.