The shares of the leading supplier of aluminium die castings gained up to 3.4 percent after the company’s Board of Directors approved the acquisition of Home Credit India Finance Private Limited worth Rs 554.06 crore.
With a market capitalization of Rs 20,340.73 crore, the shares of TVS Holdings Ltd were trading at Rs 10,053.70 per share, increasing around 3.41 percent as compared to the previous closing price of Rs 9,722.40 apiece.
According to the company filing, TVS Holdings Ltd’s Board of Directors approved the acquisition of 88,09,45,401 equity shares of Home Credit India Finance Private Limited worth Rs 554.06 crore from Home Credit India B.V., an entity based in the Netherlands and Home Credit International A.S., an entity based in the Czech Republic.
Moreover, This acquisition aligns with the strategy of TVS Holdings Limited to expand in the consumer finance sector, further strengthening the portfolio of TVS Holdings Limited. HCIFPL will operate as a subsidiary of TVS Holdings Limited, maintaining its brand identity and autonomy while benefiting from the resources and support of TVS Holdings Limited.
Looking into TVS Holdings Ltd’s performance, revenue increased by 19 percent from Rs 8,523 crore in Q4FY23 to Rs 10,125 crore in Q4FY24. During the same time frame, net profit increased by 43 percent from Rs 324 crore to Rs 464 crore.
The company’s profitability measures show a incline in return on equity (RoE) from 8.67 percent in FY 21-22 to 20.04 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 13.64 percent to 19.91percent. In contrast, the net profit margin (NPM) was 4.09 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 74.45 percent while Retail shareholders own a 12.04 percent stake in the company and domestic Institutional Investors own a 11.19 percent stake.
TVS Holdings Limited, originally Sundaram Clayton Limited, is an Indian auto component manufacturing and distribution firm. The company’s segments are automotive components, automotive vehicles and parts, financial services, and others. It produces aluminum pressure die castings for big trucks, passenger automobiles, and two-wheelers.
Written by:- Abhishek Singh
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