TGV SRAAC's profit grew 43% even after ₹65 cr depreciation hit
Annual profit from continuing operations rose to ₹132 cr despite a one-off accounting change that added ₹64.6 cr in depreciation.
What's new
- Full-year revenue rose 11.5% to ₹1,950 cr; profit from continuing operations jumped 43% to ₹132 cr.
- A change in asset useful-life estimates added ₹64.6 cr in depreciation, cutting reported profit.
- Final dividend held at ₹1 per share; oils & fats segment stayed in the red.
Why this matters
The headline profit growth is strong, but the accounting change makes the comparison harder to read. Stripping out the ₹64.6 cr depreciation charge, the underlying earnings power looks even better. The unchanged dividend suggests the board is not letting one-off charges dictate payouts.
What we're watching
- How the chemical segment carries growth into FY27.
- Whether the oils & fats segment ever turns profitable.
- The impact of the new asset lives on future depreciation and profit.
The full read
TGV SRAAC posted a 43% jump in annual profit from continuing operations to ₹132 crore, on revenue that grew 11.5% to ₹1,950 crore. The result comes with a caveat: a change in the estimated useful life of plant and machinery added ₹64.6 crore in depreciation for the year, depressing the headline number. The chemical business powered the growth, while oils and fats remained loss-making. The board held the final dividend flat at ₹1 per share. The accounting change is a one-off, but it muddies the year-on-year comparison. On a like-for-like basis, the underlying profit improvement is steeper than the reported 43%.
Questions answered
- How much did the accounting change affect this year's profit?
- The revised useful-life estimate for plant and machinery added ₹64.6 crore in extra depreciation for the year, directly reducing reported net profit.
- Which segment is driving the growth?
- The chemical segment drove performance. The oils and fats segment continued to operate at a loss.
- What was the final dividend?
- The board recommended a final dividend of ₹1 per share, which is 10% of face value. That's the same as last year.
- What is the profit figure after accounting for the extra depreciation?
- The company does not provide an adjusted figure, but the ₹132 crore profit was earned after absorbing the ₹64.6 crore additional charge.