TVS Electronics Limited (BSE: 532513, NSE: TVSELECT), a leading electronics company, announced its financial results for the second quarter ended September 30, 2024, posting revenue growth amid investments in new capabilities.
Financial Performance Highlights:
- Revenue from Operations increased by 13.4% year-on-year to INR 1,046 million in Q2 FY25
- EBITDA stood at INR 26 million, down 31.6% from INR 38 million in Q2 FY24
- EBITDA margin contracted to 2.51% from 4.12% in the corresponding quarter
- Company reported a net loss of INR 13 million compared to a profit of INR 11 million in Q2 FY24
Segment Performance: The Products and Solutions vertical remained the largest revenue contributor, generating INR 731 million with an 8.3% year-on-year growth. The Customer Support Services vertical showed strong momentum with a 27.5% year-on-year growth, reaching INR 315 million in revenue, driven by increased service volumes.
Strategic Investments: The company continues to invest in future growth initiatives, particularly in:
- Electronic Manufacturing Services (EMS)
- Research & Development capabilities
- Personnel expansion for new business verticals
Balance Sheet Overview: As of H1 FY25, TVS Electronics maintained:
- Total assets of INR 2,430 million
- Equity base of INR 942 million
- Property, Plant & Equipment worth INR 396 million
- Strong working capital position with current assets at INR 1,647 million
The decline in profitability was primarily attributed to increased personnel costs related to new business initiatives and higher finance costs for capital investments. Despite short-term margin pressure, these investments are expected to strengthen the company’s market position and yield better returns in the future.
