Tube Investments of India Ltd.- Q2 Results

Introduction

Tube Investments of India Ltd. (TII), a part of the Murugappa Group, is an engineering and manufacturing enterprise specialising in bicycles, metal-formed products, and chains. The company has its headquarters in Chennai, Tamil Nadu, and was founded in 1949 as a joint venture. TII was incorporated as TI Cycles of India Ltd. in association with Tube Investments Limited, UK. Today, the company boasts a revenue of ₹7,236 Cr with ₹928 Cr as profit before tax (PBT).

Tube Investments of India announced its quarterly results for Q2 FY24 on October 30th, with its standalone net profit surging 27% YoY. Let us take a closer look at its financial performance for the period under review.

Additional Read: Q2 Results Dashboard 

Key Financial Metrics

Performance Highlights (Standalone)

• Tube Investments of India reported a standalone net profit of ₹181.44 Cr, up 27% YoY from ₹142.46 Cr during Q2 FY23.
• TII’s total revenue from operations rose 3.3% YoY to ₹1,969.62 Cr, compared to ₹1,905.86 Cr during the same period last year.
• The company’s profit before exceptional items and tax stood at ₹244.82 Cr as against ₹225.81 Cr during Q2 FY23.
• As per an exchange filing, the free cash flow during Q2 FY24 was ₹108 Cr.

TII clocked an impressive standalone net profit during the second quarter of the fiscal year, as the net profit increased by 27% year-on-year on the back of robust performance by engineering and metal-formed products divisions.

The company’s total income during the quarter stood at ₹2,005.38 Cr, up sequentially and year-on-year. TII’s total income during the preceding quarter was ₹1,802.05 Cr, while it registered a total income of ₹1,920.32 Cr during Q2 FY23.

The total revenue from operations increased by 3.3% YoY to ₹1,969.62 Cr as against ₹1,905.86 Cr in the corresponding quarter last year. During the period under review, the engineering division accounted for ₹1,274.10 Cr of the total revenue from operations. On the other hand, metal-formed products accounted for ₹399.59 Cr, while mobility decreased to ₹176.60 Cr from ₹226.09 Cr, and others accounted for ₹206.81 Cr.

For the first half of the fiscal year, TII’s total revenue from operations fell to ₹3,749.76 Cr from ₹3,862.90 Cr recorded during H1 FY23.

The total income during H1 FY24 stood at ₹3,807.43, down from ₹3,889.36 Cr the company registered during H1 FY23.

Management Commentary

Key Announcements

• The company’s board approved the setting up of a ₹211 Cr greenfield precision steel tube manufacturing facility in the west.

Tube Investments of India Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total Revenue from Operations	₹3,862.90 Cr	₹3,749.76 Cr
Total Income	₹3,889.36 Cr	₹3,807.43 Cr
Total Expenses	₹3,483.57 Cr	₹3,364.71 Cr
Profit Before Tax	₹382.34 Cr	₹442.72 Cr
Profit After Tax	₹276.78 Cr	₹329.13 Cr
Total Comprehensive Income	₹276.61 Cr	₹328.03 Cr

Also Read: Tube Investments of India Share Price

Tube Investments of India Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total Revenue from Operations	₹1,780.14 Cr	₹1,969.62 Cr
Total Income	₹1,802.05 Cr	₹2,005.38 Cr
Total Expenses	₹1,604.15 Cr	₹1,760.56 Cr
Profit Before Tax	₹197.90 Cr	₹244.82 Cr
Profit After Tax	₹147.69 Cr	₹181.44 Cr
Total Comprehensive Income	₹147.44 Cr	₹180.59 Cr

Tube Investments of India Limited: Statement of Assets and Liabilities (Standalone)

Particulars	Q2 FY 2023-24
Non-current Assets	₹3,616.30 Cr
Current Assets	₹1,704.46 Cr
Total Assets	₹5,320.76 Cr
Total Equity	₹3,602.22 Cr
Non-current Liabilities	₹48.83 Cr
Current Liabilities	₹1,669.71 Cr
Total Liabilities	₹1,718.54 Cr
Total Equity and Liabilities	₹5,320.76 Cr

Stock Performance

Tube Investments of India Ltd. declared its quarterly results and results for the first half of the fiscal year on October 30th. The following day (Tuesday), TII’s shares opened at ₹3,066.05 and, at 12:55 P.M., rose 3.10% to ₹3,154.30 apiece on BSE.

About the Company

Tube Investments of India Ltd. (TII), a part of the Murugappa Group, is a leading engineering company with its headquarters in Chennai, Tamil Nadu. TII manufactures precision steel tubes and strips, car doorframes, bicycles, and automotive and industrial chains. The company was originally founded in 1949 as a joint venture, and today, it has various manufacturing facilities located across the country.

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Sources:

https://www.bseindia.com/xml-data/corpfiling/AttachLive/ab0a84e7-c182-4a60-9c6f-4681be988452.pdf