TCI Express Q4 PAT up 22% at Rs 22 crore

Logistics service provider TCI Express on May 22 reported 22.2 percent growth in profit after tax (PAT) at Rs 22 crore for the fourth quarter ended March 31, 2019.

The company had clocked a PAT of Rs 18 crore during the year-ago quarter, it said in a BSE filing.

Revenue from operations during the March quarter grew 6.6 percent to Rs 266 crore from Rs 249 crore in the year-ago period.

"TCI Express has delivered a strong performance during 2018-19. Revenue from operations (yearly) increased 15.7 percent to Rs 1,024 crore, outperforming the industry growth in 2018-19," TCI Express MD Chander Agarwal said.

For the entire 2018-19, net profit increased 24.7 percent to Rs 73 crore from Rs 58 crore in the previous year.

"The revenue growth was driven by higher volume of cargo and increased business from addition of new customers. The strong margins improvement was attributable to higher capacity utilisation, operational efficiency and efficient working capital management," Agarwal said.

TCI Express has added 60 new branches to penetrate deeper in select geographies, the company said.

"We have also incurred a capex of Rs 25 crore to automate our sorting centres with an aim to improve turnaround time and overall efficiency. The company continues to strengthen its balance sheet and has repaid the debt of Rs 33 crore, which brings down the total debt to Rs 9 crore at the end of March 2019 and we will be debt-free by the end of next quarter," he said.

The company said the logistics industry is going through favourable structural changes and is expected to grow at a faster pace in the coming years despite temporary economic slowdown.

"TCI Express is well positioned to tap the growing market opportunities with its asset light model, customised solution offerings and superior customer support services," it said.