Techprecision Corporation (TPCS) has reported 114.48 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.55 million, or $0.02 a share in the quarter, compared with $0.25 million, or $0.01 a share for the same period last year. Revenue during the quarter dropped 10.91 percent to $3.66 million from $4.10 million in the previous year period. Gross margin for the quarter expanded 601 basis points over the previous year period to 40.30 percent. Total expenses were 79.92 percent of quarterly revenues, down from 87.88 percent for the same period last year. This has led to an improvement of 795 basis points in operating margin to 20.08 percent.
Operating income for the quarter was $0.73 million, compared with $0.50 million in the previous year period.
"This was another quarter of operational and financial progress as we delivered a profit for our sixth consecutive quarter," stated Alexander Shen, TechPrecisions chief executive officer. "We more than doubled net income as we continue to benefit from our consistent sharp focus on productivity initiatives and top line growth with key customers. This progress has enabled us to improve our balance sheet, as we reported $2.8 million in cash and $2.4 million in working capital at September 30, 2016, both significantly improved compared to March 31, 2016 levels."
Operating cash flow improves significantlyTechprecision Corporation has generated cash of $1.43 million from operating activities during the first half, up 80.20 percent or $0.64 million, when compared with the last year period. The company has spent $0.11 million cash to meet investing activities during the first six months as against cash outgo of $0.02 million in the last year period.
Cash flow from financing activities was $0.19 million for the first six months as against cash outgo of $0.47 million in the last year period.
Cash and cash equivalents stood at $2.84 million as on Sep. 30, 2016, up 72.58 percent or $1.19 million from $1.64 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Techprecision Corporation has turned positive to $2.37 million on Sep. 30, 2016 from negative $1.61 million on Sep. 30, 2015. Current ratio was at 1.59 as on Sep. 30, 2016, up from 0.77 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 13 days for the quarter from 11 days for the last year period. Days sales outstanding went up to 22 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 34 for the same period last year.
Debt comes down marginally
Techprecision Corporation has recorded a decline in total debt over the last one year. It stood at $4.97 million as on Sep. 30, 2016, down 4.66 percent or $0.24 million from $5.21 million on Sep. 30, 2015. Total debt was 41.99 percent of total assets as on Sep. 30, 2016, compared with 49.26 percent on Sep. 30, 2015. Debt to equity ratio was at 1.81 as on Sep. 30, 2016, down from 6.61 as on Sep. 30, 2015. Interest coverage ratio improved to 4.01 for the quarter from 2.04 for the same period last year.
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