TVS Supply Chain Solutions (TVSSCS) Q3 23/24 earnings summary

Executive summary

• Achieved profitability in Q3 FY24 with PAT of INR 9.99 Cr, reversing prior losses.

• Q3 revenue at INR 2,222 Cr, down 6.4% YoY and 1.8% QoQ, mainly due to NS underperformance.

• ISCS segment drove growth, offsetting declines in Network Solutions (NS).

• IPO completed in August 2023, raising INR 525 Cr, fully utilized by December 2023.

• Board approved a merger scheme involving several wholly owned subsidiaries and one other entity.

Financial highlights

• Q3 FY24 revenue: INR 2,222 Cr (-6.4% YoY, -1.8% QoQ); ISCS up 14.7% YoY, NS down 24.9% YoY.

• Q3 Adj. EBITDA: INR 173.6 Cr (+3.0% YoY), margin 7.8% (flat QoQ, +70 bps YoY).

• Q3 PAT: INR 9.99 Cr (vs. INR 17.2 Cr YoY, vs. loss of INR 21.9 Cr QoQ).

• 9m FY24 revenue: INR 6,774 Cr (-11.7% YoY); Adj. EBITDA: INR 535.6 Cr (+4.1% YoY).

• Gross margin for Q3 FY24 was 17.2%, compared to 16.7% in Q2 FY24.

Outlook and guidance

• Robust business development pipeline with large contract wins in both ISCS and NS.

• Focus on operational improvements and cost reduction in NS segment.

• Management expects continued focus on operational efficiency and integration post-merger.

• IPO proceeds have been fully deployed, supporting debt reduction and growth initiatives.

• Monitoring global freight volatility and Red Sea situation.