TCI: COVID-19 impact negligible, stock jumps 11 per cent

Gurugram-based TCI Express today came up with a press release on its business effect of Coronavirus in such a panic scenario.

The company said that the effect of Coronavirus outbreak will be very limited on its operations as it derives major revenue from B2B segment.

Also, wide client spread in various industries like auto, pharma API etc. would limit the adverse impact on the business. The company has also mentioned that utilisation will remain same as it was in Q3FY20.

TCI Express is engaged in an express distribution and offers a single window for door-to-door solution to customers. It was demerged from Transport Corporation of India (TCI) in August 2016.

The company’s industry vertical stood at SME-50 per cent, automotive-13 per cent, pharma/healthcare-11 per cent, engineering-seven per cent, lifestyle-seven per cent, telecom-six per cent and consumer durables-six per cent. Looking at the product mix, it stood at surface express (i.e. road transport)-86 per cent, air express-eight per cent, e-com express-five per cent and air international express-one per cent.

Looking at the recently concluded quarter Q3FY20, the revenue came in at Rs 268.38 crore, as against Rs 263.15 crore in the corresponding quarter last year, registering two per cent YoY increase, attributable to an increase in the new customers from SME segment. EBITDA for the quarter grew by 10.8 per cent YoY to Rs 34.31 crore, as against Rs 30.97 crore in the corresponding quarter last year, with a corresponding margin expansion of 102 bps while, EBITDA margin for the quarter stood at 12.8 per cent. PAT for the quarter came in at Rs 25.54 crore, as against Rs 18.72 crore in the corresponding quarter last year, with a YoY increase of 36.4 per cent. Looking at the nine-month numbers i.e. for 9MFY20, the revenue jumped by five per cent YoY to Rs 794.02 crore while, EBITDA grew by 11 per cent YoY to 94.62 crore. Further, the company reported a net profit of Rs 70.07 crore, up by 37 per cent YoY.

In today’s session, the stock has reacted positively to this announcement and jumped nearly 11 per cent during the negative market trend.