Kolkata, October 31, 2019: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the financial results for the Quarter ended 30th September 2019.
Highlights:
- Revenue of Rs.1113 Cr. in the quarter with a drop of 18% over Q2 of last year mainly because of de-growth in Auto Industry
- PBT of Rs.111 Cr, a growth of 31% over Q2 of last year.
- ROCE improved to 22% from 19% in H1 of Previous year (excl. exceptional item)
- Cumulative Free cash flow at Rs.154 Cr., and at 86% to PAT
- The Company has opted for lower tax rate of 22% and the resultant benefit is being recognised over 3 Quarters
Standalone Results
TII’s Revenue for the quarter was lower by 18% at Rs.1113 Cr. as against Rs.1364 Cr. in the corresponding quarter of the previous year. The profit after tax for the quarter was at Rs.90 Cr. as against Rs.57 Cr. in the corresponding quarter of the previous year. Return on average Capital Employed (ROCE) at 22% from 19% in the corresponding H1 of the previous year. The Company generated cumulative free cash flow of Rs.154 Cr. and at 86% of PAT.
Review of Businesses
Engineering
The Revenue for the quarter was at Rs.554 Cr. compared with Rs.772 Cr. in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was Rs.63 Cr. as against Rs.65 Cr. in the corresponding quarter of the previous year. For H1, ROCE of this division is at 36%, marginally lower than 37% in the corresponding period of previous year.
Cycles and Accessories
This division has registered revenue drop of 31% during the quarter compared with corresponding quarter in the previous year, primarily due to de-growth in trade market and exit from institution business. Profit before interest and tax for the quarter was Rs.6 Cr. as against Rs.5 Cr. in the corresponding quarter of the previous year. For H1, ROCE of this division improved to 21% as against 10% in the corresponding period of the previous year.
Metal Formed Products
The Revenue for the quarter was at Rs.379 Cr. compared with Rs.336 Cr. in the corresponding quarter of the previous year, registering a growth of 13%. Profit before interest and tax for the quarter was Rs.40 Cr. as against Rs.31 Cr. in the corresponding quarter of the previous year. Growth achieved in segments like railways, industrial chains and fine blanking products compensated partially for the impact of de-growth in auto industry in Q2. For H1, ROCE of this division improved to 32% as against 27% in the corresponding period of the previous year.
Consolidated Results
TII’s consolidated Revenue for the quarter was Rs.1247 Cr. as against Rs.1490 Cr. in the corresponding quarter of the previous year. The profit after tax for the quarter was at Rs.93 Cr. as against Rs.67Cr. in the corresponding quarter of the previous year.
Shanthi Gears Ltd., a subsidiary company in the Gears Business, in which the Company holds 70.47% stake, registered revenue of Rs.71 Cr. during the quarter as against Rs.59 Cr. in the corresponding quarter of the previous year, registering a growth of 19%. Profit before tax for the quarter was at Rs.12 Cr. as against Rs.11 Cr. in the corresponding quarter of previous year.
Corporate Comm India(CCI Newswire)
