Business News/ Companies / Company Results/  Tube Investments net profit zooms 74%

MUMBAI : Chennai-based Murugappa Group-promoted engineering firm Tube Investments of India Ltd (TII), on Monday, reported a 74.4% year-on-year rise in its consolidated net profit for the March quarter at 311.8 crore.

The firm, which is engaged in the business of manufacturing precision steel tubes, steel strips, car doorframes, automotive and industrial chains and bicycles, on Monday said in an exchange filing that the growth came on the back of a strong performance in engineering and metal formed products.

The company’s consolidated revenues for the January-March period rose by 11.4% year-on-year to 3,778.24 crore as compared to 3,392.93 crore in the same period of last year.

Tube Investments’ shares fell almost 4% to 2,645.30 on BSE, even as the company’s board approved a dividend of 1.50 per share for FY23.

“Engineering and metal formed products businesses continued their good performance in the fourth quarter as well. The bicycle industry continues to suffer from contraction in demand and our bicycle business worked towards cost reduction and improving operational efficiency through kaizen improvement," said M.A.M Arunachalam, chairman, Tube Investments.

“The company has delivered excellent performance in both profits and profitability. Our subsidiaries viz CG Power and Industrial Solutions Ltd and Shanthi Gears Ltd have registered strong performance and delivered strong results across all segments," added Arunachalam.

During the March quarter, the company has taken an impairment loss of 29.27 crore, primarily due to a write-down of property, plant, and equipment.

For the financial year ended March, TII’s consolidated net profit grew by 24% to 955.58 crore and consolidated revenue grew by 20% to 14,964.7 crore.

The company’s board, on Monday, also approved a long-term borrowing of up to 300 crore by way of term loan or through non-convertible debentures, primarily to meet the company’s fund requirements for FY2023-24.

Tube Investments’ engineering business recorded a 1.4% growth in the March quarter revenue at 1,044 crore as compared to 1,030 crore in the corresponding quarter of the previous year.

The company’s mobility business revenue slumped 37% to 155 crore in the March quarter from 249 crore in same quarter of FY22.

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Updated: 16 May 2023, 01:27 AM IST
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