Revenue during the quarter surged 51.68 percent to $5.32 million from $3.51 million in the previous year period. Gross margin for the quarter expanded 802 basis points over the previous year period to 38.58 percent. Total expenses were 77.08 percent of quarterly revenues, down from 91.35 percent for the same period last year. This has led to an improvement of 1427 basis points in operating margin to 22.92 percent.

Operating income for the quarter was $1.22 million, compared with $0.30 million in the previous year period.

"This was another quarter of operational and financial progress, as we delivered consistent and increasing profitability, along with a significant increase in net sales," stated Alexander Shen, TechPrecision's chief executive officer. "Our third quarter net income doubled our year-to-date income for fiscal year 2017. We continue to benefit from our consistent sharp focus on productivity initiatives and top line growth with key customers. We have clearly demonstrated improving trends in profitability, working capital and cash. We expect to increase productivity and maintain profitability levels on an annual basis. We significantly improved our balance sheet compared to March 31, 2016 levels, as we reported $3.8 million in cash and $5.0 million in working capital at December 31, 2016. In addition, we refinanced a portion of our long-term debt in December reducing the annual interest rate from 10% to 5.21%."

The company has spent $0.45 million cash to meet investing activities during the nine month period as against cash outgo of $0.19 million in the last year period.

Cash flow from financing activities was $1 million for the nine month period as against cash outgo of $0.70 million in the last year period.

Cash and cash equivalents stood at $3.79 million as on Dec. 31, 2016, up 364.87 percent or $2.98 million from $0.82 million on Dec. 31, 2015.

Working capital increases sharply
Techprecision Corporation has recorded an increase in the working capital over the last year. It stood at $5 million as at Dec. 31, 2016, up 1,028.60 percent or $4.55 million from $0.44 million on Dec. 31, 2015. Current ratio was at 2.61 as on Dec. 31, 2016, up from 1.08 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 12 days for the last year period. Days sales outstanding went down to 14 days for the quarter compared with 21 days for the same period last year.

Days inventory outstanding has decreased to 2 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding went down to 19 days for the quarter from 38 for the same period last year.