The shares of this smallcap company jumped around 3 percent in Thursday’s trading session after securing a multi-year contract from JCB for In-Plant logistics at Vadodara.
Price Movement:
With a market capitalization of Rs. 8,385 crores, the shares of TVS Supply Chain Solutions Ltd started Thursday’s trading session on a higher note at Rs. 187.40 compared to its previous close of Rs. 184.28. During the trading session, the shares hit a high of Rs. 190.52, gaining around 3 percent and are currently trading at Rs. 189 apiece.
Is TVS Supply Chain Solutions a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had secured a new business contract from JCB in India for managing their in-plant warehousing and logistics operations at their facility in Vadodara, Gujarat for three years.
TVS SCS’s In-plant logistics services for JCB’s Vadodara plant will comprise end-to-end warehouse management, from unloading and put-away of parts to picking and lineside feeding.
The company will deploy Material Handling Equipment (MHEs) and employ close to 110 personnel for this contract. JCB’s Vadodra plant manufactures fabrications and components for JCB’s plants Globally.
Financials:
Looking at the company’s financial statements, the revenue increased by around 5 percent from Rs. 2,426.31 crores during the March quarter to Rs. 2,539.39 crores in the June quarter. In addition, the net profits surged by around 39 percent from Rs. 5.38 crores to Rs. 7.47 crores during the same period.
The company generates revenue from diverse channels, with the Industrial sector leading at 29 percent, trailed by the Automotive sector contributing 23 percent. The remaining 52 percent stems from various sectors such as Technology, Technology Infrastructure, Consumer Goods, Healthcare, and others.
Order Book:
The company has a robust order pipeline of approx. Rs. 4,000 crores and as set an ambitious target of achieving double-digit revenue growth in the ISCS segment.
Company Profile:
Headquartered in Tamil Nadu (NS:TNNP), TVS Supply Chain Solutions provides supply chain management services for international organizations, government departments, and large and medium-sized businesses.
Written By Vaibhav Patil
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