Integrated multimodal logistics service provider Transport Corporation of India Ltd. (TCIL), which released one of its best quarterly figures for April-June, is confident the next few quarters will remain “positive” on festive demand and expectations of a “good growth trajectory” over the next few years.

The company rules out a recession in the Indian economy and says good traction is evident in autos, consumer goods and textiles, with sectors stockpiling in anticipation of the festive season.

said TCIL Managing Director Vineet Agarwal luck india, “We believe that we should see a good growth trajectory over the next few years. We are investing in it to be ready for this cycle,” adds Agarwal.

“The festival season is just around the corner. We monitor inventories in the textile and consumer goods sectors. The car movement is also good and there is stocking there too. Overall, the coming months are definitely looking positive,” adds Agarwal.

With the revival of the auto segment, the company’s sales in the management of supply chain solutions have increased. In the first quarter of FY23, supply chain solutions revenue was £2.86 billion, up 34% from £2.14 billion in the same quarter of the previous fiscal year.

The vertical is expected to remain a revenue driver for the company as the semiconductor crisis eases. “We have seen good growth in the supply chain business, which does a lot of work in the automotive sector, because the semiconductor crisis or chip shortage is easing. There are more and more positive effects related to the movement of vehicles. That has contributed to our growth in the supply chain business,” says Agarwal.

“There is clearly volume and value growth in the Seestrasse business. The volume is due to the impact of last year’s second wave and the value is because we’ve seen that shipping costs are high around the world. Our ships sail in the coastal waters of India, but we also sail to neighboring countries and we get good prices there. Container rates have had a positive impact on value growth,” says Agarwal.

Agarwal believes that the Indian economy is not decoupled from the world economy and a global meltdown will have an impact on India, albeit not as deep as a recession.

“We do not expect a recession in India, but the effects of the global recession will be felt in India as we have a large export base in the country. Also, high inflation will eventually affect demand,” says Agarwal, adding that the coming months look positive.

The Company is optimistic about India’s future prospects and has plans in place to acquire assets of ₹300 crore in the current fiscal year. The company plans to acquire ships, containers and trucks and invest in hubs and warehouses.

Vineet Agarwal, Managing Director of TCIL, spoke about the asset acquisition plan this fiscal year happiness india, “We have an investment plan of ₹300 crore for this year. Of the £300m, around £100m is for ships, £25-30m for containers, £50-60m for trucks and related assets, with the remainder going to the new hub centers and warehouses is. ”

The company generated consolidated revenues of ₹9.08 billion in the first quarter of fiscal 23, up 29.7% from ₹7.00 billion in the first quarter of fiscal 22. Consolidated net income for the quarter was ₹78.58 billion, up 66% from ₹47.4 billion in the same quarter of the prior fiscal year.

Meanwhile, the company’s expenses have also increased. Total consolidated expenses increased to ₹8.30 billion for the quarter, compared to ₹6.49 billion in the corresponding quarter of the prior fiscal year.

Agarwal, meanwhile, points out that the volume of spending corresponds to the volume of business generated in the quarter. “The increase in spending is due to the growth in the business itself. Business is up 30%. This explains why the volume of expenditure is also increasing. Were they faster than the earnings? Not really. So I think it’s not unusual,” he says.

On the impact of high fuel prices, Agarwal says diesel prices are essentially a “pass-through for us to our customers”. “The rising diesel prices are not having any negative impact on us,” he adds.