Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q3 FY25 Earnings Presentation
40 slides from Tvs Supply Chain Solutions's earnings presentation, Feb 10, 2025
Slide 1: TVS Supply Chain Solutions Q3 & 9M FY25 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q3 & 9M FY25 Earnings Presentation February 2025
Slide 2: 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 3: Q3 & 9MFY25 Financial Performance
CONFIDENTIAL Q3 & 9MFY25 Financial Performance 3
Slide 4: From the desk of MD
From the desk of MD Commenting on the Q3 & 9MFY25 performance, Mr. Ravi Viswanathan; Managing Director – TVS Supply Chain Solutions Limited said : “Our year-on-year revenue growth reflects the resilience of our business. We continue to secure large deals and capitalise on significant market opportun
Slide 5: Financial Snapshot
in INR Cr Financial Snapshot Revenue Adj. EBITDA PBT (before exceptional items) +10.0% -13.4% 2,445 174 1 2,222 150 Q3FY24 Q3FY25 Q3FY24 Q3FY25 -15 Q3FY24 Q3FY25 +10.7% -4.6% Turns +ve 7,497 536 511 16 6,774 9MFY24 9MFY25 9MFY24 9MFY25 -41 9MFY24 9MFY25 New Business Win – Q3FY25 Robust BD Pipeline I
Slide 6: Revenue, Adj EBITDA and Profitability
in INR Cr Revenue, Adj EBITDA and Profitability +10.0% Revenue 2,426 2,539 2,513 2,445 2,222 Impact on Adj. EBITDA and EBITDA Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Margins on account of following reasons in the ISCS segment : • Delay in executing a major project for a 7.8% 7.2% 7.3% 7.0% 6.1% key custo
Slide 7: Seasonal factors impacting performance for Q3
in INR Cr Seasonal factors impacting performance for Q3 2,619 2,681 2,539 2,513 2,373 2,322 2,289 2,263 2,222 2,426 2,445 Consol. Revenue (INR Cr) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 1,319 1,380 1,426 1,349 1,255 1,269 1,272 1,301 1,098 1,119 1,109
Slide 8: Impact in Profitability is event linked and a temporary phenomenon
Impact in Profitability is event linked and a temporary phenomenon Impact on Adj. EBITDA and EBITDA Margins where on account of: • Delay in executing a major project for a key customer in the UK, thereby delaying the revenues. However certain costs were already built in. The project operations shall
Slide 9: Management has taken concrete steps and is confident of returning to profit led growth
Management has taken concrete steps and is confident of returning to profit led growth Implementing price increases in customer contracts as part 1 Strategic Price Adjustments of completing the IFM business turnaround Streamlining workforce and Outsourcing support services 2 Headcount Rationalizatio
Slide 10: Segment wise Outlook for the quarter
Segment wise Outlook for the quarter ISCS India Good Margin performance; Will continue to improve Integrated Supply Chain ISCS UK Solutions Q3 performance is a temporary blip and will get back to normalcy on Q1 FY 26 ISCS NA Stable margins on a growing business, with a transformational project under
Slide 11: Key Highlights
Key Highlights Integrated Supply Chain Solutions (ISCS) Network Solutions (NS) ✓ Q3 revenue: ₹ 1,301.1 Cr; grew 2.3% YoY ✓ Q3 revenue: ₹ 1,143.5 Cr; strong growth of 20.4% YoY Quarterly ✓ Q3 Adj. EBITDA: ₹ 114.1 Cr ✓ Q3 Adj. EBITDA: ₹ 42.4 Cr; de-grew by 6.6% YoY Performance ✓ Adj. EBIDTA Margins st
Slide 12: Segment wise Revenue and Adj EBITDA
in ₹ Cr Segment wise Revenue and Adj EBITDA ISCS Segment (In ₹ Cr.) NS Segment (In ₹ Cr.) Total (In ₹ Cr.) +5.6% +17.4% +10.7% 4,076 3,421 3,860 7,497 6,774 Revenue 2,913 +2.3% +20.4% +10.0% 1,272 1,301 1,143 2,445 950 2,222 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY2
Slide 13: Geography wise Revenue
in ₹ Cr Geography wise Revenue ISCS Segment (In ₹ Cr.) NS Segment (In ₹ Cr.) Total (In ₹ Cr.) -3.9% +20.7% +1.1% 1,607 1,543 497 2,018 2,040 411 India +0.5% +14.0% +3.3% 520 523 154 677 135 655 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 +12.4% +16.9% +14.7% 2
Slide 14: Strong new business delivery
in ₹ Cr Strong new business delivery Revenue bridge: Q3FY24 to Q3FY25 in ₹ Cr Revenue bridge: 9MFY24 to 9MFY25 in ₹ Cr 2,445 7,497 2,222 61 27 97 231 6,774 52 757 213 299 Q3FY24 Price & Volume Price & Volume Contract New BD Q3FY25 9MFY24 Price & Volume Price & Volume Contract New BD 9MFY25 impact (g
Slide 15: Business development efforts yielding consistent results
Business development efforts yielding consistent results ISCS Segment Indian Electrical Indian Consumer International Railway Global Agri Equipment Global manufacturing Equipment Company Durables company Infrastructure company company (USA) company (India) (India) (India) (Europe) NS Segment Enginee
Slide 16: Robust Pipeline gives us the confidence for a double-digit growth
Robust Pipeline gives us the confidence for a double-digit growth Key Opportunities in India Key Opportunities in RoW Near Term Opportunities Long gestation opportunities 3PL solution including buy and sell Integrated solutions to a global Integrated 3PL solution for an Integrated 3PL solution for a
Slide 17: Q3 & 9MFY25 Profit & Loss Statement
in ₹ Cr Q3 & 9MFY25 Profit & Loss Statement In INR Cr - Continuing operations Q3FY25 Q3FY24 Y-o-Y 9MFY25 9MFY24 Y-o-Y Revenue from operations 2,444.6 2,221.8 10.0% 7,496.9 6,773.7 10.7% Other Income 24.6 21.6 58.8 48.1 Total Income 2,469.2 2,243.4 10.1% 7,555.7 6,821.8 10.8% Total material related c
Slide 18: Company Overview
CONFIDENTIAL Company Overview 18
Slide 19: 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 20: A global business headquartered in India
…with 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 Manipu
Slide 21: Experienced Management Team
Management Team …and Experienced Management Team R. Dinesh Ravi Viswanathan Ravi Prakash Bhagavathula Executive Chairman Managing Director Global CFO Executive Chairman, Past- Prior experience: Tata Group Prior experience: Pfizer, Coca- President CII, Director TVS Mobility Cola, Procter & Gamble Reg
Slide 22: Strategies for Growth: 3C Approach
Strategies for Growth : 3C Approach We identify opportunities using the ‘C3 Framework’ in the three C’s - Customer, Capability and Country 1 2 3 CUSTOMER CAPABILITIES COUNTRY ✓ Continued innovation and investment in technology ✓ Leverage our global network to expand into new markets ✓ Deepen our cus
Slide 23: Our Medium-Term Outlook
Our Medium-Term Outlook Profit Before Tax Margin (%) Medium Term Industry Best-in-Class* Goals 0.7% 4.0% 0.6% 2.4% PBT Margin: 8 - 11% 0.3% FY24 Operating Leverage Gross Margin Working Capital impact FY27 ROCE Profile (%) 4.5% 16.4% 7.1% RoCE Profile: 4.8% > 20% FY24 Revenue Growth Margin Expansion
Slide 24: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology 24
Slide 25: Region wise segmental historical Overview
CONFIDENTIAL Region wise segmental historical Overview 25
Slide 26: Outperforming the GDP growth Regionally
in ₹ Cr Outperforming the GDP growth Regionally De-coupled to GDP growth Our ISCS business has outperformed the GDP growth in the market we operate and has grown at a CAGR of 17.8% between FY21 & FY24 Continued Revenue Momentum 26
Slide 27: ISCS Consolidated
In ₹ Cr ISCS Consolidated ISCS India Revenue ISCS NA Revenue ISCS UK Revenue Consolidated ISCS Revenue +17.2% +18.9% +17.8% +18.2% 2,042 2,145 796 2,348 5,240 706 4,581 1,617 1,770 1,874 3,741 1,331 474 1,423 3,204 376 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 I
Slide 28: ISCS – UK Business Growth Levers
in ₹ Cr ISCS – UK Business ISCS UK Revenue UK GDP & Manufacturing Growth +18.2% PMI 58.9 ISCS UK business grew by GDP 55.8 50.3 1,770 1,874 2,348 10 47.9 60 18.2% CAGR 1,423 40 over the last 4 years, outperforming 5 8.7% 20 4.4% 0 the UK GDP growth 0.2% 0.5% FY21 FY22 FY23 FY24 0 -20 Mar-21 Mar-22 M
Slide 29: ISCS – North America Business Growth Levers
in ₹ Cr ISCS – North America Business ISCS North America Revenue US GDP & Manufacturing Growth +18.9% PMI 59.1 ISCS North America business grew by GDP 58.8 51.9 706 796 10 49.2 60 18.9% CAGR 474 40 376 over the last 4 years, outperforming 5 20 5.8% 0 the US GDP growth 1.9% 2.5% 2.7% FY21 FY22 FY23 F
Slide 30: ISCS – India Business Growth Levers
in ₹ Cr ISCS – India Business ISCS India Revenue India GDP & Manufacturing Growth +17.2% PMI 55.4 59.1 ISCS India business grew by GDP 56.4 54.0 2,042 2,145 10 60 17.3% CAGR 1,617 40 1,331 over the last 4 years, outperforming the 5 9.7% 20 7.0% 7.8% 6.8% 0 India GDP growth 0 -20 FY21 FY22 FY23 FY24
Slide 31: GFS Performance
GFS Performance Revenue from Operations with World Container Index ($ per 40ft. Container) Impact due to Pricing 12000 3,679 3,821 10000 834 8000 1,074 2,239 Impact for FY24 2,169 6000 0 FY24 revenues & volumes had been impacted on 4000 2,605 2,987 2,388 account of various global macro economic unce
Slide 32: IFM Performance
IFM Performance Demonstrated Growth in Revenues* New Order Wins Continue... Countries Revenue 9 +8.7% 1,802 175 ₹1,802 Crs Customers 1,403 190 414 1,073 1,679 1,682 1,802 1,403 FY24 FY21 Price & Volume New BD Wallet Share FY24 FY21 FY22 FY23 FY24 Growth Increase (Encirclement) Diversified across ind
Slide 33: Positive Margin Trajectory
in ₹ Cr Positive Margin Trajectory 7.7% 800 Consl. Adj. EBITDA 7.2% 6.9% 600 6.4% 400 667 685 710 Levers of Margin Expansion 200 442 0 ✓ Since FY21, our consolidated margin has expanded FY21 FY22 FY23 FY24 by 130 bps, driven by the strong performance of the ISCS segment and ongoing initiatives to 10
Slide 34: Diverse customer base with long term relationships
Diverse customer base with long term relationships Diversified customer base Long term customer relationships Consolidated Revenue by customer sector (FY24) Avg. length of relationships: of top 10 customers in FY24 Others 10.75% 12.7 Healthcare 11.9 1.75% Industrial Rail and 29.07% Utilities 8.01% C
Slide 35: Select Case Studies
CONFIDENTIAL Select Case Studies 35
Slide 36: Case Study - Polarized Light damage detection
Case Study - Polarized Light damage detection Problems AI • Microscopic cracks in plastic are a hygiene problem in soda guns DRIVEN PROCESS • Human detection skilled, time consuming and prone to error Solutions Solutions ❑ Halve headcount ❑ Double throughput ✓ Illuminate with polarized light to high
Slide 37: Revolutionizing Warehousing Through Technology-Driven Solutions
Revolutionizing Warehousing Through Technology-Driven Solutions Client Case Study Results Leading Indian multinational home appliances co. Services Provided Industry Electronics ✓ Supply Chain Consultancy ✓ Warehouse Management Issues ✓ Warehouse Design ✓ Transport Management • Inefficient space man
Slide 38: Case Study - Automotive
Case Study - Automotive Client Leading Indian two-wheeler manufacturer Inaccurate and damaged exports resulted Industry in irate dealers, dormant inventory, and Automotive missed sales opportunities Service Offering Optimized the network to ensure error free deliveries Overview & Challenges Solution
Slide 39: Tech Excellence: Driving Business Growth
Tech Excellence: Driving Business Growth We provide Tech Enabled Solutions customized to meet specific customer needs, optimizing costs and maximizing efficiency Freight Management LCL Consolidator Transport Management Enable automated decision making on container closing providing real time cargo i
Slide 40: Thank You
Thank You Company: TVS Supply Chain Solutions Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: L63011TN2004PLC054655 www.sgapl.net CIN: U74140MH2010PTC204285 Mr. J. Sivakumar - Head Investor Relations Email: investor.relations@tvsscs.com Mr. Sagar Shroff / Mr. Ayush Haria For upd
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