TVS Supply Chain Solutions (TVSSCS) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 saw sustained profit-led growth, with significant new business wins and a robust order pipeline supporting future revenue.

• The company operates two main segments: Integrated Supply Chain Solutions (ISCS) and Network Solutions (NSS), with a global presence and diversified customer base.

• ISCS remains the primary driver of profitability, while NSS is undergoing a turnaround, especially in the Integrated Final Mile (IFM) subsegment.

• Major contracts secured include a 2,200 Cr+ North America deal and a 7-year UK government contract, alongside technology upgrades and AI-driven solutions.

• Net profit attributable to owners for Q2 FY25 was ₹9.33 crore, compared to a loss of ₹49.55 crore in Q2 FY24, indicating a turnaround in profitability.

Financial highlights

• Q2 FY25 consolidated revenue was INR 2,512.9 crore, up 11% year-over-year; H1 FY25 revenue grew 11% to INR 5,552.3 crore.

• Q2 FY25 PBT was INR 17.9 crore, and H1 FY25 PBT was INR 31.6 crore, marking a turnaround from a loss in the prior year.

• Adjusted EBITDA for Q2 FY25 was INR 176 crore (flat YoY); H1 FY25 Adjusted EBITDA at INR 361 crore (down 0.4% YoY).

• PAT for Q2 FY25 was INR 11 crore, reversing a loss of INR 22 crore in Q2 FY24.

• Other income for Q2 was INR 28.6 crore, mainly from bank deposits and forex deals.

Outlook and guidance

• ISCS margins are expected to stabilize around 10-10.5% for the coming quarters, with 11% in Q2 seen as a peak due to one-time factors.

• NSS segment aims to return to 4.5% margin by Q4 FY25, with a longer-term target of 7% as IFM profitability improves.

• Company targets double-digit, mid-teens revenue growth over the next two to three years.

• Medium-term goals include PBT margin of 4.0% and ROCE profile of 16.4% by FY27.

• The company continues to focus on its core ISCS and NSS segments, with a positive outlook on domestic and international operations.