TVS SCS profit momentum continues; Q1 PAT at Rs. 7.5 Cr

Bengaluru, July 31, 2024: TVS Supply Chain Solutions Limited (NSE: TVSSCS, BOM: 543965), a global supply chain solutions provider and one of the largest and fastest growing integrated supply chain solutions providers in India, today announced its consolidated unaudited financial results for the quarter ended 30th June 2024. The company continued its profit momentum and reported a net profit of Rs. 7.5 Cr in Q1 FY 25 as against a loss of Rs. 51.2 Cr in Q1 FY 24. Its consolidated revenue grew by 10.9% to Rs. 2,539.4 Cr as against Rs. 2,288.9 Cr in Q1 FY 24.

Commenting on the Q1 FY25 performance, Ravi Viswanathan, Managing Director, 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.”

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 Q1 results, 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 U.S.-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 500,000 Completely Knocked Down (CKD) kits to a major Indian two-wheeler manufacturer.