transport corporation of india investors presentation fy ...h1).pdf · performance fy 2016-17 (h1)...
TRANSCRIPT
. ......................................... ................................
......... ......................................... ................................. ......................................... ................................
TransportCorporationofIndiaInvestorsPresentationFY2016-17(H1)
2
CautionaryStatementStatements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions maybe “forward looking statements” within the meaning of applicable securities laws and regulations. Actual resultscould differ materially from those expressed or implied. Important factors that could make a difference to theCompany’s operations include global and Indian demand supply conditions, cyclical demand and pricing in theCompany’s principal markets, changes in Government regulations, tax regimes, economic developments within Indiaand other factors. The Company assumes no responsibility to publicly amend, modify or revise any forward lookingstatement, on the basis of any subsequent development, information or events, or otherwise.
GroupTCI
3
KeyFacts
YearofEstablishment
Turnover
CompanyOwnedBranches
WarehouseCoveredArea
Vehicles/DayManagedonRoad
1958
2.5%
1400+
11MnSft
9000
MovementbyValueofIndiaGDP
2800Cr.
EmployeesStrength 6000+
Highlights2016-17(H1)
8Fulfilmentcenterswithdelivery
capacityof1Lacorders/day
InaugurationofWorld-ClassColdChain
WarehouseonPataudi Road,
Gurgaon
Incorporationof100%subsidiaryinBangladesh
as“TCIBangladeshLimited”
E-Com
ColdChain
ConnectingSAARC
GroupTCI
4
SBUs&Services
FTL/FCL,LTL&Over-dimensionalcargoservicesthroughRoad,Rail&Sea.
LeadingplayerinCoastalShipping,NVOCC&ProjectCargo
ASingle-windowsolutionsenablerfromConceptualizationtoImplementation
Catertolocallogisticsrequirementofacountry
JointVentureCompanies
JVwithCONCORtoprovideendtoendmultimodalsolutions.
JVwithMitsui&CoforAutologistics(ToyotaIndiaproject)
TCITransportationCompanyNigeriaLtd.
#TCIXPShasbeendemergedintoaseparateentryTCIExpressLtdatthecloseofbusinesshoursof31st March2016
AJVbetweenIndoramaElemePetrochemicalsLtd.andTCIGlobal
OtherGroupCompanies
TDLundertakesdevelopmentofthecommercialpropertiesofTCI.ItalsodevelopslargescaleWarehouses,LogisticsParksetc
Specializedinofferingtimedefinitesolutionswithstrengthof2000+teamofprofessionaland13000+deliverypoints.
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’s website)
CorporateGovernance
On-goingInvestorOutreachprograms
5
Awards&Recognition
6
Name DesignationMr.SMDatta Chairman(Non-executiveindependentdirector)
Mr.DPAgarwal ViceChairman&ManagingDirector
Mr.SNAgarwal Non-executivedirector
Mr.OSReddy Non-executiveindependentdirector
Mr.KSMehta Non-executiveindependentdirector
Mr.AshishBharatRam Non-executiveindependentdirector
Mr.VijayShanker Non-executiveindependentdirector
Mrs.Urmila Agarwal Non-executivedirector
Mr.MPSarawagi Non-executivedirector
Mr.Chander Agarwal Non-executivedirector
Mr.Vineet Agarwal ManagingDirector
BoardofDirectors
7
ImpactofMacro-economicchangesonLogistics
DFC/Diamond
Quadrilateral
• Creationofadditionaldedicatedrailfreightcapacity,• WillreduceunitcostofTransportationbyspeedingupfreighttrainoperations.• Increasedbulkmultimodalmovementforimprovedproductivity&efficiency• WillresultindevelopmentoflogisticWarehousesinthevicinityofFreightCorridor.
GST• RationalizingtheimpactoftaxesonProduction,DistributionandInventorymanagement• ConsolidationofwarehousesandmovingtowardsHub-and-spokemodel• MultimodalmovementbetweenHubs
• Withincreasedpercapitadisposableincome,consumptiondrivensectorswillgrow• SectorslikeFoodservices,e-commerce,consumabledurablesetc.willgetaboost.
E-commercedrivengrowthinconsumption
• Growthintrendtowardsoutsourcingoflogisticsinnontraditionalindustries• Largerscopeofoutsourcinge.g.orderprocessing,packaging,kittingetc.willgoup
Increasedoutsourcingof
Logistics
8
GST-KeyImplicationsonWarehouse&TransportIndustry
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& Inventorymanagement•Consolidation of warehouses•Multi modal movement between Hubs
9
10
ImpactonLogisticsDevelopmentSagarMala
DiamondQuadrilateral
The Diamond Quadrilateral is a project of the Indianrailways to establish high speed rail network in India. Thisquadrilateral will connect the four metro cities in India,i.e. Delhi, Mumbai, Kolkata and Chennai.This corridor will be operated on broad-gauge tracks andwill pass through 14 states and territories of India.
Sagar Mala envisages port led development of thecountry that would looks towards transforming theexisting Ports into modern world class Ports andintegrate the development of the Ports, the Industrialclusters and hinterland and efficient evacuation systemsthrough road, rail, inland and coastal waterwaysresulting in Ports becoming the drivers of economicactivity in coastal areas
The project aims to change the way logistics evacuationhappens in India, save logistics costs nationwide for cargohandled and evacuated through seaports, boost overalleconomic development through ports and empowercoastal communities
TCI:ServingtheCompleteEcommerceChain
Customers
Companies
Consolidationcenter
WarehousesDedicate&Shared
Suppliers
1.Marketplace
2.InventoryBased
1.AtSupplier
i SupplierCoordination
ii Scheduling
iii Routeoptimization
2.Inventory /Marketplace/CrossDock- FC
i Receipts andBarCoding
ii QualityCheckandPutaway
iii OrderprocessingonSLA
iv SortationandShip+CUBISCAN
v ReturnShipmentManagement
3.At Customerplace
i Doorstep delivery
ii FOD
iii Reverselogistics
~200,000units/day
~100,000Orders/day
~20,000Deliveries/day
11
GroupCompanies&Divisions
GroupCompanies&Divisions
• Provides Full truck load, Less than truck load, logistics solutions and projectmanagement for heavy and over-dimension cargo solutions parcel services with panIndia presence.
• Single window Key Account Management (KAM) solutions for managing informationflow and tracking.
• Started new service for SAARC region to provide door to door service.
• Provides inbound/outbound logistics and supply chain solutions from conceptualizationdesigning network to implementation
• Operates with a customized fleet of 1100 own trucks including 45 refrigerated trucks• Auto sector currently contributes to 75% of total revenue• High growth in managing Fulfillment centers and backend operations for e-commerce
• Provides coastal shipping services for transporting container and bulk cargo along theWestern & Eastern coast of India
• 04 domestic ships with capacity of 3500 – 10600 DWT, including Project Ships equippedwith own cranes (Total capacity of 23360 DWT)
SBU-wiseDetails
12
IndustryScenario Mature,Fragmented,Lowbarrierstoentry,lowcost
Nascent,knowledgebased,veryhighbarriers,single
window
Growth,highentrybarriers,lowcost
IndustryGrowth 5-8% 15-20% 10-15%
%ofTotalRevenues
(FY16-17H1)
50%(437cr.)
41%(366cr.)
8%(70cr.)
TCIEBIDTAMargins 3-5% 10-12% 25-30%
Rev.GrowthCAGR5Yrs.
0.6% 9.7% 13.3%
ROCE(5-yrAverage) 8% 23% 19%
ROCE(10-yrAverage) 14% 23% 16%
IndustryDynamicsandSBUSnapshot
13
Total Total
Revenue 437.4 365.7 69.9 9.03 882.0 1613.9
%Growth 6.5% 16.5% 11.6% -37.8%# 10% 4.1%
EBIDTA 16.6 39.2 22.5 7.19 85.5 147.9
%ofRevenue 3.8% 10.7% 32.2% 79.6% 9.7% 9.2%
EBIT 11.5 23.4 16.7 6.1 57.8 97.0
%ofRevenue 2.6% 6.4% 23.8% 67.9% 6.5% 6.0%
%Growth 45.3% 29.8% 43.2% -53.2%# 13.9% 11.3%
CapitalEmployed 215.9 261.9 162.1 316.43 956.2 888.0
ROCE% 11.1% 18.9% 20.9% 27.4% 12.5% 11.5%
Performance FY2016-17(H1):Stand-alone
14
EnergyandCorp.
FiguresareinCrs
(2016-17-H1) (2015-16)
# DividendincomeincorrespondinghalfyearofFY16was7.9crs asagainst2.1cr incurrenthalfyear
DivisionalRevenueMix
15
43% 40% 38% 37% 37% 50%
27% 28% 30% 30% 29%
25% 27% 27% 28% 28% 41%
5% 5% 5% 5% 6% 8% 1% 1% 1% 1% 1% 1%
8.12% 7.68% 7.63% 8.27% 8.60%
9.69%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0%
20%
40%
60%
80%
100%
FY12 FY13 FY14 FY15 FY16 FY17UPTOH1
Freight XPS SCS Seaways Others EBIDTAMargin
CapitalExpenditure inlast10years
16
HubCenters&Smallwarehouses 260.2 95.7 17.8 26.0
Windpower 9.0 0.0 0.0 0.0
Ships&Containers 151.5 4.3 3.0 66.0
Trucks&Cars 240.7 64.5 14.0 58.0
Others(Equip.,ITetc.) 77.1 3.9 0.7 35.0
Total 738.5 168.4 35.5 185.0
TermloanAdditions: 323.0 80.0 28.0 109.0
TotalActual(FY2006-07to
2014-15)
2015-16Actual
2016-17(H1)
2016-17Proposed
FiguresareinCrs
SourcesoffinancefortheCapexinFY2016-17
Rs.InCrores
FY2016-17 109 0 76 185
Debt Equity FreeCashFlows Total
IncomeStatementStandaloneResults
Particulars(RsinCr.) 2015-16 2015-16(H1)
2016-17(H1)
Freight 1415.66 696.81 782.26
OtherSales&Services 185.30 94.55 95.57
OtherIncome 12.90 10.50 4.19
TotalIncome 1613.87 801.86 882.01
Revenuegrowth% 4.11% 2.88% 10.00%
Operatingexpenses 1282.27 636.44 701.45
Otherexpenses 183.70 90.98 95.07
TotalExpenses 1465.97 727.42 796.52
EBITDA 147.90 74.43 85.50
EBITDAMargin% 9.16% 9.28% 9.69%
InterestExpense 22.96 11.43 14.28
Depreciation 50.85 23.72 27.75
ExceptionalItem 0.03 0.00 0.00
PBT 74.07 39.30 43.47
PBTMargin% 4.59% 4.67% 4.93%
Taxes 15.20 7.65 8.64
PAT 58.87 31.66 34.83
PATMargin% 3.65% 3.95% 3.95%
BalanceSheet
17
Particulars(RsinCr.) 2015-2016 2015-16(H1)
2016-17(H1)
1.ShareholdersFundsShareCapital 15.21 15.21 15.32Reserves&Surplus(Excl.Rev.res) 480.06 620.60 545.20Minority Interest 0.00 00.0 0.00
2.NonCurrentLiabilitiesLongtermBorrowings 95.76 75.02 89.54DeferredtaxLiabilities(net) 31.98 33.18 39.26Otherlongtermliabilities&Provisions 0.00 0.00 2.38
3.CurrentLiabilitiesShorttermborrowings 204.28 215.25 227.05Tradepayables 51.64 108.57 83.12Othercurrentliabilities 56.62 73.37 62.55Shorttermprovisions 48.72 51.12 49.98
TOTAL 984.27 1192.32 1114.401.NoncurrentAssets
FixedAssets 514.69 516.70 539.21Goodwill onconsolidation 0.00 0.00 0.00Exchange fluctuationonconsolidationNoncurrentInvestments 23.12 47.00 27.25Longtermloansandadvances 39.24 59.94 41.07Othernoncurrentassets 0.00 2.64 0.00
2.CurrentAssetsInventories 1.76 2.46 2.83TradeReceivables 312.99 443.70 382.08Cash&cashequivalents 12.38 21.72 19.46Shorttermloansandadvances 77.94 96.97 100.73Othercurrentassets 2.05 1.19 1.77
TOTAL 984.27 1192.32 1114.40
FiguresinCrs
Note :1 Figures are restated to extent of IND AS compliance except balance sheet of FY 15-16Note: 2 Figures are excluding XPS undertaking except balance sheet of H-1 FY 15-16
OwingtoTopratings AA- ,A1+fromCreditAgencies,goodfinancialdisciplineandhighcreditworthiness,TCI’saverageinterestcostisbelow10.00%
Debt– EquityRatio EarningsperShare(inRs)
FinancialPerformance
DebtServiceCoverageRatio# Times 1.92 2.20 3.03
ReturnonCapitalEmployed# % 11.6 11.5 12.5
UOM 2014-15 2015-16 2016-17(H1)
18
0.86 0.881.00
0.930.85
0.69
0.54 0.58 0.66
0
0.2
0.4
0.6
0.8
1
1.2
3.915.93
7.07 7.13 7.138.51
10.5011.20
9.10
#Re-statedafterExcludingXPSundertaking
CanwementioncreditratingsAA- etc
MarketSummaryMarketSummary(RsInCrore)MarketCapason30th September`16 1425.0
Debt 355.0
EnterpriseValue 1775.0
P/E 20.0
EV/EBITDA 20.8
52WeekHigh 388.0
52WeekLow 175.2
ConsistentDividendtracktrend
30%
40%45%
50% 50%
65%
75% 75%
18% 16% 15% 16% 16% 18% 18% 16%
-10%
5%
20%
35%
50%
65%
80%
FY09 FY10 FY11 FY12 FY 13 FY14 FY15 FY16
Dividend Ratio Dividend Payout Ratio
66%
17%
8%
3% 6%
ShareholdingPatternason30thSeptember2016
PROMOTORS
INDIANPUBLIC
FOREIGNHOLDINGS
BODYCORPORATE
MUTUALFUND
19
StockPerformance&DemergerSchemeInvestedin1000
equityshare@18/- in2001
ShareSplit5shareof2/- eachfor1shareof
10/- inDec’2006
DemergerofRealEstatedivisiontoTCI
DevelopersinMarch’2010
Investmentgiven40%ofCAGRreturnby
Sept’2016
InitialInvestmentOfRs 18,000
TotalNumberofShareincreasedto5,000
1shareinTCIDevelopersagainst5shareheldinTCI
DividendRs 65,325MarketValueofInvestmentRs.10,16,375
20
Swap
and
Excha
nge
RatioTheEquityshareholderofTCIwillreceive1
equityshareofRs.2/-eachofTCIExpressLtd.Forevery2equityshareofRs.2/- eachheldontherecorddateoftheCompany.
Allotm
enta
ndListing Allotmentandlisting
proceduralisexpectedtobecompletedin7to8weekstimeafterrecorddate.
Appo
intedan
dRe
cord
DateTheAppointeddateis
closingbusinesshoursof31st March2016.ShareTransfercommitteeoftheBoardhasfixed29th August2016asrecorddateforthepurposeofissueofequitysharesinTCIExpressLtdasperswapratio.
The High Court of Talengana & A.P has sanctioned the Scheme on 14th June 2016 involving demergerof “XPS division” into TCI Express Ltd , a subsidiary of TCIL.
GrowthDrivers
• Warehousing• ConsumptiondrivensectorlikeFMCG,Retail,Autoetc.• E-Commerce• DigitalTransformation
CostDrivers• Economiesofscale• Operationalefficiencykeytomaintaincostcontrol• Receivablesmanagement
MacroDrivers• Economicreforms,ImplementationofGSTandinfrastructure• Investment:Logisticssectortobeinhighertrajectory.• AmbitiousCapexandexpansionplansincurrentfiscal
FutureOutlook
21