Q2 2025 TCI Express Ltd Earnings Call Transcript
Key Points
- TCI Express Ltd (NSE:TCIEXP) maintained its operating margins sequentially in Q2, showcasing efficient operational strategies.
- The company's rail express service is gaining traction, contributing positively to margins and expected to make up 20% to 22% of revenue in the next 2-3 years.
- Automation efforts, such as the newly automated Pune sorting center, have improved operational efficiency and reduced turnaround time by 40%.
- The introduction of a money-back guarantee has been well-received, enhancing customer confidence in timely deliveries across all modes.
- TCI Express Ltd (NSE:TCIEXP) announced its first interim dividend of INR3 per share, reflecting a commitment to shareholder value.
- Year-on-year base revenue saw a slight dip due to prolonged monsoon rains and geopolitical tensions affecting logistics demand.
- The company faced challenges in the manufacturing and automotive sectors, leading to lower activity and demand.
- Capacity utilization of the fleet was at 83%, below the expected 85%, impacting operational efficiency.
- The company experienced increased costs due to higher toll taxes, labor costs, and lower fleet utilization.
- Despite automation efforts, margins have not improved as expected, with EBITDA margins dropping from 16% to 13% due to increased costs.
Guys, Mr. Chandra Agarwal is having some technical issue. So, we have Mr. Mukti Lal the CFO to take over.
Mr. Mukti, please go ahead.
Yeah, so good evening, everyone and apologies for that. So good evening and very happy Diwali to everyone.
Welcome to the Q2 and H1 FY25 earning calls of this, our company. Thank you for taking time to join us today. We have already [inaudible] our earning presentation on the website and the stock exchanges and I hope you have had a chance to review that.
I will start by providing an overview with the business stands. So, and then I will be going through with the presentation and so TCI Express saw in this quarter, showed a modest improvement in revenues and maintained its margin sequentially in Q2, reflecting the company's efficient operational strategies, innovating service offerings and market adaptability, TCI Express is positioned as India's most trusted and fastest growing Express
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