Thanks for sharing. Are’nt TCI Express and Delhivery’s customer base different? Correct me if I am wrong – TCI Express is more B to B and Delhivery B to C. TCI Express with its sticky customer base and per mgt commentary post Q2 results, margins were to improve in the second half year from the achieved margins of 15.8% in Q2. Mr. Agarwal further mentioned that Q3 and Q4 FY2024, will have higher growth and committed volumes would be achieved. The Margins and revenues though seemed to be flat in Q3.
Again during Q2 concalls – festive season and resilient domestic demand were expected to be favorable for Q3 results due to higher utilization but the mgt perspective post Q3 results mention of continued headwinds on account of muted festive demand and long holiday season during the quarter. Mgt in its Q2 con call did not acknowledge the heightened competition in the industry as a bearing on its results. Revenue and volume guidance for FY 24 from prior concalls were to be 14 to 15% and 13% on volume. This would mean a last qtr revenue of approx 485 crores to stick to their guidance. Not sure if this is possible from its current quarterly average.
Clear case of mgt over promising and under delivering. Hope to see some expected gains in margins due to the Pune automation center.
Disclosure: Invested from slightly higher levels.
| Subscribe To Our Free Newsletter |
