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Our Bureau Identifying optimal routes, ensuring trucks run only when they have cargo and avoiding lower margin businesses like last-mile delivery of e-commerce have helped TCIExpress report a 22 per cent growth in net profit to ₹21.75 crore in Q4 FY19.
TCIExpress has recommended a dividend of 30 per cent, of ₹0.60 for a ₹ 2 share.
The company has reported net sales of ₹265.84 crore (₹249.34 crore), up 6.6 per cent.
“Despite an increase in fuel prices, we have been able to lower our operating expenses by optimising routes, and increasing capacity utilisation along the routes,” Chandan Agarwal, MD, TCIExpress, told BusinessLine . He added that the company emphasised less on last mile e-commerce delivery, which could have negatively affected the profit margins.
Full-year results
Revenue from operations increased 15.7 per cent to ₹1,024 crore in FY19. Profit after tax was at ₹73 crore, an increase of 24.7 per cent YoY, said a company release.
The revenue growth was driven by higher volume of cargo and increased business from the addition of customers. The strong margins improvement was attributable to higher capacity utilisation, operational efficiency and efficient working capital management.
During the year, TCIExpress added 60 new branches to penetrate deeper in select geographies. “We have also incurred a capital expenditure of ₹25 crore to automate our sorting centres,” added Agarwal.
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