Tube Investments of India Ltd, Murugappa Group’s engineering company, has proposed to undertake capacity expansion at its factory near Chennai at an investment of ₹141 crore.

The company said in a communication to stock exchanges that it will be expanding the capacity to 5,950 tonnes a month from 4,125 tonnes a month at its large diameter precision steel tube manufacturing plant at Tiruttani near Chennai given strong demand.

The project is to be financed through internal accruals and is expected to be completed in FY25, it added.

Meanwhile, the company has declared an interim dividend of ₹2 per share for the financial year 2022-23. The company has reported a profit after tax of ₹138 crore for the quarter ended December 31, 2022, against ₹120 crore in the year-ago quarter.

Its profit before exceptional items and tax stood at ₹192 crore ( ₹161 crore). Revenue in Q3 was at ₹1,710 crore ( ₹1,701 crore).

The engineering business’ revenue grew to ₹1,081 crore in Q3 (₹996 crore), while the metal formed products division recorded revenue of ₹371 crore (₹330 crore). The mobility business saw a drop in revenue to ₹174 crore from ₹280 crore.

Arun Murugappan, Chairman, Tube Investments of India Ltd, said its engineering and metal-formed products businesses continued their robust performance in the third quarter as well. The bicycle industry suffered from a contraction in demand. “Our subsidiaries CG Power and Industrial Solutions Ltd and Shanthi Gears Ltd registered consistent performance,” he added.

TII’s subsidiary Tl Clean Mobility Private Ltd has completed the acquisition of the remaining 30.04 per cent equity shares held by the founders of Cellestial E-Mobility Pvt Ltd, an electric tractor start-up. Cellestial is now a wholly-owned subsidiary of TI Clean Mobility with effect from February 3.

The company’s stock closed 0.66 per cent lower at ₹2,686 per share on BSE on Friday.