MUMBAI: TVS Supply Chain Solutions Limited, a global supply chain solutions provider and one of the largest and fastest-growing integrated supply chain solutions providers in India has announced its consolidated unaudited financial results for the second quarter and first half of FY 2024. The company’s consolidated margins expanded 150 bps YoY, while the Integrated Supply Chain Solutions (ISCS) segment expanded 220 bps.
The ISCS segment continued to deliver double-digit growth, consistent with its performance in the earlier quarter. Q2 revenue grew 13.5% YoY to INR 1,269.5 Cr, driven by expansion in existing customer engagements and revenues from new business development across India, the UK, and Europe. New business wins in Q2 FY24 included a contract with a large Indian IT services provider, an industrial manufacturing company in India, a consumer goods business in the UK, and a shipbuilding company in India. Strong execution delivered healthy margins with Q2 Adj. EBITDA margins expanding 240 bps YoY to 10.2%.
The Network Solutions (NS) segment showed the resumption of growth as revenue grew 2.4% sequentially over Q1 FY24. This was driven by growth in the Integrated Final Mile (IFM) business and sequential volume improvements in the Global Forwarding Solutions (GFS) business. In the IFM business, the implementation of pricing, cost containment, and operational efficiency initiatives has started delivering early margin improvement. The discontinuation and sale of Circle Express by the IFM business was an important strategic intervention in this regard. This sale is expected to drive a larger focus on the core business and margin expansion in the forthcoming quarters.
The NS Segment Adj. EBITDA margins expanded 30 bps QoQ to 4.9% on the back of revenue growth and benefits of operational initiatives & cost management. On a half-yearly basis, the overhang of the low freight rates continued to impact the NS Segment with revenues 36.3% lower YoY from INR 3,083.0 Cr in H1 FY23 to INR 1,963.5 Cr in H1 FY24.
Commenting on the performance, Mr. Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions Ltd. said, “We continue to see robust demand for supply chain solutions across industry sectors and geographies. Our new opportunity pipeline is strong, and we expect new business to continue to deliver. We are confident that our global presence, diversified revenue base, and operational excellence will drive performance.“
Commenting on the performance, Mr. Ravi Prakash Bhagavathula, Global CFO, of TVS Supply Chain Solutions Ltd. said, “We continue to focus on profitable growth and are implementing specific actions aimed at operational improvements. In Q2, we exited Circle Express, one of our businesses in the NS Segment, which will strengthen our focus on our core capabilities and also have a positive impact on profitability. The Adj. EBITDA margin expansion in the NS segment is an early outcome of these actions. We have utilized the proceeds from the IPO to reduce our borrowings as a result of which our interest costs were reduced in Q2, the full benefit of which will start flowing through starting Q3.”
TVS Supply Chain Solutions Limited is an India-based multinational company that pioneered the development of the supply chain solutions market in India. For the last 15 years, TVS SCS has managed large and complex supply chains across multiple industries in India and select global markets through customized tech-enabled solutions. The company’s customers span numerous industries such as automotive, industrial, consumer, tech, and tech infra, rail and utilities, and healthcare.
