Tube Investments of India Limited has posted sales of Rs870.34 crore and a net profit of Rs115.83 crore for the first half of the current fiscal. Excluding the profit from sale of investments amounting Rs71.30 crore the net profit will be Rs44.53 crore. For the corresponding period of the last fiscal the company's turnover and profit stood at Rs800.76 crore and Rs54.79 crore.
When compared to the previous year's corresponding figures, the company's three divisons - cycles, engineering and metal-formed products - has posted higher turnover. On the other hand the profit figures for cycles and engineering divisions has come down.
The profit of the cycles division came down to Rs9 crore (sales Rs259.44 crore) from Rs9.38 crore (Rs241.13 crore) and that of the engineering division to Rs44.64 crore (sales Rs402.82 crore) from Rs50.59 crore (sales Rs380.03 crore). The metal formed products division contributed a profit of Rs24.37 crore (sales Rs156.55 crore) as against Rs20.20 crore (sales Rs128.78 crore) posted during the first half of the previous year.
According to the company, the bicycle business is restructuring the distribution network. The company has recently entered the fitness equipment business. The division is targetting a turnover of Rs500 crore this fiscal.
On the other hand, the production and sale of tubular products was lower resulting in decrease in turnover of the engineering division. The increase in the input costs affected the division's bottom line. Further the export of tubes was lower owing to the changed distribution strategy in the North American markets.
The metal-formed products division witnessed higher demand for products. The trend in the off-take for the new models of our customers is also encouraging. There has been some initial delay in the execution of company's plans with regard to design and manufacture of auto components through the use of hydro-forming technology. The sales of fine blanked components, automotive chains as well as export of industrial chains witnessed a healthy uptrend in the second quarter.
also see : TI
cycles' new fitness strategy