TVS Supply Chains Solutions shares gained about 8 percent during early trading hours on Tuesday, February 18, following NSE data on TVS Motor's block deal purchase on Monday.
In the NSE filing on Monday, the block deal data reveals that TVS Motor Company bought stakes after Allanzers Fin Net sold 20,00,000 shares at Rs 128.86 per share.
Both, TVS Motor and TVS Supply Chain Solutions, are a part of TVS Group that provides end-to-end logistics and supply chain management services to global and domestic customer base.
TVS Motor Company Limited shares are trading at Rs 2,346.85 which is at a decline of 0.80 percent, as of 10:20 am.
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TVS Supply Chain Solutions had reported its earnings performance for the quarter ended December, of the current fiscal year, with a net loss of Rs 24.65 crore. This stood against the net profit of Rs 9.56 crore recorded during the previous quarter ended December 2023. The company attributed the decline in profitability to delays in commissioning a major project for a key customer in Europe, coupled with lower sales volumes during what is traditionally a weaker quarter.
Despite the loss, the company reported a 10 percent year-over-year increase in revenue, reaching Rs 2,444.6 crore in Q3FY25, up from Rs 2,222 crore in Q3FY24. The company's two primary segments showed varying growth: the Integrated Supply Chain Solutions (ISCS) segment saw a 2.3 percent year-over-year increase, while the Network Solutions (NS) segment experienced a more substantial 20.4 percent year-over-year growth.
Raviprakash Bhagavathula, global CFO, TVS SCS, said during the earnings call, "Our supply chain businesses in India and North America have delivered steady margins in Q3. In Europe, we expect the margins to normalize by Q1FY26. The NS segment saw a notable sequential improvement in margins by 140 bps. Additionally, efficient working capital management and cost rationalisation initiatives have contributed to a positive cash flow in Q3."
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