 "TVS Supply Chain Solutions, TVS SCS,")
TVS Supply Chain Solutions (TVS SCS), part of the Rs 15,000 crore TVS Mobility Group and one of the largest companies under the TVS fold, has posted a consolidated net loss of Rs 65.3 crore during the first quarter of the financial year 2023-24. This is compared to a net loss of Rs 1.8 crore during the April to June quarter of the financial year 2022-23.
The company's revenue from operations during the quarter under review was seen at Rs 2,342.4 crore, down 12.4 per cent compared to Rs 2,675.5 crore during the first quarter of the financial year 2022-23. The company's Integrated Supply Chain Solutions (ISCS) segment revenue was Rs 1,318.9 crore, up 20.1 per cent year-on-year from Rs 1,097.7 crore in Q1 FY23. ISCS segment revenue grew in all geographies (India, Europe, North America) both sequentially and year-on-year.
"We are witnessing a trend of increasing outsourcing of supply chain activities across industries that are resulting in expansion of existing engagements and a strong pipeline of new opportunities. This trend is a tailwind for growth of the ISCS segment where we have strong demand drivers in all geographies that we are present. India's ISCS revenue has grown by 14.3 per cent year-on-year, reflecting the company's ability to capitalise on the opportunities which the increased economic activity in India is presenting. Inflationary pressures are seen to ease off in both the UK/Europe and North America. Our sectoral mix of revenue has enabled us to grow year-on-year in double digits in both North America and Europe," said Ravi Viswanathan, managing director of TVS SCS.
Expansion in existing engagements and new business development drove revenue growth. During the quarter, the company commenced a seven-year transformational engagement with Centrica PLC. Some of the other key new customer wins and renewals included contracts with a German multinational technology company focusing on mobility, a specialised glass and materials company in India, and a leading American solar technology company. Operating leverage helped deliver an adjusted Ebitda margin expansion of 190 bps year-on-year to 10.6 per cent in Q1 FY24 from 8.7 per cent in Q1 FY23.
"Q1 FY24 showcased the inherent strengths in our portfolio and business mix. Our growth in the ISCS segment balanced the impact of subdued freight rates and delay in volume uptake in ocean and air freight. Our focus was on operational efficiency and cost reduction initiatives, resulting in the expansion of adjusted Ebitda margins by 140 bps year-on-year. Overall profitability showed a decline because of higher interest cost and a one-time exceptional expense," said Ravi Prakash Bhagavathula, global CFO of TVS SCS.
