On Friday, the share price of the microcap stock fell by 0.41 percent to its intraday low of Rs 350.80 from the previous close of Rs 352.45 after the company received a penalty of Rs 35.58 crores from the commissioner of customs.
According to the TVS Electronic Ltd filing, the company imports duty-free thermal line printers from one of our neighboring countries. The Company and the Customs department disagree on how to classify such imported goods for Customs Duty purposes.
Furthermore, the company stated that on December 6, 2023, they received an order from the office of the Commissioner of Customs (Audit), Chennai, to pay Rs 35.58 Crores.
In response to the Show Cause, the Company has provided a comprehensive response. The Company has assigned a legal representative to attend the proceedings after receiving notice.
Looking forward to TVS Electronic Ltd’s financials, the net revenue decreased by 1.2 percent year over year, from Rs 93.33 crore in Q2FY23 to Rs 92.19 crore in Q2FY24. Their revenue rose by 2.6 percent sequentially from Rs 89.84 crore in Q1FY24 to the current levels.
In addition, the company’s net profit decreased by 60 percent year over year, from Rs 2.81 crores in Q2FY23 to Rs 1.12 crores in Q2FY24. Their net profit increased by 250 percent on a sequential basis from Rs 0.32 crore in Q1FY24 to the current levels.
TVS Electronic Limited is a microcap stock with a market capitalization of Rs 655 crores. The stock price of the company has increased by 0.15 percent in the last month and 20 percent in the year to date.
The promoters own 59.91 percent of the company, the general public owns 40.08 percent and domestic institutional investors own 0.01 percent. The firm has a low debt-to-equity ratio of 0.09.
TVS Electronics Ltd manufactures and sells POS devices, printers, keyboards, and other peripherals, as well as providing service to various Original Equipment Manufacturers through delivery models such as exclusive service centers, multi-brand service centers, onsite support, and repair centers.
Written by Sriram KV
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