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Tube Investments has reported a steep drop in profit after tax for the fourth quarter ended March compared with that of the previous year.
The cycles and accessories division was hit by demonetisation with trade sales and institutional sales impacted.
The Murugappa Group company has reported a net profit of ₹72.50 crore (₹671.84 crore) for the quarter ended March 31, 2016, on a total income of ₹1,200 crore (₹1,153.62 crore) on a standalone basis.
For the financial year 2016-17, the net profit was ₹196.17 crore (₹730.93 crore) on a total income of ₹4486.97 crore (₹4247.98 crore).
A press release quoting Ramkumar, Managing Director, said the auto industry registered a growth during the year which had a beneficial impact. But the cycles and accessories division has registered a revenue drop of 9 per cent during the year due to drop in institution sales.
Trade sales were affected due to demonetisation. Profit before interest and tax for the year was ₹36 crore against ₹79 crore in the previous year.
The engineering division registered revenue growth of 18 per cent during the quarter, aided by growth in exports. Profit before interest and tax for the quarter was ₹25 crore against ₹28 crore in the corresponding quarter of the previous year.
In metal formed products division, sale of automotive chains to OEMs was slightly lower than the previous year.
Profit before interest and tax for the year was ₹92 crore against ₹86 crore in the previous year, a growth of 7 per cent.
On a consolidated basis, including the financial services business, the company has reported a profit after tax of ₹1,175.09 crore (₹788.74 crore) for 2016-17 on a total income of ₹12,296.76 crore (₹10,906.62 crore).
Clarification : Regarding the news report “Tube Investment profit dives to ₹ 72.50 crore in Q4”, published on May 16, 2017, the company has pointed out that, excluding exceptional items, it has reported a 16 per cent increase in Profit Before Tax and Exceptional Items at ₹ 65 crore during the quarter (₹ 56 Crore in the comparable previous quarter). There was a one-time exceptional item of stake sale in Chola MS General Insurance to JV partner Mitsui Sumitomo in the previous period. For the full year. TII has recorded a 69 per cent growth in Profit Before Tax and Exceptional Items at ₹ 238 Crore (₹ 140 Crore).
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