The Hindu Business Line : Tube Investments Q4 net goes up

Tube Investments of India has reported a higher net profit for the fourth quarter of 2005-06 because of a big jump in `other income', which a press release says, is mostly profit on sale of investments and land and building.

The company's net profit for the quarter was Rs 90.68 crore against Rs 37.05 crore in the same period last year, but `other income' was Rs 97.54 crore against Rs 8.10 crore. It may be recalled that TI got about Rs 100 crore for sale of a part of its stake in group company Cholamandalam Investments to DBS of Singapore. Also, the Murugappa group sold off its building, TIAM House, and TI received its share of the proceeds.

For the full year 2005-06, the company has reported a turnover of Rs 1,595 crore against Rs 1,468 crore for the previous year. Net profit for the year was Rs 183 crore against Rs 98 crore previously. `Other income' for the full year was Rs 134 crore against Rs 18 crore previously.

Declares dividend

The company's board of directors has recommended a dividend of Rs 1.2 per share of Rs 2 each, or 60 per cent. Last month, the company had declared a `special interim dividend' of Rs 17.5 (175 per cent) per share of Rs 10 each. This was done "in view of the significant size and one-time nature of the profit on sale of long-term investments," says the press release from the company.

Faces competition

The release speaks of "stiff competition" in both chains and bicycles business, particularly from China. In the cycles business "market scenario remains depressed".

The release says TI would put up a new door-frame plant near Pune "for the supply of doorframes to a new passenger vehicle to be launched". TI officials told Business Line that the company would invest Rs 22 crore in the project.