Analyst meeting notes - Transport Corporation of India
June 13, 2008
Keynote Capitals presents notes on the recent analyst meeting of Transport Corporation of India Ltd.
Incorporated in 1958, Transport Corporation ot India Ltd. (TCIL) is India’s leading multimodal integrated supply chain solutions provider. It went public in 1974.
It has a network ot 1200 owned branches and 7.25mn sq. tt. ot warehousing space. Head count (on payroll) increased trom 5700 employees in FY07 to 6500 in FY08.
Results
- For full year FY08, income from operations grew 10%. Modest growth witnessed in all segments mainly Seaways, supply chain solutions, XPS, and transport.
- EBITDA margin flat at 6.4% vis-?-vis 6.5% y-o-y. The fuel price hike was passed on immediate or gradual basis depending on the client profile.
- PAT declined by 7% due to scheduled and unscheduled dry docking of 3 ships as well as the slowdown witnessed in the auto sector which affected the supply chain solutions division (65% of the clients are in the auto sector).
Transport
TCIL entered this segment in 1958. It currently operates a mammoth fleet of over 7000 trucks, 1200 of which are owned, serving 150,000 customers. It has leased trains too. This segment constitutes 54% of revenues, however with slim EBITDA margin of 3-5%. Going forward, it plans to reduce the contribution from this segment as it being a matured industry, has low margins. It however, serves as a good reference for other businesses.
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