TVS Supply Chain Solutions (TVSSCS) Q1 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 2,539.4 crores in Q1FY25, up 10.9%–11% year-over-year and 4.7%–5% sequentially, with profit-led growth across ISCS and Network Solutions segments.

• Returned to profitability with net profit attributable to owners at ₹6.49 crore, reversing a loss of ₹65.54 crore in Q1 FY24; pre-exceptional PBT of ₹13.7 crore.

• Business development contributed 10.7% of total revenue, with significant new customer wins and a robust pipeline exceeding INR 4,000 crores annualized.

• Technology and AI initiatives, including Polarized Light Damage Detection and proof of delivery validation, were deployed at scale across geographies.

• Strategic contracts commenced in Singapore, India, and with global auto majors, increasing deal size and market opportunities.

Financial highlights

• Q1FY25 revenue: INR 2,539.4 crores (Q1FY24: INR 2,288.9 crores; Q4FY24: INR 2,426.3 crores); Adjusted EBITDA at ₹184.51 crore; PBT for the quarter: INR 13.7 crores.

• Adjusted EBITDA margin for ISCS segment at 9.7%, within the guided range; overall Q1 FY25 Adjusted EBITDA margin: 7.3%.

• Gross debt at INR 725–778 crores, down from INR 795 crores in Q4FY24 and INR 1,700 crores pre-IPO.

• Material costs increased 17.3% year-over-year; freight and handling expenses rose 29.2% year-over-year, impacted by the Red Sea situation.

• Employee benefit expenses up 4.9% year-over-year, mainly due to ramp-up in customer engagements.

Outlook and guidance

• Management expects to maintain double-digit revenue growth, supported by large deal wins, global account management, and technology differentiation.

• PBT margin target of 4% by FY27, with a focus on operating leverage and cost control.

• Revenue growth expected to continue at a similar or higher run rate, with business development and large contracts as key drivers.

• Red Sea surcharge expected to impact revenue and margin for the next couple of quarters.

• IFM turnaround in progress, targeting run-rate profitability by H2 FY25.