TCI Express Ltd. ("TCI Express"), market leader in express distribution in India, held an official ground-breaking ceremony for its two new sorting centres at Gurugram and Pune in Aug 2019.
The new 2 lakh sq.ft. sorting centre at Gurugram will be located at Farukhnagar and 1.5 lakh sq.ft. sorting centre at Pune will be located at Chakan. The construction is expected to be completed by end of the current fiscal year and operations are anticipated to begin from Q1 FY2021.
The owned sorting centres align with strategic objectives of TCI Express and provide necessary impetus to the company's growth trajectory, higher utilization and operational reliability. This will also create ample opportunities for investment in complete automation and implementation of business intelligent tools which will result in direct cost reduction benefits, shorter turnaround time and enhanced operational efficiencies in the long run.
Considering the recent developments, we have revised our expected Capex expenditure target for the fiscal year to Rs. 80 crore compared to previously envisaged Rs. 60 crore. This Capex will be primarily utilized for construction, automation and IT infrastructure development for the sorting centres. The entire expenditure will be funded through internal accruals.
Commenting on the performance, Mr. Chander Agarwal, Managing Director, said: "I am pleased to report that we recently held ground-breaking ceremony for two new sorting centres at Gurugram and Pune. The new sorting centres, cumulatively at 3.5 lakh sq. ft., are expected to become operational from FY2021. These new centres will boast state of the art IT Infrastructure and complete automation which will further improve our turnaround time, reduce direct cost and generate higher operational efficiencies. The target capital expenditure outlay for the year has been revised to Rs. 80 crore, which will essentially be utilized towards construction and IT infrastructure. The investment in two new sorting centres will generate new growth opportunities for business and create value for all our stakeholders in the long run."
Shares of TCI Express Ltd was last trading in BSE at Rs.630 as compared to the previous close of Rs. 625.35. The total number of shares traded during the day was 13990 in over 367 trades.
The stock hit an intraday high of Rs. 631 and intraday low of 620.1. The net turnover during the day was Rs. 8770154.