Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q2 FY24 Earnings Presentation
52 slides from Tvs Supply Chain Solutions's earnings presentation, Nov 7, 2023
Slide 1: Exchange filing cover letter for investor presentation
November 7, 2023 BSE Limited National Stock Exchange of India Limited 1st Floor, New Trading Ring, Exchange Plaza, 5th Floor, Rotunda Bldg., P. J. Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Mumbai 400 001 Bandra (East),Mumbai 400 051 Scrip Code: 543965 NSE Symbol: TVSSC
Slide 2: TVS Supply Chain Solutions Q2 FY24 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q2 FY24 Earnings Presentation November 2023
Slide 3: Safe harbour & disclaimer
Safe harbour & disclaimer This presentation (“Presentation”) is prepared by TVS Supply Chain Solutions Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any - particular person and is not and nothing in it shall be const
Slide 4: Business Updates & Strategic Interventions Q2 & H1 FY24 Financial Performance Customer Wins and
CONFIDENTIAL Business Updates & Strategic Interventions Q2 & H1 FY24 Financial Performance Customer Wins and Pipeline Company Overview Appendix: Financial Statements 3
Slide 5: Macroeconomic factors influencing our business
Macroeconomic factors influencing our business Integrated Supply Chain Solutions Segment Network Solution Segment (“ISCS”) (“NS”) Demand drivers for outsourcing of supply chain requirements Global freight continue to be robust • Freight rates continue to be subdued with freight forwarders pricing ag
Slide 6: Update on usage of IPO proceeds and repayment of borrowings
in INR Cr Update on usage of IPO proceeds and repayment of borrowings We have utilized proceeds from the IPO in line with the Objects of the Offer outlined in the Prospectus: Repayment from IPO proceeds Net repayment from internal Before IPO As of 30 Sep 23 As per objects Actual repayment accruals &
Slide 7: Two strategic interventions in Q2 FY24
Two strategic interventions in Q2 FY24 Post IPO, we undertook strategic actions in September 23: • Partial stake sale in TVS Industrial & Logistics Parks, an associate company • Disposal of Circle Express UK, a step- down subsidiary TVS SUPPLY CHAIN SOLUTIONS LIMITED 6 CONFIDENTIAL
Slide 8: Impact of sale of partial stake in TVS Industrial & Logistics Parks
in INR Cr Impact of sale of partial stake in TVS Industrial & Logistics Parks Background: • TVS Industrial & Logistics Parks (TVS ILP) is an associate company; TVS SCS owned 29.7% of TVS ILP • The Board on 28th September, approved the sale of 4.5% equity stake in TVS ILP to a private investor • TVS
Slide 9: Impact of sale of Circle Express by Rico Logistics
in INR Cr Impact of sale of Circle Express by Rico Logistics Background: • Circle Express is a step-down subsidiary of Rico providing specialist air freight warehousing and distribution services • Rico owned 95% of Circle Express, the remaining 5% was with a minority shareholder • Circle’s capabilit
Slide 10: Restatement on account of classification of Circle Express as discontinued operations
Restatement on account of classification of Circle Express as in INR Cr discontinued operations • Financials of Circle Express up to the date of disposal (29th Sep) are classified as Discontinued Operations • Prior periods (FY23, Q1 FY24) financials have been restated to classify Circle Express Resu
Slide 11: Q2 Highlights: ISCS Segment
in INR Cr Q2 Highlights: ISCS Segment Continued growth momentum in the ISCS Segment • ISCS segment revenue for Q2 was INR 1,270 Cr, up 13.5% YoY • Broad based revenue growth across India, UK & Europe • QoQ revenue declined 3.7% on account of specific one-off factors • UAW strike & seasonal plant shu
Slide 12: Q2 Highlights: NS Segment
in INR Cr Q2 Highlights: NS Segment 1. IFM business steady and growing • Revenue grew both sequentially and YoY; sale of Circle Express expected to drive greater focus on core business & margins • We continue to implement cost reduction and operational improvement measures TVS SCS avg. ocean freight
Slide 13: Q2 Consol performance summary
in INR Cr Q2 Consol performance summary YoY Performance QoQ Performance Steady growth in ISCS helped balance impact of freight rate Consol revenue consistent; growth in NS offset one off factors decline impacting ISCS in North America, India • Consol Q2 revenue INR 2,263 Cr; down 15.6% YoY • Consol
Slide 14: Q2 & H1 FY24 Financial Performance
CONFIDENTIAL Q2 & H1 FY24 Financial Performance 13
Slide 15: Q2 and H1 FY24: Financial performance summary
in INR Cr Q2 and H1 FY24: Financial performance summary In INR Cr Q2 FY23 Q2 FY24 YoY Delta YoY % Q1 FY24 Q2 FY24 QoQ Delta QoQ % H1 FY23 H1 FY24 YoY Delta YoY % Revenue from operations 2,680.8 2,262.9 -417.9 -15.6% 2,288.9 2,262.9 -26.0 -1.1% 5,299.4 4,551.8 -747.5 -14.1% Other income 21.0 8.3 -12.
Slide 16: Consol Q2 revenue steady versus Q1; ISCS continues growth momentum
Consol Q2 revenue steady versus Q1; ISCS continues growth in INR Cr momentum; NS segment growing sequentially driven by IFM Consol Revenue from operations in INR Cr -15.6% 2,681 YoY Growth QoQ Growth 2,289 2,263 -1.1% Revenue flat; growth in NS offset one off factors impacting ISCS revenues • Within
Slide 17: New BD continues to deliver per expectations
in INR Cr New BD continues to deliver per expectations Revenue bridge: Q2 FY23 to Q2 FY24 in INR Cr 2,681 ~8% of Q2 FY24 584 revenue 2,263 61 75 180 Q2 FY23 Price & Volume Price & Volume growth Contract exit / New BD Q2 FY24 impact (global freight) (other businesses) loss of customer All financials
Slide 18: Performance of both segments consistent across geographies
in INR Cr Performance of both segments consistent across geographies India Revenue in INR Cr RoW Revenue in INR Cr -15.4% -16.1% 1,869 YoY QoQ 812 YoY QoQ 1,608 1,581 681 682 -1.6% 0.0% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS R
Slide 19: More profitable ISCS segment continues to hold higher salience
More profitable ISCS segment continues to hold higher salience Revenue mix: ISCS Vs. NS Revenue mix: India Vs. RoW 2,681 2,289 2,263 2,681 2,289 2,263 India 30.3% 29.8% 30.1% 42.4% 43.9% NS 58.3% RoW 69.7% 70.2% 69.9% 57.6% 56.1% ISCS 41.7% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 All financi
Slide 20: Operating efficiencies drive margins; absolute Adj. EBITDA holding steady
Operating efficiencies drive margins; absolute Adj. EBITDA in INR Cr holding steady despite revenue decline Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -15.6% 2,681 -3.7% 200 10 182.5 186.3 2,289 175.7 9 -5.7% 2,263 8.1% -1.1% 7.8% 8 150 6.8% 7 6 100 5 4 3 50 2
Slide 21: H1 FY24 Revenue: Growth in ISCS balanced freight rate driven NS decline
H1 FY24 Revenue: Growth in ISCS revenue balanced impact of in INR Cr freight rate driven NS decline Consol Revenue from operations in INR Cr YoY growth -14.1% 5,299 4,552 H1 FY23 H1 FY24 ISCS Revenue from operations in INR Cr NS Revenue from operations in INR Cr YoY growth YoY growth +16.8% -36.3% 2
Slide 22: New BD has delivered ~430 Cr in H1 FY24
in INR Cr New BD has delivered: ~ 430 Cr in H1 FY24 Revenue bridge: H1 FY23 to H1 FY24 in INR Cr 5,299 1,229 4,552 434 191 144 ~10% of H1 FY24 revenue H1 FY23 Price & Volume Price & Volume growth Contract exit / New BD H1 FY24 impact (global freight) (other businesses) loss of customer All financial
Slide 23: H1 FY24 Revenue: Double digit ISCS revenue growth across geographies
H1 FY24 Revenue: Double digit ISCS revenue growth across in INR Cr geographies India Revenue in INR Cr RoW Revenue in INR Cr -16.2% -13.2% 1,627 3,672 1,363 3,189 H1 FY23 H1 FY24 H1 FY23 H1 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS Revenue in INR Cr RoW NS Revenue in INR
Slide 24: Operating efficiencies drive margins; absolute Adj. EBITDA growing
Operating efficiencies drive margins; absolute Adj. EBITDA growing in INR Cr despite revenue decline Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -14.1% 5,299 450 14 +4.7% 13 4,552 400 362.1 12 350 345.8 11 10 300 9 8.0% 250 8 6.5% 7 200 6 5 150 4 100 3 2 50 1 0
Slide 25: H1 margins 150 bps higher YoY, driving Adj. EBITDA growth
in INR Cr H1 margins 150 bps higher YoY, driving Adj. EBITDA growth Adj. EBITDA & Adj. EBITDA margin % in INR Cr YoY growth YoY growth -3.7% QoQ 200 186.3 10 Growth 182.5 175.7 450 +4.7% 14 8.1% 9 -5.7% 7.8% 400 362.1 12 8 345.8 150 6.8% 350 7 10 300 8.0% 6 250 6.5% 8 100 5 200 6 4 150 3 450 100 2 5
Slide 26: Segmental performance summary
Segmental performance summary: ISCS margins continue to in INR Cr expand YoY; NS margins recovering FY23 Full QoQ YoY In INR Cr Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 YoY Growth Year Growth Growth ISCS Revenue from operations 4,580.6 1,118.6 1,318.9 1,269.5 -3.7% 13.5% 2,216.3 2,588.4 16.8% Segment
Slide 27: Summary P&L: Continuing operations – Q2 and H1 FY24
in INR Cr Summary P&L: Continuing operations – Q2 and H1 FY24 In INR Cr - Continuing operations FY23 Full year Q2 FY23 Q1 FY24 Q2 FY24 QoQ YoY H1 FY23 H1 FY24 YoY Revenue from operations 9,994.4 2,680.8 2,288.9 2,262.9 -1.1% -15.6% 5,299.4 4,551.8 -14.1% 1 Other income 75.6 21.0 18.2 8.3 -54.5% -60.
Slide 28: Balance sheet summary: 30 Sep 23
in INR Cr Balance sheet summary: 30 Sep 23 In INR Cr Mar-23 Sep-23 Non-current assets Property, plant and equipment 325.6 324.3 Right-of-use assets 1,113.6 987.9 Goodwill 608.4 582.4 Other intangible assets 248.1 228.2 Total non-current assets 2,756.7 2,525.5 Current Assets Inventories 345.1 345.0 T
Slide 29: We have reduced leverage, strengthening our balance sheet
in INR Cr We have reduced leverage, strengthening our balance sheet Debt to equity ratio1 Leverage ratio Current + non current borrowings / Total equity Net debt (incl lease liabilities) / Adj. EBITDA 2.9 7.3 2.4 4.4 1.6 2.7 1.7 0.6 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Annualized
Slide 30: Customer wins & pipeline
CONFIDENTIAL Q2 FY24 Customer wins & pipeline 29
Slide 31: Business development efforts yielding consistent results
Business development efforts yielding consistent results Snapshot of key new customer wins in Q2 FY24: ISCS Segment • A large IT services provider (India) • An industrial manufacturing co. (India) • A shipbuilding & manufacturing co. India) • A consumer goods co. (UK) • A kitchen equipment co. (UK)
Slide 32: Our pipeline continues to be robust
Our pipeline continues to be robust Freight mgmt. opportunity Tech. deployment and Global spares management for global automotive maintenance solution for for large global payment system manufacturing co. global IT services co solutions / ATM co. Multi-location warehousing Renewal of contract with A
Slide 33: Company Overview
CONFIDENTIAL Company Overview 32
Slide 34: A supply chain solution provider with end-to-end capabilities
A supply chain solution provider with end-to-end capabilities… We have two operating segments: Closed-Loop Logistics & Support Logistics Spares, Breakfix, Sourcing & Integrated In-Plant Logistics FG & AM Spares Refurb & Engg. Support Procurement Transportation Operation Centre Operations Fulfillment
Slide 35: We are a global business headquartered in India
…We are a global business headquartered in India We are present across India And globally across four continents Europe Asia Pacific (incl Oceana) Jammu and Kashmir Himachal Pradesh Punjab Uttarakhand Arunachal Pradesh Haryana Delhi Sikkim Rajasthan Uttar Pradesh Assam Bihar Nagaland Meghalaya Manip
Slide 36: Commercial drivers of our business
Commercial drivers of our business Integrated Supply Chain Solutions (ISCS) Network Solutions (NS) • Outsourcing contracts with defined scope, service levels • GFS: Driven by engagements that are a mix of both long-term Nature of Customer and pricing commercial contracts and short-term commercial co
Slide 37: We have a diverse customer base with long term relationships in both segments
We have a diverse customer base with long term relationships in both segments Diversified customer base Long term customer relationships Revenue by customer sector (FY23) Avg. length of relationships: of top 10 customers in FY23 Other 10.28% Healthcare 10.9 years 10.5 years 1.70% Rail & Utilities In
Slide 38: In-house tech that provides us significant competitive advantage
And in-house tech that provides us significant competitive advantage Our tech platforms across the value chain: Transport Management Warehouse Management Freight Management Supply Chain Management i-Loads Visibility LCL Consolidator Msys ◼ One-stop E2E platform for truck ◼ Inventory management solut
Slide 39: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology TVS SUPPLY CHAIN SOLUTIONS LIMITED 38 CONFIDENTIAL
Slide 40: Appendix: Financial Statements
CONFIDENTIAL Appendix Financial Statements 39
Slide 41: Statement of unaudited consolidated financial results
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED AND HALF YEAR END
Slide 42: Statement of unaudited consolidated financial results (continued)
TVS SUPPLY CHAIN SOLUTIONS LIMITED STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED AND HALF YEAR ENDED 30 SEPTEMBER 2023 (Values in ₹ crores except share data and otherwise stated) Quarter ended Half year ended Year ended 30 September 30 September 30 September 30 Septembe
Slide 43: Unaudited consolidated segment information
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 UNAUDITED CONSOLIDATED SEGMENT INFORMATION FOR THE QUARTER ENDED AND HALF YEAR ENDED 30 SEPTE
Slide 44: Consolidated balance sheet as at 30 September 2023
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) cror
Slide 45: Consolidated balance sheet as at 30 September 2023 (liabilities)
TVS SUPPLY CHAIN SOLUTIONS LIMITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) crores except share data and otherwise stated) As at As at 30 September 2023 31 March 2023 Particulars Audited Unaudited (Refer Note 3) Liabilities Non-current liabilities Fina
Slide 46: Unaudited consolidated statement of cash flows
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2023 (All am
Slide 47: Unaudited consolidated statement of cash flows (financing)
TVS SUPPLY CHAIN SOLUTIONS LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) crores except share data and otherwise stated) Half year ended Half year ended Particulars 30 September 2023 30 September 2022 Unaudited Unau
Slide 48: Unaudited standalone financial results
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED AND HALF YEAR ENDED
Slide 49: Standalone balance sheet as at 30 September 2023
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 STANDALONE BALANCE SHEET AS AT 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) crores
Slide 50: Standalone balance sheet (liabilities)
TVS SUPPLY CHAIN SOLUTIONS LIMITED STANDALONE BALANCE SHEET AS AT 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) crores except share data and otherwise stated) As at As at 30 September 2023 31 March 2023 Particulars Audited Unaudited (Refer Note 3) Current liabilities Financial liabilities
Slide 51: Unaudited standalone statement of cash flows
TVS SUPPLY CHAIN SOLUTIONS LIMITED Regd Office: 10 Jawahar Road, Chokkikulam, Madurai – 625 002, Tamil Nadu, India Website: www.tvsscs.com; Email ID: investor.relations@tvsscs.com CIN: U63011TN2004PLC054655 UNAUDITED STANDALONE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2023 (All amou
Slide 52: Unaudited standalone statement of cash flows (financing)
TVS SUPPLY CHAIN SOLUTIONS LIMITED UNAUDITED STANDALONE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2023 (All amounts are in Indian rupees (₹) crores except share data and otherwise stated) Half year ended Half year ended Particulars 30 September 2022 30 September 2023 Unaudited Unaudi
TVS Supply Chain Solutions — Q2 FY24 Earnings Presentation on 6ix