TII’s first half: sales up 15 per cent, profit before tax 33 per cent

October 26, 2004: The Board of Directors of Tube Investments of India Limited (TII) met today to take on record the Un-audited financial results for the second quarter ended 30th September, 2004.

In Q2, the sales were Rs.351.55 crore (Rs. 320.70 crore same period last year). Net profit for the quarter was Rs.12.22 crores (Rs.6.05 crore).

For the half-year ended 30th September, 2004, sales were up by 15 per cent to Rs.680 crore (Rs.593 core). The PBT before exceptional items was Rs.39.64 crore (Rs.29.73 crore) - an increase of 33 per cent. Provision for taxation for this half year being higher at Rs.12.65 crore (Rs.9.73 crore), the net profit was Rs.27.16 crore (Rs.30.94 crore).

In the bicycle industry, faced by a 7 per cent decline in demand, the company focussed on introduction of new models/designs, thereby maintaining its volumes and improving its market shares.

In tubes and strips, the timely action by the Government of India has brought stability in the price of steel. The company’s strategy in pursuit of greater value added products resulted in improved product mix and margins. The company is expanding capacities to meet strong demand for tubes in the international market.

The metal forming business continues to perform well with the increasing demand for the models of cars that the company caters to.

The shareholders of TII and TIDC India have approved the scheme for amalgamation. Pending the sanction of the High Court of Madras, the Q2 financials do not include the turnover and profits of TIDC India Limited.

The issue of 1:1 bonus shares is complete with the allotment of shares in the second quarter.