Pricol shares to be in focus on Tuesday as firm to buy Sundaram Auto Components' injection moulding business; check details

The company said it was acquiring the business via its wholly owned subsidiary, Pricol Precision Products Pvt Ltd.

The debt-free acquisition is being made through an all-cash deal for an amount of ₹215.3 crore and is subject to adjustments, if any, as defined in the agreement at the time of closing the deal, it added.

SACL is part of the TVS Motor Company.

"With this acquisition, our focus will remain on harnessing the combined potential of Pricol and SACL to become an integrated solution player, driving innovation and delivering sustainable growth," Pricol Managing Director Vikram Mohan said.

TVS Motor Company Group CFO K Gopala Desikan said, "As market dynamics evolve, and we allocate capital more efficiently in accordance with our strategic plans, we are delighted that Pricol, our trusted long-term supplier partner, is taking over the business."

Pricol Q2 FY 25 Results

Pricol Ltd reported a consolidated profit of ₹45.07 crore for the July-September 2024 quarter, maintaining its growth momentum, a company official said.

The Coimbatore-based company had recorded profits of ₹33.15 crore during the same quarter of the previous financial year.

Commenting on the financial performance, Managing Director Vikram Mohan said, "Even as the overall industry experiences relatively muted growth across vehicle segments, I am pleased to share that we have sustained our growth momentum. Our strategic initiatives and focus on operational excellence are consistently delivering positive outcomes, as evidenced by our steady performance."

For the six months ending September 30, 2024, profits surged to ₹90.63 crore, up from ₹65.09 crore in the same period last year.

The consolidated total income during the quarter rose to ₹674.95 crore, compared to ₹581.84 crore in the corresponding quarter of the previous year.

Shares of Pricol have gained 30% so far in 2024 and 45% in the past 12 months.