TVS Elec: Servicing gains

STOCK IN THE NEWS

The stock gained 40 per cent in the last two days after the company decided to sell its contract manufacturing services (CMS) business in Karnataka to a unit of Finland's Incap Corp for Rs 41.12 crore.

The stock moved from Rs 41.85 on May 30 to close at Rs 60.20 on June 1 on the Bombay Stock Exchange (BSE). The combined volume on the BSE and the NSE zoomed more than 34 times with 9.91 lakh equity shares changing hands in the past week against 38,467 shares a week ago.

The CMS business, consisting of contract manufacturing for OEMs, traded products like set-top boxes and field support business. The company had also spun off its customer support business into a wholly owned subsidiary.

TVS Electronics intend to focus on its products and solutions business comprising printers and keyboards among others.

Net profit rose 304.1 per cent to Rs 1.74 crore in Q3 December 2006 compared with Rs 0.43 crore in Q3 December 2005. Total sales increased 4.35 per cent from Rs 72.19 crore to Rs 75.33 crore during the quarter.