TVS Supply Chain Solutions Limited reported increased net loss at ₹65.3 crore for the first quarter ended June 30, 2023, against a net loss of ₹1.8 crore in the corresponding quarter last year. Revenue was down 12 per cent to ₹2,342 crore (₹2,675 crore).
Ravi Prakash Bhagavathula, Global CFO of TVS Supply Chain Solutions Ltd, in a release said overall profitability showed a decline because of higher interest cost and a one-time exceptional expense of ₹25.57 crore during the first quarter.
For the year ended March 31, 2023, the company reported a net profit of ₹41.76 crore on revenue of ₹10,311 crore.
Also read: TVS Supply Chain Solutions reports increased net loss in Q1
Business performance was driven by a very strong growth momentum in the Integrated Supply Chain Solutions segment (ISCS). The ISCS revenue was ₹1,318.9 crore, up 20.1 per cent YoY. The ISCS segment revenue grew in all geographies (India, Europe, North America) both sequentially and YoY. Expansion in existing engagements and new business development drove revenue growth.
During the quarter, the company commenced a seven-year transformational engagement with Centrica PLC. Some of the other key new customer wins / renewals included contracts with a German multi-national technology company focusing on mobility, a specialised glass & materials company in India and a leading American solar technology company, the release said.
In the Network Solutions segment, the Integrated Final Mile (IFM) business continued to be resilient while the global forwarding business showed a decline in line with global trends. Freight revenues were impacted by delay in volume uptake in air and ocean freight and subdued freight rates. NS revenue was ₹1,023.5 crore, down 35.1 per cent YoY.
The mix of business has shifted towards the higher margin ISCS segment. ISCS contributed to 56.3 per cent of consolidated revenue in the first quarter as against 41 per cent in Q1 FY23. This favourable change in business mix towards the ISCS segment and increase in ISCS margins has driven consolidated Adjusted EBITDA margin expansion, the release said.
Ravi Viswanathan, Managing Director of TVS Supply Chain Solutions Ltd. said, “We are witnessing a trend of increasing outsourcing of supply chain activities across industries that are resulting in expansion of existing engagements and a strong pipeline of new opportunities. This trend is a tailwind for growth of the ISCS segment where we have strong demand drivers in all geographies that we are present. India’s ISCS revenue has grown by 14.3 per cent YoY reflecting the company’s ability to capitalise on the opportunities which the increased economic activity in India is presenting. Inflationary pressures are seen to ease off in both UK / Europe and North America. Our sectoral mix of revenue has enabled us to grow YoY in double digits in both North America and Europe.”
On the NSE, the company’s stock price closed at ₹246.55, up by 6.78 per cent.