Tiger Logistics (India) Limited (536264) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Tiger Logistics (India) Limited Q4 and FY '25 Earnings Conference Call hosted by Rik Capital. We have with us today from the management, Mr. Harpreet Singh Malhotra, Chief Managing Director of Tiger Logistics (India) Limited. [Operator Instructions] Please note that this conference is being recorded. Before we proceed with this call, I would like to take this opportunity to remind everyone about the disclaimer related to this conference call. Today's discussion may be forward-looking in nature based on management's current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward-looking statements. I now hand the conference over to Mr. Harpreet Singh Malhotra for his opening remarks. Thank you, and over to you, sir.

Thank you. Good evening, everybody. I hope I'm audible. And I welcome everybody at today's earnings call for the financial year results, financial year '24-'25. And I feel that you must have seen the results with -- which has already been declared on the exchange. It gives me immense pleasure in welcoming everybody today. The business scenario I would like to discuss first that overall, the business scenario last, I would say, from January to March was a little choppy, in the sense, we had to bear the brunt of so many things, whether it is tariffs or uncertainties here and there. But I would say that we were -- touch wood, your company has still been able to face these things very well because of our diverse exposure in various sectors and whatever new things which we've been planning and doing. So those things are -- they are bearing results now. And it's -- I would say it's been shown on the -- in the numbers as well. So I think overall, for the company this year has been a very good year. We have initiated a lot of new efforts, new business ideas, new ventures, which have started showing results which I would say that now it is time for us to scale up those new ventures. I would say that our imports has stabilized a lot. We have started -- the import business is doing very well for us. Our project TiGreen, which is renewable energy, that is also doing very well. And I think overall, it is showing in the numbers. We have launched the CUBOX, which is a LCL product for us. That CUBOX is also doing very well. And I think we -- now it's a time that it is -- we can scale up that project also. Overall business scenario is looking better, is looking good. I would say that we are -- for the whole year -- the coming year, we are not starting any new project or anything, but we want to stabilize these new projects which we have started and deep sell in these projects only. I think we -- there is a lot of potential in what we are doing in these new projects. And I think the plan is that we invest more time and energy and resources in these new ventures and also look at how the market behaves. So we are seeing that more or less -- the tariff war is more or less stabilized. It is no more a threat as such. I think we should not be worried about the tariff part on the India-U.S. business is concerned. Other than that, I would say that the relationship with China is only getting better. We are not seeing any major disruption on that route also. Our traditional business of auto and yarns and commodities is also doing well. We are deep selling in that vertical also. One of the most exciting vertical for us this year has been government projects and PSU projects, that is doing very well for us. The PSU business is -- has shaped up very well. We've been able to, again, deep sell into what we were doing a few years back. Now we are qualified to handle bigger projects. We are qualified to handle bigger shipments, which is good for the company. And I think in coming months, we will be in a position to strengthen our position in these verticals. So overall, I think what we are looking at is that overall business is looking good. We are focusing on the India-U.S. trade lane. We are also focusing majorly on the China-India trade lane. We are also very keenly focusing on the LCL business, smaller business which is -- which will be holding key for us. So we are happy about the business scenario, and we are happy that the company is doing well. So I look forward to more exciting times in coming times, in coming quarters and months. And yes, so things are good. And I look forward to any questions anybody has. So we'll be happy to answer that.

[Operator Instructions] We have the first question from the line of Aditya, an individual investor.

First of all, sir, congratulations on the good set of numbers. So my question is regarding the U.S. tariff, that the recent changes in the U.S. tariff has impacted -- how it has impacted our overall import/export volumes? And what strategies are to manage this effect on the global operations and pricing?

So Aditya, overall, there has not been any major impact on our business as far as the India-U.S. trade lane is concerned. In fact, we are happy because globally, people are, at least the U.S. buyers are looking at India more seriously now. So I think the overall business inquiries have increased, and we are expecting that business to grow further. So overall, we are not affected by that. And we are looking forward to more business opportunities in coming quarters on the India-U.S. trade lane.

Yes, sir. That's very good to hear. And, sir, I have seen the presentation and I have gone through it. The EBITDA margin is around 6.3% and PAT margin is 5.6%. So how sustainable are these margins given the fluctuations of the quarterly?

So I would say that we have consistently been maintaining these margins, reason being that we have a diverse portfolio of our business. If some -- one business goes down, we are able to peddle the other business and that is the reason that [Technical Difficulty]

Sir, sorry to interrupt. Yes, your line went a little inaudible, sir, in between.

Yes, yes. Am I okay now?

Yes, yes, this is better.

Yes, sir. Yes.

Yes. So answering your question that, yes, I think because since we have a very diverse portfolio of businesses, we are able to -- if there are any sides, any trade lanes, which are not doing well, we are able to immediately start working on the other trade lanes and try and ensure that the business is back on track. So we feel that we will be continuing -- we will continue to maintain these numbers, and we only hope that they will only get better in coming quarters.

Sure, sir. And sir, any upward movement possible to 2 digit in this EBITDA? And what will be the time frame?

No, I won't -- I don't want to speculate on these things that there will be 2-digit numbers. I would rather do the business and keep continuously stably growing and consistently growing. So that is important for us and rather like I would not like to make any speculative statement here.

Understood, sir. And sir, I have seen that the revenue share from top 5 customers have steadily declined over the past few quarters and years. Is this decrease driven primarily by a drop in business from existing major clients or it is a successful diversification to the onboarding of new customers?

I think it's a concerted effort from our side, not to depend on few customers. But I have a diverse portfolio of customers. So yes, so we've been making that effort from last few quarters that our business is diversified. And that is the reason we are able to -- if our traditional business is down, we are able to pick up from the new businesses. So yes, so this is a deliberate effort from our side that we are working towards a more diverse customer base, a bigger customer base where our dependence on few customers is less.

[Operator Instructions] Our next question comes from the line of Arup Dey, an individual investor.

If you could provide any guidance on revenue for FY '26, that would be helpful.

I think we -- the whole plan is that on the top line, we grow by 15% to 18%. That's what we are aiming to do. And let's hope for the best.

[Operator Instructions] Our next question comes from the line of Madhu Sharma from SK Capital.

My first question is what are the revenue targets for the new LCL brands you booked for FY '26? And can you elaborate on the strategy for expanding it to South India and global markets?

Yes. So CUBOX is a new product for LCL, where we've been talking of LCL so we started our own LCL division. So we are hopeful that because it's just been 3 months and market has accepted the product in a very positive way. And we are hopeful that in coming quarters also, this is going to be very -- it's going to contribute in a big way, in a good way to our whole revenue. So I would say that at least we are expecting good numbers to come up. Again, I don't want to give very bullish numbers on this, because that will be speculation. But as I mentioned in my call that overall business scenario we're expecting 15% to 18% increase, and that will be -- CUBOX will be part of that.

Yes, sir. second question, sir, what specific cost and efficiency gain has FreightJar 2.0 delivered its rollout?

No, FreightJar -- see, FreightJar is, if you see that all the TiGreen and imports are all connected with FreightJar. So FreightJar is something which we are very, very bullish about. Though the acceptance on the digital part is a little low, but what is happening is that through FreightJar, we are able to open a lot of doors for new businesses. But yes, the acceptance on the digital part, overall in the industry in the business is very, very slow. But how FreightJar is helping us is because since it is a new age business, people want to know about it, want to know -- do business through it.

Yes. And sir, my last question is what is the expected revenue or margin contribution for government and PSU contracts in FY '26?

I think we are expecting good numbers, good business from the PSUs and government projects. While continuing this upward trend, I think we will be growing by at least 15% in the sector also.

[Operator Instructions] Our next question is from the line of Arup Dey, an individual investor.

So where do you see your business going in the next 3, 4 years?

Sorry. Can you repeat the question, please, sir?

Yes. I am saying that where do you see your business going in the next 3, 4 years? In terms of...

I think we've been -- yes, Mr. Arup Dey, we are -- as you see that we are continuously adding new projects, new verticals in our line of business. And the whole idea is that to continuously grow by 15% to 18% every year. So I think these new products will start giving good results in another year or 2 where we are expecting -- whether it is CUBOX or TiGreen or FreightJar or our traditional businesses. So we are strengthening our position globally and nationally. Today, we -- in the next, I would say, 3 to 4 years, we want to be in the top 5 logistics company in India. So that's our aim, and we are all working towards it. And also that even in the government sector, we want to be as their favorite partner, especially in the PSUs and other government companies. So overall, we are expecting -- I won't -- I don't want to give the numbers. But as far as the overall business scenario is concerned, I think we are very hopeful that we will position ourself as 1 of the top 5 logistics company in India.

Okay. And do you expect any operating leverage in your business?

Sorry?

Do you expect any operating leverage in your business?

Sorry, sir, I didn't get your question, sir.

Do you expect any operating leverage?

Yes, yes. See, you're asking that -- the question is still not clear to me, sir.

I am saying that any kind of operating leverage are you expecting in your business?

Opportunity...

I am saying that, do you expect any operating leverage in your business?

I would -- I don't know at this point of time, that -- but yes, overall, we are working -- we are positioning ourselves as a very strong logistics player. And overall, every vertical contributes to its own growth, but at the same time, also is able to service the other vertical as well. Like LCL, if it is there, it is able to give support to the other verticals also. And similarly, on the -- if you talk of TiGreen and FreightJar, they are able to support the import side. So yes, overall, definitely this is there.

Ladies and gentlemen, we have no further questions. On behalf of Tiger Logistics (India) Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Thank you, everybody. Thank you. Thank you for joining. Thank you.

Thank you.