Tube Investments of India Ltd crosses Rs. 100 crore PBT- Net up by 80 per cent
Board recommends 1:1 Bonus and 100% dividend.

June 9, 2004: The Board of Directors met today and approved the audited results for the year 2003 - 04.

The turnover of Tube Investments of India Ltd., part of the Murugappa Group, posted a turnover of Rs 1257 crore, a 6 per cent increase over the previous year. TII achieved a milestone with PBT of Rs 105.3 crore (previous year Rs 62.45 crore). The net profit at Rs 82.49 crore is an impressive growth of 80% over last year’s net profit of Rs 45.89 crore.

Mr Adhiraj Sarin, Managing Director, said, “the higher net profit includes a non recurring income of Rs. 24 crore from renunciation of rights in Cholamandalam Insurance in favour of Mitsui Sumitomo. It also includes a non-recurring expenditure of providing for superannuation fund of employees to the tune of Rs 14 crore. The engineering business improved efficiency through higher machine productivity and the cycle’s business through improved supply chain management. The doorframe business benefited from increased volumes to automobile OEs. The profits improved with better product mix, cost savings, disposal of non-performing assets and reduced finance charges.” The steel prices however continue to be cause for concern.

A robust growth in demand is estimated for engineering products in domestic and international markets. The company is expanding capacities to meet this demand.

Bicycles sales witnessed no increase in a sluggish market while the engineering business showed robust growth in line with demand of domestic automobile industry and strong export demand.

The demand for cycle is expected to recover on account of increased rural income helped by a good monsoon last year. The major cycle manufacturers have increased market spends and this should also spur demand growth.

The Company expects further improvement in its performance in the current year owing to a strong demand in the engineering business, continued emphasis on quality, product development, higher market spends and focus on cost effectiveness.

For further details please contact:
Mr Adhiraj Sarin
Managing Director
Tel: (+91 44) 5211 4747
E-mail: Sarin_a@tii.murugappa.com
or
Balasubramanian
Tel: (+91 44) 5211 0505
E-Mail: Balasubramanian_K@tii.murugappa.com

TII has three business units namely, TI Cycles of India, Tube Products of India and TI Metal Forming. TII is the second largest manufacturer of bicycles with well-known brands viz., Hercules, BSA and Philips. TII is a market leader in manufacture of precision steel tubes in India and major source for auto component industry in India. TII is also the market leader in car doorframe industry in India.

TII is part of the over Rs.5200 crore Murugappa Group, which has a strong presence in engineering, bio-products, sanitaryware, plantations, sugar, farm inputs, finance, general insurance and nutraceuticals. Murugappa Group is a pioneer and market leader in several fields with operations across 12 States in India.