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Tube Investments posts higher PAT for Q4 and FY20

Our Bureau Chennai | Updated on May 28, 2020 Published on May 28, 2020



Murugappa Group company Tube Investments of India (TII) has reported a profit after tax (PAT) of ₹74 crore for the quarter ended March 31, 2020. In the year-ago quarter, PAT was ₹55 crore.

During the March 2020 quarter, the company implemented a voluntary retirement scheme at a cost of ₹22 crore, which was considered as an exceptional item in the accounts, resulting in a profit before tax (after exceptional items) of ₹86 crore — the same as Q4 of the previous year, according to a statement.

The profit before tax and exceptional items for the January-March 2020 quarter was ₹108 crore when compared with ₹86 crore in the year-ago period.

The company’s total revenue fell 23 per cent to ₹959 crore when compared with ₹1,224 crore in the year-ago quarter.

FY20 results

For the year ended March 31, 2020, the PAT was higher at ₹331 crore when compared with ₹244 crore in 2018-19.

Its total revenue from operations dropped to ₹4,276 crore as against at ₹5,286 crore, posting a drop of 19 per cent. The profit before tax and exceptional items was higher at ₹421 crore as against ₹371 crore.

The company generated a cumulative free cash flow of ₹320 crore for the year ended March 31, 2020.

In 2019-20, two business segments — engineering and cycles and accessories — reported fall in revenues at ₹2,258 crore (₹2,896 crore in 2018-19) and ₹781 crore (₹1,238 crore) respectively. Metal-formed products’ revenue grew marginally to ₹1,399 crore from ₹1,360 crore.

The board of directors has not recommended any final dividend.

Due to the Covid-19 outbreak and the consequent lockdown, the operations in Tube Investments’ manufacturing plants across various locations in the country had to be shut down or were disrupted from March 23 onwards and continued through April.

With the easing in the lockdown and the resumption of operations with necessary permission from the local authorities, the company from May onwards has started work in a partial manner, said the statement.

Published on May 28, 2020
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