Transport Corporation of India reports strong Q2 growth amid positive demand trends

TCI had a strong performance in Q2 FY25, with a 22% growth in its Seaways business due to improved realizations.

The company's overall revenue, operating profit, and net profit all experienced double-digit growth, reflecting positive demand trends across its operations.

Despite the stagnation of Less-than-Truckload (LtL) revenues at 35-36% of the freight business, TCI's supply-chain segment is expected to grow by 10-12% in the medium term.

The company has a cash surplus exceeding Rs 280 crore and is well-positioned, although valuations are high.

Medium-term triggers for growth include the China plus strategy and protectionist measures benefiting the tire industry, indicating a favorable outlook for TCI's growth trajectory.

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