Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — Q1 FY25 Earnings Presentation
41 slides from Tvs Supply Chain Solutions's earnings presentation, Jul 30, 2024
Slide 1: Stock exchange covering letter for investor presentation
July 30, 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: TVSSCS D
Slide 2: TVS Supply Chain Solutions Q1 FY25 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q1 FY25 Earnings Presentation July 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: Q1FY25 Financial Performance
CONFIDENTIAL Q1FY25 Financial Performance 3
Slide 5: From the desk of MD
From the desk of MD We had a strong first quarter, driven by topline growth in both our ISCS and NS segments. The ISCS segment continues to lead our performance supported by significant volume improvements in the NS segment. Our customers recognize our supply chain transformation capabilities, tech-
Slide 6: Financial Snapshot
in INR Cr Financial Snapshot Revenue Adj EBITDA PBT (before exceptional items) YoY Growth QoQ Growth YoY Growth QoQ Growth YoY Growth QoQ Growth 10.9% 4.7% -1.0% 5.7% Turns +ve 177.1% 2,426 2,539 186 185 14 2,289 175 5 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 -11 Q1FY24 Q4FY24 Q1FY25 New Business W
Slide 7: Executive Summary
Executive Summary Business update: • Awarded Partner Level status by US based global Farm Equipment Manufacturer, this a key milestone in the relationship • On track in set up of an automated facility for a UK based Multinational Energy Co; completion in Q2 • Commenced key parts distribution engagem
Slide 8: Revenue
Growth Trajectory: Strong revenue performance across both in INR Cr segments drives improvement in PBT +10.9% Revenue 2,426 2,539 2,289 2,263 2,222 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 8.1% 7.8% 7.8% 7.2% 7.3% Adj. EBITDA & Margin -1.0% 186 176 174 175 185 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 -ve -ve 0.
Slide 9: Key Highlights
Key Highlights Integrated Supply Chain Solutions (ISCS) Network Solutions (NS) ISCS continues to deliver strong growth NS segment grew both revenue and Adj. EBITDA YoY & QoQ Quarterly ✓ Q1 revenue: ₹ 1,425.9 Cr; grew 8.1% YoY and 3.4% QoQ ✓ Q1 revenue: ₹ 1,113.5 Cr; grew by 14.8% YoY & 6.4% QoQ Perf
Slide 10: Segment wise Revenue and Adj EBITDA
In ₹ Cr Segment wise Revenue and Adj EBITDA: 10.9% YoY growth in revenue driven by consistent revenue performance in ISCS and improved volume in GFS ISCS Segment (In ₹ Cr.) NS Segment (In ₹ Cr.) Total (In ₹ Cr.) +8.1% +14.8% +10.9% 1,380 1,426 1,113 2,539 1,319 1,047 2,426 970 2,289 Revenue Q1FY24 Q
Slide 11: Geography wise Revenue: RoW shows exceptional growth
Geography wise Revenue : RoW shows exceptional growth in ₹ Cr momentum in both segments. ISCS Segment (In ₹ Cr.) NS Segment (In ₹ Cr.) Total (In ₹ Cr.) -6.0% +37.1% +2.3% 549 172 181 681 693 697 521 516 India 132 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 +18.2% +11.3% +14.6% 910
Slide 12: Strong new business delivery
in ₹ Cr Strong new business delivery Revenue bridge: Q1 FY24 to Q1 FY25 in ₹ Cr 2,566 2,289 38 80 246 73 Q1 FY24 Price & Volume Price & Volume growth Contract exit / New BD Q1 FY25 impact (global freight) (other businesses) loss of customer In Q1FY25, 10.7% of our consolidated revenue are generated
Slide 13: Robust Pipeline continues to propel the revenue growth
Robust Pipeline continues to propel the revenue growth Small opportunities Mid-sized opportunities Large opportunities (sub ₹ 20 Cr ARR) (₹ 20 – 50 Cr ARR) (> ₹ 50 Cr ARR) Spares management solution for Intra-Asia air and sea cargo Air cargo solution for a global plumbing, heating & renewable soluti
Slide 14: Business development efforts yielding consistent results
Business development efforts yielding consistent results ISCS Segment Global IT services Metal forgings Passenger / Commercial Industrial machinery Passenger car provider manufacturer vehicle manufacturer manufacturer manufacture (India) (India) (India) (Europe) (US) NS Segment Global electronic Mat
Slide 15: UK Energy Co. opened the doors for participation in larger deals
UK Energy Co. opened the doors for participation in larger deals In SCS Europe, our pipeline in the ISCS business has considerably grown in the last 12 – 15 months Avg. deal size in Jan 22 Avg. deal size in July 24 3x Increase in Average Deal Size post order win £2.7mn £9 Mn 2.3x 163 Won a deal from
Slide 16: We are seeing increase in large deals in our growing US pipeline
We are seeing increase in large deals in our growing US pipeline Order Pipeline has grown 2.4x and average deal size has grown ~2x since Jul 2023 Average Deal Size in Average Deal Size in Jul- 23 2x Increase in Average Deal Size July-24 $5.7 Mn $11.3 Mn 2.4x 271 114 Pipeline in USD mn Jul-23 Jul-24
Slide 17: Q1FY25 Profit & Loss Statement
in ₹ Cr Q1FY25 Profit & Loss Statement In ₹ Cr - Continuing operations Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q Revenue from operations 2,539.4 2,288.9 10.9% 2,426.3 4.7% Other Income 5.6 18.2 6.8 Total Income 2,545.0 2,307.1 10.3% 2,433.1 4.6% Total material related costs 488.7 416.6 467.4 Freight, clearin
Slide 18: Company Overview
CONFIDENTIAL Company Overview 17
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 23
Slide 25: Region wise segmental historical Overview
CONFIDENTIAL Region wise segmental historical Overview 24
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 25
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: FY24 Proforma Profit & Loss Statement
in ₹ Cr FY24 Proforma Profit & Loss Statement 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, forwarding and handli
Slide 36: Select Case Studies
CONFIDENTIAL Select Case Studies 35
Slide 37: 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 38: 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 39: 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 40: 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 41: Thank You
Thank You Company: TVS Supply Chain Solutions Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U63011TN2004PLC054655 www.sgapl.net CIN: U74140MH2010PTC204285 Mr. J. Sivakumar - Head Investor Relations Mr. Sagar Shroff / Mr. Ayush Haria Email: investor.relations@tvsscs.com Email:
TVS Supply Chain Solutions — Q1 FY25 Earnings Presentation on 6ix