TVS Supply Chain Solutions (TVS SCS) has reported a net profit of Rs 7.47 crore for the quarter ended June 30 as against the loss of Rs 51.2 crore registered in the corresponding period last fiscal.
The company’s revenues for the April-June quarter increased to Rs 2539.39 crore from Rs 2288.92 crore, a year-ago, registering a growth of 10.9 per cent, it said in a statement.
TVS’ integrated supply chain solutions (ISCS) segment posted a quarterly revenue of Rs 1,425.9 crore as against Rs 1,318.9 crore in the same quarter previous year, continued its growth trajectory with an 8.1 per cent growth YoY.
This growth was driven by a combination of new customer additions, encirclement (additional wallet share with existing customers) and
through continued diversification of the customer base, the company said.
Its network solutions (NS) segment reported a quarterly revenue of Rs 1,113.5 crore, as against Rs 970 crore in the same quarter previous year marking a 14.8 per cent growth on Y-o-Y basis. The growth was driven by volume surge in the ocean freight business.
“Continued growth momentum in ISCS segment and improved macroeconomic situation in network solutions segment helped achieve this topline growth,” it said.
“We had a strong first quarter, driven by topline growth in both our ISCS and NS segments. The ISCS segment continues to lead our performance supported by significant volume improvements in the NS segment. Our customers recognize our supply chain transformation capabilities, tech-led solutions and the ability to deploy AI-driven solutions resulting in our participation in more large deals,” Ravi Viswanathan, Managing Director, said.
He further added, “We see a significant growth opportunity in India following the recent budget announcement, which has provided a strong impetus for the manufacturing sector. This development is expected to open up more outsourcing opportunities for supply chain player like TVS SCS.”
Commenting on the performance, Ravi Prakash Bhagavathula, Global CFO, said, “Investments in process automation and productivity initiatives have driven improvement in operating margins. This combined with effective debt management has led to PBT improvements for the last four quarters. Our robust order pipeline combined with our focus on operational efficiencies give us the confidence in sustaining this growth momentum in the upcoming quarters.”
During the quarter, the company made significant strides by securing key new business wins, including partnerships with global OEMs in the commercial vehicle sector in both India and Singapore. Among the notable achievements, the company received ‘Partner Level Supplier’ recognition from a US-based global farm equipment manufacturer.
Additionally, a strategic collaboration with a leading UK-based university was established to drive innovation in artificial intelligence. The company also demonstrated its operational prowess by successfully delivering 5 lakh completely knocked down (CKD) kits to a major Indian two-wheeler manufacturer.
