TVS Supply Chain Solutions (TVSSCS) Q2 23/24 earnings summary

Executive summary

• Revenue from operations for Q2 FY24 was ₹2,262.91 crore, down from ₹2,680.79 crore in Q2 FY23; H1 FY24 revenue was ₹4,551.83 crore, down from ₹5,299.36 crore in H1 FY23.

• Net loss for Q2 FY24 stood at ₹40.60 crore, compared to a profit of ₹39.84 crore in Q2 FY23; H1 FY24 net loss was ₹105.86 crore versus a profit of ₹38.04 crore in H1 FY23.

• IPO completed in August 2023, raising ₹525 crore (net of expenses), with proceeds mainly used for debt repayment.

• Disposed of UK subsidiary Circle Express Limited, resulting in a net loss of ₹38.53 crore as an exceptional item.

• Conversion of ₹556.16 crore CCPS to equity shares in July 2023; fair value change of ₹23.17 crore expensed as an exceptional item.

Financial highlights

• Q2 FY24 total income: ₹2,271.20 crore, down from ₹2,701.79 crore in Q2 FY23.

• EBITDA for H1 FY24: ₹362.06 crore, up from ₹345.79 crore in H1 FY23.

• EPS for Q2 FY24: Basic and diluted loss per share at ₹(1.19), compared to EPS of ₹1.07 in Q2 FY23.

• Cash and cash equivalents as of 30 Sep 2023: ₹809.92 crore, down from ₹1,085.79 crore as of 31 Mar 2023.

• Total assets as of 30 Sep 2023: ₹6,002.52 crore, down from ₹6,210.90 crore as of 31 Mar 2023.

Outlook and guidance

• Management expects continued focus on operational efficiency and cost optimization post-IPO.

• IPO proceeds to support deleveraging and future growth initiatives.

• No formal forward-looking revenue or profit guidance provided.