Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q1 FY24 Earnings Presentation
31 slides from Tvs Supply Chain Solutions's earnings presentation, Sep 11, 2023
Slide 1: PADOOR DORASWAMI DORASWAMI KRISHNA
PADOOR Digitally signed by PADOOR DORASWAMI DORASWAMI KRISHNA KRISHNA PRASAD Date: 2023.09.11 PRASAD 18:30:39 +05'30'
Slide 2: TVS Supply Chain Solutions Q1 FY24 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q1 FY24 Earnings Presentation September 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: Agenda
CONFIDENTIAL Company Overview Q1 FY24 Business Update Q1 FY24 Financial Performance Customer Wins and Pipeline Appendix: Financial Statements 3
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology TVS SUPPLY CHAIN SOLUTIONS LIMITED 9 CONFIDENTIAL
Slide 11: Q1 FY24 Business Update
CONFIDENTIAL Q1 FY24 Business Update 10
Slide 12: Macroeconomic factors influencing our business
Macroeconomic factors influencing our business Integrated Supply Chain Solutions Segment Network Solution Segment (“ISCS”) (“NS”) Outsourcing of supply chain requirements continues to grow Global freight resulting in expansion in existing engagements and strong pipeline • Freight rates continue to b
Slide 13: Q1 Highlights: ISCS Segment
in INR Cr Q1 Highlights: ISCS Segment Very strong growth momentum in ISCS segment • ISCS segment revenue for Q1 was 1,319 Cr, up 20.1% YoY • Revenue grew sequentially and YoY in all geographies: India, UK/Europe, North America • Momentum in business development continues • Engagement with Centrica P
Slide 14: Q1 Highlights: ISCS Segment
in INR Cr Q1 Highlights: ISCS Segment Very strong growth momentum in ISCS segment • ISCS segment revenue for Q1 was 1,319 Cr, up 20.1% YoY • Revenue grew sequentially and YoY in all geographies: India, UK/Europe, North America • Momentum in business development continues • Engagement with Centrica P
Slide 15: Q1 Highlights: NS Segment
in INR Cr Q1 Highlights: NS Segment 1. IFM business steady • Cost pressures on manpower & fuel costs continue to impact margins; customer price increases yet to materialize • Implementing specific cost reduction measures TVS SCS avg. ocean freight rate 2. GFS revenue declined on low freight rates in
Slide 16: Q1 Consol performance summary
in INR Cr Q1 Consol performance summary Q1 was a quarter where we showcased inherent strengths in our portfolio & business mix • Q1 revenue was 2,342 Cr; 1.6% down QoQ and 12.4% YoY • ISCS segment grew sequentially and over previous year in all geographies • Subdued freight rates in line with global
Slide 17: Q1 FY24 Financial Performance
CONFIDENTIAL Q1 FY24 Financial Performance 16
Slide 18: Strong revenue momentum in ISCS; NS revenue impacted by declining volumes and subdued freight rates
Strong revenue momentum in ISCS; NS revenue impacted by in INR Cr declining volumes and subdued freight rates Consol Revenue from operations in INR Cr YoY growth -12.4% QoQ 2,675 Growth in all 3 geographies Growth 2,380 2,342 • India -1.6% • UK / Europe • US YoY decline of 12.4% • Volume impact: +4.
Slide 19: Revenue: Robust new business delivery in Q1 FY24
in INR Cr Revenue: Robust new business delivery: ~ 255 Cr in Q1 FY24 Revenue bridge: Q1 FY23 to Q1 FY24 in INR Cr 2,675 India: 229 2,342 645 RoW: 416 255 139 82 ~11% of Q1 FY24 revenue Q1 FY23 Price & Volume Price & Volume growth Contract exit / New BD Q1 FY24 impact (global freight) (other business
Slide 20: Revenue: ISCS revenue has grown both in India & RoW
in INR Cr Revenue: ISCS revenue has grown both in India & RoW India Revenue in INR Cr RoW Revenue in INR Cr -17.3% -10.3% 824 1,852 1,689 1,661 692 681 -1.6% -1.5% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS Revenue in INR Cr RoW N
Slide 21: Resulting in segment mix moving towards higher ISCS contribution
Resulting in segment mix moving towards higher ISCS contribution Revenue mix: ISCS Vs. NS Revenue mix: India Vs. RoW 2,675 2,380 2,342 2,676 2,380 2,342 India 30.8% 29.1% 29.1% 47.3% 43.7% NS 59.0% RoW 69.2% 70.9% 70.9% 52.7% 56.3% ISCS 41.0% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 TVS SUPPL
Slide 22: Margin improvement YoY on the back of revenue mix moving towards higher margin ISCS business
140 bps margin improvement YoY on the back of revenue mix in INR Cr moving towards higher margin ISCS business Adj. EBITDA & Adj. EBITDA margin % in INR Cr YoY growth +7.3% 179.4 180 173.8 10 +3.3% 167.2 160 9 QoQ 7.7% Growth 140 7.3% 8 6.3% 7 120 6 100 5 80 4 60 3 40 2 20 1 0 0 Q1 FY23 Q4 FY23 Q1 F
Slide 23: Segmental performance summary
in INR Cr Segmental performance summary ISCS Segment In INR Cr FY23 Full Q1 FY23 Q4 FY23 Q1 FY24 QoQ YoY Year Growth Growth Revenue from operations 4,580.6 1,097.7 1,255.2 1,318.9 5.1% 20.1% Adjusted EBITDA 408.1 95.3 115.0 139.8 21.6% 46.7% Adj. EBITDA margin % 8.9% 8.7% 9.2% 10.6% NS Segment In IN
Slide 24: Summary profit & loss – Q1 FY24
in INR Cr Summary profit & loss – Q1 FY24 In INR Cr FY23 Full year Q1 FY23 Q4 FY23 Q1 FY24 QoQ Growth YoY Growth Revenue from operations 10,235.4 2,675.5 2,380.2 2,342.4 -1.6% -12.4% Other income 75.6 16.0 10.9 18.2 Total income 10,311.0 2,691.5 2,391.2 2,360.6 -1.3% -12.3% Freight, clearing, forwar
Slide 25: Q1 Consol financial performance summary
in INR Cr Q1 Consol financial performance summary Revenue (in INR Cr) Adj. EBITDA (in INR Cr) 1.6% decline sequentially; 12.5% decline YoY 7.3% growth YoY; 3.3% sequentially -12.4% +7.3% 2,675.5 173.8 179.4 2,380.2 167.2 +3.3% 2,342.4 -1.6% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 PBT before
Slide 26: Q1 FY24 Customer Wins & Pipeline
CONFIDENTIAL Q1 FY24 Customer Wins & Pipeline 25
Slide 27: Stellar customer wins driving new business
Stellar customer wins driving new business Snapshot of key new customer engagements in Q1: ISCS Segment • Centrica PLC (UK) • German technology co focusing on mobility (USA) • Specialized glass & materials co (India) • Leading American solar technology co (India) • Beverage dispensing equipment co (
Slide 28: Entering Q2 with big deals in the pipeline
Entering Q2 with big deals in the pipeline Material handling, storage Encirclement opportunity In plant warehousing and distribution for Indian with large global payment opportunity with leading IT major solutions / ATM co. Japanese & machinery OEM Warehousing, primary and Renewal of contract with F
Slide 29: Appendix: Financial Statements
CONFIDENTIAL Q1 FY24 Appendix: Financial Statements 28
Slide 30: Unaudited Consolidated Financial Results, quarter ended June 30, 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 Statement of Unaudited Consolidated Financial Results for the quarter ended June 30, 2023 (Va
Slide 31: Unaudited Standalone Financial Results, quarter ended June 30, 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 Statement of Unaudited Standalone Financial Results for the quarter ended June 30, 2023 (Valu
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