TVS Supply Chain Solutions , a leading supply chain management company, has set ambitious goals for its future performance while reporting impressive quarterly results. The company's shares closed 7.86% higher at Rs 133.98, reflecting positive investor sentiment.

Strategic Transformation and Growth Targets

TVS Supply Chain Solutions has outlined a clear strategy to boost its profitability. The company aims to achieve a 4% Profit Before Tax (PBT) margin by the fiscal year 2027. This target will be pursued through a combination of cost optimization measures, strategic transformation initiatives, and a turnaround in its UK business operations.

Managing Director Ravi Viswanathan expressed confidence in the company's growth prospects, projecting mid-teens growth driven by a robust order pipeline. The company boasts an impressive order book of Rs 5,300.00 crore, supplemented by several large deals in advanced stages of negotiation.

Operational Improvements and Cost Control

To achieve its ambitious targets, TVS Supply Chain Solutions is implementing 'Project One', a comprehensive initiative aimed at transforming its operations in the UK and Europe. This project is expected to streamline processes and enhance operational efficiency across these key markets.

In addition to 'Project One', the company is placing a strong emphasis on cost control measures. These efforts are designed to improve overall profitability and operational efficiency across the organization.

Q1 Financial Performance

The company's first quarter results demonstrate a mixed but generally positive performance:

While revenue showed modest growth and EBITDA saw a slight decline, the most striking aspect of the results was the nearly tenfold increase in Profit After Tax, surging from Rs 7.50 crore in the previous year to Rs 71.20 crore.

Investor Relations and Transparency

In line with regulatory requirements and its commitment to transparency, TVS Supply Chain Solutions held an earnings call with analysts and investors to discuss the financial results for the quarter. The company has made the audio recording of this conference call available on its website, accessible at https://www.tvsscs.com/investor-relations/ .

As TVS Supply Chain Solutions continues to implement its strategic initiatives and pursue ambitious growth targets, investors and industry observers will be keenly watching the company's progress towards its FY2027 profitability goals and its ability to capitalize on its strong order pipeline.

TVS Supply Chain Solutions Limited, a leading global supply chain solutions provider, has announced its unaudited financial results for the first quarter, showcasing significant growth in profitability despite moderate revenue gains.

Financial Highlights

• Revenue: The company reported a consolidated revenue of ₹2,592.31 crore, marking a 2.1% increase from ₹2,539.39 crore in the same quarter of the previous year.
• Net Profit: Net profit surged to ₹71.16 crore, a remarkable 852.6% increase from ₹7.47 crore in the same quarter last year.
• Adjusted EBITDA: On a sequential basis, adjusted EBITDA grew by 10% to ₹172.01 crore from ₹156.41 crore in the previous quarter.
• Profit Before Tax: PBT before exceptional items and share of profit from Joint Venture rose by 37.4% to ₹17.53 crore from ₹12.76 crore in the same quarter of the previous year.

Segment Performance

The company has reorganized its business structure into two main segments:

1. Integrated Supply Chain Solutions (ISCS):

   • Revenue: ₹1,982.90 crore (4.1% YoY growth)
   • Adjusted EBITDA: ₹164.11 crore

2. Global Forwarding Solutions (GFS):

   • Revenue: ₹609.41 crore (3.8% YoY decline)
   • Adjusted EBITDA: ₹11.55 crore

Strategic Developments

• TVS SCS has consolidated its Integrated Final Mile (IFM) business into the ISCS segment across the UK and Europe to strengthen its end-to-end solutions offering.
• The company implemented 'Project One', a strategic transformation initiative to streamline operations and rationalize cost structure in the UK and Europe, resulting in a one-time restructuring cost of ₹91.29 crore.
• TVS Industrial & Logistics Park Private Limited (TVS ILP), a joint venture of the company, transferred certain subsidiaries to TVS Infrastructure Trust, resulting in a significant one-time gain.

Management Commentary

Ravi Viswanathan, Managing Director of TVS Supply Chain Solutions Ltd., stated, "We have entered the new fiscal year with a continued focus on performance excellence, customer-centricity, and long-term value creation. The new unified structure in Europe and the UK is driving operational synergies and enhancing service delivery through deeper customer engagement and sharper execution."

R Vaidhyanathan, Global Chief Financial Officer, added, "We began the fiscal year on a steady note, with improved profit delivery and disciplined execution of our transformation initiatives. Our margin improvement reflects operational discipline across key businesses. The restructuring program in the UK and Europe is set to drive a step-change in operating leverage and long-term margin trajectory by redefining our cost baseline."

Outlook

The company maintains a positive outlook, supported by a strong order pipeline of ₹5,300 crore. Management expects progressive improvements in margin profile and bottom-line performance through the course of the fiscal year and beyond.

TVS Supply Chain Solutions Limited continues to leverage its position as one of the largest and fastest-growing integrated supply chain solutions providers in India, serving 91 Fortune Global 500 customers across 26 countries.