Mumbai, 31 July 2024: TVS Supply Chain Solutions Limited (NSE: TVSSCS, BOM: 543965), a global supply chain solutions provider and one of the largest and fastest-growing integrated supply chain solutions providers in India, today announced its consolidated unaudited financial results for the quarter ended 30th June 2024. The company continued its profit momentum and reported a net profit of Rs. 7.5 Cr in Q1 FY 25 as against a loss of Rs. 51.2 Cr in Q1 FY 24. Its consolidated revenue grew by 10.9% to Rs. 2,539.4 Cr as against Rs. 2,288.9 Cr in Q1 FY 24.
The summary of the financial performance of the two operating segments viz., Integrated Supply Chain Solutions (“ISCS”) segment and Network Solutions (“NS”) segment are provided along with the summary of the consolidated financial performance.
Integrated Supply Chain Solutions (“ISCS”) Segment:
• The ISCS segment posted a quarterly revenue of Rs. 1,425.9 Cr as against Rs. 1,318.9 Cr in the same quarter the previous year, continued its growth trajectory with an 8.1% growth YoY. This growth was driven by a combination of new customer additions, encirclement (additional wallet share with existing customers), and continued diversification of the customer base.
NS segment reported quarterly revenue of Rs. 1,113.5 Cr, as against Rs. 970.0 Cr in the same quarter the previous year marking a 14.8% growth on a Y-o-Y basis. The growth was driven by a volume surge in the ocean freight business.
For Q1 FY 25, on a consolidated basis, the revenue stood at Rs. 2,539.4 Cr as against Rs. 2,288.9 Cr. in the same quarter last year reflecting 10.9% growth on a Y-o-Y basis. Continued growth momentum in the ISCS segment and improved macroeconomic situation in the NS segment helped achieve this topline growth.
Commenting on the Q1 FY25 performance, Mr. Ravi Viswanathan, Managing Director, said, “We had a strong first quarter, driven by topline growth in both our ISCS and NS segments. The ISCS segment continues to lead our performance supported by significant volume improvements in the NS segment. Our customers recognize our supply chain transformation capabilities, tech-led solutions, and the ability to deploy AI-driven solutions resulting in our participation in more large deals.”Top of Form
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He further added, “We see a significant growth opportunity in India following the recent budget announcement, which has provided a strong impetus for the manufacturing sector. This development is expected to open up more outsourcing opportunities for supply chain players like TVS SCS.”
Commenting on the Q1 results, Mr. Ravi Prakash Bhagavathula, Global CFO, said, “Investments in process automation and productivity initiatives have driven improvement in operating margins. This combined with effective debt management has led to PBT improvements for the last four quarters. Our robust order pipeline combined with our focus on operational efficiencies give us the confidence to sustain this growth momentum in the upcoming quarters.”
During the quarter, the company made significant strides by securing key new business wins, including partnerships with global OEMs in the commercial vehicle sector in both India and Singapore. Among the notable achievements, the company received ‘Partner Level Supplier’ recognition from a U.S.-based global farm equipment manufacturer. Additionally, a strategic collaboration with a leading UK-based university was established to drive innovation in artificial intelligence. The company also demonstrated its operational prowess by successfully delivering 500,000 Completely Knocked Down (CKD) kits to a major Indian two-wheeler manufacturer.