TUBE INVESTMENTS OF INDIA LIMITED = Q2 FY 2011(SEPT 2010) = RESULTS = EXCELLENT PERFORMANCE = EXCELLENT FUTURE PROSPECTS

TUBE INVESTMENTS OF INDIA LIMITED

Financial Results for

Quarter Ended 30th Sep 2010

STAND ALONE QTRLY RESULTS

Net Sales   ARE Rs.721 cr – up by 1.15% from previous qtr and up by 23.21% from corresponding qtr of last year.

Net Profit   is Rs.30.85 cr – down by 23.77% from previous qtr but up by a huge 353.68% from corresponding qtr.

Basic EPS is Rs.1.67     compared to Rs.2.19 in previous qtr and Rs.0.37 in corresponding qtr – on a Face value of Rs.2.

TUBE INVEST	30-Sep-10	30-Jun-10	DIF%1	30-Sep-09	DIF%2
Net Sales	72147	71329	1.15	58557	23.21
Other OpRTG Income	378	379	-0.26	290	30.34
Raw Materials	43036	41732	3.12	33720	27.63
Purchase of Traded Goods	3253	3403	-4.41	938	246.8
Employees Cost	5796	5908	-1.9	4710	23.06
Depreciation	1649	1641	0.49	1620	1.79
Other Expenditure	14861	14145	5.06	11894	24.95
Total Expend	65830	65129	1.08	54114	21.65
Profit from Operations	6695	6579	1.76	4733	41.45
Other Income	-167	583	-128.64	75	-322.67
Interest	1497	1399	7.01	685	118.54
P B T	5031	5763	-12.7	1102	356.53
Tax expense	1946	1716	13.4	422	361.14
P A T	3085	4047	-23.77	680	353.68
Net Profit	3085	4047	-23.77	680	353.68
Face Value .Rs	2	2	0	2	0
Paid Up Equity	3703	3697	0.16	3595	3
Basic EPS	1.67	2.19	-23.74	0.37	351.35
Diluted EPS	1.65	2.18	-24.31	0.37	345.95
Public holding (%)	45.29	44.63	1.48	40.91	10.71

CONSOLIDATED QTRLY RESULTS

Net Sales   AT Rs.1181.68 cr is up by 58.14% on corresponding qtr (Rs.747.26 Cr).

Consolidated NPT is Rs.51.26 cr – up from Rs.29.25 Cr by 75.25%.

Basic EPS   is Rs.2.77 compared to Rs.1.58 in corresponding qtr – up by 75.32%.

TUBE INVEST- CONSOL	QE 0910(lakhs)	QE0909	DIF%1
Net Sales	118168	74726	58.14
Other Optg Income	3473	1950	78.1
SIT & WIP	-2828	1232	-329.55
Raw Materials	46081	33720	36.66
Traded goods	2986	938	218.34
Employees Cost	11239	7196	56.18
Depreciation	2225	2127	4.61
Other Expenditure	49682	24138	105.82
Total Expenditure	109385	69351	57.73
Profit from Operati.	12256	7325	67.32
Other Income	-980	79	-1340.51
Interest	1532	4273	-64.15
Excepti. items	-30	182	-116.48
P B T	9774	2949	231.43
Tax Expense	3605	146	2369.18
Net Profit	6169	2803	120.09
Minority Interest	1043	-122	-954.92
Consolidated NPT	5126	2925	75.25
Face Value (Rs.)	2	2	0
Paid-up Equity	3703	3695	0.22
Basic EPS	2.77	1.58	75.32
Diluted EPS	2.75	1.58	74.05
Public Shareholding (%)	45.29	40.91	10.71

Mr. L. Ramkumar, Managing Director said, “Higher sales in the Engineering and Metal Formed segments on the back of a strong growth in the auto sector and a steady growth in the bicycles business enabled the Company report better results”.

The Cycles division’s sales to trade registered a growth of 12% in volume terms. The range of premium bikes introduced earlier is gaining acceptance. Share of revenue from the exclusive outlets and other retail formats contributed one fourth of the total revenue for this business. The division also embarked on a rural retailing format and 8 stores were opened under this format.

In the tubes business, the overall volumes improved by 18% while that of the Cold Drawn Welded tubes grew by 22%. Tubular components continued to perform well and recorded a 36% growth. The division continues to maintain its focus on improving operating efficiencies to maintain its profitability.

Riding on the continued auto industry growth, the Metal Formed Products business performed well with the sale of car doorframe business registering a 33% growth and automotive chains registering a growth of 23%. Export of chains was also significantly higher at 60% with a pickup in demand from the Latin American and European markets. The rapid growth in demand could not be serviced fully due to capacity constraints. The expansion in capacity is expected to be completed shortly and should help improve the performance in the coming quarters. Sale of sections for manufacture of wagons declined by 40% during the quarter due to the delay in release of orders by the wagon  builders. Orders have since been received and volumes from this business would improve in the coming quarters.

CONSOLIDATED HALF YEARLY RESULTS

The consolidated Half yearly figures also indicate a good progress over corresponding period of last year as below :

Net Sales at Rs.2284.34 cr  compared to Rs.1455.39Cr in corresponding period of last year – up by 56.96%.

Consolidated N P T is Rs.97.39 cr compared to Rs.53.31 cr of corresponding period of last year - – up by 82.69%.

Basic EPS for the half year is Rs.5.26 compared to Rs.2.89 in corresponding period o last year – up by 82.01%

TUBE INVEST-CONSOL	HYE 0910(lakhs)	HYE 0909(lakhs)	DIF%
Net Sales	228434	145539	56.96
Other Optng Income	5545	3844	44.25
SIT & WIP	-4388	581	-855.25
Raw Materials	89080	65636	35.72
Traded goods	6389	2590	146.68
Employees Cost	21798	13781	58.17
Depreciation	4462	4117	8.38
Other Expend	97017	46298	109.55
Total Expendit	214358	133003	61.17
Profit from Operat.	19621	16380	19.79
Other Income	961	115	735.65
Interest	2964	9411	-68.5
P B T	17618	6835	157.76
Tax Expense	6215	1703	264.94
P A T	11403	5132	122.19
Net Profit	11403	5132	122.19
Minority Interest	1664	-199	-936.18
Consolidated N P T	9739	5331	82.69
Face Value (in Rs.)	2	2	0
Paid-up Equity	3703	3695	0.22
Basic EPS	5.26	2.89	82.01
Diluted EPS	5.22	2.88	81.25
Public holding (%)	45.29	40.91	10.71

Performance of Subsidiaries:

Cholamandalam MS General Insurance Company Ltd reported a Gross Written Premium of Rs 231 Crores, representing a growth of 25% over the same period last year. The PAT for the quarter was at Rs 5 Cr as compared to loss of Rs. 5 Cr. in the previous year.

Cholamandalam Investment & Finance Company Ltd reported revenue of Rs.282 Cr in Q2 against Rs. 198 Cr in Q2 of the previous year, representing a growth of 42%. The growth in revenue has come mainly through higher advances in the vehicle financing segment and other security based lending businesses. The PAT for the quarter was at Rs 26 Cr as compared to Rs. 8 Cr. in the previous year.

Financere C10, the industrial chain manufacturing subsidiary company in France, has reported a year to date turnover of 20.7 Million Euro as against Euro 20.2 M in the previous year despite the not so conducive business environment in Europe. Year to date PAT was at 0.370 Million Euro as compared to 0.551 Million Euro in the previous year.

While increase in steel price and higher interest rates could have some impact, a good monsoon, continued growth in the automotive sector and higher consumer demand, especially in the upcoming festive season, should help the company sustain the good performance in the coming quarters as well. 

About Tube Investments of India

Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). In bicycles, TII is the second largest manufacturer with well-known brands - Hercules, BSA and Philips. TII is the market leader in precision steel tubes and roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry. In the recent times, the Company has introduced E- Scooters.

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