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Tube Investments of India Limited
results Chennai, July 29, 2006: 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 30th June 2006. The first quarter sales of Rs. 413.06 crore are marginally higher than the corresponding quarter of the previous year (Rs. 410.90 crore). The profit before tax (PBT) was at Rs.98.65 crore (Rs.31.14 crore). The substantial increase in PBT is on account of profit on sale of some of the long-term investments of the Company amounting to Rs.71.30 cores. The profit after tax (PAT) was at Rs.89.46 crore (Rs.23.41 crore). Mr. Sumit Banerjee, Managing Director, Tube Investments of India said, "The growth of the Indian manufacturing sector has been steady and impressive. The Company's intent is to capitalise on this buoyancy and enhance revenues in all its chosen business segments. The organisation is today structurally geared and equipped to drive growth plans of our diverse businesses. However, the volatilities in input costs, manifested mainly in price movements of steel and oil, is a major challenge that we shall need to address." The revenue of the engineering business (Precision Tubes and Strips) was marginally lower compared to the corresponding quarter of the previous year. This marginal drop in sales was primarily due to lower volumes in exports, and some unforeseen disruptions in raw material supply chain. The Company is currently in the process of re-organising its tubes marketing network in the NAFTA region, the benefits of which can be expected to flow only from the third quarter onwards. The Metal Formed Products of the Company include doorframes and chains. In doorframes, the overall off-take was good, despite a marginal drop in the demand of certain models. In Chains segment, the volumes of automotive chains as well as industrial chains registered significant growths. Exports of industrial chains were also higher than the corresponding quarter of the previous year. Overall sales in this Business grew by an impressive 20 per cent. The bicycle industry in the country suffers from various infirmities, including depressed growth, slender margins, age-old trade practices, etc. Due emphasis has been placed on bringing about all-round improvements in distribution systems to derive efficiency gains for the Company as well as its trade partners, and to also create better buying experience for the consumers. On the supply side, the Company deployed considerable resources to improve technical capabilities of its major vendors. The efforts to improve "secondary sales" have started yielding results and the number of bicycles sold through the market improved by 8 per cent compared to the corresponding quarter of the previous year. However, overall sales were marginally lower in the absence of any institutional sales during this specific period. The Company had earlier entered into a Memorandum of Understanding (MoU) with the Government of Orissa for establishment of a steel plant. Considering the present steel scenario, the Company has now decided not to proceed with the steel project and to withdraw from the said MoU with the Government of Orissa. About Tube Investments of India About the Murugappa Group: The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India. For further information, please contact: K Balasubramanian Chandrika Raman |
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