Tube Investments of India Ltd has reported a 14 per cent drop in standalone net profit for the quarter ended September 30, compared with the corresponding quarter last year.
In the consolidated performance of the Murugappa Group company, the financial services and insurance businesses contributed to a 10 per cent growth in net profit.
Standalone results
Volumes and margins have been hit in its main lines of business – bicycle and engineering division – in the backdrop of the slow market conditions and increasing costs, which the company has not been able to recover fully, said L. Ramkumar, Managing Director. Steel and rubber are the two major inputs for the company.
The net profit was Rs 31.96 crore (Rs 37.19 crore) on a total income of Rs 864.07 crore (Rs 929.42 crore).
The bicycle division registered a 15 per cent drop in volumes. Revenue was Rs 325 crore (Rs 377 crore). But there was some pick-up in bicycle sales. The company will raise prices to offset the increase in input costs, he said.
The engineering division has registered a small growth in volume in tubes and cold rolled steel strips. The revenue was Rs 372 crore (Rs 378 crore).
Financial services
The company’s consolidated net profit during the quarter was Rs 85 crore (Rs 76 crore) on a total income of Rs 2,186 crore (Rs 1,886 crore).
Cholamandalam Investment & Finance Company Ltd, a subsidiary in the financial service business, reported a net profit of Rs 90 crore (Rs 70 crore).
Cholamandalam General Insurance Co Ltd, a general insurance subsidiary, saw a 10 per cent growth in gross written premium at Rs 429 crore (Rs 391 crore) with a net profit of Rs 17 crore (Rs 10 crore).
On Thursday, the company’s scrip closed marginally higher at Rs 147.