Indian economy in FY22 witnessed the second wave of the COVID-19pandemic and ensuing lockdown. The economic drivers have shifted ahead with the drop inthe infection rate from the second quarter a major portion of the population vaccinatedagainst the virus and a muted impact of the third wave. The gradual opening of nationalborders throughout the world as well as the return of regular trade and travel hasincreased public trust.
In FY22 the economy is predicted to rise by close to 8.7%. Overalldemand has recovered noticeably and supply chain problems and rising input prices havebegun to subside. WeRs.re witnessing an upsurge in operations in a variety of industriesall of which are focused toward betterment. Agriculture grew by 3.9% in FY22. Theindustrial sector has made a remarkable comeback increasing by 11.8% this fiscal yearafter falling by 7% in FY21. Manufacturing construction and mining all suffered the sameconsequences. Other macro indicators are telling a similar trend in order to make Indiathe worldRs.s fastest growing economy in FY22.
Indian logistics industry which is considered as the countryRs.slifeline is extremely significant since it connects a wide range of markets suppliersand customers across the country and it is now firmly established as a key component ofthe national GDP value chain. Several substantial changes have been implemented by theadministration in recent years. The Goods and Services Tax (GST) was implemented in FY18bringing formalisation to the logistics business. The turnaround time for Transportationhas been reduced owing to fewer transit stoppages.
The government also intends to lead the nation in achieving the goalsset forth for "Atmanirbhar Bharat." As a result the Indian government has begunthe process of charting the course for India@2047 with "Amrit Kaal The planfor the next 25 years." With the establishment of the PM Gati Shakti National MasterPlan Atmanirbhar Bharat National Infrastructure Pipeline and National MonetizationPipeline to support economic and infrastructure growth a paradigm shift has beenenvisioned for the cities of India.
The logistics business in India is extremely fragment with the goal oflowering logistics costs from 14% of GDP to 8% in ten years.
The National Logistics Policy will establish a single-windowe-logistics market with an emphasis on job creation skill development and MSMEsRs.competitiveness. The logistics sector has been evolving with new age technology which hasadded a key distinguishing feature. Extensive usage of technology is being undertaken toreduce human interaction and compete with peers.
The high cost of logistics in India is owing to an inefficient modalmix which is mostly driven by the inefficient road sector. While road infrastructure hasvastly improved in recent years rail and waterways are finally catching up. The marketshare of Rail in the modal mix would expand as a dedicated Rail network for freight becameoperationalized in stages.
Despite being hit by the pandemic in the first and fourth quarters ofthe year the Company had a great result in FY22. The Company recorded its highest everrevenue from operations ?1090 crore with 28.1% increase in a y-o-y basis. The NetProfit was ?129 crores up 28.1% year on year with 11.8% margins. We maintained a cashposition of ?104 crores while continuing to produce robust cash flow of ?128 crores.
During the year we have successfully commissioned India?.s firstand largest automated B2B sorting center in Gurgaon named as Rs.GIGARs. spread over 2lakh square feet area equipped with 600 meter of fully automated loop sorting system. Thecompany plans to add new sorting centers and replicate similar automation in these sortingcentres to further reduce turnaround time and enhance operational efficiencies in the longrun and resulting into reduction of direct cost.
Through its asset-light and comprehensive express services
TCI Express is ideally positioned to capitalise on expandingIndia?.s GDP and provide long-term sustainable growth. We have a significantpresence across the country with 900+ locations 60 zonal offices and 10 regionaloffices and we are committed doubling our revenues every four years.
Our most valuable asset is our workforce. Employee health and safetyhas always been a top focus for the organisation and it is one of its basic values. TheCompany ensured that all of its employees were immunised and offered medical and financialassistance on an as-needed basis.
As we look ahead to FY23 and beyond we remain positive about thecountryRs.s economic potential as it develops as a powerful manufacturing hub in Asia. Theexpress trucking service will continue to be a critical component of attaining this aimand the domestic logistics industry will play an important role. TCI Express will be apart of this growth narrative bolstering its leading position with its unique valueoffer asset-light business model and expanding customer base all of which will resultin long-term benefit for all stakeholders.
|D. P. Agarwal |