Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q4 FY24 Earnings Presentation
38 slides from Tvs Supply Chain Solutions's earnings presentation, May 27, 2024
Slide 1: Exchange filing cover letter
May 27, 2024 To 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 Q4 FY24 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q4 FY24 Earnings Presentation May 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: Key Highlights
Key Highlights Integrated Supply Chain Solutions (ISCS) Network Solutions (NS) ISCS continues to deliver strong growth in Revenue & Adj. EBITDA NS segment grew both revenue and Adj. EBITDA QoQ ✓ Q4 revenue: Rs 1,380 Cr; grew 9.9% YoY and 8.4% QoQ ✓ Q4 revenue: Rs 1,047 Cr; de-grew by 1.8% YoY & grew
Slide 5: Q4 & FY24 Financial Performance
CONFIDENTIAL Q4 & FY24 Financial Performance 4
Slide 6: Segment wise Revenue: Q4 & FY24
in INR Cr Segment wise Revenue : Q4 & FY24 ISCS Segment (In INR Cr.) NS Segment (In INR Cr.) Total (In INR Cr.) +14.4% -26.9% -7.9% 5,240 5,414 9,994 4,581 9,200 Revenue 3,960 +9.9% +4.5% -1.8% 1,255 1,272 1,380 2,322 2,222 2,426 1,066 950 1,047 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY
Slide 7: Geography wise Revenue: Q4 & FY24
in INR Cr Geography wise Revenue : Q4 & FY24 ISCS Segment (In INR Cr.) NS Segment (In INR Cr.) Total (In INR Cr.) +4.9% -41.6% -10.4% 2,027 2,127 1,000 3,027 2,711 India 584 -3.8% +0.2% +14.6% 541 520 521 692 655 693 151 135 172 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3
Slide 8: Strong new business delivery
in INR Cr Strong new business delivery Revenue bridge: Q4 FY23 to Q4 FY24 in INR Cr Revenue bridge: FY23 to FY24 in INR Cr 2,426 9,995 2,322 62 11 218 9,200 62 1,632 880 223 266 Q4 FY23 Price & Volume Price & Volume Contract exit / New BD Q4 FY24 FY23 Price & Volume Price & Volume Contract exit / Ne
Slide 9: Positive Margin Trajectory
in INR 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
Slide 10: 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 11: Strategic interventions: Repayment of borrowings
in INR Cr Strategic interventions: Repayment of borrowings 1,783.7 Savings of Rs. ~35 Crs of Interest cost for the year going forward 654.1 335.8 793.8 Gross Debt Pre IPO IPO Proceeds Other Capital Funds As of Mar 2024 We have successfully repaid all our term loans using capital raised during the IP
Slide 12: Business development efforts yielding consistent results
Business development efforts yielding consistent results ISCS Segment Diversified Equipment Commercial Vehicle Engine / Generator Water / Utilities Defence Contractor Manufacturing Co OEM Manufacturer Company (UK) (India) (India) (India) (UK) NS Segment Communication Tech / Solutions Engineering / P
Slide 13: Robust Pipeline
Robust Pipeline Integrated 3PL solution Contract logistics solution Multiple opportunities across for diversified electrical for manufacturer of specialized US, Europe equipment company chemicals for an agri-equipment company Supply chain solution Logistics operations centre & Air freight solution f
Slide 14: From the desk of MD
From the desk of MD Our results highlight the consistent growth in the ISCS segment and resilience in the NS segment. During the year, we made considerable progress in our cross-selling efforts, increasing our wallet share with customers. We also expanded our footprint across customer segments, incl
Slide 15: Q4FY24 Profit & Loss Statement
in INR Cr Q4FY24 Profit & Loss Statement In INR Cr - Continuing operations Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from operations 2,426.3 2,321.6 4.5% 2,221.8 9.2% 9,200.0 9,994.4 -7.9% Other Income 6.8 10.9 21.6 54.8 75.6 Total Income 2,433.1 2,332.5 4.3% 2,243.4 8.5% 9,254.8 10,0
Slide 16: FY24 Proforma Profit & Loss Statement
in INR Cr FY24 Proforma Profit & Loss Statement In INR Cr - Continuing operations FY24 Proforma FY24* FY23 Revenue from operations 9,200.0 9,200.0 9,994.4 Other Income 54.8 54.8 75.6 Total Income 9,254.8 9,254.8 10,070.0 Total material related costs 1,661.3 1,661.3 1,383.4 Freight, clearing, forward
Slide 17: Balance Sheet
in INR Cr Balance Sheet Equity & Liabilities (in ₹ Cr) Mar-24 Mar-23 Assets (in ₹ Cr) Mar-24 Mar-23 Equity Non - Current Assets Share Capital 44.1 36.4 Reserves & Surplus 1,771.0 687.1 Property Plant & Equipment 338.0 325.6 Equity attributable to owners of the Company 1,815.0 723.6 Right of Use Asse
Slide 18: Consolidated Key Ratios
Consolidated Key Ratios ROE (%)1 ROCE (%)1 6.2% 5.5% 4.8% FY23 FY24 -1.7% FY23 FY24 Debt to Equity (x)2 Net Debt to Adj. EBITDA3 (x) 1.6 2.7 2.3 0.4 FY23 FY24 FY23 FY24 1 - ROE/ROCE is computed based on Profit before exceptional items. 2 - FY23 Borrowings is excluding CCPS. CCPS is included in equit
Slide 19: 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 20: Region wise segmental Overview
CONFIDENTIAL Region wise segmental Overview 19
Slide 21: Outperforming the GDP growth Regionally
in INR 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 20
Slide 22: ISCS Consolidated
in INR 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
Slide 23: ISCS – UK Business Growth Levers
in INR 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
Slide 24: ISCS – North America Business Growth Levers
in INR 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
Slide 25: ISCS – India Business Growth Levers
in INR 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 FY2
Slide 26: 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 27: IFM Performance
IFM Performance Demonstrated Growth in Revenues* New Order Wins Continue... Countries Revenue 9 +8.7% 1,802 175 INR 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
Slide 28: 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 29: Select Case Studies
CONFIDENTIAL Select Case Studies 28
Slide 30: Transforming Distribution Through Technology-Driven Solutions
Transforming Distribution 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 manag
Slide 31: Bespoke technology led solutions for manufacturing & exports
Bespoke technology led solutions for manufacturing & exports 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 deli
Slide 32: 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
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: 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 36: 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 37: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology 36
Slide 38: Thank You
Thank You Company: TVS Supply Chain Solutions Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U63011TN2004PLC054655 www.sgapl.net CIN: U74140MH2010PTC204285 Email: investor.relations@tvsscs.com Ms. Prachi Chhugani / Mr. Ayush Haria For updates and specific queries, please visit
TVS Supply Chain Solutions — Q4 FY24 Earnings Presentation on 6ix