Shares of this smallcap company surged 8 percent in Wednesday’s trading session after signing a 5-year strategic deal with Mercedes-Benz group.
With a market capitalization of Rs. 7,830 crores, the shares of TVS Supply Chain Solutions Ltd started Wednesday’s trading session on a higher note at Rs. 176.99 compared to its previous close of Rs. 169.30. During the trading session, the shares hit a high of Rs. 182.76, gaining around 8 percent and are currently trading at Rs. 177 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced a new 5-year strategic contract with Daimler Truck South East Asia Pte Ltd, a Daimler Truck AG company, for Integrated Supply Chain Solutions (ISCS) service in Singapore. The Mercedes-Benz Group holds the largest stake in Daimler Truck Holding AG.
The contract aims to streamline supply chain operations for Daimler Truck’s distributors, dealers, and workshops across 16 countries. TVS SCS will manage these operations from its strategic logistics centre in Singapore.
Furthermore, this partnership aims to create a robust logistics solution for distributing spare parts and related items, efficiently managing 8,000 SKUs and 65,000 order lines per year.
Additionally, the company will also be delivering a customised IT solution suite, centred on a bespoke online platform that provides inventory visibility and ordering to Daimler Truck Parts Centre (DTPC) Southeast Asia customers.
The IT solution will provide DTPC SEA with an integrated capability for inventory management, parts replenishment ordering, parts pricing, invoicing and data analytics.
Looking at the company’s financial statements, the revenue increased by 9 percent from Rs. 2,221.84 crores during the December quarter to Rs. 2,426.31 crores in the March quarter. On a contrasting note, the net profits decreased by 46 percent from Rs. 9.99 crores to Rs. 5.38 crores during the same period.
The company generates revenue from diverse channels, with the Industrial sector leading at 29 percent, trailed by the Automotive sector contributing 23 percent. The remaining 52 percent stems from various sectors such as Technology, Technology Infrastructure, Consumer Goods, Healthcare, and others..
The company has a robust order pipeline of approx. Rs. 4,000 crores and as set an ambitious target of achieving double-digit revenue growth in the ISCS segment.
Headquartered in Tamil Nadu, TVS Supply Chain Solutions provides supply chain management services for international organizations, government departments, and large and medium-sized businesses.
Written By Vaibhav Patil
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