TVS Supply Chain Q2 Results: Profit of ₹10.6 cr, reversing losses from last year

Integrated supply chain solutions provider TVS Supply Chain Solutions reported a net profit of ₹10.6 crore for the second quarter of FY2024, compared to a loss of ₹40.6 crore in the same period last year.

Revenue for the quarter grew by 11%, reaching ₹2,513 crore, up from ₹2,263 crore in Q2 FY2023.

However, the company’s EBITDA declined by 8.8%, coming in at ₹169 crore, compared to ₹185 crore in the corresponding quarter of the previous year. EBITDA margin also contracted to 6.7%, down from 8.2% in Q2 FY2023.

The company attributed the turnaround to net profit to higher revenue growth, despite the margin compression and a drop in EBITDA.

In the integrated supply chain solutions segment, the company registered a margin expansion of 90 basis points Y-o-Y due to the continued focus on operational efficiency and a disciplined approach to cost management.

The Q2 revenue grew by 6.2 % Y-o-Y to ₹1,348.5 Cr. as against ₹1,269.5
crore. The segment reflects deepening engagement with existing customers and revenues from new customer acquisitions across key geographies.

Also Watch | Ravi Viswanathan, MD and Raviprakash, Global CFO of TVS Supply Chain discuss Q2 FY25 figures in an interview with CNBC-TV18.

Network solutions segment reported a revenue of ₹1,164.4 Cr. in Q2, as against ₹993.4 Cr. in the same quarter previous year marking a 17.2% growth on Y-o-Y basis. The segment has shown sequential revenue growth for four quarters in a row from Q3 FY24.