Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q3 FY24 Earnings Presentation
44 slides from Tvs Supply Chain Solutions's earnings presentation, Feb 6, 2024
Slide 1: Stock exchange cover letter: investor presentation of earnings call
February 6, 2024 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: TVSS
Slide 2: TVS Supply Chain Solutions Q3 FY24 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q3 FY24 Earnings Presentation February 2024
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: Agenda
CONFIDENTIAL Q3 FY24 & 9m FY24 Financial Performance Customer Wins and Pipeline Company Overview Appendix: Financial Statements 3
Slide 5: Strategic interventions: Update on proposed merger
Strategic interventions: Update on proposed merger We continue to take specific actions aimed at simplifying our corporate structure and harnessing synergies between our businesses The Board on 5th Feb 24 approved the draft Scheme of Amalgamation which provides for the merger of the following entiti
Slide 6: Strategic interventions: Repayment of borrowings
in INR Cr Strategic interventions: Repayment of borrowings We have utilized capital raised from the IPO & other sources to reduce our borrowings: Repayment from IPO proceeds Net repayment from internal Before IPO As per objects As of 31 Dec 23 Repayment out of accruals & other of the offer IPO proce
Slide 7: Business environment: Macro factors influencing our business
Business environment: Macro factors influencing our business Integrated Supply Chain Solutions • Demand drivers continue to be robust across geographies and we are seeing new opportunities both with existing customers and new customers • Markets conducive to deeper engagements with supply chain part
Slide 8: Q3 Highlights: Strong momentum in ISCS Segment
in INR Cr Q3 Highlights: Strong momentum in ISCS Segment Consistent momentum in ISCS • ISCS segment revenue for Q3 was 1,272 Cr, up 14.7% YoY • Broad based revenue growth across India, Europe and US • Revenue growth adjusted for impact of UAW strike in Oct 23 would have been 16.6% YoY • Revenue grew
Slide 9: Q3 Highlights: NS margins remain steady
in INR Cr Q3 Highlights: NS margins remain steady 1. Integrated Final Mile (IFM) business steady • Q3 revenue were impacted by seasonality (Dec holiday season) and customer churn • We are implementing operational improvement initiatives TVS SCS avg. ocean freight rate (SGD/TEU) 6,000 2. Freight rate
Slide 10: Q3 Consol performance summary
in INR Cr Q3 Consol performance summary YoY Performance QoQ Performance Strong growth in ISCS helped balance impact of flat IFM Consol revenue impacted by NS underperformance; partially revenues and sluggish volumes in global freight offset by growth in ISCS • Consol Q3 revenue 2,222 Cr; down 6.4% Y
Slide 11: Q3 & 9m FY24 Financial Performance
CONFIDENTIAL Q3 & 9m FY24 Financial Performance 10
Slide 12: ISCS segment continues to deliver strong growth
in INR Cr ISCS segment continues to deliver strong growth Consol Revenue from operations in INR Cr YoY Growth -6.4% QoQ Growth 2,373 2,263 2,222 -1.8% Growth in ISCS offset UAW strike impact and NS revenue decline • Within NS, IFM was steady YoY, GFS declined on low volumes YoY impact • Price: -5.7
Slide 13: Strong new business delivery: ~227 Cr in Q3 FY24
in INR Cr Strong new business delivery: ~ 227 Cr in Q3 FY24 Revenue bridge: Q3 FY23 to Q3 FY24 in INR Cr 2,373 2,222 341 227 22 60 ~10% of Q3 FY24 revenue Q3 FY23 Price & Volume Price & Volume growth Contract exit / New BD Q3 FY24 impact (global freight) (other businesses) loss of customer Prior per
Slide 14: Revenue: ISCS revenue grew both in India & RoW
in INR Cr Revenue: ISCS revenue grew both in India & RoW India Revenue in INR Cr RoW Revenue in INR Cr YoY -7.4% YoY QoQ -5.9% QoQ 708 682 655 -3.9% 1,666 1,581 1,567 -0.9% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS Revenue in INR
Slide 15: Segmental mix continues to move towards more profitable ISCS
Segmental mix continues to move towards more profitable ISCS Revenue mix: ISCS Vs. NS Revenue mix: India Vs. RoW 2,373 2,263 2,222 2,373 2,263 2,222 India 29.8% 30.1% 29.5% 43.9% 42.7% NS 53.3% RoW 70.2% 69.9% 70.5% 56.1% 57.3% ISCS 46.7% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Prior period
Slide 16: Margin expansion drove Adj. EBITDA growth despite lower revenue
Margin expansion by 70 bps YoY drove Adj. EBITDA growth in INR Cr despite lower revenue Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -6.4% +3.0% 2,373 175.7 2,263 180 173.6 10 2,222 168.6 -1.2% -1.8% 160 9 7.8% 7.8% 140 8 7.1% 7 120 6 100 5 80 4 60 3 40 2 20 1 0
Slide 17: 9m FY24: Continued momentum with 16.1% revenue growth in ISCS
in INR Cr 9m FY24: Continued momentum with 16.1% revenue growth in ISCS Consol Revenue from operations in INR Cr YoY growth -11.7% 7,673 6,774 9m FY23 9m FY24 ISCS Revenue from operations in INR Cr NS Revenue from operations in INR Cr YoY growth YoY growth +16.1% -33.0% 3,860 4,347 3,325 Impact of U
Slide 18: New BD has delivered 662 Cr in 9m Dec23
in INR Cr New BD has delivered 662 Cr in 9m Dec23 Revenue bridge: 9m FY23 to 9m FY24 in INR Cr 7,673 1,569 6,774 662 213 204 ~10% of 9m FY24 revenue 9m FY23 Price & Volume Price & Volume growth Contract exit / New BD 9m FY24 impact (global freight) (other businesses) loss of customer Prior period fi
Slide 19: 9m FY24: Large contracts driving ISCS segment growth in RoW
in INR Cr 9m FY24: Large contracts driving ISCS segment growth in RoW India Revenue in INR Cr RoW Revenue in INR Cr -13.6% -10.9% 2,335 5,338 2,018 4,756 9m FY23 9m FY24 9m FY23 9m FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS Revenue in INR Cr RoW NS Revenue in INR Cr +8.2%
Slide 20: 9m FY24: Operational excellence drove margin expansion
9m FY24: Operational excellence drove 120 bps margin expansion in INR Cr & growth in Adj. EBITDA despite lower revenue Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -11.7% +4.1% 7,673 550 535.6 14 514.4 6,774 500 13 12 450 11 400 10 350 9 7.9% 8 300 6.7% 7 250 6
Slide 21: 9m FY24 margins higher YoY, driving Adj. EBITDA growth
in INR Cr 9m FY24 margins 120 bps higher YoY, driving Adj. EBITDA growth Adj. EBITDA & Adj. EBITDA margin % in INR Cr YoY growth YoY growth +3.0% +4.1% 173.6 600 14 180 168.6 10 514.4 535.6 160 7.8% 9 500 12 7.1% 8 140 10 120 7 400 7.9% 6 6.7% 8 100 300 5 6 80 4 200 60 3 4 40 2 100 2 20 1 0 0 0 0 9m
Slide 22: Segmental performance summary
Segmental performance summary: ISCS margins continue to in INR Cr expand; NS margin recovery delayed In INR Cr FY23 Full Q3 FY23 Q2 FY24 Q3 FY24 QoQ YoY 9m FY23 9m FY24 YoY Growth Year Growth Growth Revenue from operations 4,580.6 1,109.1 1,269.5 1,272.1 0.2% 14.7% 3,325.5 3,860.4 16.1% Adjusted EBI
Slide 23: Summary profit & loss – Q3 FY24
in INR Cr Summary profit & loss – Q3 FY24 In INR Cr - Continuing operations FY23 Full year Q3 FY23 Q2 FY24 Q3 FY24 QoQ YoY Revenue from operations 9,994.4 2,373.4 2,262.9 2,221.8 -1.8% -6.4% Other income 75.6 27.7 8.3 21.6 160.6% -22.0% Total material related costs 1,383.4 314.3 365.8 411.5 Freight,
Slide 24: Summary profit & loss – 9m FY24
in INR Cr Summary profit & loss – 9m FY24 In INR Cr - Continuing operations FY23 Full year 9m FY23 9m FY24 Growth YoY Revenue from operations 9,994.4 7,672.8 6,773.7 -11.7% Other income 75.6 64.7 48.1 -25.7% Total material related costs 1,383.4 973.2 1,193.9 Freight, clearing, forwarding and handlin
Slide 25: New customer wins & pipeline
CONFIDENTIAL Q3 FY24 New customer wins & pipeline 24
Slide 26: Revenue: Strong new business delivery: ~227 Cr
in INR Cr Revenue: Strong new business delivery: ~ 227 Cr in Q2 FY24 Revenue bridge: Q3 FY23 to Q3 FY24 in INR Cr 2,373 2,222 341 227 22 60 ~10% of Q3 FY24 revenue Q3 FY23 Price & Volume Price & Volume growth Contract exit / New BD Q3 FY24 impact (global freight) (other businesses) loss of customer
Slide 27: Business development efforts yielding consistent results
Business development efforts yielding consistent results Snapshot of key new customer wins in Q3 FY24: ISCS Segment • An agricultural equipment manufacturer (USA) • A commercial / passenger vehicle OEM (India) • A glass / materials manufacturer (India) • A defence contractor (UK) • A bearings manufa
Slide 28: Our pipeline continues to be robust
Our pipeline continues to be robust Integrated transportation Spares management Warehousing solution for a solution for engine manuf. solution for a global petrochemical company in India payments solutions co. manufacturing company Spares management A transformation Warehousing & solution for a UK b
Slide 29: Company Overview
CONFIDENTIAL Company Overview 28
Slide 30: 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 31: 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 32: 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 33: We have a diverse customer base with long term relationships
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 34: In-house tech that provides 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 35: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology TVS SUPPLY CHAIN SOLUTIONS LIMITED 34 CONFIDENTIAL
Slide 36: Appendix: Financial Statements
CONFIDENTIAL Appendix Financial Statements 35
Slide 37: Unaudited consolidated financial results, Q3 and nine months
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 NINE MONTHS E
Slide 38: Unaudited consolidated financial results (continued)
TVS SUPPLY CHAIN SOLUTIONS LIMITED STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED 31 DECEMBER 2023 (Values in ₹ crores except share data and otherwise stated) Quarter ended Nine months ended Year ended 31 December 30 September 31 December 31 Decembe
Slide 39: Notes to unaudited consolidated financial results
TVS SUPPLY CHAIN SOLUTIONS LIMITED Notes to Unaudited Consolidated Financial Results for the Quarter Ended and Nine Months Ended 31 December 2023 1) The above consolidated financial results of TVS Supply Chain Solutions Limited (the "Holding Company" or the "Company"), its subsidiaries (the Holding
Slide 40: Notes to unaudited consolidated financial results (continued)
TVS SUPPLY CHAIN SOLUTIONS LIMITED Notes to Unaudited Consolidated Financial Results for the Quarter Ended and Nine Months Ended 31 December 2023 8) The Board of Directors at its meeting held on February 5, 2024, has accorded its approval to the draft Scheme of Amalgamation which provides for the me
Slide 41: 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 NINE MONTHS ENDED 31 DEC
Slide 42: 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 NINE MONTHS END
Slide 43: Notes to unaudited standalone financial results
TVS SUPPLY CHAIN SOLUTIONS LIMITED Notes to Unaudited Standalone Financial Results for the Quarter Ended and Nine Months Ended 31 December 2023 1) The above standalone financial results of TVS Supply Chain Solutions Limited (the "Holding Company" or the "Company") have been reviewed by the Audit Com
Slide 44: Notes to unaudited standalone financial results (continued)
TVS SUPPLY CHAIN SOLUTIONS LIMITED Notes to Unaudited Standalone Financial Results for the Quarter Ended and Nine Months Ended 31 December 2023 8) The Company's operations predominantly relate to Integrated Supply Chain Solutions ("ISCS"). As the Company's business activity falls within a single bus
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