Tube Investments of India
 
Tube Investments of India
Tube Investments of India Ltd.
Formerly TI Financial Holdings Ltd.
Bike division boosts Tube Investments profit
 

Tube Investments has posted a 46 per cent rise in Q2 net profit at Rs 45.14 crore, while sales rose 17 per cent to Rs 846 crore, over the same period last year – primarily boosted by growth in the motor-cycle industry.

During the quarter the bicycles/ e-scooters division recorded revenues of Rs 320 crore, a growth of 15 per cent over the corresponding quarter last year. The engineering division posted Rs 354 crore, at a growth of 19 per cent over the corresponding quarter of last year, while metal formed products grew 19 per cent to Rs 207 crore.

Mr L. Ramkumar, Managing Director, said, “The growth in the auto sector declined, particularly in the passenger car segment. It registered a negative growth of 8 per cent during the quarter, against growth of 18 per cent the previous quarter. This impacted the turnover of engineering and metal formed products segments.

“The continued growth of the motorcycle industry at 17 per cent in Q2 helped these segments neutralise this impact and register a revenue growth of 19 per cent. The demand for bicycles continued to be sluggish and there was pressure on margins too.”

Bicycles demand fell due to the flood situation in East and lower secondary sales across regions, said the company. Electric scooters registered a volume growth of 79 per cent for the quarter on a lower base.

The company's overseas subsidiary manufacturing industrial chains grew 23 per cent over the same period last year, at a turnover of Rs 114 crore and Profit before Tax of Rs 3 crore during the period January to June 2011.