· india’s fastest growing express company for door to door courier and cargo. leading player in...

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TCIInvestor’sPresentationFY2015-16

2

CautionaryStatement

Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may

be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results

could differ materially from those expressed or implied. Important factors that could make a difference to the

Company’s operations include global and Indian demand supply conditions, cyclical demand and pricing in the

Company’s principalmarkets, changes in Government regulations, tax regimes, economic developments within India

and other factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking

statement, on the basis of any subsequent development, informationor events, or otherwise.

AboutTCIGroup

3

GroupTCI

4

SBUs&Services

FTL/FCL,LTL&Over-

dimensionalcargoservices

throughRoad,Rail&Sea.

India’sfastestgrowing

expresscompanyfordoorto

doorcourierandcargo.

LeadingplayerinCoastal

Shipping,NVOCC&Project

Cargo

ASingle-windowsolutions

enablerfrom

Conceptualizationto

Implementation

Completestheservice

offeringoftheGroupwith

connectivity&services

acrosstheworldatglobal

standards

OtherGroupCompanies&Services

JVwithCONCORtoprovide

endtoendmultimodal

solutions.

TDLundertakes

developmentofthe

commercialpropertiesof

TCI.Italsodevelopslarge

scaleWarehouses,Logistics

Parksetc.

JVwithMitsui&CoforAuto

logistics(ToyotaIndia

project)

TCITransportation

CompanyNigeria

Ltd.

AJVbetweenIndorama

ElemePetrochemicalsLtd.

andTCIGlobal

GroupTCI

5

KeyFacts GSTReadyNewWarehouselocations

Yearof

Establishment

Turnover

CompanyOwned

Branches

Warehouse

CoveredArea

Vehicles/Day

ManagedonRoad

1958

2.5%

1400+

11Mn Sft

9000

5newWarehouses (ForW/Hmanagementonly)

OneatNagpur

(1.65lakhssq.ft.)

OneatChennai

(45,000sq.ft.)

OneatNCR

(2.5lakhssq.ft.)

OneatHyderabad

(1lakhssq.ft.by2017)

Movement

byValueofIndiaGDP

2800Cr.

EmployeesStrength 6000+

ListedEntity Rated and Certified

CorporateSocialResponsibility

Engagedinareasofeducation,women&childhealth,

disabilityalleviationandruralsportsgrowth.

Non Discrimination Policy

• Regular conference calls and annual meet with shareholders and analysts

• Timely and transparent disclosures through comprehensive annual reports and corporate presentations

(readily available on the Company’swebsite)

CorporateGovernance

On-goingInvestorOutreachprograms

6

ManagementBody

ExecutiveCommittee CoreCommittee(Divisions)

Longtermstrategy,policymakingMDs,CEOs,BD&Marketing,Accounts&

Finance,HumanResources,IT,LegalHeads

Operationalreviews/BusinessstrategyCEOs,MDs,BD&Marketing,Finance,Operations&

RegionalHeads

UniquetoLogisticsindustrywithhighdegreeofprofessionalism

ManagementBody

7

Name Designation

Mr.SMDatta Chairman(Non-executiveindependentdirector)

Mr.DPAgarwal ViceChairman&ManagingDirector

Mr.SNAgarwal Non-executivedirector

Mr.OSReddy Non-executiveindependentdirector

Mr.KSMehta Non-executiveindependentdirector

Mr.Ashish BharatRam Non-executiveindependentdirector

Mrs.Urmila Agarwal Non-executivedirector

Mr.MPSarawagi Non-executivedirector

Mr.Vineet Agarwal ManagingDirector

Mr.Chander Agarwal Jt.ManagingDirector

BoardofDirectors

8

ImpactofMacro-economicchangesonLogistics

DFC/

Diamond

Quadrilateral

• Creationofadditionaldedicatedrailfreightcapacity,

• Will reduceunitcostofTransportationbyspeedingupfreighttrainoperations.

• Increasedbulkmultimodalmovementforimprovedproductivity&efficiency

• Will resultindevelopmentoflogisticWarehousesinthevicinityofFreightCorridor.

GST

• RationalizingtheimpactoftaxesonProduction,DistributionandInventorymanagement

• ConsolidationofwarehousesandmovingtowardsHub-and-spokemodel

• MultimodalmovementbetweenHubs

• Withincreasedpercapitadisposableincome,consumptiondrivensectorswillgrow

• SectorslikeFoodservices,e-commerce,consumabledurablesetc.willgetaboost.

E-commerce

drivengrowth

inconsumption

• Growthintrendtowardsoutsourcingoflogisticsinnontraditionalindustries

• Largerscopeofoutsourcinge.g.orderprocessing,packaging,kittingetc.willgoup

Increased

outsourcingof

Logistics

9

GST-KeyImplicationsonWarehouse&Transport

Industry

Transportation

• LargerWarehousesandborderlessmovementofgoodswouldleadstoincreasedtransportationlotsizes,multimodalmovement

• Lesserborderchecks/paperworkwouldleadtofastermovementoftrucks.Transittimesandcostmayshrinkby20-30%

Warehouse

• NetworktobedeterminedbasedontheambitofAdditionalTax.

• Networkoptimizationeffortstocommence

• Consolidationofwarehousingtocommence.

• EmergenceofhubandSpokemodel

• Largersizesofwarehouses(hubs)

• Warehousesclosertomanufacturingand/orconsumptionareas.

GST

•Rationalizing the impact of taxes on Production, Distribution& Inventory

management

•Consolidation ofwarehouses

•Multi modal movement between Hubs

10

TCI:ServingtheCompleteEcommerceChain

Customers

Companies

Consolidation

center

Warehouses

Dedicate&

Shared

Suppliers

1.Marketplace

2.InventoryBased

1.AtSupplier

i Supplier

Coordination

ii Scheduling

iii Routeoptimization

2.Inventory/Marketplace/CrossDock- FC

i Receipts andBarCoding

ii PutawayandStorage

iii OrderprocessingonSLA

iv SortationandShip

v ReturnShipmentManagement

Vi ReturnToVendor

3.At Customerplace

i Doorstep delivery

ii FOD

iii Reverselogistics

~200,000

units/day

~150,000Orders/day

~20,000

Deliveries/day

11

Industry

Scenario

Mature,Fragmented,

Lowbarrierstoentry,

lowcost

Growth,niche,high

entrybarriers,cost

efficiency

Nascent,knowledge

based,veryhigh

barriers,singlewindow

Growth,highentry

barriers,lowcost

Industry

Growth5-8% 8-12% 15-20% 10-15%

%ofTotal

Revenues

(FY15-16)

37%

(835cr.)

29%

(663cr.)

28%

(625cr.)

6%

(130cr.)

TCIEBIDTA

Margins3-5% 8-10% 10-12% 25-30%

Rev.Growth

CAGR5Yrs.0.6% 7.6% 9.7% 13.3%

ROCE(5-yr

Average)8% 45% 23% 19%

ROCE(10-yr

Average)14% 39% 23% 16%

IndustryDynamicsandSBUSnapshot

12

StandaloneRevenueMix:ShareofXPS&SCSisrising

DivisionalPerformance

13

50% 46% 43% 40% 38% 37% 37%

27%26%

27%28% 30% 30% 29%

17% 22% 25% 27% 27% 28% 28%

4% 4% 5% 5% 5% 5% 6%

2% 2% 1% 1% 1% 1% 1%

7.7%7.8%

8.1%

7.7%7.6%

8.3%

8.6%

7.0%

7.2%

7.4%

7.6%

7.8%

8.0%

8.2%

8.4%

8.6%

8.8%

0%

20%

40%

60%

80%

100%

FY10 FY11 FY12 FY13 FY14 FY15 FY16

Freight XPS SCS Seaways Others EBIDTAMargin

• OneofIndia’spremierorganizedfreightservicesproviderwithpanIndiapresence

• Around2400trucksandtrailers,bothownedandleased,providefreightmovementservicesonadailybasis

• SinglewindowKeyAccountManagement(KAM)solutionsformanaginginformationflowandtracking

• Startednewservice forSAARCregiontoprovidedoortodoorservice.

OverDimensionalCargo

Provideslogisticssolutions

foroverdimensional,bulk

andheavycargo

Projectmanagement

Ownhydraulicaxlesand

trailers

Rail

Providesdifferenttypes

ofservicessuchas

containers,wagonsand

specialautomotive

wagons

Road

Providesfulltruckload

(FTL),lessthantruckload

(LTL)andparcelservices

600ownedoffices

Largeclientbasewitha

strongKeyAccount

Managementsystem

TCIFreightDivision

14

51%equitystake

ContainerCorporationofIndiaLtd

49%equitystakePotentialBenefits

• Integrationofrailandroadcargomovement

• Establishingsynergybetweentworailandroadgiants

• JVcompanyprovidesendtoendmultimodalsolutions

• Providingidealmixofcost&speed

• TotalPaidupEquity- Rs7Cr

• FY2015-16NetRevenues- Rs.130.6Cr.andNetProfitofRS.

0.85Cr.

Multi-modalLogisticsJV

15

Revenues 834.8 3.0% 810.6

EBDITA 24.8 15.9% 21.4

EBITDAMargin% 3.0% 2.6%

PBIT 15.0 19.0% 12.6

CapitalEmployed 201.2 3.3% 194.7

2015-16

Unaudited

%increaseover

Lastyear

2014-15

(Audited)

Division’sshareinoverallbusinessconsistentlyreducing

Shareintotal

Revenue43% 40% 38% 37% 37%

FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16

Outlook:• Projectedgrowthofaround5-10%withbettereconomicconditions

• Ourbusinessstrategyhasbeenmodifiedtoreducelossesinthedivisionbyincreasingthefocusonhigher

marginsundry&lessthantruckload(LTL)business,toutilizethefixedcostofbranches,hubs&manpower.

Rs.InCrores

TCIFreightDivision:Financials

16

• The division provides express door-to-doorservice for time sensitive and high value parcels

• Operates throughdedicated vendors

• 7%business is throughair cargo

• Growing in bothB2B and B2C part of e-commerce business

Domestic&International

13000locationsinIndia&

200countries

Air(charteredspacefrom

Airlines)

Surface:Road&Rail

ValueAddedServices

Diplomat(nonservice

location)Delivery

HolidayService

FreightonDelivery

Moneybackguarantee

scheme

USP

Aircargo:alldimensions

Wellpositionedhubs

KeyAccountManagement

system

TCIXPSDivision

17

Revenues 663.0 0.6% 658.9

EBDITA 54.6 5.2% 51.9


PBIT 48.8 6.3% 45.9


2015-16

(Unaudited)

%increaseover

Lastyear

2014-15

(Audited)Rs.InCrores

Outlook

• Businessgrowthprojectedat10%-15%withincreasedfocusonecommerce,highconsumptiondrivensectors.

• Focusingonimprovementsinoperatingmarginsbybettercapacityutilizationandservicesautomation

TCIXPSDivision:Financials

18

Auto Retail& CP Hi-Tech Pharma ColdChain Chemicals

Record

Management

Services-RMS

SupplyChainConsulting

DesignofSupplychainstrategyfrom

procurementtodistribution

SupplyChainExecution

LeadLogisticsProvider

Warehousing

DistributionCenters,CrossDocks&In-Plant

ColdChain

Transport&storagesolutionsforperishable

cargoinPharma,Foods&Chem

KeyAccountManagement

GroupServices

MarqueeCustomers

Maruti,VWGroup,TataMotors,Hero,Bajaj,

HindustanUnilever,Samsung,

• SCSdivisionprovidesinbound/outboundlogisticsandsupplychainsolutionsfromconceptualizationto

implementation

• Operateswithacustomizedfleetof1100owntrucksincluding34 refrigeratedtrucks

• Autosectorcurrentlycontributesto75%oftotalSCSrevenue

• HighgrowthinmanagingFulfillmentcenters andbackendoperationsfore-commerce

TCISupplyChainDivision

19

49%equitystake

Mitsui&Co.Ltd

51%equitystake

SynergywithTCI

• LeadlogisticspartnerforToyotaKirloskarMotorsLtd.

andforotherJapaneseautocompaniesinIndia

• Completelogisticssolutionsfrominboundtooutbound

transportationacrossIndiaandabroad

AutomotiveLogisticsJV

20

Revenues 625.2 2.2% 611.8

EBDITA 67.2 3.7% 64.8


PBIT 38.1 1.9% 37.4

CapitalEmployed 232.3 42% 163.6

2015-16

(Unaudited)%increaseover

Lastyear

2014-15


Outlook

• Plannedgrowthof10-15%withimprovementinauto,retailandeconomyingeneral

• AimstobesignificantplayerinwarehousinginApparel,Retail,FMCGandE-commerce

• Significantpipelineofpotentialcontractsinallverticals.

• Launchedstateoftheart5000palletpositionmultitemperaturecoldchainwarehouse.

TCISupplyChainDivision:Financials

21

ShipsOwned

04domesticshipswith

capacityof3500– 10600

DWT,includingProjectShips

equippedwithowncranes

(Totalcapacityof23360

DWT)

CoastalShippingServices

Scheduledservicesonboth

coasts:

-Mundra toCochin

-Chennai/Vizag to

Andamans

OtherServices

CharteringofVessels

Stevedoring&MTOLicense

NVOCCwithown&leased

containers

• Thisdivisionprovidescoastalshippingservices fortransportingcontainerandbulkcargoalongtheWestern

&EasterncoastofIndia

TCISeawaysDivision

22

Revenues 129.7 14.9% 112.9

EBDITA 34.2 1.5% 33.7


PBIT 27.1 -5.2% 28.6


2015-16

(Unaudited)%increaseover

Lastyear

2014-15


Outlook

• Westcoastservicetofurtherstabilizeandgrow

• Overallplannedgrowthis25%supportedbystabilizedoperationsatwestcoastbyaddinganothership.

• Increasingawarenessofcoastalserviceasamultimodaloption

• Thedivisionisplanningtoadd1400moremarinecontainersduringtheFY2016-17.

TCISeawaysDivision:Financials

23

Cumulativecapacity 11.50MW 11.50MW 11.50MW 11.50MW 11.50MW

CapitalEmployed 37.4 34.6 31.1 29.6 28.4

EBIDTA 6.0 6.3 5.8 5.0 4.7

Rs.InLacs2011-12

(Audited)

2012-13

(Audited)

2013-14

(Audited)

2014-15

(Audited)

2015-16

(Unaudited)

Energydivision

Globaldivision

OnlyoperatinginBrazil&Nigeriaforlocalbusiness.

OtherDivisions

Rs.InCrores

24

IncomeStatement

FinancialStatement

Particulars(RsinCr.) 2014-15 2015-16

Freight 2050.01 2072.46

OtherSales&Services 146.74 185.31

OtherIncome 12.38 12.13

TotalIncome 2209.13 2269.90

Revenuegrowth% 8.66% 2.80%

Operatingexpenses 1764.78 1783.56

Otherexpenses 261.61 291.83

TotalExpenses 2026.39 2075.39

EBITDA 182.74 194.51


InterestExpense 31.91 28.20

Depreciation 49.46 53.92

ExceptionalItem 0.17 0.03

PBT 101.20 112.36

PBTMargin% 4.58% 4.95%

Taxes 25.25 27.30

PAT 75.95 85.06

PATMargin% 3.44% 3.75%

BalanceSheet

25

Particulars(RsinCr.) 2014-15 2015-16

1.ShareholdersFunds

ShareCapital 15.13 15.21

Reserves&Surplus(Excl.Rev.res) 559.84 624.43

Minority Interest 0.00 0.00

2.NonCurrentLiabilities

LongtermBorrowings 73.45 96.34

DeferredtaxLiabilities(net) 28.48 34.34

Otherlongtermliabilities&Provisions 0.00 0.00

3.CurrentLiabilities

Shorttermborrowings 197.53 244.03

Tradepayables 69.30 74.79

Othercurrentliabilities 53.31 64.30

Shorttermprovisions 48.29 50.71

TOTAL 1045.33 1204.15

1.NoncurrentAssets

FixedAssets 470.66 587.61

Goodwill onconsolidation 0.00 0.00

Exchange fluctuationonconsolidation 0.00

NoncurrentInvestments 44.40 44.55

Longtermloansandadvances 40.71 42.08

Othernoncurrentassets 2.64 0.00

2.CurrentAssets

Inventories 2.28 1.76

TradeReceivables 393.84 418.38

Cash&cashequivalents 16.51 23.25

Shorttermloansandadvances 73.02 84.47

Othercurrentassets 1.27 2.05

TOTAL 1045.33 1204.15

FiguresforFY2015-16areunaudited

OwingtoTopratingsfromCreditAgencies,goodfinancialdisciplineandhighcreditworthiness,TCI’saverage

interestcostisbelow10.00%

Debt– EquityRatio EarningsperShare(inRs)

FinancialPerformance

DebtServiceCoverageRatio Times 1.80 2.39 2.54

ReturnonCapitalEmployed % 14.62 15.20 14.31

UOM 2013-14 2014-15 2015-16

26

3.91

5.937.07 7.13

7.13

8.5110.50 11.20

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

0.860.88

1.00

0.93

0.85

0.690.54

0.58

0

0.2

0.4

0.6

0.8

1

1.2

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

HubCenters&Small

warehouses 260.2 95.7 101.0

Windpower 9.0 0.00.0

Ships&Containers 151.5 4.3 66.0

Trucks&Cars 240.7 64.5 59.0

Others(W/HEquip.,IT

etc.)77.1 3.9 9.0

Total 738.5 168.4 235.0

TotalActual

(FY2006-07to

2014-15)

2015-16

Actual

2016-17

ProposedRs.InCrores

FundingPattern:

SourcesoffinancefortheCapexinFY2016-17

Rs.InCrores

FY2016-17 100 0 135 235

Debt Equity FreeCashFlows Total

CapitalExpenditurePlan

27

MarketSummaryMarketSummary(RsInCrore)

MarketCapason31stMarch`16 2142

Debt 380

EnterpriseValue 2521

P/E 25.1

EV/EBITDA 12.96

52WeekHigh 348.50

52WeekLow 199.20

ConsistentDividendtracktrend

67%16%

5%3%

7% 3%

ShareholdingPatternason

31stMar2016

PROMOTORS

INDIANPUBLIC

FOREIGNHOLDINGS

BODYCORPORATE

MUTUALFUND

OTHERS

30%

40%

45%

50% 50%

65%

75% 75%

18%16% 15% 16% 16% 18% 18% 18%

-10%

5%

20%

35%

50%

65%

80%

FY09 FY10 FY11 FY12 FY 13 FY14 FY15 FY16

Dividend Ratio Dividend Payout Ratio

StockPerformance

Investedin1000equityshare@18/-in2001

ShareSplit5shareof2/-eachfor1shareof10/- inDec’2006

DemergerofRealEstatedivisiontoTCIDevelopersinMarch’2010

Investmentgiven35%ofCAGRreturnbyMar’2016

InitialInvestment

OfRs 18,000

TotalNumberof

Shareincreased

to5,000

1shareinTCI

Developers

against5share

heldinTCI

• Dividend

Rs 57,825

• MarketValue

ofInvestment

Rs.15,45,825

29

AboutRecentannouncementonDemerger

• On 8th October 2015 ,the Board has approved demerger of XPS Undertaking into

wholly owned subsidiary TCI Express Ltd. Necessary filing has been made with stock

exchanges. Complete details in respect thereof are available at tcil.com

• On 1st February 2016 ,BSE and NSE have issued “No Objection Certificate” (NOC) in

respect of proposed scheme of arrangement. The scheme has been filed with Hon.

High Court of Talengana & A.P

• Shareholders and unsecured creditors in their respective meetings held on 19th March

2016 & have approved the Scheme. All secured creditors have furnished their NOC in

respect of proposed Scheme.

• The High Court of Talengana & A.P fixed the next date of hearing on 6th June 2016 for

final hearing on proposed Scheme.

RationaleofDemerger

31

Focusedleadership&managementrequired

TheXPSundertakinghastremendousgrowthandprofitabilitypotential,morespecificallyinE-commercespacewhereitrequiresfocusedleadershipandmanagementattention.

Investor’sattractivenessandunlockingshareholder'svalue

Thenatureoftheriskandcompetitionwithrespecttothebusiness ofXPSUndertakingisdistinctfromtheotherbusinesses oftheRemainingUndertakingandconsequently,upondemerger,theXPSUndertaking

wouldbecapableofattractingadifferentsetofinvestorsandstrategicpartners.

OpportunityforBestInvestmentStrategiesanddiversification

ThereorganizationproposedbythisSchemewillenableinvestorstoseparatelyholdinvestmentinbusinesseswithdifferentinvestmentcharacteristics,therebyenablingthemtoselectinvestmentswhich

bestsuitstotheirinvestmentstrategiesandriskprofiles.

Thereorganizationwillenablethedemergedcompanytofocusitsresidualbusiness andachievegreatersynergies.

GreaterSynergiesinremainingbusinesses

KeyPointsofDemergerScheme

32

Swapand

ExchangeRatio

• TheEquityshareholderofTCIwillreceive1equityshareofRs.2/-eachofTCIExpressLtd.Forevery2equityshareofRs.2/- eachheldontherecorddateoftheCompany.

ListingofResulting

Company

• AspartofScheme,TCIExpressLtd.ShallalsoseeklistingonStockExchange(s)afterapprovaloftheSchemebytheHon`bleHighCourt.

AppointedDate

•TheAppointeddatewouldbeclosingbusinesshours

of31stMarch2016orsuchotherdateasmaybeapprovedbyHon`bleHigh

Court.

GrowthDrivers

• Warehousing

• ConsumptiondrivensectorlikeFMCG,Retail,Autoetc.

• E-Commerce

CostDrivers

• Economiesofscale

• Operationalefficiencykeytomaintaincostcontrol

• Receivablesmanagement

MacroDrivers

• Economicreforms,ImplementationofGSTandinfrastructure

investment:Logisticssectortobeinhighertrajectory.

• AmbitiousCapexandexpansionplansincurrentfiscal

FutureOutlook

33

· india’s fastest growing express company for door to door courier and cargo. leading player in...

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