Murugappa group’s engineering company Tube Investments of India Ltd (TII) plans to enter new business segments such as medical devices & instruments, electronic products & components and energy-related products. 

The Board on Thursday gave its nod, subject to shareholders’ approval, for the insertion of three new sub-clauses in the memorandum of association (MoA) to facilitate the company to engage in the businesses, according to a statement. 

Last year, the company announced its entry into the electric mobility segment, where it seeks to focus on electric three-wheelers. It also acquired Hyderabad-based electric tractor startup Cellestial E-Mobility in January. 

The board also approved the termination of the Global Depository Receipts (GDR) programme of the company, considering the small number of unlisted GDRs outstanding (constituting about 0.001 per cent of the equity share capital). The Bank of New York Mellon is the depository of the GDRs. 

Fresh long-term borrowing to meet its funding needs during FY23 was also approved by the Board and the borrowing limit is fixed at ₹500 crore. 

Share warrants

The board gave its nod for conversion of the remaining 8,52,33,645 share warrants into an equal number of equity shares of CG Power and Industrial Solutions Ltd by paying the balance of 75 per cent subscription money, on or before May 26, 2022. 

TII reported a profit after tax of ₹136 crore for the quarter ended March 31, 2022, against ₹129 crore in the year-ago quarter. Profit before exceptional items stood at ₹173 crore (₹162 crore). Revenue from operations grew to ₹1,629 crore from ₹1,396 crore. 

“The results for the quarter show a steady performance even in the wake of challenges on account of supply constraints, lower domestic demand, increase in fuel and commodity price fueling inflation, part of which was also as a result of the war in Ukraine. Exports have, however, consistently delivered good growth in tubes and industrial chains business,” said MAM Arunachalam, Chairman, Tube Investments of India Ltd 

For the full year FY22, its net profit reported a strong increase to ₹475 crore compared to ₹273 crore in the second Covid wave-impacted FY21. Revenue from operations was higher at ₹5,987 crore as against ₹4,026 crore. 

The board has now recommended a final dividend of ₹1.50 per share for the financial year 2021-22.