TVS Supply Chain shares zoom 6% after turnaround in Q2FY25 net profit

TVS Supply Chain Solutions share price surged to an intraday high of Rs 194.20 per share, rallying 5.86 per cent on the BSE on Tuesday after the company reported its quarterly earnings for the second quarter of financial year 2024-25 (Q2FY25). 

 

In Q2FY25, the consolidated revenue of the company reached Rs 2,512.9 crore, reflecting an 11 per cent Y-o-Y growth compared to Rs 2,262.9 crore in the same quarter last year. The company reported a profit after tax (PAT) of Rs 10.6 crore for the quarter ending September 30, 2024, a significant turnaround from a loss of Rs 21.9 crore in Q2FY24, and marking a 42.5 per cent increase on a quarter-on-quarter (Q-o-Q) basis. 

 

 

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 175.7 crore, up 0.2 per cent versus Rs 176.1 crore in the same quarter last year. Ebitda margin slipped in Q2FY25 to 7 per cent versus 7.8 per cent in Q2FY24.

 

The integrated supply chain solutions (ISCS) segment saw a 90 basis point margin expansion Y-o-Y, driven by a focus on operational efficiency and disciplined cost management. Revenue from the ISCS segment grew 6.2 per cent Y-o-Y to Rs 1,348.5 crore, up from Rs 1,269.5 crore in Q2FY24. 

 

The network solutions (NS) segment posted a 17.2 per cent Y-o-Y revenue growth, reaching Rs 1,164.4 crore, compared to Rs 993.4 crore in the same quarter last year.

 

“New business wins have added Rs 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,” said  Ravi Viswanathan, managing director, TVS Supply Chain Solutions.

 

The company has a total market capitalisation of Rs 8,320.70 crore. TVS Supply Chain shares are trading at a price to earnings multiple of 70.42 times and at an earning per share of Rs 2.61. 

 

At 12:33 PM; the shares of the company pared some of their gains and were trading 3 per cent higher at Rs 188.95 a piece. By comparison, the BSE Sensex was down 0.13 per cent at 79,391.33 level.