Sameera Middha

Learning the art of equity investing.

[Sameera Middha @MiddhaSameera]

@Investor_Mohit Sir, if this company is Ind Swift Lab then in my humble opinion we should value it on the basis of future growth of Formulation business bcz company exited from API business.

I think so far the price has moved bcz of deleverging of bal sheet & entry into high margin formulations

[Sameera Middha @MiddhaSameera]

Will USD/INR follow this resistance ?
#USDINR

[Sameera Middha @MiddhaSameera]

@niveshaay @KabraGunjan It was a great pleasure to meet you, Ma'am @KabraGunjan

[Sameera Middha @MiddhaSameera]

@vipul_mak @PPFAS Thank you sir for sharing this information🙏

[Sameera Middha @MiddhaSameera]

@vipul_mak @Shivam27_ company is a part of potential futuristic theme but raw materials (polyurethane chemical and galvanized steel sheets & components made from Copper & aluminium) are susceptible to volatility & the RM cost makes 70-75% of operating expenses

[Sameera Middha @MiddhaSameera]

🖍️Limitations of Business

▶️Large WC requirements
▶️The company’s equip rental busin requires continuous sizeable capex to be incurred, leading to high capital requirements.

24/24

Thanks for reading🙏

[Sameera Middha @MiddhaSameera]

🖍️Mgmt. Guidance

▶️Guidance on Revenue growth of 20-25% And growth is majorly expect from equip rental busin. & warehouse & logst. busin

▶️mgmt. is targeting to maintain blended EBITDA Margins in range of 30-33%.

▶️EBITDA Margins for equip rental is in the
20/n

[Sameera Middha @MiddhaSameera]

revenue from EPC segment. But Company is actively pursuing opportunities to take up EPC projects, primarily in the specialized EPC Projects. The EPC division may grow the top line faster as TCIL can build bigger contracts.

▶️Also mgmt is focusing to reduce the debtor days

23/n

[Sameera Middha @MiddhaSameera]

- Another big order from SAIL
19/n

[Sameera Middha @MiddhaSameera]

▶️Some of the Latest Reputed orders received are :

- During Nov 2023, Won 4.5 yr contract of Rs 20 Cr by SAIL as Consignment-cum-Handling Agent for the SAIL Warehouse in Bangalore. The execution of the contract is expected to start from Jan-2024

- Order from Ambuja Cement
18/n

[Sameera Middha @MiddhaSameera]

(B) Warehousing & Logistics

▶️Under this seg. TCIL is predominantly in the steel logistic works & has the operating capacity of almost 10 million tons per annum for steel handling

▶️TCIL is working with PSUs where TCIL manages their entire stockyard operations, the

6/n

[Sameera Middha @MiddhaSameera]

- In industrial capacity expansion, we are working with capacity expansions in the cement industry with ACC, Ultratech etc. for equip rental business

- also has been working with ONGC
17/n

[Sameera Middha @MiddhaSameera]

- working for the construction of the 1st ever bullet train of the country which is known as the Mumbai-Ahmedabad high-speed rail project in equip rental business

16/n

[Sameera Middha @MiddhaSameera]

🖍️Order Book

▶️As on Mar-2024 TCIL has order book worth Rs 316 cr which is to be executed over next 3-5 yrs.

▶️Some of the on-going projects are :

- working with Mumbai, Bangalore, Surat, Ahmedabad, Indore, Pune etc. for the metro projects in equipment rental segment

15/n

[Sameera Middha @MiddhaSameera]

to do a capex worth Rs 160 cr during FY-25. This capex would be most probably funded by debt.

during 9 months FY-24 TCIL did capex of Rs 48.5 cr

14/n

[Sameera Middha @MiddhaSameera]

and that has enabled us to have better pricing terms with our clients. whereas the competition is still same as earlier & not like a cut-throat competition

🖍️Capex
TCIL's does capex only when it sees the demand & considering the demand by its clients TCIL has decided

13/n

[Sameera Middha @MiddhaSameera]

substantially & which leads to better capacity utilzn, And when demand rises, TCIL also see a better pricing model in place for its equipment rentals.

🖍️Demand Outlook
Mgmt. in Q3-FY 24 Con-Call said that the demand for TCIL's services has been rising over the last 1 year
12/n

[Sameera Middha @MiddhaSameera]

🖍️USP of TCIL

Has been associated with its clients for a very long period
Example:
SAIL : 35 yrs,
L&T, Tata Projects, Afcons: 10-15 yrs

🖍️Seasonality in the busin.

▶️Q2 is slightly mute qtr because of moonsoon

▶️usually in the Q3 and Q4, the demand picks up

11/n

[Sameera Middha @MiddhaSameera]

🖍️Geographical presence

▶️Currently, operating in 21 states and even internationally in Mauritius.
▶️TCIL's expert team of 600+ members & 300 + contract workers are managing operations across 50+ sites.

10/n

[Sameera Middha @MiddhaSameera]

(C) Steel Processing & Distribution

▶️Under this seg TCIL got steel processing equip & got tie-ups with various associates across country for processing of steel that is further then delivered to end user clients as per their req.

▶️8% of total revenue for 9 months FY-24.

9/n