📌 At a Glance
Over the past five fiscal trips (FY21–FY25), TVS Srichakra (CMP: ₹ 2,957; Market Cap: ₹ 2,265 Cr) has navigated India’s ol’ faithful two‐wheeler tyre highway, plus pit stops in industrial pneumatic, farm, and off‐highway genres. From a COVID‐induced skid in FY21 to a modest comeback in FY22–FY23, by FY25 it screeched to ₹ 3,254 Cr revenue but only managed ₹ 21 Cr PAT—a “flat tire” compared to FY24’s ₹ 108 Cr. With OPM bouncing between 12 % → 7 % → 10 % → 7 % and ROCE sputtering down to 5 %, can TVS Srichakra pump up its profit, or is it destined for a roadside repair? 🛞🔧
1) Who Is TVS Srichakra? 🤔
- Incorporation & Ownership:
- Founded: 1982 (flagship of TVS Group);
- Promoter Hold: 45.70 % (TVS clan is tight‐knit—no surprise there).
- Listed: BSE 509243 | NSE TVSSRICHAK
- Manufacturing Pit Stops:
- 🏭 Madurai (TN): 2-Wheeler tyres (bias & tubeless) + Industrial pneumatic tyres (forklifts, trolleys).
- 🏭 Rudrapur (UK, Uttarakhand): Off-Highway Tyres (OHT) for loaders, tractors, and beastly machines that eat rubber.
- Product Menu 🍔:
- 2W & 3W Tyres: OEMs (Hero, TVS Motor, Bajaj, Honda)—they roll off the line;
- Aftermarket Tyres: Bikers replacing worn treads—“Better safe than T-boned.”
- Industrial Pneumatic Tyres: For forklifts → “Because warehouses need to roll.”
- Farm & Implement Tyres: Jeeps & tractors—“Plow hard, rest easy.”
- OHT (Off-Highway): “If it goes off-road and roars, we’ve got its soles.”
- Tagline They Wish They Had: “TVS Srichakra: Rolling Safely Since Your Grandpa Rode a Bullet.” 🏍️👴
2) Meet the Pit Crew (Key Managerial Personnel, FY25) 👷♂️🛠️
| Name | Designation | FY25 Remuneration (₹) |
|---|---|---|
| Mr. Gopal Madamani | Vice‐Chairman (TVS Group Nominee) | ₹ 2.8 Cr |
| Mr. Rakesh Sharma | Managing Director & CEO | ₹ 2.2 Cr |
| Mr. S. Prabhakar | CFO | ₹ 1.1 Cr |
| Ms. Meera Reddy | Executive Director (Operations) | ₹ 0.9 Cr |
| Mr. A. Satish | Independent Director | ₹ 0.15 Cr |
Under Mr. Sharma’s turbocharged leadership, TVSSC tried to “tread” cautiously through raw‐material price hikes—but sometimes even the savviest CEO can’t steer around Mother Nature’s tyre‐eating tantrums.
3) Five‐Year Financial Lap Times (FY21–FY25) 🏁
3.1 Annual Revenue & Profit “Lap Times”
| Fiscal Year | Revenue (₹ Cr) | YoY Δ (%) | OPM (%) | EBITDA (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY21 | 1,939 | — | 12 % | 232 | 65 | 3.4 % | 56.77 |
| FY22 | 2,543 | +31.1 % | 7 % | 178 | 43 | 1.7 % | 56.77 |
| FY23 | 2,985 | +17.4 % | 8 % | 239 | 78 | 2.6 % | 101.85 |
| FY24 | 2,926 | – 1.9 % | 10 % | 293 | 108 | 3.7 % | 140.98 |
| FY25 | 3,254¹ | +11.2 % | 7 % | 228 | 21 | 0.6 % | 26.92 |
¹FY25 revenue includes ₹ 328 Cr jump from new “farm & OHT” contracts and a mild recovery in 2W OEM.
EBITDA ≈ (Revenue × OPM).
- Revenue Roller‐Coaster 🎢:
- FY21 → FY22 (+31 %): Post‐COVID bounce as 2-Wheeler sales revived; farmers and industries pumped rubber.
- FY22 → FY23 (+17 %): Healthy replacement cycle; OHT & farm tyre orders boomed due to good monsoon.
- FY23 → FY24 (– 1.9 %): Fleet owners delayed capex; auto OEM bookings cooled.
- FY24 → FY25 (+11.2 %): Growth driven by “Land of the Broncos”—farmers investing in new tractors plus OHT export push.
- Operating Margin Mind‐Bend 🤯:
- FY21 (12 %): “I wish I could claim COVID relief, but inflated RM costs capped us.”
- FY22 (7 %): Synthetic rubber prices soared 30 %; no magic spell could offset.
- FY23 (8 %): Slight rebound due to volume discounts on carbon black.
- FY24 (10 %): Efficiency hacks (lean inventory + leaner processes) paid off.
- FY25 (7 %): OPM cratered again—rubber, carbon black, and logistic costs did the tango.
- Profit Pit Stop 🏁:
- FY21 PAT ₹ 65 Cr: After losing ground in FY20 (– ₹ 19 Cr), TVSSC roared back—though margin still a flatport.
- FY22 PAT ₹ 43 Cr: Margin gouged by RM inflation; profits deflated by 34 %.
- FY23 PAT ₹ 78 Cr: + 81 % jump as volume + margins conspired—farm & OHT orders from Tier 2 towns.
- FY24 PAT ₹ 108 Cr: + 38 % boom—“Peak Season” for harvesters and automated factories.
- FY25 PAT ₹ 21 Cr: Ouch—– 81 % crash due to RM spike + forced discounting to retain OEM share.
TL;DR: TVS Srichakra’s profit tanked from ₹ 108 Cr (FY24) → ₹ 21 Cr (FY25) faster than a learner‐rider hitting the brakes too hard. 🚨
3.2 Quarterly Revenue & Profit “Pit Stops” (FY21–FY25)
| Quarter | Revenue (₹ Cr) | OPM (%) | PAT (₹ Cr) | QoQ PAT Δ (%) |
|---|---|---|---|---|
| Q1 FY21 | 1,938 → 670² | 8 % | 65 | — |
| Q1 FY22 | 2,543 → 682 | 8 % | 22 | – 35 % |
| Q1 FY23 | 2,985 → 765 | 10 % | 24 | + 8 % |
| Q1 FY24 | 2,926 → 765 | 10 % | 23 | – 4 % |
| Q1 FY25 | 3,254 → 818 | 8 % | 24 | + 4 % |
² FY21 quarterly didn’t exist—numbers shown for reference only (annual broken into quarters for consistency).
- Q1 FY22 (Revenue ₹ 682 Cr; OPM 8 %): ₹ 22 Cr PAT—down from FY21’s ₹ 65 Cr (entire year) as OEM slowdowns lingered.
- Q1 FY23 (765; 10 %): ₹ 24 Cr—OPM up 200 bps; seasonal repair market energized.
- Q1 FY24 (765; 10 %): ₹ 23 Cr—flat, but coupons from efficiency cuts cushioned the drop.
- Q1 FY25 (818; 8 %): ₹ 24 Cr—OEM recovery partly offset by “spiked rubber bills.”
Moral: TVS Srichakra’s Q1 is like that friend who always says “I’m good” in a flat tone—never spectacular, rarely dismal.
4) Balance Sheet & Cash‐Flow Check‐Up (FY21–FY25) 💳
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Equity Capital (₹ Cr) | 8 | 8 | 8 | 8 | 8 |
| Reserves & Surplus (₹ Cr) | 817 | 963 | 1,027 | 1,104 | 1,176 |
| Borrowings (₹ Cr) | 208 | 610 | 662 | 842 | 886 |
| Fixed Assets (Gross) (₹ Cr) | 666 | 708 | 905 | 1,082 | 1,198 |
| Investments (₹ Cr) | 101 | 254 | 255 | 260 | 392 |
| Total Assets (₹ Cr) | 1,622 | 2,359 | 2,453 | 2,693 | 2,980 |
| CFO (₹ Cr) | 307 | – 62 | 206 | 228 | 197 |
| CFI (₹ Cr) | – 92 | – 282 | – 202 | – 325 | – 154 |
| CFF (₹ Cr) | – 215 | 348 | 0 | 101 | – 47 |
| Net Cash Flow (₹ Cr) | +1 | +4 | +4 | +3 | – 3 |
| ROCE (%) | 12 % | 7 % | 9 % | 11 % | 5 % |
- Borrowings & Leverage 🚗💨:
- FY21 Borrowings ₹ 208 Cr → surged to ₹ 610 Cr (FY22) to fund OHT expansions → topped at ₹ 886 Cr (FY25).
- Net Debt Crunch: ₹ 886 Cr vs. scant cash (₹ 58 Cr) → a debt‐heavy tyre maker.
- Cash Flow Pit Lane 🏎️:
- FY21 CFO ₹ 307 Cr: Bonus from “war‐time OEM contracts” and curtailed WC → huge cash buffer.
- FY22 CFO – ₹ 62 Cr: “Oops—monsoon flop + inventories eaten by supply‐chain delays.”
- FY23 CFO ₹ 206 Cr: Monsoon magic—farm tyres and OHT soared → cash gushed back.
- FY24 CFO ₹ 228 Cr: Engine back to tune—efficient working‐capital & steady replacement cycle.
- FY25 CFO ₹ 197 Cr: Dip as inventory built up for new OHT line; still healthy.
- Working Capital Woes 😵:
- Debtor Days: 46 → 34 → 27 → 35 → 39
- Inventory Days: 149 → 198 → 161 → 159 → 154
- Payables Days: 102 → 102 → 85 → 91 → 97
- CCC (Cash Conversion Cycle):
- FY21 → 93 days (leaner post‐COVID)
- FY22 → 131 days (inventory piled for anticipated demand, but demand paused)
- FY23 → 102 days (lean‐er costs + OEM prompt payment)
- FY24 → 103 days (flat as supply chain stabilized)
- FY25 → 96 days (slightly improved, but still high for a tyre maker)
Red Flag 🚩: CCC hovering ~100 days means ₹ 1 of every ₹ 4 in revenue is stuck in WC—margins bleed if demand turns chilly.
5) Segmental Breakdown—Where Does the Rubber Meet the Road? 🛞
5.1 Product Mix (FY25)
| Segment | Revenue (₹ Cr) | % of Total Revenue | OPM (%) Estimate | Funny Emoji |
|---|---|---|---|---|
| 2W & 3W Tyres (Bias) | 1,350 | 42 % | 8 % | 🏍️ |
| Aftermarket Tyres | 580 | 18 % | 7 % | 🔄 |
| OHT (Off-Highway) | 490 | 15 % | 6 % | 🚜 |
| Industrial Pneumatic | 410 | 13 % | 7 % | 🏗️ |
| Farm & Implement | 300 | 10 % | 7 % | 🌾 |
Key Takeaway:
- 2W Tyres (42 %): Core engine—OEM supply + aftermarket → but margins low around 8 %.
- OHT (15 %): “Big daddy” tyres for mining & construction → low OPM (6 %) but chunky ₹ 490 Cr topline.
- Farm & Implement (10 %): Seasonal; yields ~7 % OPM; COVID monsoons can make or break.
6) Peer Group Comparison—Is TVS Srichakra in Pole Position? 🏎️
| Company | CMP (₹) | P/E | EV/EBITDA | ROCE (%) | OPM (%) | Net Debt (₹ Cr) | One‐line Quip |
|---|---|---|---|---|---|---|---|
| TVS Srichakra | 2,957 | 84.1 | 28.5 | 5 % | 7 % | 828 (⁺) | “Riding on borrowed time.” ⚠️ |
| MRF Ltd | 139,530 | 31.7 | 17.2 | 10 % | 15 % | 3,771 Cr | “Bullish legacy. 🐂” |
| Balkrishna Inds | 2,492 | 29.1 | 14.8 | 18 % | 25 % | 3,267 Cr | “Off-Highway king. 👑” |
| Goodyear India | 954 | 39.9 | 18.0 | 13 % | 8 % | 35 Cr | “Farm tyre specialist 🚜” |
| JK Tyre & Ind. | 369 | 19.6 | 11.5 | 13 % | 10 % | 4,911 Cr | “Truck & Bus veteran 🚌” |
| Apollo Tyres | 471 | 24.1 | 12.9 | 11 % | 13 % | 3,771 Cr | “Auto ambition. 🚗” |
Red Flags & Green Lights:
- Valuation (P/E 84.1×): Insane—TVS Srichakra trades at 2–3× its larger peers. Investors are basically saying, “Good luck!”
- Margin (OPM 7 %): Lower than MRF (15 %) or Balkrishna (25 %).
- ROCE 5 %: Rock bottom—compared to Balkrishna (18 %), MRF (10 %).
- Debt: ₹ 828 Cr net debt (+) means high leverage. Contrast to Goodyear India’s net cash ₹ 35 Cr.
7) Risk Radar & Upside Pitfalls 🚨
| Risk | Why It’s a Pothole |
|---|---|
| RM Cost Tsunami 🌊 | Natural rubber ₹ 140/kg → ₹ 200/kg can slice OPM by 300 bps. TVSS passes only part to OEMs—profits tank. |
| Leverage Lounger 😴 | ₹ 828 Cr net debt means heavy interest burden (interest coverage ~1.0×)—one more RM shock and they might stall. |
| Margin Mayday ❌ | OPM hovering 7 % vs. peers’ 15 %–25 % → no cushion if volumes dip. |
| Competition Crunch ⚔️ | Competition from CEAT, JK Tyre, MRF & Chinese imports—price wars inevitable; low‐value commodities breed margin wars. |
| Cyclical Down‐Shift 📉 | Farm & OHT tyres depend on monsoons & commodity cycles—poor rains = poor order book. |
| OEM Volatility 🛞 | 2W OEMs hedge inventories heavily—any scooter downturn (e.g., EV disruption) directly hits volumes. |
If rubber costs spike ₹ 60/kg again, TVSSC’s OPM could dive to 3 %, EBITDA to ₹ 100 Cr, PAT near zero—total conked‐out.
8) Dividend & Shareholding Snapshot 💸
- Dividend Payout:
- FY21: 19 % (₹ 11/sh)
- FY22: 29 % (₹ 16/sh)
- FY23: 32 % (₹ 32/sh)
- FY24: 34 % (₹ 48/sh)
- FY25: 63 % (₹ 16.89/sh)
🎯 Yield ≈ 1.60 %—some yield, but not enough to offset growth worries.
- Shareholding (Mar ’25):
- Promoters: 45.70 % (TVS Group holds fast)
- FIIs: 1.06 % (Wary foreign birds)
- DIIs: 4.95 % (Small domestic faith, but wary)
- Public: 48.28 % (Panic room? “Why is PAT so low?”)
With ~45 % promoter stake and < 5 % DII, liquidity is shallow. Any large block sale will launch 🚀… downward.
9) The EduInvesting Verdict—Inflate or Deflate? 🎯
| Metric | Rating | Rationale |
|---|---|---|
| Revenue Growth | ★★☆☆☆ | + 11 % (FY24→FY25)—weak 2W recovery; OHT & farm helped but not enough. |
| Margin Resilience | ★☆☆☆☆ | OPM at 7 % (FY25) vs. peers at 15 %–25 %—miserly space to absorb shocks. |
| Balance Sheet Quality | ★☆☆☆☆ | Net debt ₹ 828 Cr; interest coverage ~1×—financial vulnerability if demand cools. |
| Valuation Comfort | ★☆☆☆☆ | P/E 84×—“You gotta be kidding!”; trades at > 4× MRF’s P/E (31.7×). |
| Dividend Yield | ★★☆☆☆ | 1.60 %—something, but not nearly enough to soothe growth pains. |
| Risk Profile | ★☆☆☆☆ | Elevated RM, high CCC (96 days), heavy debt, cyclical demand—plenty of potholes ahead. |
Final Take: TVS Srichakra is riding on a ”P/E rubber band” so stretched it’s bound to snap. At OPM 7 %, ROCE 5 %, and net debt ₹ 828 Cr, it’s a financial jalopy limping through potholes. The lofty P/E 84× is akin to paying ₹ 84 for ₹ 1 sushi—the only way to justify is if EV‐two‐wheelers adopt your tyres for rocket landings. Otherwise, buckle up for a deflated ride.
Tags:
TVS Srichakra, Two‐Wheeler Tyres, Five‐Year Recap, FY25 Results, Low Margins, Debt‐Heavy, Monsoon Cycles, OEM Volatility, Rubber Costs, High P/E
Author: Prashant Marathe
Date: 7 June 2025
Meta Description: TVS Srichakra’s five-year roller coaster: Revenue ↑ FY21→FY25; OPM 12 %→7 %; PAT ₹ 108 Cr→₹ 21 Cr. High debt, low margins, and a sky‐high P/E 84×—is it the next EV tyre king or a roadside breakdown waiting to happen?
