|
|
|||||||||
|
|
||||
|
TII's PAT up by 85 per cent April 28, 2006: The Board of Directors of Tube Investments of India Limited (TII) met today to approve the audited financial results for the year ended 31st March, 2006. The turnover for the year was Rs. 1584.18 crore, which is marginally higher than that in the previous year. The profit before tax of Rs. 245.63 crore (previous year Rs. 126.18 crore) includes Rs. 110.50 crore towards profit on sale of investments and also profit on sale of land & building. The Profit after tax was Rs. 182.93 crore (previous year Rs. 98.55 crore). The performance of the Engineering Division was impressive. Incroreeased focus on value-added tubes for automotive applications was the primary contributing factor for the robust performance. In order to retain the leadership position in precision tubes, the business also embarked on several initiatives to improve the service standard to its customers in terms of quality and timely delivery. In the case of steel strips, the exports were lower than last year due to intense price pressures. The business team is implementing a realignment and consolidation of production facilities, which, apart from reducing operating cost, would improve operational flexibility. In Chains, the business witnessed stiff competition in the after market segment, primarily due to aggressive sourcing plan adopted by the OEMs. Despite the competition from Chinese manufacturers, the exports of industrial class chains picked up during the later part of the year. In car doorframes business, the overall off-take was only marginally higher. The business has proposed to set up a manufacturing facility near Pune for the supply of doorframes to a new passenger vehicle to be launched. As an initiative towards enhancement of metal forming capabilities, a state-of-the-art hydro-forming facility has been commissioned near Chennai to cater to the auto components requirements involving intricate designs. The organised Indian bicycle industry is faced with multiple challenges in the form of lower demand, imports from China and mushrooming of players in the unorganised sector. In view of the drop in volumes, the profit in this business was lower than in last year. While the market scenario remains depressed, the focus of the business in the year was on strengthening sales & distribution system and harnessing our vendor capabilities. The Board of Directors of the Company have recommended a final dividend of 60 per cent for the year. Considering the proposed sub-division (stock-split) of the equity shares of the company, the proposed final dividend works out to Rs.1.20 per equity share of Rs.2/- each. In view of the significant size and one-time nature of the profit on sale of long-term investments, the Company has already paid a special interim dividend of Rs.175 per cent (Rs.17.5 per equity share of Rs. 10/- each). TII consists of: TI Cycles of India, Tube Products of India, TI Metal Forming and TIDC India. In bicycles, TII is the second largest manufacturer with well known brands - Hercules, BSA and Philips. TII is the market leader in precision steel tubes and car doorframe in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto component industry. TII is a part of the Rs.6,250 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 acroreoss 12 States in India. For further information please contact: K Balasubramanian
|
| Related info | ||||||||
|
||||||||
| Companies search | ||||||||
| Products search | ||||||||
