The small cap tire manufacturing company and a group member of TVS was authorised to invest 10 million dollars to establish a subsidiary in the USA.
TVS srichakra, a small cap company with a market capitalization of Rs.3,006.73 started its trading session on Monday on a flatter note. Due to geopolitical tensions, the markets were down and even the shares of TVS srichakra opened flat at Rs. 4,003 and closed there day by hitting an intraday low of Rs. 3,750 making a loss around 6 percent.
In the filing with the exchange, the company informed that the board meeting, held on 20th october, has resolved to authorise overseas direct investment of 10 million USD for the establishment of a subsidiary in the state of Michigan, USA.
This investment will encompass, through the subsidiary, an acquisition of assets, liabilities and business operations of an existing corporation, expanding our commercial activities in the USA.
The aim is to establish its own subsidiary in the US by acquiring SG Acquisition, which will focus on Off-Highway tyre products and the board has authorised to make an investment around 10 million USD.
The company’s revenue was accelerated in the last quarter to Rs.702.2 cr compared to Rs 682.85 cr in the March quarter. Meanwhile,the consolidated net profit has decreased to Rs 20.95 cr in Q1FY24 compared to Rs 22.37 cr during the March quarter.
Looking into the financial ratio of the company, the Return on Equity was reported at 7.76 percent and Return on Capital employed at 8.9 percent during FY 22-23.
According to the recent shareholding of the company,the promoters of the company have 45.70 percent share, FIIs have 1.10 percent holdings, DIIs have 2.79 percent of share and the remaining 54.30 percent is with the public.
TVS Srichakra is a group member of TVS Ltd. The company is one of the largest manufacturers of motorcycle,scooter and moped tyres producing 2.7 million tyres and tubes per month. The other product range includes OFF HIGHWAY Tyres for Industrial, Farm, agriculture implements, Tractors, Construction and OTR Tyres. Exports to USA, Europe, Latin America, Australasia and Middle East.
Written by Vaibhav Patil
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