TVS Supply Chain Solutions Reports Robust Q2 Performance with 30.8% PBT Growth
TVS Supply Chain Solutions Limited (TVS SCS) reported robust Q2 financial results. Consolidated revenue increased by 6% year-on-year to INR 2,662.60 crores. Profit After Tax (PAT) surged by 54% to INR 16.31 crores, while Profit Before Tax (PBT) grew by 30.8% to INR 23.32 crores. The Integrated Supply Chain Solutions (ISCS) segment drove growth with an 8.4% revenue increase and improved EBITDA margin. The company secured new business wins worth INR 204.00 crores and maintains a healthy order pipeline of INR 6,200.00 crores. Strategic initiatives are on track to deliver estimated benefits, with the company aiming to achieve its medium-term objective of 4% PBT by Q4 FY27.
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TVS Supply Chain Solutions Limited (TVS SCS) has reported a strong financial performance for the second quarter, demonstrating resilience in its business model and operational discipline.
Key Financial Highlights
- Consolidated revenue reached INR 2,662.60 crores, up 6% year-on-year
- Profit Before Tax (PBT) grew by 30.8% to INR 23.32 crores
- Profit After Tax (PAT) increased by 54% to INR 16.31 crores
- Adjusted EBITDA stood at INR 178.40 crores, maintaining a healthy margin of 6.7%
Segment Performance
Integrated Supply Chain Solutions (ISCS)
The ISCS segment continued to be the primary driver of growth:
- Revenue grew by 8.4% year-on-year to INR 1,993.00 crores
- EBITDA margin expanded to 8.7%, up from 8.2% in the previous year's corresponding quarter
Global Forwarding Solutions (GFS)
The GFS segment faced challenges but showed signs of stabilization:
- Revenue remained relatively flat at INR 669.60 crores
- EBITDA margin declined to 2.2% from 4.2% year-on-year, primarily due to pricing pressures
Business Development
TVS SCS secured new business wins worth INR 204.00 crores during the quarter, representing 8.1% of the previous year's corresponding quarter revenue. The company maintains a healthy order pipeline of INR 6,200.00 crores, providing solid revenue visibility.
Notable contract wins include:
- A global leader in building technologies in India
- A top Indian commercial vehicle manufacturer
- A large global agricultural equipment company based in the USA
- A leading Europe-based coffee equipment manufacturer
Ravi Viswanathan, Managing Director of TVS SCS, commented on the performance: "We have delivered another strong quarter of consistent growth in both revenue and profitability. The strong performance of our ISCS segment, operating discipline, and substantial cash flow generation demonstrate the resilience of our business model."
Strategic Initiatives
The company's strategic initiatives, including Project One in the UK and Europe, are on track to deliver estimated benefits. These initiatives are expected to yield annualized savings of INR 110.00-120.00 crores, with in-year savings of INR 50.00-60.00 crores.
Future Outlook
TVS SCS remains focused on sustaining the ISCS momentum, improving GFS profitability, and converting its strong pipeline into consistent, high-quality growth. The company aims to achieve its medium-term objective of 4% PBT by Q4 FY27.
As the company moves into the second half of the fiscal year, it aims to capitalize on the growth opportunities in the Indian market, particularly following recent GST rate reductions that may stimulate consumption in sectors such as consumer durables.
While challenges persist in the global forwarding segment due to macroeconomic factors, TVS SCS remains cautiously optimistic about the sector's stabilization by the end of the fiscal year.
With its continued focus on execution discipline and cost management, TVS Supply Chain Solutions appears well-positioned to navigate the evolving market landscape and deliver on its performance objectives.
Historical Stock Returns for TVS Supply Chain Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.24% | -8.57% | -11.83% | -13.07% | -38.00% | -44.30% |
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