TVS Supply Chain gains after reporting turnaround Q2 numbers

Revenue from operations increased 11.05% YoY to Rs 2512.88 crore during the quarter.

Pre- tax profit of Rs 17.83 crore during the quarter as compared with pre-tax loss of Rs 7.77 posted in same quarter last year.

Revenue from Integrated Supply Chain Solutions (ISCS) segment declined 5.4% to Rs 1348.5 crore in Q2 FY25 from Rs 1269.5 crore posted in corresponding quarter last year.

ISCS segment registered a margin expansion of 90 bps Y-o-Y due to the continued focus on operational efficiency and a disciplined approach to cost management.

Revenue from network solutions (NS) segment jumped 4.6% YoY to Rs 1164.4 crore during the quarter.

During the quarter, the company won a significant new contract with a large industrial customer in North America. This is a multi-year transformational engagement with total contract value in excess of Rs 2,200 crore. This long-term transformational engagement reinforces its specialized capabilities in complex assembly and automation and the value that it brings as a supply chain outsourcing partner.

Ravi Viswanathan, managing director, TVS Supply Chain Solutions, said, 'The Q2 results demonstrate our ability to sustain growth momentum in both revenue and profit, amid ongoing macroeconomic challenges. New business wins have added Rs 280 crore of revenue for the quarter. Our global account management strategy has helped us close the large deals that gives us the confidence of sustaining the growth momentum. Overall, the results reflect our resilience in navigating a complex environment and we remain confident about our profitable growth in the coming quarters.'

Ravi Prakash Bhagavathula, Global CFO, TVS Supply Chain Solutions, said, 'Our Q2 results reflect sustained revenue growth, along with continued improvement in profitability driven by our focus on operational efficiency and cost management. Our ability to fund growth through internal resources has enabled us to effectively manage borrowings driving PBT.'

TVS Supply Chain Solutions is an India-based multinational company, who pioneered the development of the supply chain solutions market in India. The company's customers span across numerous industries such as automotive, industrial, consumer, tech and tech infra, rail and utilities, and healthcare.