TCI Express rallies 16%, hits new high on robust March quarter results

The company's Q4FY21 Ebitda margin expanded by 870 bps YoY to 20.3%, driven by improvement in both volumes and realisations

Shares of TCI Express rallied 16 per cent to hit a new high of Rs 1,245.10 on the BSE in intra-day trade on Thursday after the company reported robust earnings in the March quarter (Q4FY21), with profit after tax (PAT) surging 124 per cent year-on-year (YoY) to Rs 43 crore.

The stock of the logistics company surpassed its previous high of Rs 1,144.35 touched on Tuesday, May 18. In the past one week, the scrip has zoomed 36 per cent, as compared to a gain of 4.6 per cent in the S&P BSE Sensex.

In Q4FY21, the company’s revenue from operations grew 17.6 per cent YoY to Rs 280 crore. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved 870 basis points (bps) to 20.3 per cent in Q4FY21 from 11.6 per cent in Q4FY20.

The margin improvement was on the back of an increase in both volumes and realisations. In addition, the company was able to pass select cost to the customers. The asset-light model has also allowed the company to maintain high capacity utilisation, and various cost control measures adopted during the year has helped deliver strong profitability.

The company said it saw a strong pickup in business activity with e-way bill collections increasing by 28 per cent on YoY and 13 per cent on a quarter-on-quarter (QoQ) basis. The company said it saw a recovery in the index of Industrial Production, especially in the month of March, where the company’s key servicing industries registered a robust growth on both sequential as well as YoY basis thereby driving volumes.

TCI Express is India’s leading time-definite express distributor. The company has special expertise in enabling solutions for clients in sectors like consumer electronics, retail, apparel &, lifestyle, automobile, pharmaceuticals, engineering, e-commerce, energy/power, and telecommunications.