TCI Express jumped 6.51% to Rs 840.65 after net profit soared 36.43% to Rs 25.54 crore on a 1.99% rise in net sales to Rs 268.38 crore in Q3 December 2019 over Q3 December 2018.
On a standalone basis, profit before tax (PBT) rose 13.76% to Rs 32.89 crore in Q3 December 2019 as against Rs 28.91 crore in Q3 December 2018. Current tax expense fell 24.55% to Rs 7.50 crore in Q3 December 2019 as compared to Rs 9.94 paid in Q3 December 2018. The Q3 earnings were declared during market hours today, 27 January 2020.
EBITDA grew 11.2% to Rs 35 crore in Q3 December 2019 from Rs 32 crore in Q3 December 2018. The EBITDA margin improved to 13.1% in Q3 December 2019 as against 12% in Q3 December 2018.
Commenting on the Q3 results, Chander Agarwal, the managing director of TCI Express, said 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 was 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 the 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 second quart~r of next fiscal year. Domestic economy in third quarter of FY 2020 continued to face slowdown due to weakening industrial activity across sectors. Index for Industrial Production (lIP) 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 arc still showing de-growth."
"Tighter credit conditions in the non-banking sector also resulted in weakening of domestic demand and subdued private consumption. Along with economic slowdown, Logistics 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 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," he added.
TCI Express is engaged in offering transport, storage, warehousing and support services for transportation. The company is engaged in express distribution and offers a single window door-to-door solution to customers. It offers express solutions with over 3,000 pick-up and approximately 13,000 delivery locations with its containerized fleet of vehicles.
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