TVS Supply Chain Solutions posts Rs 65 crore loss in Q1

The revenue from operations during the first quarter of the current fiscal declined 12.4% to Rs 2,342.4 crore as against Rs 2,675.5 crore in the year-ago period, the company said in a statement.

TVS Supply Chain Solutions on Monday posted a consolidated net loss of Rs 65.3 crore for the June quarter.

The company, which got listed recently, had reported a loss of Rs 1.8 crore in the same period a year ago.

The revenue from operations during the first quarter of the current fiscal declined 12.4 per cent to Rs 2,342.4 crore as against Rs 2,675.5 crore in the year-ago period, the company said in a statement.

The company's revenue from the Integrated Supply Chain Solutions Segment (ISCS) vertical was Rs 1,318.9 crore during the quarter, up 20.1 per cent year-on-year from Rs 1,097.7 crore.

ISCS segment revenue grew in all geographies -- India, Europe, North America -- both sequentially and year-on-year, the company said, adding that expansion in existing engagements and new business development drove revenue growth.

Freight revenues were impacted by delay in volume uptake in air and ocean freight as well as subdued freight rates, the company said.

"We are witnessing a trend of increasing outsourcing of supply chain activities across industries, resulting in expansion of existing engagements and a strong pipeline of new opportunities."

"This trend is a tailwind for growth of the ISCS segment where we have strong demand drivers in all geographies where we are present," TVS Supply Chain Solutions Ltd Managing Director Ravi Viswanathan said.

The company's ISCS revenue in India grew 14.3 per cent year-on-year, he said.

According to him, inflationary pressures are seen to ease off in Europe and North America.

"Our sectoral mix of revenue has enabled us to grow year-on-year in double digits in both North America and Europe" he added.

"Our focus was on operational efficiency and cost reduction initiatives, resulting in expansion of Adjusted EBITDA margins by 140 bps YoY," TVS Supply Chain Solutions Ltd Global CFO Ravi Prakash Bhagavathula said.

"The June quarter showcased inherent strengths in our portfolio and business mix. Overall profitability showed a decline because of higher interest cost and a one-time exceptional expense,"he added.