TUBE INVESTMENTS OF INDIA LTD’s STANDALONE Q4 PBT BEFORE EXCEPTIONAL ITEMS RECORDED AT Rs. 175 Cr, UP BY 62%

 TUBE INVESTMENTS OF INDIA LTD’s STANDALONE Q4 PBT BEFORE EXCEPTIONAL ITEMS RECORDED AT Rs. 175 Cr, UP BY 62%
TUBE INVESTMENTS OF INDIA LTD’s STANDALONE Q4 PBT BEFORE EXCEPTIONAL ITEMS RECORDED AT Rs. 175 Cr, UP BY 62%

TUBE INVESTMENTS OF INDIA LTD’s STANDALONE Q4 PBT BEFORE EXCEPTIONAL ITEMS RECORDED AT Rs. 175 Cr, UP BY 62%

 

Chennai, 17th June 2021: The Board of Directors of Tube Investments of India Limited (TII) met today and approved the financial results for the Quarter and Year ended 31st March 2021. The Board had declared an interim dividend of Rs.2.00 per share in February 2021 and the same was paid to the shareholders in March 2021. The Board has now recommended a final dividend of Rs. 1.50 per share for the financial year 2020-21.

 

Highlights:

Revenue in Q4 was at Rs.1,480 Cr compared with Rs.935 Cr of same period previous year. Revenue for the year was at Rs. 4,256 Cr, almost at previous year levels despite pandemic impact during Q1.

PBT (before exceptional items) for Q4 was Rs.175 Cr a growth of 62% over Q4 of previous year. PBT (before exceptional items) for the year was Rs. 381 Cr, lower by 9.5% over previous year.

ROIC (before tax) at 31.5% for the year ended 31st March 2021 compared with 29% in the previous year same period.

Cumulative Free Cash Flow of Rs.533 Cr for the year ended 31st March 2021 which is at 195% of PAT. Net debt reduced from Rs. 149 Cr for PY to a surplus of Rs.10 Cr for CY.

 

Standalone Results

 

TII’s revenue for the quarter was at Rs.1,480 Cr as against Rs.935 Cr in the corresponding quarter of the previous year. The profit after tax for the quarter was at Rs.129 Cr as against Rs.74 Cr in the corresponding quarter of the previous year. 

 

For the year ended 31st March 2021, TII’s revenue was at Rs. 4,256 Cr as against Rs. 4,276 Cr in the previous year. During the year, the Company implemented a voluntary retirement scheme and has incurred a cost of Rs.22 Cr which is considered as exceptional item. Profit before tax (after exceptional items) is Rs.359 Cr. The profit after tax for the year was at Rs. 273 Cr as against Rs. 331 Cr in the previous year.

 

Review of Businesses 

 

Engineering

 

The Revenue for the quarter was at Rs.854 Cr compared with Rs.545 Cr in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was Rs.92 Cr as against Rs.75 Cr in the corresponding quarter of the previous year, registering a growth of 22%.

 

The Revenue for the full year was at Rs.2,317 Cr. compared with Rs.2,258 Cr. in the previous year. Profit before interest and tax for the year was at Rs.251 Cr. as against Rs.264 Cr. in the previous year. For the year ended March 2021, ROCE of the division improved to 43% as against 40% in the previous year.

Cycles and Accessories

 

The division has registered revenue of Rs.301 Cr during the quarter compared with Rs.129 Cr in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was Rs.17 Cr, compared with Rs.6 Cr in the corresponding quarter of the previous year.

 

The Revenue for the full year was at Rs.847 Cr. compared with Rs.781 Cr. in the previous year. Profit before interest and tax for the year improved to Rs.44 Cr. as against Rs.26 Cr. in the previous year. For the year ended March 2021, ROCE of the division improved to 62% compared to 15% in the previous year.

 

Metal Formed Products

 

The Revenue for the quarter was at Rs.401 Cr compared with Rs.301 Cr in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was Rs.40 Cr as against Rs.16 Cr in the corresponding quarter of the previous year.

 

The Revenue for the full year was at Rs.1,274 Cr. compared with Rs.1,399 Cr. in the previous year. Profit before interest and tax for the year was at Rs.87 Cr. as against Rs. 123 Cr in the previous year. For the year ended March 2021, ROCE of the division was at 22% compared to 27% in the previous year.

 

Consolidated Results

 

TII’s consolidated Revenue for the quarter was Rs. 2,733 Cr as against Rs. 1,031 Cr in the corresponding quarter of the previous year. The profit before tax (before exception) for the quarter was at Rs. 237 Cr as against Rs. 89 Cr in the corresponding quarter of the previous year. 

 

TII’s consolidated Revenue for the year was at Rs. 6,083 Cr. as against Rs. 4,750 Cr. in the previous year. For the year the Company has registered a profit before tax (before exception) of Rs. 454 Cr. as against Rs. 425 Cr. in the previous year.

 

During the year, TII acquired controlling stake of 53.16% (of which 50.62% acquired on 26th November 2020) in CG Power and Industrial Solutions Ltd.

 

For consolidation purposes, the Company has considered the acquisition date as November 30, 2020 and hence the Company’s consolidated results include results of its subsidiary CG Power and Industrial Solutions Ltd for a period of 4 months viz. December 2020 to March 2021. The consolidated revenue of CG Power and Industrial Solutions Ltd for the quarter was Rs. 1,118 Cr with a PBT (before exceptions) of Rs. 19 Cr. Revenue for the period December 20 to March 21 was Rs. 1,393 Cr and PBT (before exceptions) was Rs. 67 Cr.

 

Shanthi Gears Ltd., a subsidiary company in the Gears Business, in which the Company holds 70.47% stake, registered revenue of Rs. 75 Cr during the quarter as against Rs. 43 Cr in the corresponding quarter of the previous year. Profit before tax for the quarter was at Rs. 12 Cr as against Rs. 0.50 Cr in the corresponding quarter of previous year. The Revenue for the full year was at Rs. 224 Cr compared with Rs. 249 Cr in the previous year. Profit before tax for the year was at Rs. 26 Cr. as against Rs. 33 Cr. in the previous year.

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Commenting on the financial results, Mr. M.A.M Arunachalam (known as Arun Murugappan), Chairman, Tube Investments of India Ltd

 

“TII has closed the year with a healthy performance post revival of the economy from the 1st wave of the Covid-19 pandemic. The results are encouraging considering that the company had lost almost one full quarter of operations. We are hopeful that with governments’ constant endeavor in controlling the spread of the Covid-19 pandemic and efforts towards maintaining the momentum in economic activity, the impetus in our operations is likely to continue.”  

About Murugappa Group

 

Founded in 1900, the INR 381 Billion (38,105 Crores) Murugappa Group is one of India's leading business conglomerates. The Group has 29 businesses including ten listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., CG Power and Industrial Solutions Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd. and Wendt (India) Ltd.   

 

 

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.   

 

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 51,000 employees.

 

For more details, visit https://www.murugappa.com/

 

For further information, please contact:

Gopi Kannan. S Bhargav TS

Murugappa Group Adfactors PR

+91-9500011238 +91-9884883350