Financial results of Tube Investments of India Limited

Chennai, 29 January 2007: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the third quarter ended 31st December, 2006.

In Q3, the sales were Rs.423.22 crore, as against Rs.399.22 crore for the same period last year. The net profit for the quarter was at Rs.20.54 crore. The net profit for the corresponding quarter in the previous year was Rs. 37.46, which included Rs. 21.07 crore towards profit on sale of long term investments.

The sales of engineering products were higher by 12 per cent over the corresponding quarter in the previous year. The volume of sale of precision steel tubes in domestic market has improved by 7 per cent. Whereas, the volume of steel strips was lower by 7 per cent. The export of tubes was lower due to slow down in US market. The export of strips was also lower due to competitive pressures.

In the Metal Forming Business (Doorframes & Chains), the sales grew by 25 per cent over the corresponding quarter in the previous year, with increase in the overall demand products. The overall off take of doorframes by the customers was higher. Increase in volume of some of the new models has been encouraging. The sales of automotive chains as well as industrial chains in the domestic market witnessed a healthy uptrend.

The focus in the bicycle business continued to be on restructuring the distribution network. The initiatives towards rationalisation of dealer network and establishment of new dedicated outlets under the style "BSA GO" enabled us to perform better in the third quarter. While the volume of sales in standard segment grew by 7 per cent, the volume in specials category grew by 20 per cent.

About Tube Investments of India
Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). 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 roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry.

About the Murugappa Group
Headquartered in Chennai, the $1.6 billion Murugappa Group is one of India's leading business conglomerates, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas in business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.

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 houses in India.

Contact Information

K Balasubramanian
Chief Financial Officer
Tube Investments of India
Tel: 044 - 42110505 / 98402 96153
Email: BalasubramanianK@tii.murugappa.com

Chandrika Raman
Sr. Manager-Group Corporate Communications
Tel: 044-25306535 / 98400 71172
Email: ChandrikaR@corp.murugappa.com