Chennai, 04 February 2015: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the financial results for the quarter and nine months ended 31st December, 2014. The Board declared an interim dividend of 1.50 per share (75%) for the financial year 2014-15.

Consolidated Results

The Company’s consolidated Net Profit before Minority Interest for the quarter was at 154 Cr, a growth of 21% against the corresponding quarter of the previous year. Net profit after minority interest for the quarter was at 87 Cr. as against 77 Cr. for the corresponding quarter in the previous year.

Cholamandalam Investment & Finance Company Limited, a subsidiary company in the Financial Service Business, disbursed 3082 Cr during the quarter as against 3336 Cr. in the corresponding quarter of the previous year. Consolidated Profit after Tax (PAT) for the quarter was at 113 Cr. as against 93 Cr. for the corresponding quarter in the previous year, registering a growth of 21%.

Cholamandalam MS General Insurance Company Limited, a subsidiary company in the General Insurance Business, registered a growth of 206% in PAT. Gross Written Premium for the quarter was at 405Cr. as against 420 Cr. and the PAT for the quarter was at 39 Cr. as against 13 Cr. compared with corresponding quarter in the previous year.

Shanthi Gears Limited, a subsidiary company in the Gears Business, registered revenue of 43 Cr. during the quarter compared to 42 Cr. in the corresponding quarter of the previous year. PAT for the quarter was at 3.8 Cr. as against4.6 Cr. in the corresponding quarter of the previous year.

Standalone Results

TII’s Revenue for the quarter was higher by 8% at 942 Cr. as against 872 Cr. for the corresponding quarter in the previous year. The profit before interest, tax and exceptional items for the quarter was at 47 Cr. as against 58 Cr. for the corresponding quarter in the previous year.

The Company announced a Voluntary Retirement Scheme during the quarter in Metal Formed Products and Cycles Segments. The Compensation to the employees who have exercised their option under this scheme was 11.73 Cr.

The Loss after Tax for the quarter was at 0.4 Cr. (after VRS Compensation of 11.73 Cr.) as compared to Profit after Tax of 15 Cr. for the corresponding period in the previous year.

Mr. L. Ramkumar, Managing Director said, “The growth in two wheelers and passenger cars segments slowed down during the quarter. The Volumes were lower compared to the previous quarter. The Company continued to execute on its Operational Excellence Programs. The Large Diameter Tube Plant, inaugurated in October 2014, is in the process of establishing samples for major Customers in Domestic and Exports markets with a view to commencing volume shipments in the coming quarters”

Review of Businesses

Bicycles

The Bicycle division registered a revenue growth of 14% during the quarter compared with corresponding quarter in the previous year. The revenue for the quarter was 318 Cr. as against278 Cr. for the corresponding quarter in the previous year. Profit before Interest, Tax and Exceptional Items for the quarter was 12 Cr. as against 8 Cr. for the corresponding quarter in the previous year.

Engineering

The Engineering division registered a revenue growth of 3% during the quarter compared with corresponding quarter in the previous year. The revenue for the quarter was 419 Cr. as against 406 Cr. for the corresponding quarter in the previous year. Profit before Interest, Tax and Exceptional Items for the quarter was 19 Cr. as against 34 Cr. for the corresponding quarter in the previous year. The drop was largely due to costs associated with the establishment of the new Tube Plant that commenced operation in Q3.

Metal Formed Products

This division has registered a revenue growth of 8% during the quarter compared with corresponding quarter in the previous year. The revenue for the quarter was 238 Cr. as against 221 Cr. for the corresponding quarter in the previous year. Profit before Interest, Tax and Exceptional Items for the quarter was 19 Cr. as against 20 Cr. for the corresponding quarter in the previous year.

About Murugappa Group

Founded in 1900, the INR 243 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including ten listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Sabero Organics Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.