Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Nuvama India Conference 2024 / Axis Capital India Conference 2024
33 slides from Tvs Supply Chain Solutions's conference presentation, Feb 9, 2024
Slide 1: Stock exchange intimation of investor conference
February 09, 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 Investor Presentation February 2024
STRICTL Y PRIVATE AND CONF I DEN TI A L TVS Supply Chain Solutions Investor Presentation February 2024
Slide 3: Safe harbour & disclaimer (1/2)
Safe harbour & disclaimer (1/2) 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
Slide 4: Safe harbour & disclaimer (2/2)
Safe harbour & disclaimer (2/2) Certain data contained in this Presentation was obtained from various external data sources, the report titled “Logistics and SCS (Supply Chain Solutions) Market in India” dated July 25, 2023 prepared by Redseer Management Consulting Private Ltd. (“Redseer Report”), a
Slide 5: Company Overview
C ON FIDENTIAL Company Overview 4
Slide 6: We are a supply chain solutions provider with end-to-end capabilities
We are a supply chain solutions 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 Fulf
Slide 7: And a global platform
…And a global platform 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 Manipur Gujarat Madhya Pradesh
Slide 8: Positioned to address a large and fast-growing market opportunity
Positioned to address a large and fast-growing market opportunity Market for outsourced supply chain solutions market excluding e-Commerce (in USD bn)1 CAGR 20-22% 20 – 21 Increasing trend towards outsourcing • Focus on core competencies & outsourcing 7.5 – 7.7 • Greater supply chain visibility, pre
Slide 9: 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 10: And 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 11: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology T V S S U P P L Y C H AI N S O L U TI ONS L I M I T ED 10 C ON FIDENTIAL
Slide 12: 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 13: Q3 & 9m FY24 Financial Performance
C ON FIDENTIAL Q3 & 9m FY24 Financial Performance 12
Slide 14: Q3 Highlights
in INR Cr Q3 Highlights Business back to profitability Achieved PBT breakeven in Q3 and a Profit After Tax of 10 Cr T V S S U P P L Y C H AI N S O L U TI ONS L I M I T ED 13 C ON FIDENTIAL
Slide 15: 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 16: 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 17: 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 18: 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 19: Strong new business delivery 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 9m FY24 margins 120 bps 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% 180 173.6 10 600 14 168.6 514.4 535.6 160 9 7.8% 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 28: Segmental performance: ISCS margins continue to expand
in INR Cr Segmental performance: ISCS margins continue to expand 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 EBITDA 408.1 110.4 129.5 133.8 3.3% 21.
Slide 29: 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 30: 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 31: 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 32: 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 33: Thank You
C ON FIDENTIAL Thank You 32