~ Overall revenue for Q2 FY 25 at ₹2,512.9 Cr. vs ₹2,262.9 Cr. grew by 11% (YoY)
~ ISCS segment registers record EBITDA margin of 11.1%; NS Segment registers robust revenue growth of 17.2% (YoY)
12th November 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 second quarter and first half of FY 2025. The Company reported Profit After Tax of ₹10.6 Cr. for the quarter ended 30th September 2024, as against the loss of (₹21.9 Cr.) in Q2 FY 24 on a Y-o-Y basis which is also a 42.5% increase on Q-o-Q basis. Its H1 FY 25 PBT was at ₹31.6 Cr. as against the PBT of (₹41.6 Cr.) for H1 FY 24. The consolidated revenue for Q2 FY 25 grew by 11 % to ₹2,512.9 Cr. as against ₹2,262.9 Cr. in Q2 FY 24.
The summary of business and financial performance of the two operating segments viz., Integrated Supply Chain Solutions segment (‘ISCS’) and Network Solutions segment (‘NS’) are provided along with the summary of the consolidated financial performance.
Integrated Supply Chain Solutions Segment (‘ISCS’):
| Integrated Supply Chain Solutions segment (‘ISCS’) (Amount in ₹ Cr.) | Q2
FY24 |
Q1
FY25 |
Q2
FY25 |
Q-o-Q Growth | Y-o-Y Growth | H1
FY24 |
H1
FY25 |
Y-o-Y Growth |
| ISCS Revenue | 1,269.5 | 1,425.9 | 1,348.5 | (5.4%) | 6.2% | 2,588.4 | 2774.4 | 7.2% |
| ISCS Adj. EBITDA | 129.5 | 138.2 | 149.1 | 7.9% | 15.2% | 269.3 | 287.4 | 6.7% |
| ISCS Adj. EBITDA margin % | 10.2% | 9.7% | 11.1% | – | – | 10.4% | 10.4% | – |
ISCS segment registered a margin expansion of 90 bps Y-o-Y due to the continued focus on operational efficiency and a disciplined approach to cost management. The Q2 revenue grew by 6.2 % Y-o-Y to ₹1,348.5 Cr. as against ₹1,269.5 Cr. The segment reflects deepening engagement with existing customers and revenues from new customer acquisitions across key geographies.
During the quarter, TVS SCS won a significant new contract with a large industrial customer in North America. This is a multi-year transformational engagement with total contract value in excess of ₹2,200 Crores. This long-term transformational engagement reinforces TVS SCS’ specialized capabilities in complex assembly and automation and the value that we bring as a supply chain outsourcing partner.
Network Solutions Segment (‘NS’):
| Network Solutions segment (‘NS’) (Amount in ₹ Cr.) | Q2
FY24 |
Q1
FY25 |
Q2
FY25 |
Q-o-Q Growth | Y-o-Y Growth | H1
FY24 |
H1
FY25 |
Y-o-Y Growth |
| NS Revenue | 993.4 | 1,113.5 | 1164.4 | 4.6% | 17.2% | 1,963.5 | 2277.9 | 16 % |
| NS Adj. EBITDA | 48.3 | 49.8 | 26.8 | (46.3%) | (44.6%) | 93.4 | 76.6 | (17.9%) |
| NS Adj. EBITDA margin % | 4.9% | 4.5% | 2.3% | – | – | 4.8% | 3.4% |
NS segment reported a revenue of ₹1,164.4 Cr. in Q2, as against ₹993.4 Cr. in the same quarter previous year marking a 17.2% growth on Y-o-Y basis. The segment has shown sequential revenue growth for four quarters in a row from Q3 FY24.
Summary of consolidated financial performance:
| In ₹ Cr. | Q2
FY24 |
Q1
FY25 |
Q2
FY25 |
Q-o-Q Growth | Y-o-Y Growth | H1
FY24 |
H1
FY25 |
Y-o-Y Growth |
| Revenue from operations | 2,262.9 | 2,539.4 | 2512.9 | (1%) | 11% | 4,551.8 | 5052.3 | 11 % |
| Adj. EBITDA | 175.7 | 184.5 | 176.1 | (4.6%) | 0.2% | 362.1 | 360.6 | (0.4%) |
| Adj. EBITDA margin % | 7.8% | 7.3% | 7% | – | – | 8.0% | 7.1% | – |
| PBT before exceptional items | -4.5 | 13.7 | 17.9 | 30.1% | NA | -15.2 | 31.6 | NA |
| Profit Before Tax | -7.7 | 13.7 | 17.9 | 30.1% | NA | -41.6 | 31.6 | NA |
| Profit After Tax | -21.9 | 7.5 | 10.6 | 42.5% | NA | -73.1 | 18.1 | NA |
In the Q2 FY25, the consolidated revenue stood at ₹2,512.9 Cr. as against ₹2,262.9 Cr. in the same quarter last year reflecting 11% growth on Y-o-Y basis.
Commenting on the Q2 results, Mr. Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions Ltd. said, “The Q2 results demonstrate our ability to sustain growth momentum in both revenue and profit, amid ongoing macroeconomic challenges. New business wins have added ₹280 Crores of revenue for the quarter. Our global account management strategy has helped us close the large deals that gives us the confidence of sustaining the growth momentum. Overall, the results reflect our resilience in navigating a complex environment and we remain confident about our profitable growth in the coming quarters.”
Commenting on the performance, Mr. Ravi Prakash Bhagavathula, Global CFO, TVS Supply Chain Solutions Ltd. said, “Our Q2 results reflect sustained revenue growth, along with continued improvement in profitability driven by our focus on operational efficiency and cost management. Our ability to fund growth through internal resources has enabled us to effectively manage borrowings driving PBT.”
