TVS Srichakra's Q1 FY25 financial report shows mixed results, with areas for improvement

TVS Srichakra, a smallcap company in the tyre industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, TVS Srichakra has seen a negative performance in the quarter, with a score of -12 compared to 3 in the previous quarter. However, there are some positive aspects to the company’s financials. The net sales for the quarter were the highest in the last five quarters, at Rs 790.98 crore, and the near-term sales trend is positive.

On the other hand, there are some areas where TVS Srichakra needs improvement. The profit before tax less other income (PBT) for the quarter has fallen by 67.3% compared to the average of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has fallen by 75.4%. The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The company’s interest costs have also risen, indicating increased borrowings. The operating profit (PBDIT) for the quarter is the lowest in the last five quarters, and the operating profit margin has also decreased. The earnings per share (EPS) for the quarter are the lowest in the last five quarters, showing a decline in profitability.

Moreover, TVS Srichakra’s debt-equity ratio is the highest in the last five half-yearly periods, indicating that the company is borrowing more to fund its operations. This may lead to a stressed liquidity situation for the company.

Overall, TVS Srichakra’s financial performance for the quarter ending March 2024 has been negative, with some areas of improvement and others that need attention. Investors should carefully consider these factors before making any decisions regarding the company’s stock.