The Board of Directors of Tube Investments of India Ltd. (TII), formerly known as TI Financial Holdings Ltd., approved the financial results for the quarter ended 31st December 2017. The Board declared an Interim Dividend of Rs. 1.25 per share (125%) for the financial year 2017-18.

Standalone Results

TII’s revenue for the quarter was higher by 21% at Rs. 1173 crores as against Rs. 973 crores (net of excise duty) in the corresponding quarter of the previous year. The PAT for the quarter was higher by 28% at Rs. 35 crores as compared to Rs. 27 crores in the corresponding quarter of the previous year.

Mr. L. Ramkumar, Managing Director, said: “During the quarter, bicycle market was sluggish but the Auto industry registered good growth in two wheeler and passenger vehicles segment. The profit before tax for the quarter was at Rs. 50 crores as against Rs. 38 crores in the corresponding quarter of the previous year.”

Review of Businesses

Cycles and Accessories

This division has registered revenue growth (net of excise duty) of 6% during the quarter compared with corresponding quarter in the previous year. Loss before interest and tax for the quarter was Rs. 3 crores as against the profit before interest and tax of Rs. 1 crores in the corresponding quarter of the previous year. Despite increase in revenue in the institutional sales segment, drop in revenue in trade segment due to slow down in the industry, has affected the profitability.

Engineering

This division has registered volume growth of 26% in precision tubes and 10% in strips during the quarter compared with corresponding quarter in the previous year. This division has registered revenue growth (net of excise duty) of 35% during the quarter and profit before interest and tax for the quarter was Rs. 48 crores as against Rs. 37 crores in the corresponding quarter of the previous year.

Metal Formed Products
 
In this segment, the doorframes segment volume grew by 5% during the quarter compared with the corresponding quarter last year. The sale of Auto Chains and Industrial Chains recorded a volume growth of 22% and 17% respectively over the corresponding quarter last year. This division has registered revenue growth (net of excise duty) of 14% during the quarter compared with corresponding quarter in the previous year. Profit before interest and tax for the quarter was Rs. 29 crores as against Rs. 21 crores in the corresponding quarter of the previous year.

Consolidated Results

TII’s consolidated revenue for the quarter was higher by 20% at Rs. 1274 crores as against Rs. 1066 crores (net of excise duty) in the corresponding quarter of the previous year. The profit after tax for the quarter was up by 9%, at Rs. 34 crores as against Rs. 29 crores in the corresponding quarter of the previous year.

Shanthi Gears Ltd., a subsidiary company in the Gears Business, in which company holds 70.12% stake, registered a revenue growth of 18% for the quarter ended 31st December 2017, compared with the corresponding quarter of previous year. The revenue for the quarter was Rs. 54 crores as against Rs. 46 crores (net of excise duty) and profit after tax for the quarter was at Rs. 7 crores as against Rs. 5 crores in the corresponding quarter of previous year.

Founded in 1900, the Rs. 300 billion Murugappa Group is one of India’s leading business conglomerates. The group has 28 businesses including nine 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., Shanthi Gears Ltd., Tube Investments of India Ltd., TI Financial Holdings Ltd., and Wendt (India) Ltd.

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 such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. 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, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The group fosters an environment of professionalism and has a workforce of over 32,000 employees.

For more details, visit www.murugappa.com