TVS Electronics Ltd.

Brickwork Ratings reaffirms the ratings with a revision in the outlook for the Bank Loan Facilities of Rs. 46.00 Cr of TVS Electronics Ltd.

Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(23 Jun 2021)
Fund Based 25.00 25.00 Long Term BWR A- /Stable
BWR A - /Stable to Positive
Reaffirmation and change in Outlook
Non Fund Based 21.00 21.00 Short Term BWR A2+
BWR A2 +
(10.00) (10.00)
Grand Total 46.00 46.00 (Rupees Forty Six Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure


The revision in outlook for TVS Electronics Limited (TVSE or the company) factors the sustained improvement and better than envisaged year-to-date business and financial profile after a stable performance in FY21, despite the Covid-induced disruptions mostly during Q1FY21. Brickwork Ratings (BWR) believes that the business and financial profile shall continue to be maintained over the medium term. Improvement in business performance is reflected in significant growth in revenue and EBIDTA margin to Rs.219.50 Cr and ~8.50% respectively in the 9MFY22 as against Rs.152.24 Crs and ~0.6% respectively for the corresponding period of the previous fiscal. The margins are better than the pre-covid levels and are largely supported by better demand and diversified folio aided by new product lines offering improved margins. Also, the profitability metrics are expected to be sustained at the present levels. The rating action also factors in the stable capital structure which has been maintained at comfortable levels with an almost zero-debt position and the improved liquidity position.

The ratings continue to draw strength from the strong parentage and brand equity of TVS,  experienced and professional management and robust financial and risk management practices and growing market demand for newly introduced products coupled with the company’s plans to further diversify its revenue streams. The rating strengths remain constrained by the exposure to intense industry competition, technological obsolescence, and forex risks.

The outlook may be revised downwards with lower-than-expected revenue/cash accruals or deterioration in profitability/debt indicators and/or significant increase in the operating cycle, and/or a deterioration in the capital structure due to debt-financed capital expenditure, thus weakening the company’s financial risk profile.


Credit Strengths:

Credit Risks:


BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale). The company does not have subsidiaries.


The company's ability  to successfully stabilise its fresh business initiatives, improve its revenue and profitability through the newly added products and strengthen its business profile would be key rating sensitivities.


  • Substantial growth in revenue and profitability, strengthening the financial risk profile
  • Stabilisation of new product lines with an increased scale of operations resulting in higher contribution to revenue and profitability on a sustained basis


  • Deterioration in key credit metrics owing to pressure on operating profits due to competition, sharp rise in receivables levels, or fresh capex.
  • Specific credit metrics which may result in a downward rating action include Total Debt/TNW exceeding 2 times, DSCR declining to below unity, and ISCR below 2 times on a sustained basis.


The company’s liquidity position is adequate, as seen in the average working capital utilisation of below 50% during the last 12 months. Cash and cash equivalents were around Rs.15 Crs as on 30 September 2021 (including the fixed deposits and mutual fund). The cash balance has further improved as on 31 December 2021, on a provisional basis, backed by the improved margins and the company's effective working capital management with various initiatives like advance collections, extending credits for imports through buyer’s credit, etc. The Current Ratio was 1.32 times, and Net Cash Accruals/Total Debt was 5.86 times as on 30 Sep 2021. The EBITDA is sufficient to cover interest and finance charges. The company does not have long-term borrowings as on date.


TVS Electronics Limited (TVSE), Chennai, founded in 1986 as an IT peripheral manufacturer is now a leading transaction automation IT product manufacturer and service provider. TVSE has its production/repair facilities at Dehradun (Uttarakhand), Chennai (TN), and Tumkur (Karnataka). The company is listed on the BSE and NSE. TVSE’s business consists of two revenue segments, viz., (a) Products & Solutions and (b) Customer Support Services. The products cater to seven broad sectors, viz., Retail – SME, Government, BFSI, Hospitality, Healthcare, E-commerce and Transport, Large Format Retail (LFR) Stores and Quick Service Restaurants (QSR). 

Mr. Gopal Srinivasan is the Chairman and Mrs.Srilalitha Gopal is the Managing Director of the company.

Key Parameters Units FY 20-21
FY 19-20
Operating Revenue Rs.Crs. 224.60 258.72
EBITDA Rs.Crs. 8.55 10.91
PAT Rs.Crs. 0.77 0.39
Tangible Net Worth Rs.Crs. 63.79 63.90
Total Debt/Tangible Net Worth Times 0.06 0.32
Current Ratio Times 1.28 1.21

The terms of sanction include standard covenants normally stipulated for such facilities.





RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2021 2020 2019
Type Tenure Amount
Rating Date Rating Date Rating Date Rating
Fund Based LT 25.00
BWR A-/Stable to Positive
(Reaffirmation and change in Outlook)
BWR A- Stable
BWR A- Stable
BWR A- Stable
Non Fund Based ST 21.00
NFB SubLimit ST (10.00)
Grand Total 46.00 (Rupees Forty Six Crores Only)

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Naveen S

Manager - Ratings Board : +91 80 4040 9940 naveen.s@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
TVS Electronics Ltd.
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 IDFC First Bank Limited Cash CreditSanctioned 15.00 _ 15.00
2 IDFC First Bank Limited ILC/FLC/BGSanctioned _ 20.00 20.00
3 RBL Bank Cash CreditSanctioned 10.00 _ 10.00
Sub-Limit (BG/LC) Sanctioned (10.00)
4 RBL Bank Credit Exposure Limit (CEL)Sanctioned _ 1.00 1.00
Total 25.00 21.00 46.00
TOTAL (Rupees Forty Six Crores Only)
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