Murugappa Group firm Tube Investments of India will invest ₹77 crore in setting up a new precision tubes manufacturing unit at Rajpura, Punjab.

Under its engineering division, the company has been making precision steel tubes (CDW) for applications such as front forks, side impact beams and steering columns in automotive segment, which accounts for about 80 per cent of the engineering segment’s revenues.

It is a market leader in CDW tubes for two-wheelers and four-wheelers with a 56 per cent market share. Tubes exports have also been growing strongly for the company.

The company has reported a 67 per cent increase in net profit at ₹ 27 crore for the quarter ended December 31, 2016, from ₹ 16 crore in the same period a year ago, aided by strong exports, higher other income and lower finance costs amid lower operating profit.

Total revenues stood at ₹1,041 crore as against ₹968 crore in Q3 of previous year, an 8 per cent increase.

“The domestic turnover of the company across sectors and the profits were adversely affected due to demonetisation announced in November 2016. Exports grew by 48 per cent over corresponding quarter in the previous year. PAT was higher than last year same quarter due to savings in finance charges,” L Ramkumar, Managing Director of the company said.

Cycles and accessories division registered a revenue growth of three per cent during the December quarter, aided by institution sales. Engineering division’s revenue grew 14 per cent on the back of strong exports. Metal formed products division grew by three per cent.

The Board declared an Interim dividend of ₹1.25 per share (62.50 per cent) for 2016-17.

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