Transport Corporation of India (TCI) reported a 22 per cent Y-o-Y growth in its consolidated net profit at ₹1,003 crore in Q4 FY24 driven by higher traction from automobiles, engineering and other segments.
On a sequential basis, the multi-modal logistics services provider’s net profit was higher by 25 per cent. The results were released late on Wednesday night.
Its consolidated revenues rose by 10 per cent Y-o-Y to ₹10,789 crore in Q4 FY24. Revenues were higher by 8 per cent on a quarterly basis.
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For FY24, the logistics major posted an almost 11 per cent Y-o-Y growth in consolidated net profit at ₹3,545 crore. Revenues were higher by 6 per cent Y-o-Y at ₹40,242 crore.
TCI’s board approved the issuance of non-convertible debentures/ bonds/ other similar instruments for up to ₹200 crore.
TCI Managing Director Vineet Agarwal told businessline “Q4 typically is the best quarter for us. It is a time when a lot of sales push happens from companies. There is a lot of production that happens. The first half of the year (FY24) was a little weak. Hence the growth was not very high, it is around the 10 per cent range. Typically, all sectors have done well, more so, on the automotive side.”
Capex push
TCI is planning to incur a capex of ₹375 crore in FY25.
“Out of the total, ₹100 crore will go into warehouses and offices, about ₹100 crore into trucks and railway rakes and around ₹100 crore into containers and other warehousing equipment and assets. About Rs 75 crore is what we are keeping in case we are able to place an order to buy two new ships,” Agarwal said.
The new financial year has started with a strong pipeline for most of our services, he noted, including 3PL, warehousing, inbound-outbound logistics, cross-border, rail and coastal multimodal solutions, he added.
On prospects in the automobiles segment, he said “So clearly it’s a robust market and demand is there. Last year tractor sales were a little weak, but we are expecting that with a good monsoon, this year it should pick up. Sales of 2-wheeler sales should also be good. I believe SIAM has indicated that 4-wheeler sales might be slightly weak towards the end of the year.”
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Agrawal emphasised that higher infrastructure spending by the government will lead to a 3x-kind of a trickle down effect.
“That has an impact on almost 14-15 industries directly and indirectly. It will continue to remain a very attractive sector. Last year was a little weak, because I think there was a lot of capacity that was created. Hopefully, when the new government reinforces the infrastructure spend, I think some of that will start coming in,” he added.
TCI is looking at a guidance of 10-15 per cent on the top line and the bottom line for FY25, Agrawal said.
New age verticals
The other thing that has started to happen in the two-wheeler segment is the shift towards EVs, he pointed out.
“That is quite interesting. It’s not so much yet on the rural side or tier-III cities but more on larger cities. In fact, for some companies we also do direct-to-consumer deliveries. We pick up the bike from the plant, charge it at the hub centre, do a pre-delivery inspection and deliver it to the consumer. These are new models that have also started to emerge in the automotive space, which gives us a very large business opportunity,” Agarwal noted.