TCI Express operational performance improves due to cost rationalisation measures

TCI Express declared the results for the quarter ended September 30, 2020, during the market hours on Monday.

The company’s consolidated revenue for the quarter Q2FY21 came in at Rs 212.95 crore, which shows a 140 per cent jump on a QoQ basis and a 21 per cent decline on a YoY basis. This QoQ jump in revenue was supported by a strong pick-up in economic and business activities across the country.

EBITDA for the quarter grew by 6 per cent YoY to Rs 32.56 crore as against Rs 30.71 crore in the corresponding quarter last year, with a corresponding margin expansion of 389 bps. EBITDA margin for the quarter stood at 15.3 per cent vs 11.4 per cent in Q2FY20. This improved operational performance was supported by cost rationalisation measures implemented, which is expected to continue, going forward.

PAT for the quarter came in at Rs 23.49 crore as against Rs 26.1 crore in the corresponding quarter last year, with a YoY decline of 10 per cent. However, it jumped 25 times on a QoQ basis.

During the quarter, the company incurred Capex of Rs 9 crore in the construction of two new sorting centres in Gurugram and Pune. Pune sorting centre construction will be completed by the end of the calendar year while Gurugram centre is expected to be completed by Q4FY21. It also opened 10 new branches in the quarter.

The company’s cash conversion ratio (CCR) stands higher at 185.2 per cent led by better cash management due to reduced working capital cycle. Also, the net debt-to-equity ratio stands at 0.24x.

Today, the stock of TCI Express declined nearly four per cent to Rs 761.90 on BSE.