Financial results of Tube Investments of India Limited for the quarter and nine months ended 31st December'07

Chennai, 31January 2008: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the third quarter and nine month period ended 31st December, 2007.

During the quarter sales were at Rs. 417.61 crore, as against Rs.384.10 crore during the same period last year, a growth of 8.7 per cent. The net profit for the quarter was at Rs.17.55 crore. The net profit for the corresponding quarter in the previous year was Rs. 20.54 crore.

Sales for the nine months amounted to Rs. 1275.47 crore as compared to Rs. 1179.95 crore last year. The profit after tax for this period was Rs. 47.36 crore against Rs. 136.37 crore. There was an extra-ordinary income of Rs. 71.30 crore towards profit on sale of long term investments in the previous year.

The efforts of the Company to broaden the customer base in the Engineering Division have yielded good results and the sale of Electric Resistance Welded tubes was 13.3 per cent higher than the same period last year. The volume of sale of CDW tubes grew marginally despite the 10 per cent decline in the motorcycle segment of automotive industry. The supply of tubular components to auto OEMs gained acceptance and grew four fold during the quarter. Though steel prices were relatively stable over the quarter the non-compensation of earlier steel price increases impacted margins.

Export of precision steel tubes grew 7.2 per cent over the nine months of the previous year though the continued strength of the Indian Rupee depressed earnings.

The Cycles Division grew 18 per cent over the corresponding quarter last year. The new models launched during the year have been received well and the thrust on the sale of hi-end bicycles continues. The retail focus of this division continues and we currently have 18 stores under the BSA GO brand.

Sale of Automotive and Industrial Chains in the domestic market grew 10 per cent over the same quarter last year while exports grew 3.4 per cent . Sale of automotive chains grew despite the slowdown in the two-wheeler industry due to the higher off-take of Chains for the replacement market by the OEM's and Industrial Chains growth was aided by the strong industrial growth in the country, Sale of car doorframes continued to be good and grew 15 per cent in volume terms over the corresponding quarter last year. The off-take of cold rolled formed sections for the wagons of Indian Railways also improved this quarter and registered a significant growth over the corresponding quarter last year.

While the impact of strong Rupee, high interest rates and pressure on pricing continue, we hope to improve performance with new products development, improved customer service and cost management.

Mr. L. Ramkumar has been appointed as Managing Director of the Company for a period of five years w.e.f. 1st February 2008, subject to the approval of shareholders. He has 30 years of rich and varied experience in Management including 15 years in TII itself in different capacities. He was previously President & Director of Fenner India Ltd.

About Tube Investments of India Ltd
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 USD 2 billion (Rs.8500 crore) Murugappa Group is India's leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitary-ware, cycles, sugar, farm inputs, fertilisers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organization fosters an environment of professionalism and has a workforce of over 30,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India

For further information, please contact:
K Balasubramanian
Chief Financial Officer
Tube Investments of India
Tel: 044 - 42110505
Mobile: 98402 96153
E-mail: BalasubramanianK@tii.murugappa.com

Chandrika Raman
Asst. General Manager
Group Corporate Communications
Murugappa Group
Tel: 044 25306535
Mobile: 98400 71172
E-mail: ChandrikaR@corp.murugappa.com

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