 "TVS Supply Q1 results: Net profit at Rs 7.5 cr on strong topline growth")
TVS Supply Chain Solutions Ltd has recorded a a consolidated profit after tax for the April-June 2024 quarter at Rs 7.5 crore driven by strong topline growth in Integrated Supply Chain Solutions and Network Solution verticals, a top official said.
The city-based company part of the TVS Mobility Group had registered a net loss of Rs 51.2 crore during the corresponding quarter of last year
Commenting on the financial performance Managing Director Ravi Viswanathan said, "We had a strong first quarter, driven by topline growth in both our ISCS (Integrated Supply Chain Solutions) and NS (Network Solutions) segments. The ISCS segment continues to lead our performance supported by significant volume improvements in the NS segment."
Revenue during the quarter under review grew by 4.7 per cent to Rs 2,539.4 crore from Rs 2,426.3 crore registered a year ago.
Continued growth momentum in Integrated Supply Chain Solutions and improved macro-economic situation in Network Solution businesses helped the company achieve this topline growth, the company said.
"Our customers recognise our supply chain transformation capabilities, tech-led solutions and the ability to deploy AI-driven solutions resulting in our participation in more large deals," Viswanathan said in a statement on Wednesday.
During the quarter under review, TVS Supply Chain Solutions made significant strides by securing partnerships with global OEMs (Original Equipment Manufacturers) in the commercial vehicle sector both in India and Singapore.
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The company had also received 'Partner Level Supplier' recognition from a US-based global farm equipment manufacturer.
"Investments in process automation and productivity initiatives have driven improvement in operating margins. This combined with effective debt management has led to PBT (Profit Before Tax) improvements for the last four quarters." said Global CFO Ravi Prakash Bhagavathula.
"Our robust order pipeline combined with our focus on operational efficiencies give us the confidence in sustaining this growth momentum in the upcoming quarters," he said.
Revenue from the Integrated Supply Chain Solutions stood at Rs 1,425.9 crore during the quarter under review as against Rs 1,318.9 crore registered during the same quarter of last year. "This growth was driven by combination of new customer additions, encirclement and through continued diversification of the customer base," the company said.
Driven by volume surge in the ocean freight business, the Network Solutions vertical reported a revenue of Rs 1,113.5 crore as compared to Rs 970 crore registered in the corresponding quarter of last year.