Sales for the quarter were up by 17% at Rs. 846 Cr. as against Rs.721 Cr. for the same period last year.The profit before depreciation, interest and tax for the quarter was at Rs. 96 Cr. against Rs. 82 Cr.last year, a growth of 17%. The profit before tax for the quarter improved by 20% and was higher at Rs. 60 Cr. against Rs. 50 Cr, in the previous year.
Mr. L. Ramkumar, Managing Director said, “The growth in the auto sector declined particularly in the passenger car segment. It registered a negative growth of 8% during the quarter, as against a growth of 18% in the previous quarter. This impacted the turnover of engineering and metal formed products segments. The continued growth of the motor cycle industry at 17% in Q2 helped these segments neutralize this impact and registered a revenue growth of 19%. The demand for bicycles continued to be sluggish and there was pressure on margins too.”
Review of Businesses – Second Quarter
Bicycles/ E scooters
The bicycles volume for the quarter was in line with that of the corresponding quarter of last year.Demand fell mainly due to the flood situation in East and lower secondary sales across regions.Retailing of bicycles and fitness products continue to provide customers a good buying experience and service that are contemporary. Fifty five retail outlets under the various formats have been added during the quarter. With its continued thrust in the retail the total number of retail formats reached 737 stores and 25% of the bicycle segment revenue is derived through this channel. The electric scooters registered a volume growth of 79% for the quarter on a lower base (7% for H1).
During the quarter this division recorded revenue of Rs 320 Cr, a growth of 15% over the corresponding quarter of last year.
Auto industry grew at a lower rate of 15% during the quarter as compared to the corresponding quarter of the previous year. Precision Tubes (electrical resistance welded and cold drawn welded) grew by 11% in volume terms, mainly affected by negative growth of passenger car segments. The Tubular components segment recorded a growth of 14% during the current quarter.
During the quarter this division recorded revenue of Rs 354 Cr, a growth of 19% over the corresponding quarter of last year.
Metal Formed Products
In this segment, volumes of automotive chains increased by 16% and that of industrial chains by 17%.Export of industrial chains registered a growth of 56% mainly due to higher sale of industrial chains in the European market and better off-take from OEMs in the US. The products for the railway segment grew significantly registering a 86% growth in volumes. The doorframe segment volumes registered a negative growth of 17%.
During this quarter this division recorded revenue of Rs 207 Cr, a growth of 19% over the corresponding quarter of last year.
The Company’s consolidated profit before tax and exceptional items for the quarter was at Rs. 126Cr. against Rs.98 Cr. in the previous year, a growth of 29%.
Financiere C 10, the Company’s overseas subsidiary manufacturing Industrial chains grew by 23% overthe same period last year and achieved a turnover of Rs.114 Cr. and a Profit before Tax of Rs. 3 Cr.during the period January to June 2011. During the quarter Cholamandalam Investment & Finance Company Ltd, a subsidiary company in the financial service business achieved a Profit before tax of Rs.66 Cr. against a profit of Rs.39 Cr. in the previous year. Cholamandalam MS General Insurance Company Ltd. a general insurance subsidiary of the Company registered a significant growth of 50% in Gross Written Premium during the quarter and achieved a Profit before Tax of Rs. 7.8 Cr
About the Murugappa Group
Founded in 1900, the Rs. 17051 Crores (USD 3.8 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 29 businesses including eight listed Companies actively 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., 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 Groupe Chimique Tunisien, Foskor, Cargill, Mitsui Sumitomo and Morgan Crucible. The Group has a wide geographical presence spanning 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.
For further information, please contact
Managing Director, Tube Investments of India Ltd.
Tel : 044 – 4228 6702 / 4211 4747
External Communications Lead – GCC
Tel : 044-25306497