Tube Investments of India Limited, Chennai based company, specialized in engineering, bicycles, metal formed products will invest Rs. 77 crore in establishing a new precision tubes manufacturing unit at Rajpura, Punjab.
The company’s engineering segment has been making precision steel tubes for applications like front forks, side impact beams and steering columns in automotive segment, which accounts for about 80% of the engineering segment’s revenues. It is a market leader in CDW tubes for two-wheelers and four-wheelers with a 56% market share. Tubes exports have also been growing strongly for the company.
Tube Investments has reported a 67% increase in net profit at Rs 27 crore for the quarter ended December 31, 2016, from Rs. 16 crore in the corresponding period or the last year, supported by robust exports, other higher income and lower finance costs, despite lower operating profit. The total revenues of the company stood at Rs. 1,041 crore as against Rs. 968 crore in third quarter of the previous year, an 8% growth.
L Rajkumar, the MD of Tube Investments of India, stated that the domestic turnover of the company across sectors, and the profits were badly affected on account of demonetization triggered in November 2016. Exports grew by 48% over corresponding quarter a year ago, and the Profit after fax was higher than last year same quarter due to savings in finance charges.
Company’s Cycles and accessories segment witnessed a revenue growth of 3% during the December quarter, supported by institution sales. On the other side, the company’s Engineering division’s revenue grew 14% on the back of strong exports, while Metal formed products division escalated by 3%.