TCI Express
Despite facing a challenging operational environment, TCI Express has demonstrated
exceptional resilience, consistently maintaining stable gross margins and achieving
consistent capacity utilisation.
D.P. Agarwal
Chairman and Director of TCI Express
Dear Valued Shareholders,
Reflecting on the fiscal year 2023-24, I am proud to present TCI Express's remarkable
journey of resilience, innovation, and sustained growth. Despite challenges within the
macro economic environment, our company has navigated these dynamics with adaptability and
a steadfast commitment to excellence.
We have consistently maintained stable gross margins and achieved consistent capacity
utilisation. This success is primarily attributed to our strong customer base, robust
network, and operational efficiency. Our resolute performance has enabled us to outperform
industry peers, reinforcing our market leadership.
INDIAN ECONOMY AND OPPORTUNITY
India's GDP growth rate for FY 2023-24 has been impressive, showcasing the country's
potential to be one of the leading economies globally. The logistics sector, integral to
economic development, stands to benefit significantly from this economic expansion.
As one of the fastest-growing major economies, India presents vast opportunities for
TCI Express. With the government's focus on infrastructure development, including
initiatives like the National Infrastructure Pipeline and the Gati Shakti National Master
Plan, the logistics landscape is set to transform. These initiatives aim to reduce
logistics costs, enhance supply chain efficiency, and improve connectivity across the
country, creating a conducive environment for logistics companies to thrive.
STRATEGIC ACHIEVEMENTS AND FUTURE PLANS
A significant highlight of this fiscal year has been the automation of operations in
Pune this year and in Taj Nagar the previous year. This project, equipped with an
AI-enabled automated cross-belt sorter, exemplifies our commitment to leveraging advanced
technology to enhance service delivery.
By focusing on technological advancements and infrastructure enhancements, we aim to
drive efficiency, improve customer satisfaction, and sustained long-term growth.
Our investment in technology and automation remains a cornerstone of our strategic
vision. During FY24, we allocated a total capital expenditure of Rs.46 crores towards
expanding our branch network, advancing automation initiatives, and strengthening our IT
infrastructure. These investments are crucial in ensuring we remain at the forefront of
the industry, delivering exceptional service to our customers. By focusing on
technological advancements and infrastructure enhancements, we aim to drive efficiency,
improve customer satisfaction, and sustained long-term growth.
DIVIDEND DECLARATION AND SHAREHOLDER VALUE
Aligned with our shareholder-friendly capital allocation strategy, the board of
directors has recommended a final dividend of Rs.2/- per share. This decision elevates the
total dividend for FY24 to Rs.8/- per share, reflecting a payout of 400% on the face value
of Rs.2/- each.
Our commitment to delivering shareholder value goes beyond just financial returns. It
encompasses a comprehensive strategy that includes good corporate governance, transparent
communication, sustainability, community engagement, economic performance and strategic
initiatives aimed at enhancing operational efficiency and market leadership. By
consistently focusing on these areas, we aim to create a sustainable and profitable future
for our shareholders.
COMMITMENT TO SUSTAINABILITY AND CORPORATE GOVERNANCE
At TCI Express, sustainability is a core component of our corporate philosophy. Our
efforts go beyond mere compliance; they embody our proactive approach to integrating
sustainability into every facet
The automation of our Pune Sorting Center, equipped with an AI-enabled automated
cross-belt sorter, exemplifies our commitment to leveraging cutting-edge technology to
improve service delivery.
From governance perspective, we have a strong mechanism in place, backed by rich legacy
of fair, ethical, sustainable and transparent governance practices followed since our
foundation. We have been practicing these principles of good corporate governance at every
level of organization and laid strong emphasis on best management practices, which
includes compliance of law in true spirit, adherence to ethical standards for effective
management, distribution of wealth and discharge of social responsibility for sustainable
development of all stakeholders.
Our CSR efforts, in partnership with the TCI Foundation, have significantly improved
poverty levels, health outcomes, and community empowerment. These strategic initiatives
promote sustainable development and reflect our dedication to making a lasting, positive
societal impact. TCI Express remains committed to fostering an inclusive, equitable, and
prosperous society through continued social capital initiatives. For a comprehensive
overview of the company's CSR initiatives, please refer the ‘MDA and Board's Report'.
CLOSING NOTE
Looking ahead, we will maintain a focus on prudent capital allocation to ensure our
shareholders benefit from the company's success. Our emphasis on technology,
sustainability, and operational excellence positions us well to navigate the evolving
market landscape and deliver superior value to our stakeholders. TCI Express is poised for
continued growth and success through innovation and strategic foresight.
Lastly, I extend my heartfelt thanks to all our stakeholders – our customers,
employees, partners, and shareholders – for your unwavering trust and support.
| Warm regards, |
| D.P. Agarwal |
| Chairman and Director of TCI Express |