TVS SCS clocks consolidated Q2 net loss of Rs 30 crore

CHENNAI: TVS Supply Chain Solutions (TVS SCS) saw a consolidated second quarter net loss after tax of Rs 30 crore down from just over Rs 51 crore loss in Q1. Last Q2 the company had clocked a consolidated profit of nearly Rs 38 crore. “On a consolidated basis, Q2 EBITDA margins expanded 100 bps YoY as margin expansion in the Integrated Supply Chain Solutions (ISCS) segment helped balance the Network Solutions (NS) segment,” the company said in a statement.
“Consistent margins and decrease in interest expenses helped narrow the loss before tax and exceptional items to Rs 4.5 crore from a loss of Rs 10.7 crore in Q1 FY24.”
The company also said that it “undertook two strategic interventions in Q2” — sale of Circle Express business and sale of a partial stake in TVS Industrial & Logistics Parks. These two were classified as exceptional items in the quarter and their net impact was Rs -3.2 crore, said the statement.
Consolidated revenue from operations were down 15.6% year-on year in Q2 at Rs 2263 crore down from Rs 2,681 crore last Q2 and lower than the Rs 2289 crore Q1 tally.
The ISCS segment delivered double digit growth and expansion in existing customer engagements and revenues from new business development drove broad based revenue growth across India, UK and Europe, the company said in a statement. New business wins in Q2 FY24 included a contract with a large Indian IT services provider, an industrial manufacturing company in India, a consumer goods business in the UK and a shipbuilding company in India.
Ravi Viswanathan, MD, TVS SCS said, “We continue to see robust demand for supply chain solutions across industry sectors and geographies. Our new opportunity pipeline is strong and we expect new business to continue to deliver. Our global presence, diversified revenue base and operational excellence should drive performance.”
Added Ravi Prakash Bhagavathula, global CFO, TVS SCS, “In Q2, we exited Circle Express, one of our businesses in the NS Segment, which will strengthen our focus on our core capabilities and also have a positive impact on profitability. We have utilized the proceeds from the IPO to reduce our borrowings as a result of which our interest costs were reduced in Q2, the full benefit of which will start flowing through starting Q3.”