Transport Corporation of India will not be affected to a great extent by any slowdown in the auto sector, although almost 75 per cent of its revenues come from this sector.

“This is because there will still be a demand for spare parts and servicing of old cars, which we also deal in,” said Mr Vineet Agarwal, Executive Director, TCI, at an analysts meet.

Its Supply Chain Solutions (SCS) and XPS services will each generate one-third of its total revenue by 2014. Currently, these divisions generate only around 22-26 per cent each of the company's revenues.

TCI has estimated growth patterns to be around 25-45 per cent annually in SCS and 20-25 per cent annually in the XPS division. Although the freight division of TCI is generating 46 per cent of the company's revenue today, it has been growing at 10-15 per cent.

“The future EBITA margins for the freight division will be 10 per cent, XPS division will be 20 per cent, SCS division will be 40 per cent and sea ways division will be 10-15 per cent. We also expect a 15-25 per cent EPS growth,” said Mr A.K. Bansal, Group CFO and Company Secretary.

TCI is looking at an overall expansion and transport linking plans. The company is planning to set up logistics parks in places where the consumption is high.

“A logistics park is an area which has warehouses, truck terminals and a port (if it is geographically suitable). We are planning to set up around 10-12 parks in the metros. We are also planning to buy half to one million square feet of land for warehouses,” said Mr Chander Agarwal, Executive Director, TCI.

The company is also planning to expand business though the TCI Global division to South-East Asian countries.

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