ICICI Securities: Strength Of TCI Express’ Business Model Comes To The Fore In Q1
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ICICI Securities Report
TCI Express Ltd. has reported better than expected operational performance with Ebitda of Rs 20 million against Ebitda loss of Rs 70 million expected. Top line was lower than expected at Rs 887 million (down 65%YoY); Our estimate Rs 1,000 million.
The flexibility of the asset-light operational model which comes to the forefront, with gross margin at approximately 35% (against 27.7% YoY), and other expenses reduced by 37% YoY, allowed TCI Express to report a positive Ebitda.
Not only did Ebitda surprise, cashflow has also thrown in a positive surprise with Q1 FY21-end cash balance at approximately Rs 700 million. This is despite TCI Express incurring Rs 170 million of capex.
The QoQ increase in cash balance, from Rs 372 million to Rs 700 million, is on account of reduction in receivables.
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