TCI Express Q4 Review - Margins Continue To Expand: ICICI Securities

TCI Express container trucks at warehouse. (Source: Company website)

TCI Express Q4 Review - Margins Continue To Expand: ICICI Securities

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ICICI Securities Report

TCI Express Ltd. reported higher than expected Ebitda and profit after tax on the back of better than expected margins.

Ebitda margins have again expanded ~260 basis points QoQ/960 basis points YoY to reach 19.6%.

Q4 FY21 volumes were up 15% YoY, while blended realisations including the pass-through for diesel price hike was 2.3%.

This is not akin to runaway price hikes that we see in air-express as belly cargo stays off the curb.

Margin salience in road express has been more driven by:

  1. cost control
  2. asset light nature of business and better bargaining power over truckers as rail keeps on pressurizing road freight.

Click on the attachment to read the full report:

ICICI Securities TCI Express Q4FY21 Results Update.pdf

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