Chennai, July 29, 2010: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the first quarter ended 30th June, 2010.
During the quarter, sales were at Rs. 713 Cr. as against Rs.543 Cr. during the same period last year, a growth of 31%. The profit before interest and exceptional items, for the first quarter, was at Rs. 71.6 Cr. against Rs. 50.4 Cr. last year. This represents a growth of 42%. Mr. L. Ramkumar, Managing Director said, “The strong growth of the Indian economy and in particular the key user industry of the Company’s products – the auto sector – helped the company maintain its good performance of the last few quarters. Launch of new products and better positioning helped the bicycle business grow. Additional volumes and improved efficiencies in Engineering and Metal formed Products division helped to maintain profitability.”
The Cycles division registered a 15% increase year on year in the total volume of bicycles sold. This growth is on a higher base and has come from both the standard and special segments. The volume of electric scooters grew by 61%, over the same period last year. The scooters continue to be received well in the market and the company held on its position as the leading supplier of electric scooters in the Southern markets.
Sale of cold rolled steel strips decreased by 11% but the sales of tubes in the domestic market was higher by 18%. The major share of the growth has been in the cold drawn welded (CDW), precision tubes segment. The division continues to maintain its leadership position in CDW tubes segment. Export of CDW tubes was also higher and registered a sale of almost twice the quantity sold last year. Tubular components too registered a growth of 40% over last year. Continued emphasis on cost, operating efficiencies and sweating of assets helped the division post a higher profit.
Barring sale of cold rolled formed sections for Railway wagons all other products of the division recorded good growth. Sale of car doorframes increased by 37% with higher volume from all customers. Sale of automotive chains increased by 41% and industrial chains in the domestic market grew 5%. Export of chains more than doubled and grew by 107% with better off take from its major customers. The orders on the sections for Railway products have been delayed and are expected to be received from the coming quarters and the revenue from this vertical would improve.
The Company is gearing up to meet further growth in demand through better utilization of existing capacities as well as fresh investments as required. The focus in the ensuing quarters would be to further increase the proportion of value added products.
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. In the recent times, the Company has introduced E- Scooters.
About the Murugappa Group
Founded in 1900, the Rs. 13617 Crores (USD 3.03 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 29 companies under its umbrella, of which seven are listed and actively traded in NSE & BSE. Headquartered in Chennai, the major companies of the Group includeCarborundum Universal, Cholamandalam Investment and Finance Company Limited, CholamandalamMS General Insurance Company Ltd, Coromandel International Ltd, Coromandel Engineering CompanyLtd, EID Parry (India) Ltd, Parry Agro Industries Ltd, Tube Investments of India Ltd and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Cycles, Sugar, Farm Inputs,Fertilizers, Plantations, Construction, Bio-products and Nutraceuticals, the Group has forged strong joint venture alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien. The Group has a wide geographical presence panning 13 states in India and 5 continents.
Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Gromor and Paramfos are from the Murugappa stable.
The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.