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TVS Supply Chain Solutions Ltd reported consolidated net profit of ₹5.40 crore for the quarter ended March 31, 2024, as against net loss of ₹9.4 crore in the corresponding quarter last year. The fourth quarter result includes other income of ₹6.75 crore, namely interest income from bank deposits, exchange fluctuation gains and other interest income from tax refunds and leases, sources said.
Revenue was up 4.5 per cent to ₹2,426 crore during the quarter ended March 31, 2024, as against ₹2,321 crore in the same period last year.
For the fiscal 2023-24, the company reported a net loss of ₹90 crore on reduced revenue of ₹9,199 crore, as against net profit of ₹42 crore on revenue of ₹9,994 crore in the previous year.
During the year, there was ‘other income’ of ₹75.63 crore.
The company operates in two segments — Integrated Supply Chain Solutions (ISCS); and Network Solutions (NS). For the full year, the consolidated revenue was lower by ₹794 crore compared to that of FY23, due to global trade cycle challenges in the NS segment. However, this was compensated by additional business from the ISCS segment, says a release.
The adjusted EBITDA increased to ₹710 crore, a growth of 3.7 per cent. While the operating margins improved, the company reported loss after tax (before exceptional items) for the year at ₹31 crore, compared to profit (before exceptional items) of ₹58 crore in the previous year. This was driven by the effect of high interest costs in the first two quarters.
The company returned to profit in the third quarter through growth in the ISCS segment, while the NS segment reflected stability in Q4. It also reduced debt to the tune of ₹1,195 crore, the release said.
New business
During the quarter, key new business wins included an Indian OEM in the commercial vehicle space, a defence contractor in the UK, and a leading water utility services company in the UK. EBITDA margin for ISCS in the current quarter was 9.6 per cent, a year-on-year increase of 40 bps.
Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions Ltd, said the quarterly and annual results reflect the consistent growth in the ISCS segment, and strong resilience despite major headwinds in the NS segment.
At the time of filing this report, the company’s share price on the NSE was trading at ₹178.85, up by 0.35 per cent.
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