Tvs Supply Chain Solutions Ltd. · NSE:TVSSCS
Tvs Supply Chain Solutions — JM Financial India Conference 2023
35 slides from Tvs Supply Chain Solutions's conference presentation, Nov 23, 2023
Slide 1: Stock exchange intimation of investor conference
November 20, 2023 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: TVSS
Slide 2: Signature page of exchange intimation
Kindly take the above information on record. Thanking You, Yours faithfully, For TVS SUPPLY CHAIN SOLUTIONS LIMITED PADOOR Digitally signed by PADOOR DORASWAMI KRISHNA PRASAD DORASWAMI Date: 2023.11.20 13:01:50 KRISHNA PRASAD +05'30' P D KRISHNA PRASAD Company Secretary Enclosures: As above
Slide 3: TVS Supply Chain Solutions Investor Presentation November 2023
STRICTLY PRIVATE AND CONFIDENTIAL TVS Supply Chain Solutions Investor Presentation November 2023
Slide 4: Safe harbour & disclaimer (1/2)
Safe harbour & disclaimer (1/2) 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
Slide 5: Safe harbour & disclaimer (2/2)
Safe harbour & disclaimer (2/2) Certain data contained in this Presentation was obtained from various external data sources, the report titled “Logistics and SCS (Supply Chain Solutions) Market in India” dated July 25, 2023 prepared by Redseer Management Consulting Private Ltd. (“Redseer Report”), a
Slide 6: Company Overview
CONFIDENTIAL Company Overview 4
Slide 7: Supply chain solutions provider with end-to-end capabilities
We are a supply chain solutions 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 Fulf
Slide 8: And a global platform
…And a global platform 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 Manipur Gujarat Madhya Pradesh
Slide 9: Positioned to address a large and fast-growing market opportunity
Positioned to address a large and fast-growing market opportunity Market for outsourced supply chain solutions market excluding e-Commerce (in USD bn)1 CAGR 20-22% 20 – 21 Increasing trend towards outsourcing • Focus on core competencies & outsourcing 7.5 – 7.7 • Greater supply chain visibility, pre
Slide 10: 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 11: In-house tech that provides 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 12: Our Growth Vision
Our Growth Vision Deep Domain Expertise Global Network Proprietary Technology TVS SUPPLY CHAIN SOLUTIONS LIMITED 10 CONFIDENTIAL
Slide 13: 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 14: Q2 & H1 FY24 Financial Performance
CONFIDENTIAL Q2 & H1 FY24 Financial Performance 12
Slide 15: Q2 Highlights: ISCS Segment
in INR Cr Q2 Highlights: ISCS Segment Continued growth momentum in the ISCS Segment • ISCS segment revenue for Q2 was INR 1,270 Cr, up 13.5% YoY • Broad based revenue growth across India, UK & Europe • QoQ revenue declined 3.7% on account of specific one-off factors • UAW strike & seasonal plant shu
Slide 16: Q2 Highlights: NS Segment
in INR Cr Q2 Highlights: NS Segment 1. IFM business steady and growing • Revenue grew both sequentially and YoY; sale of Circle Express expected to drive greater focus on core business & margins • We continue to implement cost reduction and operational improvement measures TVS SCS avg. ocean freight
Slide 17: Q2 Consol performance summary
in INR Cr Q2 Consol performance summary YoY Performance QoQ Performance Steady growth in ISCS helped balance impact of freight rate Consol revenue consistent; growth in NS offset one off factors decline impacting ISCS in North America, India • Consol Q2 revenue INR 2,263 Cr; down 15.6% YoY • Consol
Slide 18: Consol Q2 revenue steady versus Q1; ISCS continues growth momentum
Consol Q2 revenue steady versus Q1; ISCS continues growth in INR Cr momentum; NS segment growing sequentially driven by IFM Consol Revenue from operations in INR Cr -15.6% 2,681 YoY Growth QoQ Growth 2,289 2,263 -1.1% Revenue flat; growth in NS offset one off factors impacting ISCS revenues • Within
Slide 19: New BD continues to deliver per expectations
in INR Cr New BD continues to deliver per expectations Revenue bridge: Q2 FY23 to Q2 FY24 in INR Cr 2,681 ~8% of Q2 FY24 584 revenue 2,263 61 75 180 Q2 FY23 Price & Volume Price & Volume growth Contract exit / New BD Q2 FY24 impact (global freight) (other businesses) loss of customer All financials
Slide 20: Performance of both segments consistent across geographies
in INR Cr Performance of both segments consistent across geographies India Revenue in INR Cr RoW Revenue in INR Cr -15.4% -16.1% 1,869 YoY QoQ 812 YoY QoQ 1,608 1,581 681 682 -1.6% 0.0% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS R
Slide 21: More profitable ISCS segment continues to hold higher salience
More profitable ISCS segment continues to hold higher salience Revenue mix: ISCS Vs. NS Revenue mix: India Vs. RoW 2,681 2,289 2,263 2,681 2,289 2,263 India 30.3% 29.8% 30.1% 42.4% 43.9% NS 58.3% RoW 69.7% 70.2% 69.9% 57.6% 56.1% ISCS 41.7% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 All financi
Slide 22: Operating efficiencies drive margins; Adj. EBITDA holding steady
Operating efficiencies drive margins; absolute Adj. EBITDA in INR Cr holding steady despite revenue decline Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -15.6% 2,681 -3.7% 200 10 182.5 186.3 2,289 175.7 9 -5.7% 2,263 8.1% -1.1% 7.8% 8 150 6.8% 7 6 100 5 4 3 50 2
Slide 23: H1 FY24 Revenue: Growth in ISCS balanced freight rate driven NS decline
H1 FY24 Revenue: Growth in ISCS revenue balanced impact of in INR Cr freight rate driven NS decline Consol Revenue from operations in INR Cr YoY growth -14.1% 5,299 4,552 H1 FY23 H1 FY24 ISCS Revenue from operations in INR Cr NS Revenue from operations in INR Cr YoY growth YoY growth +16.8% -36.3% 2
Slide 24: New BD has delivered ~430 Cr in H1 FY24
in INR Cr New BD has delivered: ~ 430 Cr in H1 FY24 Revenue bridge: H1 FY23 to H1 FY24 in INR Cr 5,299 1,229 4,552 434 191 144 ~10% of H1 FY24 revenue H1 FY23 Price & Volume Price & Volume growth Contract exit / New BD H1 FY24 impact (global freight) (other businesses) loss of customer All financial
Slide 25: H1 FY24 Revenue: Double digit ISCS revenue growth across geographies
H1 FY24 Revenue: Double digit ISCS revenue growth across in INR Cr geographies India Revenue in INR Cr RoW Revenue in INR Cr -16.2% -13.2% 1,627 3,672 1,363 3,189 H1 FY23 H1 FY24 H1 FY23 H1 FY24 India ISCS Revenue in INR Cr India NS Revenue in INR Cr RoW ISCS Revenue in INR Cr RoW NS Revenue in INR
Slide 26: Operating efficiencies drive margins; Adj. EBITDA growing despite revenue decline
Operating efficiencies drive margins; absolute Adj. EBITDA growing in INR Cr despite revenue decline Consol Revenue from operations in INR Cr Consol Adj. EBITDA & Adj. EBITDA Margin % -14.1% 5,299 450 14 +4.7% 13 4,552 400 362.1 12 350 345.8 11 10 300 9 8.0% 250 8 6.5% 7 200 6 5 150 4 100 3 2 50 1 0
Slide 27: H1 margins 150 bps higher YoY, driving Adj. EBITDA growth
in INR Cr H1 margins 150 bps higher YoY, driving Adj. EBITDA growth Adj. EBITDA & Adj. EBITDA margin % in INR Cr YoY growth YoY growth -3.7% QoQ 200 186.3 10 Growth 182.5 175.7 450 +4.7% 14 8.1% 9 -5.7% 7.8% 400 362.1 12 8 345.8 150 6.8% 350 7 10 300 8.0% 6 250 6.5% 8 100 5 200 6 4 150 3 450 100 2 5
Slide 28: Segmental performance summary
Segmental performance summary: ISCS margins continue to in INR Cr expand YoY; NS margins recovering FY23 Full QoQ YoY In INR Cr Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 YoY Growth Year Growth Growth ISCS Revenue from operations 4,580.6 1,118.6 1,318.9 1,269.5 -3.7% 13.5% 2,216.3 2,588.4 16.8% Segment
Slide 29: Q2 and H1 FY24: Financial performance summary
in INR Cr Q2 and H1 FY24: Financial performance summary In INR Cr Q2 FY23 Q2 FY24 YoY Delta YoY % Q1 FY24 Q2 FY24 QoQ Delta QoQ % H1 FY23 H1 FY24 YoY Delta YoY % Revenue from operations 2,680.8 2,262.9 -417.9 -15.6% 2,288.9 2,262.9 -26.0 -1.1% 5,299.4 4,551.8 -747.5 -14.1% Other income 21.0 8.3 -12.
Slide 30: Summary P&L: Continuing operations – Q2 and H1 FY24
in INR Cr Summary P&L: Continuing operations – Q2 and H1 FY24 In INR Cr - Continuing operations FY23 Full year Q2 FY23 Q1 FY24 Q2 FY24 QoQ YoY H1 FY23 H1 FY24 YoY Revenue from operations 9,994.4 2,680.8 2,288.9 2,262.9 -1.1% -15.6% 5,299.4 4,551.8 -14.1% 1 Other income 75.6 21.0 18.2 8.3 -54.5% -60.
Slide 31: Balance sheet summary: 30 Sep 23
in INR Cr Balance sheet summary: 30 Sep 23 In INR Cr Mar-23 Sep-23 Non-current assets Property, plant and equipment 325.6 324.3 Right-of-use assets 1,113.6 987.9 Goodwill 608.4 582.4 Other intangible assets 248.1 228.2 Total non-current assets 2,756.7 2,525.5 Current Assets Inventories 345.1 345.0 T
Slide 32: We have reduced leverage, strengthening our balance sheet
in INR Cr We have reduced leverage, strengthening our balance sheet Debt to equity ratio1 Leverage ratio Current + non current borrowings / Total equity Net debt (incl lease liabilities) / Adj. EBITDA 2.9 7.3 2.4 4.4 1.6 2.7 1.7 0.6 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Annualized
Slide 33: Business development efforts yielding consistent results
Business development efforts yielding consistent results Snapshot of key new customer wins in Q2 FY24: ISCS Segment • A large IT services provider (India) • An industrial manufacturing co. (India) • A shipbuilding & manufacturing co. India) • A consumer goods co. (UK) • A kitchen equipment co. (UK)
Slide 34: Our pipeline continues to be robust
Our pipeline continues to be robust Freight mgmt. opportunity Tech. deployment and Global spares management for global automotive maintenance solution for for large global payment system manufacturing co. global IT services co solutions / ATM co. Multi-location warehousing Renewal of contract with A
Slide 35: Thank You
CONFIDENTIAL Thank You 33
TVS Supply Chain Solutions — JM Financial India Conference 2023 on 6ix