Quarterly Result: TVS Srichakra Ltd

Technical View: 
TVS Srichakra Ltd is currently trading at Rs 3442.4, down by 41.55 points or 1.19 per cent from its previous close of Rs 3483.95 on the BSE.
The scrip opened at Rs 3530 and touched a high and low of Rs 3550 and Rs 3413, respectively. A total of 11358 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

Standalone Results:

TVS Srichakra Ltd’s Q2FY17 standalone numbers came below Bloomberg estimates. The company's revenue for the period was 8.9 per cent below the estimate of Rs 569 crore. Its reported net profit for the period was 3.6 per cent YoY below expected net profit of Rs 50 crore.

The revenue for the quarter increased 6.3 per cent YoY to Rs 518.51 crore. Its EBITDA declined 3.4 per cent YoY to Rs 79.38 crore and EBITDA margins contracted 153 bps YoY to 15.3 per cent. This was mainly on the back of 26 per cent YoY increase in employee cost, 9 per cent YoY increase in other expenses and 1 per cent YoY increase in cost of material consumed.

The net profit decreased marginally by 1.6 per cent YoY to Rs 48.18 crore consequent to 23 per cent YoY increase in finance cost.