Shares of this company under the ‘small-cap’ category jumped approximately 6 percent during the last couple of trading minutes on Tuesday after the company intimated about the extension of the contract with ‘Rolls Royce’ for a period of five years.
With a market capitalization of Rs 8,808.23 crores, the stocks of TVS Supply Chain Solutions Limited, one of the largest and fastest-growing integrated supply chain solutions providers in India, started their trading session on Tuesday on a flat level and closed the session with a sudden surge in share prices at Rs 200.20, indicating a gain of around 6 percent compared to the previous close of Rs 190.05 apiece.
The sharp share price movement was observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), announced the extension of the contract with ‘Rolls-Royce’, a global leader in technology and innovation, for five years until 2029.
The extension of the abovementioned partnership is for the state-of-the-art Parts Distribution Centre (PDC) in Singapore that serves the Asia Pacific markets for Rolls-Royce’s ‘Power Systems’ Business Unit.
The collaborative journey between Rolls-Royce Solutions Asia and the small-cap company began in early 2013 with the mutual goal of enhancing warehouse efficiency and productivity at the PDC through implementing the ‘Automated Storage & Retrieval Systems’ (ASRS).
“The renewal of this contract is a testament to the efficiency and reliability of our tailored supply chain solutions. We look forward to further enhancing the operational excellence of the PDC and supporting Rolls-Royce’s continued growth in the Asia Pacific region.”, commented Mr. Vittorio Favati, CEO, TVS SCS Global Forwarding Solutions.
During the recent financial quarters, the company’s prime business indicators, including operating revenues and bottom-line figures, showed movements in opposing directions.
The former, on one end, fell marginally from Rs 2,262 crores during Q2FY24 to Rs 2,221 crores during Q3FY24, and the latter, keeping the timeframe the same, transitioned from a loss of 41 crores to a profit of Rs 9 crores.
As per the recent investor presentations, the company expects an uptick in volumes soon as far as the ‘Network’ segment is concerned. Moreover, the company aims for a double-digit growth percentage from new business deals. The company’s vision includes achieving profits of $100 mn by FY27 along with a target EBITDA margin of 9.5% to 10%.
TVS Supply Chain Solutions Limited is engaged in the business of providing a basket of supply chain management services including in-plant warehouse, aftermarket warehouse, global supply chain management service, material handling services, domestic supply chain management services, and services relating to the installation and commissioning of telecom towers.
Written by Amit Madnani
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