Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — H1 FY2025 Earnings Presentation
38 slides from Tvs Supply Chain Solutions's earnings presentation, Nov 11, 2024
Slide 1: TVS Supply Chain Solutions Q2 & H1FY25 Earnings Presentation
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Q2 & H1FY25 Earnings Presentation November 2024
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: Q2 & H1FY25 Financial Performance
CONFIDENTIAL Q2 & H1FY25 Financial Performance 3
Slide 4: From the desk of MD
From the desk of MD Commenting on the Q2 & H1FY25 performance, Mr. Ravi Viswanathan; Managing Director – TVS Supply Chain Solutions Limited said : “The Q2 results demonstrate our ability to sustain growth momentum in both revenue and profit, amid ongoing macroeconomic challenges. New business wins h
Slide 5: Financial Snapshot
in INR Cr Financial Snapshot Revenue Adj. EBITDA PBT (before exceptional items) +11.0% +0.2% Turns +ve 2,513 176 176 18 2,263 Q2FY24 Q2FY25 Q2FY24 Q2FY25 -5 Q2FY24 Q2FY25 +11.0% -0.4% Turns +ve 5,052 362 361 32 4,552 H1FY24 H1FY25 H1FY24 H1FY25 -15 H1FY24 H1FY25 New Business Wins Robust BD Pipeline
Slide 6: Executive Summary
Executive Summary Business update: • Won a significant new contract in excess of ₹ 2,200 cr. with a large industrial customer in North America. • Won a 7-year strategic contract with a UK Governmental agency to offer critical systems spares & support, ensuring enhanced availability and operational r
Slide 7: Revenue, Adj EBITDA and Profitability
in INR Cr Revenue, Adj EBITDA and Profitability +11.0% Revenue 2,426 2,539 2,513 2,263 2,222 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 7.8% 7.8% 7.2% 7.3% 7.0% Adj. EBITDA & Margin +0.2% 176 174 175 185 176 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 -ve 0.0% 0.2% 0.5% 0.7% PBT & PBT Margin Turns +ve 18 14 5 1 -5 Q
Slide 8: Key Highlights
Key Highlights Integrated Supply Chain Solutions (ISCS) Network Solutions (NS) ✓ Q2 revenue: ₹ 1,349 Cr; grew 6.2% YoY ✓ Q2 revenue: ₹ 1,164 Cr; grew by 17.2% YoY ✓ Q2 Adj. EBITDA: ₹ 149 Cr; growth of 15.2% YoY ✓ Q2 Adj. EBITDA: ₹ 27 Cr; de-grew by 44.6% YoY Quarterly Performance ✓ Adj. EBIDTA Margi
Slide 9: Segment wise Revenue and Adj EBITDA
In ₹ Cr Segment wise Revenue and Adj EBITDA: 11% 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.) +7.2% +16.0% +11.0% 2,774 2,278 5,052 2,588 4,552 1,964 Revenue +6.2% +17.2% +11.0% 1,349
Slide 10: Geography wise Revenue
in ₹ Cr Geography wise Revenue ISCS Segment (In ₹ Cr.) NS Segment (In ₹ Cr.) Total (In ₹ Cr.) -6.1% +24.0% Flat 1,087 343 1,363 1,363 1,021 276 India -6.1% +12.0% -2.2% 537 504 162 681 666 144 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 +16.8% +14.7% +15.7% 1,
Slide 11: Strong new business delivery
in ₹ Cr Strong new business delivery Revenue bridge: Q2FY24 to Q2FY25 in ₹ Cr Revenue bridge: H1FY24 to H1FY25 in ₹ Cr 2,513 5,052 2,263 79 13 280 4,552 152 24 201 526 122 Q2FY24 Price & Volume Price & Volume Contract New BD Q2FY25 H1FY24 Price & Volume Price & Volume Contract New BD H1FY25 impact (
Slide 12: Robust Pipeline continues to propel the revenue growth
Robust Pipeline continues to propel the revenue growth Key Opportunities in India Key Opportunities in RoW Near Term Opportunities Long gestation opportunities Integrated transportation solution Integrated 3PL solution for leading Transportation solution for a Field Service management for a European
Slide 13: Business development efforts yielding consistent results
Business development efforts yielding consistent results ISCS Segment Global Global Auto OEM Leading global Global Agri Equipment Engine/Generator Kitchen equipment beverages company company manufacturer manufacturing company NS Segment Global Developer and Global Digital Engineering/Equipment Syste
Slide 14: Q2 & H1FY25 Profit & Loss Statement
in ₹ Cr Q2 & H1FY25 Profit & Loss Statement In ₹ Cr - Continuing operations Q2FY25 Q2FY24 Y-o-Y H1FY25 H1FY24 Y-o-Y Revenue from operations 2,512.9 2,262.9 11.0% 5,052.3 4,551.8 11.0% Other Income 28.6 8.3 34.2 26.5 Total Income 2541.5 2271.2 11.9% 5,086.5 4,578.3 11.1% Total material related costs
Slide 15: Balance Sheet
in INR Cr Balance Sheet Assets (in ₹ Cr) Sep-24 Mar-24 Equity & Liabilities (in ₹ Cr) Sep-24 Mar-24 Equity Non - Current Assets Share Capital 44.1 44.1 Reserves & Surplus 1,811.9 1,771.0 Property Plant & Equipment 357.7 340.8 Equity attributable to owners of the Company 1,856.0 1,815.0 Right of Use
Slide 16: Company Overview
CONFIDENTIAL Company Overview 16
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology 22
Slide 23: Region wise segmental historical Overview
CONFIDENTIAL Region wise segmental historical Overview 23
Slide 24: 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 24
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Select Case Studies
CONFIDENTIAL Select Case Studies 33
Slide 34: 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 35: 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 36: 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 37: 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 38: 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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