Weak operating performance

Company
12 Mar 2024
5 Min read 
  • TCI Express (TCIE) reported weak operating performance in 3QFY24 with flat revenues and lower volumes.
  •  The weak macroeconomic environment, muted festive demand, and long holiday season impacted volumes.
  •  EBITDA margin was lower than expected due to lower volumes handled.
  •  The company aims to achieve an annual margin expansion of 50bp in 4QFY24.
  •  TCIE plans to automate sorting centers to enhance operational efficiency and reduce downtime.
  •  The company expects volume growth of 3-4% in FY24 and double-digit revenue growth in FY25.
  •  We reduce our revenue/EBITDA/EPS estimates for FY24/FY25/FY26 by 4%/8%/8%.
  •  We reiterate our BUY rating with a revised TP of INR1,450.
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