TVS Supply Chain Solutions Ltd, the Chennai-based global supply chain solutions provider reported a consolidated net profit of ₹7.50 crore for the first quarter ended June 30, 2024, compared to a loss of ₹65.26 crore, including ₹14.10 crore from discontinued operations, in the same quarter last year. The first quarter result includes other income of ₹5.78 crore due to forex gains and interest income.
Consolidated revenue grew by 11 per cent to ₹2,539 crore (₹2,289 crore).
The increase in net profit during the first quarter was due to double-digit revenue growth supported by both Integrated Supply Chain Solutions (ISCS) and Network Solutions (NS) segments, the company’s managing director Ravi Viswanathan, told media.
The ISCS segment posted a quarterly revenue of ₹1,426 crore (up from ₹1,319 crore) and continued its growth trajectory with an 8.1 per cent growth y-o-y. 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, according to a release.
The NS segment reported a quarterly revenue of ₹1,114 crore ( up from ₹970 crore), a 15 per cent growth, driven by volume surge in the ocean freight business.
Viswanathan in the release, said the first quarter was driven by topline growth in both ISCS and NS segments. The ISCS segment continues to lead the performance supported by significant volume improvements in the NS segment. Our customers recognise our supply chain transformation capabilities, tech-led solutions and the ability to deploy AI-driven solutions resulting in our participation in more large deals.
“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 players like TVS SCS,” he said.
New partnerships
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.
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, the release said.
On the NSE, the company’s stock price closed at ₹196.40, up by 0.81 per cent.