Home property automobile TUBE INVESTMENTS OF INDIA LTD STANDALONE Q3 PAT UP BY 121%

TUBE INVESTMENTS OF INDIA LTD STANDALONE Q3 PAT UP BY 121%

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The Board of Directors of Tube Investments of India Limited (TII), formerly known as TI Financial
Holdings Limited met today and approved the financial results for the Quarter ended 31st
December 2018. The Board has declared an interim dividend of `1.75 per share for the financial
year 2018-19.
Highlights:
The Company continues to focus on 4 key priorities of revenue growth, profitability, ROCE and
Free Cash Flow (FCF). TII delivered decent performance on all these 4 priorities during Q3:
 Revenue of `1341 Cr. in a quarter with a 15% growth over Q3 of last year. Highest ever
revenue of `4062 Cr. in the nine months with 17% growth over corresponding period of
last year.
 Highest ever PBT (before exceptional items) of `122 Cr., a growth of 141% over Q3 of last
year. Highest ever PBT of `285 Cr. in the nine months with a growth of 69% over
corresponding period of last year
 ROCE at 20% for the nine months ended 31st December 2018
 Cumulative Free cash flow of Rs. 41 crs in the nine months ended 31st December 2018
Standalone Results
TII’s Revenue for the quarter was higher by 15% at `1341 Cr. as against `1163 Cr. in the
corresponding quarter of the previous year. The profit after tax for the quarter was at `77 Cr. as
against `35 Cr. in the corresponding quarter of the previous year, aided by dividend income of
`29 Cr. from Shanthi Gears Limited (`5 per share declared as special interim dividend). The results
have considered an impairment provision of `12 Cr. pertaining to its Joint venture Company. For
the nine months ended 31st December 2018, higher profitability and lower capital employed
enabled improvement in Return on Capital Employed (ROCE) to 20% from 13% in the
corresponding period in the previous year.

The Company generated a cumulative free cash flow
of `41 Cr. for the nine months ended 31st December 2018.
Review of Businesses
Engineering
During the quarter, growth in domestic business enabled the Engineering division to register a
volume growth of 9% in tubes, compared with corresponding quarter in the previous year. The
Large Diameter Tube plant recorded a volume growth of 23% and continues to improve its
profitability. The Revenue for the quarter was at `747 Cr. compared with `599 Cr. in the
corresponding quarter of the previous year, registering a growth of 25%. Profit before interest
and tax for the quarter was `59 Cr. as against `48 Cr. in the corresponding quarter of the
previous year, registering a growth of 25%. For the nine months ended 31st December 2018, ROCE
of this division improved to 36% as against 24% in the corresponding period of the previous year.
Cycles and Accessories
The market condition of the Bicycles segment continues to be challenging. The trade volume of
this division dropped by 11% during the quarter compared with the corresponding quarter of the
previous year. This division has registered revenue drop of 6% during the quarter compared with
corresponding quarter in the previous year, mainly because of deferral of institution sales. Profit
before interest and tax for the quarter was `5 Cr. as against loss before interest and tax of `3 Cr.
in the corresponding quarter of the previous year.
Metal Formed Products
In this segment, the doorframes segment volume grew by 12% during the quarter compared with
the corresponding quarter last year. The sale of Chains and Kits recorded a volume growth of 4%
and 6% respectively over the corresponding quarter last year, aided by growth in auto industry.
The Revenue for the quarter was at `353 Cr. compared with `297 Cr. in the corresponding quarter
of the previous year, registering a growth of 19%. Profit before interest and tax for the quarter
was `36 Cr. as against `29 Cr. in the corresponding quarter of the previous year, registering a
growth of 25%. For the nine months ended 31st December 2018, ROCE of this division improved to
29% as against 27% in the corresponding period of the previous year.
Consolidated Results
TII’s consolidated Revenue for the quarter was higher by 15% at `1458 Cr. as against `1265 Cr. in
the corresponding quarter of the previous year. The profit after tax for the quarter was at `65
Cr. as against `34 Cr. in the corresponding quarter of the previous year.
Shanthi Gears Ltd., a subsidiary company in the Gears Business, in which the Company holds
70.12% stake, registered revenue of `62 Cr. during the quarter as against `54 Cr. in the
corresponding quarter of the previous year, registering a growth of 14%. Profit after tax for the
quarter was at `10 Cr. as against `7 Cr. in the corresponding quarter of previous year.

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