TCI Express, a door-to-door express logistics services company, reported strong set of numbers in the second quarter, with the asset light model aiding its margins. The revenue in Q2FY22 was up 28.4 percent year on year (YoY) at Rs 273 crore versus Rs 212.95 crore in the year-ago period. EBITDA was up 39 percent YoY and margin for the quarter was up 16.6 percent versus 15.3 percent YoY.

Throwing light on the quarter gone by and the way forward, Chander Agarwal, MD, TCI Express said, “The company is confident of closing the FY22 EBITDA at 18 percent plus, and will have to see if we can reach the Q4FY21 levels of 20 percent going forward.”

With regard to topline growth, he said: "We are in-line and are expecting 30 percent plus growth, while bottomline would also be upwards of 40 percent. For FY23, the topline growth would be slightly less at around 20-25 percent and margins would also be around 20-21 percent."

The new services business, cold chain express, rail express and C2C express put together contributed around 15 percent of the total business and margin accretive.

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"Based on our next five-year plan, we would expect that the new services business would be about 20-25 percent of the overall business," said Agarwal.

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“All of these new businesses that we are doing are growing at a very fast rate. Interestingly, they have been accepted by our old customers and the new customers that we are getting on board. In general, our network is really enhancing the growth of these businesses. For the next year, because of the low base, it could go up like 200-300 percent or more than that. But, in general, the share of these businesses to the overall business would be 16-17-18 percent,” he said.

For the full discussion, watch video

(Edited by : Dipikka Ghosh)