TVS SCS clocks strong revenue growth of 33.4%
TVS Supply Chain Solutions (“TVS SCS”), the only differentiated Indian supply chain logistics solution provider to have global capabilities and network across the value chain, posted strong growth in FY22 and H1FY23, as revenue from operations grew from Rs. 6,934 crores in FY21 to Rs. 9,250 crores in FY22, exhibiting growth of 33.4%.
The company continued to show strong operating performance in six months of FY23 as well, generating revenue from operations of Rs. 5,419 crore and clocking growth of 27.8% YoY. The Company’s revenue from India operations grew 52.3% YoY and was Rs. 1,627 crores. In terms of its global footprint, despite fears of a possible slowdown in global markets, revenue from outside India grew 19.6% YoY and was Rs. 3,792 crores.
TVS SCS also returned to a positive bottom-line in H1FY23, turning in a profit for the period of Rs. 38.05 crore. Finally, the Company’s operational profitability continued to show strong trajectory, with it generating an EBITDA of Rs. 613 crores during FY22 and Rs. 332 crores in H1FY23.
The company has filed an addendum to its DRHP with SEBI. The company had filed its DRHP with SEBI in February 2022. The addendum includes the financial information for FY22 and H1FY23.
TVS SCS is likely to end FY23 with revenues of around Rs. 10,500 crore and FY24 revenues are likely to be around Rs. 12,500 crores, according to industry and analyst sources.
Today, the $ 1.2 bn organization TVS SCS works with 733 customers in India and 7,120 customers globally. TVS SCS aspires to be a $2.5 billion company and to be among the top 50 companies globally, as per informed sources.
TVS SCS is an India based multinational company, who pioneered the development of the supply chain solutions market in India. It is among India’s largest and fastest growing integrated supply chain solutions provider in terms of revenues in Fiscal 2021. For the last 15 years, the Company has managed large and complex supply chains across multiple industries in India and select global markets through customized tech-enabled solutions. The Company has a marquee client base across the world – it is present in over 25 countries and has served more than 60 ‘Fortune Global 500 2021’ clients during H1FY22.
As on September 30, 2022, TVS SCS works with 64 ‘Global Fortune 500 2021’ Companies. And 75% of business come from non-auto clients and 95% of business from non-TVS group companies. TVS SCS has long-term relationship with customers and the average period of relationship with top 10 customers is 10—13 years.
TVS SCS is a highly integrated organization with presence in four (4) continents; over 26 countries; along with a highly skilled workforce of over 18,000 employees.
TVS SCS has acquired and successfully integrated 65 companies. It acquired companies for new capabilities / geographical expansion and for building international network for global forwarding solutions and domestic network for last mile and time critical services.
TVS SCS has a long-standing track record of making acquisitions and integrating them into its own business. The Company has acquired and successfully integrated many acquisitions in the last 15 years, using its acquisition strategy to acquire customer base, geographical reach and technological capability.
Though the economic scenario in Europe and US not very bright, TVS SCS business in these counties are less prone to recession as they cater to sectors such as Defense, EV, Railways, Refuse Trucks, Utilities, ATMs, Fintech, Technology, etc. Also, 80% of TVS SCS business is less prone to recession in developed markets – because of the business spread in resilient sectors.