Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The company reported a significant increase in TEU volumes, growing by 13% quarter-to-quarter and 80% year-on-year.
- Tiger Logistics (India) Ltd (BOM:536264, Financial) achieved a 60% growth in air freight volume, aided by their IATA accreditation.
- The company received the 'Great Place to Work' certification, highlighting its commitment to employee welfare and work culture.
- The top line improved significantly, closing at INR102.8 crores, a 9.1% increase quarter-to-quarter and 2.4 times year-on-year.
- EBITDA margin improved by 10.6% quarter-to-quarter, indicating better operational efficiency and cost control.
Negative Points
- The expansion plan into Bangladesh has been put on hold due to the current unfavorable situation in the country.
- The company is not currently present in the LCL segment, which could limit growth opportunities in that area.
- There are concerns about the sustainability of the current freight rates and container shortages, which could impact future profitability.
- The company faces challenges in maintaining stable rates due to global disruptions like the Red Sea crisis and fluctuating shipping rates.
- Despite the positive outlook, the company acknowledges the need for more working capital to support its growing business, which could strain financial resources.
Q & A Highlights
Q: We have a healthy cash position at the moment. What are the plans for utilizing this cash?
A: We are looking at acquisition options, particularly in the LCL segment, to fuel our inorganic growth. Additionally, we may infuse some of this cash back into our working capital to support our growing business. - Harpreet Malhotra, Managing Director
Q: With the current situation in Bangladesh, will the expansion plans there be put on hold?
A: Yes, the expansion plans in Bangladesh have been put on hold due to the current situation. However, our US expansion plans are on track, and we are planning a roadshow in October. - Harpreet Malhotra, Managing Director
Q: Could you provide more details on the key drivers of revenue growth this quarter, particularly within the automotive sector?
A: The automotive sector remains our main vertical, contributing significantly to our revenue. We have been focusing on deepening relationships with existing customers and acquiring new ones, especially in the two-wheeler market. This trend is expected to continue. - Harpreet Malhotra, Managing Director
Q: How has customer adoption of Freight Jar progressed, and what improvements do you expect as it scales?
A: Freight Jar 2.0 has seen good traction, especially in the electronics and renewable energy sectors. It has helped us acquire new customers and improve operational efficiency. - Harpreet Malhotra, Managing Director
Q: What strategic changes are planned to ensure robust volume growth in upcoming quarters?
A: We are focusing on acquiring new clients in both import and export sectors. Additionally, we are conducting roadshows in the US and LatAm countries to expand our business. - Harpreet Malhotra, Managing Director
Q: What is the sustainable EBITDA margin for the logistics segment?
A: We are continuously working on improving our cost structure and buying efficiencies. We expect to see better margins in the coming quarters. - Harpreet Malhotra, Managing Director
Q: What steps is the company taking to stay ahead of competitors in the container and air transport segments?
A: We are already strong in both segments. We are looking at organic growth and potential acquisitions to strengthen our position further. - Harpreet Malhotra, Managing Director
Q: Do you foresee any structural changes in the industry, especially in ocean freight?
A: We are not expecting any major structural changes. Our focus is on acquiring long-term customers rather than relying on temporary disruptions. - Harpreet Malhotra, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
