Coimbatore, 27 October 2014: The Board of Shanthi Gears Ltd.,(SGL) a subsidiary of the Chennai-based Tube Investments of India Ltd, (TII) of the Murugappa Group met today to discuss the unaudited financial results for the quarter ended 30th September, 2014. The turnover for the quarter was Rs 36.77 crores against 40.64 crores in the same quarter last year. The net profit for the quarter was
2.27 crores against
6.73 crores in the previous year. The profit for the half year ended 30th September was
4.12 crores against
10.09 crores in the previous year. Sales came down due to poor execution of orders as a result of long lead times in design and approvals by customers and consequently procurement of raw materials. This situation is being corrected through actions to clear the backlog. The profitability drop is due to Shanthi’s forays into new customers and segments and also re-enter past customers in order to build a reference base in the emerging segments. Further, tougher market conditions and competitive pressures also added to the challenge.
During the quarter, the Company built its order book by 54.6 crores (PY
33.7 Cr) under difficult market conditions. The increase in the orders booked during the quarter represents a growth of 62% over the previous year. The Company’s order book currently stands at Rs. 92 crores. The Company has made a strong comeback in the market place and is once again recognised as a key player in the gear industry. Most of the key user segments in the domestic market remained flat during the quarter just ended.
The Company continues to remain focused on expanding its customer base, enhancing the distribution and service network and on improving its speed of execution. The Company has been undertaking various cost management initiatives over the last few months together with a thrust on operating efficiencies.
About Murugappa Group
Founded in 1900, the INR 243 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including ten 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. MEDIA RELEASE | Shanthi Gears Ltd – Q2 FY 2014-15 Page 2
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.
Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.
Caution Notice
The public is hereby cautioned that it has been brought to our notice that certain unscrupulous persons/agencies are issuing fake sanction letters to customers and getting their signatures in fake loan agreements purporting to be a loan sanction letter & loan agreement of Murugappa Group and such persons /agencies are attempting to extort money by demanding security deposit/processing fee/insurance fee from the gullible customers for processing the required loan etc. In the aforesaid documents, those unscrupulous persons/agencies are also using the registered logo and name of Murugappa Group against law with intent to gain wrongfully by using the goodwill and reputation of the Group.
Please be informed that Murugappa Group is not a separate legal entity and never requires any customers to pay any advance money or deposit for loan sanctioning. Public is cautioned not to rely or act on any such fraudulent sanction/offer made in the name of Murugappa Group without verifying the authenticity of the contents.
Customers who are interested in availing loans may directly contact any of the nearest branch of Cholamandalam Investment and Finance Company Limited (Cholamandalam) a constituent of our group for further details or get in touch with us at 1800 200 4565 or alternatively email at customercare@chola.murugappa.com, or SMS at 9500000312.
MURUGAPPA GROUP