Transport Corp’s net profit rises in Q3FY25 backed by rising infra spending
Transport Corporation of India (TCI) reported a 27 per cent y-o-y growth in its consolidated net profit at more than ₹102 crore during Q3 FY25 aided by an uptick in demand for warehousing and multimodal solutions.
The consolidated revenues of the country’s leading integrated multi-modal logistics services provider rose by 14 per cent to around ₹ 1,154 crore during the October-December quarter in the current financial year. TCI reported its Q3 FY25 results on Saturday.
“Strong growth and some decline in fuel prices really helped us in terms of growth and margins. Besides, we also got dividends from our JV companies. I think that also helps. So all of those factors made it much better than anticipated,” TCI Managing Director Vineet Agarwal told businessline.
This robust performance has been achieved through balanced growth across all of TCI’s product lines, he noted.
The logistics player witnessed a surge in demand for warehousing and temperature-controlled 3PL green multimodal solutions from sectors such as FMCG & retail, agriculture, automotive, engineering equipment, etc.
Besides, TCI’s diversified offerings for emerging sectors such as renewables, chemicals, quick-commerce and consumer electronics have expanded in response to growing market opportunities, he pointed out.
Better times ahead
Elaborating on the evolving market dynamics, Agarwal explained “First is that December (2024) is closing for a lot of companies (MNCs). Some volume thrust happens around that time. Then a lot of new businesses also start giving out contracts. Some of which is in preparation for the year end.”
“However, some is, generally speaking, people evaluate what happened over the festival season, and then plan the next strategy for supply chains, etc. So all of these factors in new contracts start coming in the pipeline and getting converted. The growth for us has been large in the supply chain side”
Going ahead, Agarwal said the resumption of infrastructure spending and economic activity bolstered by private consumption in the rural economy, TCI anticipates a robust order pipeline in the coming quarters.”
“To sustain our momentum and drive future growth, we are strategically investing in technology, talent, and specialised logistics assets, including warehousing, automation, rail, containers, and ships,” he added.
TCI is honoured that India’s first ISO14083:2023 certificate has been awarded to the Transport Emission Measurement Tool (TEMT) developed by the TCI-IIMB Supply Chain Sustainability Lab at IIM Bangalore, Agarwal noted.
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