Tube Investments of India limited Q1 sales up 25 per cent pat up 56 per cent

Chennai, July 29, 2005: The Board of Directors of Tube Investments of India Limited (TII) met today to approve the Un-audited financial results for the first quarter ended June 30, 2005.

The first quarter sales of Rs. 410.90 crore are 25 per cent higher than the corresponding quarter of the previous year (Rs. 328.72 crore). The profit after tax (PAT) was Rs. 23.41 crore (Rs. 14.94 crore), an increase of 56 per cent.

The Engineering business showed an impressive growth owing to its focus on supply of value added products to the auto industry. The exports of tubes registered a volume growth of 22 per cent over the corresponding quarter of the previous year. The business is expanding its capacities to meet the growing demand.

The Metal Formed Products of the Company include doorframes and chains business. In doorframes, the overall off take by the customers was good, despite variances in volume in certain models. The business is investing in widening its product range and technology capabilities. In Chains business, the demand for the products is on the increase. However, in the export market there is pressure on the price in competition with an undervalued Chinese currency. Continuous efforts are in progress to reduce cost in order to be competitive.

In Cycles business, the industry demand is static. The cost-push on account of steel prices has impacted industry margins. It is expected that with softening of steel prices, the margins of cycle manufacturers will improve, enabling them to invest in market development. The new MTB models were well received in the market. The business is taking various initiatives to popularise cycling in order to grow the industry demand.

Mr. Adhiraj Sarin, Managing Director said "The sustained growth of domestic auto industry, the export opportunity and relative softening of the steel prices augur well with our business. The challenge is to get more competitive, enhance customer value and compete in the global opportunity."

About Us
Tube Investments of India is part of the US $ 1.5 billion conglomerate Murugappa Group. The group is one of India's largest family promoted, professionally managed corporates with over 28,000 employees. A pioneer and market leader in several fields with over 40 manufacturing operations across 12 states in India. The Group has a strong presence in Abrasives, Engineering and Cycles, Bio-Products, Sanitaryware, Plantations, Sugar, Farm Inputs, Finance, General Insurance, and Nutraceuticals.

Contact
K Balasubramanium
VP- Finance
TII Limited
Tel: 044 52110505
Email: BalasubramanianK@tii.murugappa.com

K.S. Susindar
General Manager
Group Corporate Communications
Murugappa Group
Tel: 044 25346535
Email: SusindarKS@corp.murugappa.com