TVS Supply Chain Solutions Limited (TVSSCS) announced its financial results for the quarter and year ended March 31, 2025, highlighting a significant turnaround and robust growth across its segments.

• FY25 Performance Highlights:

  • Profit Before Tax (PBT) reached ₹29 crores, a substantial improvement from a loss of ₹10 crores in FY24.
  • Revenues from operations grew by 9% year-on-year, from ₹9,200 crores in FY24 to ₹9,996 crores in FY25.
  • Adjusted EBITDA stood at ₹675 crores, reflecting a margin of 6.8%.

• Q4 FY25 Performance Highlights:

  • Consolidated revenue grew by 3% year-on-year and 2.2% sequentially to ₹2,498.8 crores.
  • PBT for Q4 was ₹13 crores, a strong recovery from a loss of ₹15 crores in Q3 FY25. Normalized PBT (adjusting for redundancy costs) was ₹18 crores.
  • Adjusted EBITDA for Q4 FY25 was ₹161 crores with a margin of 6.5%.

• Segmental Performance:

  • Integrated Supply Chain Solutions (ISCS) segment:
    • Revenue grew by 4.9% in FY25. In Q4, ISCS revenue was ₹1,421 crores, a 9.2% sequential growth, primarily driven by strong volumes from the North American market.
    • Performance in North America remained resilient, while India saw strategic portfolio realignment leading to improved bottom-line margins and capital efficiency.
    • Adjusted EBITDA for ISCS was ₹122 crores in Q4 at an 8.6% margin.
  • Network Solutions (NS) segment:
    • Full-year growth of 13.6% driven by price surge and new customer wins.
    • Q4 revenue was ₹1,077.9 crores, a sequential decline of 5.7% due to lower volumes in ocean and air freight.
    • Integrated Final Mile (IFM) business achieved positive profitability in Q4, marking a strong recovery. This turnaround was driven by price increases from over 100 customers, consolidation of forward stocking locations, manpower rationalization, and improved operational efficiencies. Management expects sequential improvement in profitability from FY26 onwards, aiming to reach original guidance by FY27.
    • Global Freight Services (GFS) business: Witnessed sequential volume decline due to broader macroeconomic headwinds and volatility in the global freight industry, influenced by policy-induced trade disruptions (U.S. tariffs, container availability). The business continues to operate at structurally lower margins.
    • Adjusted EBITDA for NS grew from ₹44 crores in Q3 to ₹55 crores in Q4, with margins improving from 3.8% to 5.1% due to IFM turnaround.

• Strategic Cost Actions:

  • The company initiated strategic actions including leadership restructuring, headcount rationalization, outsourcing from high-cost to low-cost locations, and reduction in overheads.
  • Redundancy costs of ₹5 crores were incurred in Q4 and ₹8 crores for the full year FY25. These actions will continue through Q1 and Q2 of FY26 and are expected to yield significant savings from the second half of FY26, supporting the target of 4% PBT margin.

• New Business and Pipeline:

  • New business wins totaled ₹235 crores in Q4 and ₹1,009 crores for the full year FY25.
  • Added 24 new Fortune 500 customers in FY25, bringing the total active Fortune 500 customers to 91.
  • The order pipeline remains strong at ₹5,250 crores.
  • A 3-year, ₹1,000 crore revenue contract with a Fortune 500 British multinational retail chain for UK-wide storage and distribution services has been finalized. This contract will come into effect from the second half of FY26.
  • Regained a major global auto component manufacturer in India for the freight forward segment.
  • In India, the company is in advanced discussions for a comprehensive 3PL end-to-end solution for a global wind turbine manufacturer, and actively engaging with a leading Indian chemical manufacturer, a prominent Indian commercial vehicle manufacturer, and one of India's largest conglomerates for warehousing and 3PL solutions.

• Management Commentary:

  • Mr. Ravi Viswanathan, Managing Director, stated that FY25 marked a strong turnaround year, reaffirming the strength of their strategy and progress towards achieving a 4% PBT margin. He expressed confidence in double-digit revenue growth and bullishness about long-term growth outlook, despite volatility in the GFS segment.
  • Mr. R. Vaidhyanathan, Global CFO, highlighted the strong Q4 performance, the operational profitability of the IFM business, and the generation of ₹194 crores net cash from operating activities for the year.

• Other Updates:

  • Forex gain/loss has been reclassified as a separate line item for improved financial statement readability.
  • The company is partially exiting a large UK contract, incurring a one-time cost of ₹13 crores in Q4 FY25. This exit is due to a customer's change in strategy to in-source part of the business by September 2025, with an estimated revenue impact of ₹60-70 crores in FY26.
  • Mr. Jon Croyden has been elevated to head all European business following the resignation of the previous UK CEO.