CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
TIIs Net Profit up by 41% 
25th January, 2006
The Board of Directors of Tube Investments of India Limited (TII) met today to take on record the Un-audited financial results for the third quarter ended 31st December, 2005.
In Q3, the sales were Rs.399.22 crores (Rs. 357.79 crores same period last year). The profit before tax for the quarter was Rs.51.64 crores (Rs.29.79 crores), which includes profit on sale of investments of Rs.21.07 crores (previous period nil). The net profit for the quarter was Rs.37.46 crores (Rs.26.48 crores).
The sales for the nine months ended 31st December, 2005 were Rs.1,199.98 crores (Rs.1,137.29 crores). The net profit for the nine months period was Rs.92.25 crores (Rs.61.49 crores)
The Engineering business consists of precision tubes and strips. Though, there was a slack in the passenger car segment, growth in motorcycle and commercial vehicle segments ensured higher off-take of precision tubes. The export of tubes was marginally lower compared to the previous quarter, mainly on account of slow down witnessed in the North American auto industry. There has been some delay in the expansion plans on account of various clearances required for the project. The business proposes to set-up a green-field precision tube manufacturing facility in China at an estimated cost of US $ 6.5 Million. The strip business witnessed pressure on price from integrated steel manufacturers, resulting in lower off-take.
The Metal Formed Products of the Company include chains and doorframes. In auto chains, the volume was marginally lower, mainly on account of pressure on price. During the quarter, the Company improved its exports of industrial chains, despite Chinese competition. In doorframes, the overall off-take by the customers was better than the same period last year. The business is investing in broad-basing product range and technological capabilities.
The demand for bicycles has not improved. The demand was further affected due to adverse weather conditions in the southern states. The focus is on strengthening the fundamentals like new product development, brand visibility, supply chain management and quality. Continuous efforts are made to popularise cycling habits and to provide better customer experience at the dealer’s end.
TII consists of: TI Cycles of India, Tube Products of India, TI Metal Forming and TIDC India. 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 car doorframe in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto component industry.
TII is a part of the Rs.6,250 crores Murugappa Group, which has a strong presence in engineering, bio-products, sanitaryware, plantations, sugar, farm inputs, finance, general insurance and nutraceuticals. Murugappa Group is a pioneer and market leader in several fields with operations across 12 States in India.
For further information please contact:
Mr. K Balasubramanian
Ph: 044 - 5211 0505
E-mail: BalasubramanianK@tii.murugappa.com
The Board of Directors of Tube Investments of India Limited (TII) met today to take on record the Un-audited financial results for the third quarter ended 31st December, 2005.
In Q3, the sales were Rs.399.22 crores (Rs. 357.79 crores same period last year). The profit before tax for the quarter was Rs.51.64 crores (Rs.29.79 crores), which includes profit on sale of investments of Rs.21.07 crores (previous period nil). The net profit for the quarter was Rs.37.46 crores (Rs.26.48 crores).
The sales for the nine months ended 31st December, 2005 were Rs.1,199.98 crores (Rs.1,137.29 crores). The net profit for the nine months period was Rs.92.25 crores (Rs.61.49 crores)
The Engineering business consists of precision tubes and strips. Though, there was a slack in the passenger car segment, growth in motorcycle and commercial vehicle segments ensured higher off-take of precision tubes. The export of tubes was marginally lower compared to the previous quarter, mainly on account of slow down witnessed in the North American auto industry. There has been some delay in the expansion plans on account of various clearances required for the project. The business proposes to set-up a green-field precision tube manufacturing facility in China at an estimated cost of US $ 6.5 Million. The strip business witnessed pressure on price from integrated steel manufacturers, resulting in lower off-take.
The Metal Formed Products of the Company include chains and doorframes. In auto chains, the volume was marginally lower, mainly on account of pressure on price. During the quarter, the Company improved its exports of industrial chains, despite Chinese competition. In doorframes, the overall off-take by the customers was better than the same period last year. The business is investing in broad-basing product range and technological capabilities.
The demand for bicycles has not improved. The demand was further affected due to adverse weather conditions in the southern states. The focus is on strengthening the fundamentals like new product development, brand visibility, supply chain management and quality. Continuous efforts are made to popularise cycling habits and to provide better customer experience at the dealer’s end.
TII consists of: TI Cycles of India, Tube Products of India, TI Metal Forming and TIDC India. 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 car doorframe in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto component industry.
TII is a part of the Rs.6,250 crores Murugappa Group, which has a strong presence in engineering, bio-products, sanitaryware, plantations, sugar, farm inputs, finance, general insurance and nutraceuticals. Murugappa Group is a pioneer and market leader in several fields with operations across 12 States in India.
For further information please contact:
Mr. K Balasubramanian
Ph: 044 - 5211 0505
E-mail: BalasubramanianK@tii.murugappa.com
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