Tube Investments’ Q2 PAT grows 58% at ₹90 crore

Murugappa Group company Tube Investments of India has reported a 58 per cent increase in its profit after tax (PAT) at ₹90 crore for the quarter ended September 30, 2019, when compared with ₹57 crore in the same period a year ago, despite a fall in revenue helped by lower operating cost.

Profit before exceptional items and tax stood at ₹111 crore as against ₹85 crore.

Its total revenue from operations for this September quarter was lower by 18 per cent at ₹1,113 crore as against ₹1,364 crore in the corresponding quarter of the previous year.

The company has opted for lower tax rate of 22 per cent and the resultant benefit is being recognised over three Quarters, according to a statement. The Engineering division recorded a 29 per cent decline in revenue at ₹554 crore when compared with ₹776 crore in the year-ago period.

Cycles and accessories business also witnessed a 31 per cent fall in revenue at ₹217 crore (₹313 crore).

However, metal formed products segment reported a 13 per cent rise in revenue at ₹379 crore (₹336 crore). Growth achieved in segments like railways, industrial chains and fine blanking products compensated partially for the impact of de-growth in auto industry in Q2. TII’s consolidated revenue for the quarter was lower by 17 per cent at ₹1,247 crore (₹1,490 crore). The PAT grew to ₹93 crore as against ₹67 crore in the year-ago period.

For the half year ended September 30, its standalone PAT of the company grew to ₹179 crore from ₹111 crore. Total revenue from operations stood at ₹2,365 crore (₹2,731 crore).