TVS Supply Chain Solutions Ltd. (TVS SCS) has drawn up a plan to figure among the top 50 logistics companies worldwide, MD Ravi Viswanathan said.
“We want to continue to grow and grow profitably,” he said during an interaction with analysts. “We want to leverage our capabilities and expertise to double our scale to be one of the top 50 logistics companies worldwide,”
The end-to-end supply chain provider posted a strong growth in Q1, expanding at 20.1% across all the three geographies — India, U.K., Europe and North America — with EBITDA growing by 190 basis points.
“India grew by 14.3% in the ISCS (integrated supply chain solutions). So, clearly, India continues to be a very strong driver of growth. Europe and North America together made the rest. The revenue from Network Solutions segment declined by 35.1%,” he said.
On the outlook for FY24, Mr. Viswanathan said that TVS SCS is expected to post a very high teen year-on-year growth in its revenue from ISCS and it might be closer to 20%.
“As a company overall, we are encouraged with a consistent growth in ISCS which ensured the impact of the freight rates were softened. This showcases the strength in our model where our business portfolio balances very well,” he said.
TVS SCS, meanwhile, is planning to incur a capex of ₹100-110 crore every year till FY26, which would be under 1% of revenue. It will be made mostly on technology, automation and warehousing product, said its Global CFO Ravi Prakash Bhagavathula.
As of June 2023, the company had a gross debt of ₹1,788 crore that will come down by roughly about ₹1,090 crore to ₹685-700 crore by March 2024. Net debt should be about ₹100-150 crore. And as a result of that, the interest savings should be about ₹15 crore a quarter, he said.
