Companies

Tube Investments posts ₹88-cr profit in June quarter on exceptional income

Our Bureau Chennai | Updated on July 24, 2019

Murugappa Group company Tube Investments of India (TII) has reported a profit after tax of ₹88 crore for the first quarter ended June 30, 2019, when compared with ₹54 crore in the year-ago quarter, helped by lower expenses and an exceptional income amid fall in revenue.

There was an exceptional item of ₹19 crore, which was made on tendering of shares held in Shanthi Gears under the buyback scheme, for the first quarter of this fiscal.

The profit before tax and exceptional items for the June 2019 quarter was at ₹107 crore when compared with ₹79 crore in the same quarter previous fiscal.

Its total expenses stood at ₹1,154 crore as against ₹1,284 crore.

The company’s total income declined by seven per cent at ₹1,261 crore as against ₹1,363 crore in the year-ago quarter, on the back of fall in sales of cars and two-wheelers during the period.

In the June quarter, engineering, and cycles and accessories businesses reported revenue decline of 8 per cent (at ₹657 crore) and 23 per cent (at ₹290 crore), respectively, while metal formed products division reported a 12 per cent growth in revenues (at ₹350 crore), helped by demand in segments such as railways, industrial chains and fine blanking products.

On a consolidated basis, the profit after tax (PAT) of the company was higher at ₹79 crore for the first quarter of this fiscal when compared with ₹62 crore in June 2018 quarter. Total income decreased to ₹1,395 crore as from ₹1,489 crore.

Shanthi Gears Ltd, a subsidiary company, reported a PAT at ₹9.5 crore when compared with ₹8.5 crore in June 2018 quarter. Its revenue grew 16 per cent at ₹72 crore as against ₹62 crore.

Published on July 24, 2019

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