Transport Corporation of India Limited Earnings Presentation FY

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2 Transport Corporation of India Limited Earnings Presentation FY MOVING INDIA S GROWTH STORY.

3 Group Overview SBU s and Services TCI s Joint Venture/Subsidiaries Other Group Companies FTL/FCL, LTL & Overdimensional cargo services through Road, Rail & Sea. A Single-window solutions enabler from Conceptualization to Implementation Leading player in Coastal Shipping, NVOCC & Project Cargo TCI B desh TCI Nepal JV with CONCOR (49%) to provide end to end multi modal solutions. JV with Mitsui & Co (51%) for Auto supply chain solutions for Toyota and other Japanese auto companies in India 100% Subsidiary, undertakes End-to-end transportation and C&F services and country specific Logistics solutions 100% Subsidiary Endto-end transportation and C&F services and country specific Logistics solutions Demerged in 2016, undertakes time sensitive and high value express services by road & air across 40,000 pickup and delivery locations. Demerged in 2011, undertakes development of the properties of TCI group It also develops large scale Warehouses, Logistics Parks etc 2

4 Group Information 1958 Year of Establishment $600 Mn Group Revenue 2.5% Moving India s GDP 6,000+ Employee Strength 1,400+ IT Enabled Own Offices 12,000 Trucks in Operations 3

5 Board of Directors Name Mr. S M Datta Mr. D P Agarwal Mr. VineetAgarwal Mr. S N Agarwal Mr. O S Reddy Mr. K S Mehta Mr. Ashish Bharat Ram Mr. Vijay Sankar Mrs. Urmila Agarwal Mr. M P Sarawagi Mr. Chander Agarwal Designation Chairman (Non-executive independent director) Vice Chairman & Managing Director Managing Director Non-executive director Non-executive independent director Non-executive independent director Non-executive independent director Non-executive independent director Non-executive director Non-executive director Non-executive director 4

6 Corporate Governance Corporate Social Responsibility TCI would be taking CSR initiatives through TCIFoundation, TCIInstitute of Logistics& TCICharities under below activities: TCI Policies The company considers its employee as the most important and valuable asset and is committed to provide conducive, healthy and professional work environment. So the Company establishes the policies and procedures to protect the rights ofemployeesaswellastheenablesocial& economicenvironmentwithintheorganization.certainimportantpoliciesare: HSEPolicy,CodeofConduct,SexualHarassmentPolicy,CSRPolicy,RiskManagementPolicy. Thought Leadership & Recognition Joint Study Reports: A Joint Study Report by TCI & Insurance Institute of India , 3rd Joint Study Report by TCI & IIM , 2ndSustainability Report Awards & Recognition 2018: Marketing Excellence in Logistics & Supply Chain, Diversified Logistics Company of The Year, ColdChainRisingStaroftheYearetc. In-housePublication: LogisticFocus, Enroute. Listing, Rating & Certifications TCIislistedintwostockexchangei.e.NSE&BSEwhereashavingRating&Certificationsformthefollowing: ISO9001:2008,CRISIL:AA-/stableforlongterm,ICRA:A1+shortterm,IATACertificate 5

7 Logistics Key GrowthDrivers GST Rationalized Supply Chain Logistics Infrastructure Development Reduce unit cost of Transportation Increased outsourcing of Logistics Logistics cost optimization Shift of business from unorganized to organized sector Increased Multi modal movement Large scale warehousing Bulkier movement between hubs Ease of doing Multimodal movement Development of Warehouses/Hubs in the vicinity of corridors Opportunities for multi-location and multi services players Technology penetration into logistics solution Larger scope for value added services e.g. order processing, packaging, kitting etc 6

8 FY Standalone Highlights FY16 1,607 FY17 1,821 FY18 2,202 21% Revenue Growth FY16 48% PAT Growth 23, 1% FRT SCS Seaways Others 239, 11% 911, 41% 1029, 47% FRT SCS Seaways Others 334, 29% 302, 26% 225, 20% 280, 25% Business Mix Capital Employed Mix Figs in Cr 7

9 Division-wise Stand-alone Financial Performance Figures are in Crs # Corp.& Others Revenue % Growth 12.0% 23.7% 61.8% 18.9% 20.9% 12.9% EBIDTA % of Revenue 3.8% 10.3% 34.5% NA 10.6% 9.5% EBIT Total ( ) Total ( ) % Growth over LY Capital Employed 42.3% 35.3% 54.8% NA 42.5% 19.0% ROCE % 13.9% 21.7% 22.4% N.A 15.4% 12.3% # Corp. & Others consist of unallocated assets, investments and energy division. 8

10 TCI Freight Division 3,500 (120) Trucks & Trailers in operation (owned) 700 IT Enabled Owned Offices 25 Strategic Hubs Key Operational Highlights Growth predominantly stems from increase in Volume Margins improved with focus on large client and key account management with value added services. Successfully implemented GST and E-way bill complaint system across all branches LTL/Sundry Business shallcontinue to grow Financial Performance at glance % 1.1% 0.6% 0.1% % 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% % 10.3% 7.6% 6.6% % 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% Revenue (In Cr.) PBT Capital Employed (In Cr.) ROCE 9

11 TCI Supply Chain Division 12 Mn. Sqft. Warehousing Area Managed 4,000 (1350) Fleet in operations (Owned) 5,000+ Pickup per day Key Operational Highlights Clocked 24% revenue growth by successfully tapping sectorial trends in Automotive, Retail, E-commerce and FMCGetc. Leverage its strong position in harnessing potential business opportunities post GST supplychainrestructuring Focusing on portfolio enhancementin 3PL and 4PL Financial Performance at glance % 5.4% % % % % 30.0% 25.0% % 4.7% 4.3% 4.6% 4.4% 4.2% % 19.3% 17.7% 21.7% 20.0% 15.0% % % Revenue (In Cr.) PBT EBIDTA (In Cr.) ROCE 10

12 TCI Seaways Division Key Operational Highlights 6 Cargo Ships 4,200 Own Containers 63,380 Total DWT Capacity Financial Performance at glance Clocked 62% revenue growth by successfully deploying an additional ship at West Coast of13760 DWT capacity Acquired one more ship of DWT and tobedeployedatwestcoastinq-1fy19 Increased focus on providing multimodal solutions for cargo originating from Northern States to Southern. Strong positioning at East coast to leverage opportunities out of increased infrastructural activities in Andamans % 17.6% % % 40.0% 35.0% 30.0% 25.0% 20.0% % 17.3% % % 40.0% 35.0% 30.0% 25.0% 20.0% % % Revenue (In Cr.) PBT Capital Employed (In Cr.) ROCE 11

13 TCI s Joint Ventures 169 Cr Revenue 23% Y-o-Y Growth 25 Cr Capital Employed 469 Cr Revenue 15% Y-o-Y Growth 180 Cr Capital Employed Key Operational Highlights Operatesonasset-light model Provides door to door multimodal solution for container cargo. LSPforToyota India Continuously focusing on non-tkm customers to diversify auto-business portfolio. 12

14 Key USP s of the Company Multimodal Integration capabilities Auto supply chain designing and solutions Large-scale warehousing Technology driven operations 13

15 Efficient use of various divisions for seamless movement Multimodal Transportation ICD Khatuwas/Dadri Mundra Port Vendors/Supp liers Movementby Road Kochi Port Movement by Rail Movement by Sea Factory/ Delivery 14

16 Auto Supply Chain designing and solutions Inbound Logistics Supplier to Plant Domestic and Global In-plant Services Line Feeding Kitting Outbound Logistics 3PL Services 4 P Services Warehousing After Market Bonded Warehousing VMI Model Line Feeding Road Transport Spare parts distribution Center Yard Management Clustering / Area Forwarding Model JIT (Just in Time) Model Multi Modal Distribution (Hub & Spoke) Yard Management Value Added Services ExportPacking Unit LevelScanning and Labeling Vanning& Securing llive Data at Control Tower JIT Deliveriesto Plantsor CHA SequencinganddockManagement DeliverytoNeighboring Countries 15

17 Large-scale Modern Warehousing Auto Retail & CP Hi-tech Chemicals Healthcare Cold Chain TCI covers 12 million sq feet of warehousing space owned/long leased/ customer owned Warehousing Cross dock operations TCI Warehousing operations InfrastructureofRacking,PigeonHoles,CageBins, Mezzanine Floor, Dock-Levelers, Forklifts and Stackers IT systems from WMS, Hand Held Scanners and EDI(ElectronicDataInterchange)Capability Well documented and Refined processes for Receipt, Put away, Picking, Documentation and Shipping 16

18 Forefront in Automation & Technology 17

19 Consolidated Financial Results Figures in Crs Income Statement Particulars (Rs in Cr.) (CONSOL) Freight Other Sales & Services Other Income Total Income Revenue growth % 12.88% 20.87% 20.94% Operating expenses Other expenses Total Expenses EBITDA EBITDA Margin % 9.55% 10.57% 9.77% Interest Expense Depreciation Exceptional Item Sharein Net Profit (loss) of JV PBT PBT Margin % 4.87% 5.97% 6.45% Taxes PAT PAT Margin % 3.85% 4.71% 5.24% Balance Sheet Particulars (Rs in Cr.) Non current Assets (CONSOL) Property, plant and equipment Capitalwork-in-progress Intangibleassets Investments Long term loans and advances Other non current assets Current Assets Inventories Trade Receivables Cash & cash equivalents Loans and advances Other current assets TOTAL Shareholders Funds Share Capital Reserves & Surplus Non Current Liabilities Long term Borrowings Deferred tax Liabilities (net) Other long term liabilities Current Liabilities Short term borrowings Trade payables Other current liabilities Short term provisions TOTAL

20 Financial Performance Top ratings AA- ( CRISIL Bankline Credit), A1+ ( ICRA-Commercial Paper), good financial discipline and high creditworthiness, TCI s average interest cost is below 9% Debt Equity Ratio Earnings per Share (in Rs) UOM # Debt Service Coverage Ratio Times Return on Capital Employed % # Re-stated after Excluding XPS undertaking 19

21 Market Summary Market Cap as on 31 st Mar`18 Rs Crs Debt Rs Crs Enterprise Value Rs Crs P/E Nos 20.0 EV/EBITDA Nos Week High Rs/share Week Low Rs/share % 6% 1% 8% 16% Shareholding Pattern as on 31st March % PROMOTORS INDIAN PUBLIC FOREIGN HOLDINGS BODY CORPORATE MUTUAL FUND OTHERS Consistent Dividend track trend 75% 65% 75% 75% 80% Stock Performance 2001 InitialInvestment 18000/-investedin 1000 Equity shares 60% 45% 30% 15% 0% 55% 50% 50% 45% 15% 16% 16% 18% 18% 16% 14% 14.2% Dividend Ratio Dividend Payout Ratio FY11 FY12 FY 13 FY14 FY15 FY16 FY17 FY Share Split Share Split 5 share of 2/- each for 1 share of 10/ Demerger of Real Estate Div Swapratio one share in TCI developers for 20 shares in TCI 2016 Demerger ofxps Div Swap Ratio one share in TCI Expressfor 2 shares in TCI Dividend Rs 87,825Market Value of Investment Rs. 27,42,825 Investment given 34% CAGR return by March

22 Total Actual Capital Expenditure Plan FY (FY to Actual Actual Proposed ) Rs. In Crores Hub Centers & Small warehouses Total Actual (FY to Actual Actual Proposed ) Wind power Ships & Containers Trucks & Cars Others (W/H Equip., IT etc.) Total Funding Pattern: Estimates of sources of finance for the Capex in FY Rs. In Crores Debt Equity Free Cash Flows Total FY

23 THANK YOU Cautionary Statement Statements in this Presentation describing the Company s objectives,estimates, expectations orpredictions may be forward looking statements within themeaningofapplicable securitieslawsand 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 principal markets, changes in Government regulations, tax regimes, economic developments within India and otherfactors. The Company assumes no responsibility to publicly amend, modify orrevise any forward looking statement, onthebasisofanysubsequentdevelopment, informationorevents, orotherwise. 22