Shares of TVS Supply Chain Solutions, a part of TVS Mobility Group, tumbled nearly 7% in intraday trade on Tuesday after the company reported increased loss in the first quarter ended June 30, 2023. The share price of Chennai-based logistics and warehousing company snapped four sessions losing streak today as sentiments were dented by weak June quarter earnings report. In the last four sessions, the stock rallied nearly 23% and touched its record high level on Monday.
Reacting to Q1 numbers, TVS Supply Chain Solutions shares declined as much as 6.6% to hit an intraday low of ₹228.95 on the BSE, while the market capitalisation dropped to ₹10,156 crore. Early today, TVS SCS shares opened marginally higher at ₹246.05 against the previous closing price of ₹245.20. On the volume front, more than 2 lakh shares changed hands over the counter as compared to the two-week average volume of 1.74 lakh stocks.
The share price of TVS SCS, which made its debut on August 23, trades 16% higher than IPO price of ₹197 apiece. The counter touched its all-time high level of ₹257.95 on September 11, while it hit its lowest level of ₹193.95 on August 24, 2023.
For the June quarter of FY24, TVS SCS, an integrated supply chain solutions provider, reported a consolidated net loss of ₹65.3 crore compared to a loss of ₹1.8 crore in the year-ago period, and a loss of ₹12.34 crore in the preceding quarter ended March 2023.
The revenue from operations stood at ₹2,342.4 crore, down 12.4% from ₹2,675.5 crore in the same period last year.
“Profit before tax declined due to increase in interest on borrowings by ₹19.2 crore over Q1 FY23 and a one-time non-cash exceptional P&L impact of ₹23.2 crore on account of conversion of compulsorily convertible preference shares issued prior to the IPO and thereafter converted to equity at a discount to the IPO price,” the company says in a BSE filing on Monday.
As per the company, business performance was driven by strong growth momentum in the Integrated Supply Chain Solutions segment (ISCS), which saw its revenue rising by 20.1% YoY and 5.1% QoQ to ₹1,318.9 crore in Q1FY24.
“The mix of business has shifted towards the higher margin ISCS segment. ISCS contributed to 56.3% of consolidated revenue in Q1FY24 compared to 41% in Q1 FY23. This favourable change in business mix towards the ISCS segment and increase in ISCS margins has driven consolidated Adjusted EBITDA margin expansion,” the release noted.
Meanwhile, the network solutions segment reported its revenue dropping by 35.1% YOY and 9% QoQ to ₹1,023.5 crore in Q1FY24.
On August 29, TVS Supply Chain Solutions informed exchanges that its founder and promoter R. Dinesh (executive vice chairman of the company) was appointed as the executive chairman of the company by its board. S. Mahalingam stepped down as chairman after completing his tenure of two terms as independent director, effective August 29, 2023.
The board of the company also onboarded two new additional independent directors – K. Ananth Krishnan and Narayan K. Seshadri. With these appointments, the new board will have 5 independent directors (the other 3 being Tarun Khanna, B. Sriram and Gauri Kumar).
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