Shares of TVS Supply Chain Solutions Limited dropped over 1% in early trade on February 13, 2025, after a ₹107 crores stake sale through a block deal. A total of 67.1 lakh shares, representing 1.5% of the company's equity, changed hands at a floor price of ₹160 per share.
Block deal details
The identities of the buyers and sellers in the block deal were not immediately known. However, market analysts noted that the transaction involved a significant stake in the company. The stock witnessed selling pressure following the stake sale.
Recent financial performance
The stake sale comes shortly after TVS Supply Chain Solutions reported a net loss of ₹24.65 crores in Q3 FY25. In the same quarter last year, the company posted a net profit of ₹9.56 crores. The losses were attributed to delays in commissioning a major project for a key European customer and lower volumes in a seasonally weak quarter.
Following the weak financial results, the company's EBITDA margin contracted to 6.2% in Q3 FY25, compared to 7.8% in the corresponding quarter last year.
Management outlook
Raviprakash Bhagavathula, Global CFO of TVS Supply Chain Solutions, stated that the company expects margins in its Europe business to normalise by Q1 FY26. He also pointed out that the supply chain businesses in India and North America maintained stable margins in Q3.
Meanwhile, Ravi Viswanathan, MD of TVS Supply Chain Solutions, highlighted that the company continues to secure large deals and capitalise on market opportunities. He stated that the company is leveraging its global capabilities and technology expertise to strengthen its position.
Impact on stock performance
Market analysts noted that the block deal and weak earnings report may have contributed to the decline in TVS Supply Chain Solutions shares. Despite the fall, some investors view the block deal price as a sign of confidence in the company's long-term potential.
Investors looking to invest in stocks often track market movements following large block deals, as such transactions can impact short-term price fluctuations. In this case, the stake sale and earnings performance have influenced investor sentiment.
Future outlook
Despite short-term pressures, TVS Supply Chain Solutions remains committed to growth. The company's management aims to drive revenue growth through large deals and expansion initiatives. Investors evaluating whether to invest in stocks within the logistics sector will monitor the company's strategic moves and market conditions.
Block deals can impact stock prices temporarily, but long-term growth prospects depend on fundamental performance. Market participants tracking TVS Supply Chain Solutions will assess upcoming earnings reports and industry developments.
At 09:45 AM on February 13, 2025, the shares of TVS Supply Chain Solutions Limited were trading 1.5% lower at ₹144.93 per share on the National Stock Exchange (NSE).
For android only