TCI Express Q1 Review - Guiding For A Five Year Earnings CAGR Of 25%: ICICI Securities
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ICICI Securities Report
TCI Express Ltd.'s Q1 FY22 performance is slightly below expectations on margins (Ebitda margin at 14.4%; our estimate: 15.7%).
This was due to higher employee costs at 11.5% of topline (annual appraisal).
Volumes have been muted (Covid-19 second wave impact, down 22% QoQ) while realisations are up 2.5% QoQ.
TCI Express' management continues to underline the strategic vision to double topline in five years, through new product offerings (projected to be 25% of topline), addition of branches (200 plus in next two years), while scaling up Ebitda/tonne to 22%.
Capex in own sorting centres (Gurgaon and Pune to start with) along with Rs 500 million currently being spend on automation to improve turnaround from the two centres will act as revenue and margin trigger.
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