Tube Investments of India Ltd
Consolidated Q1 revenue up by 15%

 

Chennai, 2 August 2013: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the financial results for the quarter ended 30th June, 2013.

Consolidated Results

The Company’s consolidated Net Profit before Minority Interest for the quarter was at rs133 Crores, a growth of 11% against the corresponding quarter of the previous year. Net profit after minority interest for the quarter was at rs81 Crores against rs85 Crores for the corresponding quarter in the previous year.

Cholamandalam Investment & Finance Company Ltd, a subsidiary company in the financial service business, registered a good growth of 29% in the disbursements for the quarter. Profit after Tax (PAT) for the quarter was at rs92 Crores against rs70 Crores for the corresponding quarter in the previous year, registering an impressive growth of 31%.

Cholamandalam General Insurance Company Ltd., a general insurance subsidiary of the Company registered a significant growth of 20% in Gross Written Premium during the quarter. Gross Written Premium for the quarter was at rs482 Crores as against `402 Cr. and the PAT for the quarter was at rs20.9 Crores as against rs10.5 Crores, a growth of 99% compared with corresponding quarter in the previous year.

Shanthi Gears Ltd., a subsidiary company in the Gears Business, registered a revenue growth of 9% for the quarter compared with corresponding quarter of the previous year. The PAT for the quarter was at rs3.4 Crores as against rs3.6 Crores during corresponding quarter in the previous year.

TII’s Income for the quarter was lower by 10% at rs826 Crores as against rs915 Crores for the corresponding quarter in the previous year. The profit before interest and tax for the quarter was at rs54 Crores as against rs75 Crores for the corresponding quarter in the previous year. The PAT for the quarter was rs16 Crores as compared to rs38 Crores for the corresponding period in the previous year.

Mr. L. Ramkumar, Managing Director said, “The dependence on the auto sector is high for the engineering and metal formed product segments and hence their performance was impacted due to its slowdown. Demand for bicycles was encouraging when compared to the previous quarter. The margins were under pressure across all segments due to increased input costs. We have recovered the input costs partially and focusing on efficiencies to neutralize the impact. To weather the slowdown, all the business segments are focusing on meeting the customer requirements in a timely manner and improve on the Cash to Cash cycle. Progress on the green field project to manufacture Large Diameter Welded Tubes is as per plan and is expected to commence production in Q1 of the next financial year”.

Review of Businesses

Bicycles

The Bicycle division registered a drop in volumes by 7% during the quarter compared with corresponding quarter in the previous year. This segment witnessed an impressive growth of 13% in volumes over the Q4 of the previous financial year. The revenue for the quarter was rs307 Crores as against rs335 Crores for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was rs15 Crores as against rs22 Crores for the corresponding quarter in the previous year. The margins were under pressure due to increase in input costs absorbed partially due to competitive environment.

Engineering

The Engineering division registered a volume drop of 5% in Tubes and 2% in Cold Rolled Steel Strips during the quarter compared with corresponding quarter in the previous year. The Engineering division’s revenue for the quarter was rs369 Crores as against rs395 Crores for the corresponding quarter in the previous year. Auto industry had a negative growth of 4% during the quarter as compared to the corresponding quarter of previous year. Profit before Interest and Tax for the quarter was rs29 Crores as against rs32 Crores for the corresponding quarter in the previous year.

Metal Formed Products

In this segment, the domestic volumes of the automotive Chains increased by 4% and volume to the replacement market increased by 23% over the corresponding quarter in the previous year. Fine Blanked products also grew by 11% for the quarter. The doorframe segment volumes registered a drop of 12% mainly due to negative growth in passenger cars segment. Due to delay in release of orders to the wagon builders from Railways, the products for railway segment witnessed 69% drop in volume. The revenue for the quarter was rs184 Crores as against rs220 Crores for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was rs14 Crores as against rs24 Crores for the corresponding quarter in the previous year.

About Murugappa Group

Founded in 1900, the INR 225 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eleven listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Sabero Organics Ltd., Shanthi Gears 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, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Crucible and Sociedad Química y Minera de Chile (SQM). The Group has a wide geographical presence spanning 13 states in India and 5 continents.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.