Profectus Capital Private Limited (PCPL) reported a robust H1FY24 with total income from operations at Rs 19,416 crores, marking a 61% increase year-over-year. The company's assets under management (AUM) stood at Rs 2,689 crores as of September 2023. A notable achievement for the firm was the net profit before tax growth of 129% year-over-year. PCPL, backed by Actis, specializes in secured lending to Micro, Small and Medium Enterprises (MSMEs) across eleven product clusters in India.
The credit rating agency CARE Ratings upgraded PCPL's credit rating to CARE A (Stable), citing strong capitalization, stable asset quality, strategic investor support, and a diversified loan portfolio. CEO Mr K V Srinivasan attributed their success to robust distribution and credit processes and favorable macro-economic conditions. He highlighted the return on total assets (ROTA) nearing 2% and successful equity capital mobilization for future expansion.
In other financial news, TVS Motor Company's Profit After Tax exceeded Rs 1,000 crore for the first time in H1 FY 2023-24. The company's operating revenue rose by 13% to Rs 8,145 crore in Q2. Operating EBITDA grew by 22% to Rs 900 crore and Profit Before Tax saw a growth of 32% to Rs 724 crore.
Two-wheeler sales, including exports of 239,000 units and three-wheeler sales of 43,000 units, grew by 5%. Motorcycle sales reached 493,000 units while scooter sales increased to 420,000 units. The company's EV model, TVS iQube's cumulative sales crossed the mark of 200,000 units. Half-year results showed a growth of 6% in two-wheeler sales with half-year two-wheeler sales at 1.95 million units and half-year three-wheeler sales at 78,000 units. Total two-wheeler and three-wheeler exports were at 504,000 units.
The total revenue for the half-year was Rs 15,362 crore, with a Profit After Tax of Rs. 1,004 crore representing a rise in PBT by 36%. TVS launched two new products, the premium electric crossover TVS X and the performance motorcycle TVS Apache RTR 310, and announced the TVS Racing Electric One Make Championship.
InvestingPro Insights
InvestingPro's real-time data and insights provide a deeper understanding of the financial performance and market position of TVS Motor Company. According to InvestingPro, TVS Motor Company has been a prominent player in the Automobiles industry, demonstrating strong returns over the last three, five, and ten years. This is consistent with the company's recent financial achievements, such as exceeding Rs 1,000 crore in Profit After Tax for the first time in H1 FY 2023-24.
InvestingPro Tips highlight that TVS Motor Company has consistently increased earnings per share, further reinforcing its strong financial performance. However, it's worth noting that the company's revenue growth has been slowing down recently, which could be a point of concern for potential investors. Additionally, the company is trading at a high earnings multiple and a high Price / Book multiple, indicating that its stock may be overvalued.
Of the numerous additional tips available on InvestingPro, these were deemed the most relevant to the article's content and the company's current situation. For a more comprehensive analysis and additional tips, consider exploring the InvestingPro platform.
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