CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
Q1 Sales up 25%, Pat up 56% 
29th July, 2005
The Board of Directors of Tube Investments of India Limited (TII) met today to approve the Un-audited financial results for the first quarter ended 30th June, 2005.
The first quarter sales of Rs. 410.90 crores are 25% higher than the corresponding quarter of the previous year (Rs. 328.72 crores). The profit after tax (PAT) was Rs. 23.41 crores (Rs. 14.94 crores), an increase of 56%.
The Engineering business showed an impressive growth owing to its focus on supply of value added products to the auto industry. The exports of tubes registered a volume growth of 22% over the corresponding quarter of the previous year. The business is expanding its capacities to meet the growing demand.
The Metal Formed Products of the Company include doorframes and chains business. In doorframes, the overall off take by the customers was good, despite variances in volume in certain models. The business is investing in widening its product range and technology capabilities. In Chains business, the demand for the products is on the increase. However, in the export market there is pressure on the price in competition with an undervalued Chinese currency. Continuous efforts are in progress to reduce cost in order to be competitive.
In Cycles business, the industry demand is static. The cost push on account of steel prices has impacted industry margins. It is expected that with softening of steel prices, the margins of cycle manufacturers will improve, enabling them to invest in market development. The new MTB models were well received in the market. The business is taking various initiatives to popularise cycling in order to grow the industry demand.
Mr. Adhiraj Sarin, Managing Director said “The sustained growth of domestic auto industry, the export opportunity and relative softening of the steel prices augur well with our business. The challenge is to get more competitive, enhance customer value and compete in the global opportunity.”
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 Adhiraj Sarin,
Managing Director
Ph: 044-5211, 4747
E-mail : SarinA@tii.murugappa.com
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 approve the Un-audited financial results for the first quarter ended 30th June, 2005.
The first quarter sales of Rs. 410.90 crores are 25% higher than the corresponding quarter of the previous year (Rs. 328.72 crores). The profit after tax (PAT) was Rs. 23.41 crores (Rs. 14.94 crores), an increase of 56%.
The Engineering business showed an impressive growth owing to its focus on supply of value added products to the auto industry. The exports of tubes registered a volume growth of 22% over the corresponding quarter of the previous year. The business is expanding its capacities to meet the growing demand.
The Metal Formed Products of the Company include doorframes and chains business. In doorframes, the overall off take by the customers was good, despite variances in volume in certain models. The business is investing in widening its product range and technology capabilities. In Chains business, the demand for the products is on the increase. However, in the export market there is pressure on the price in competition with an undervalued Chinese currency. Continuous efforts are in progress to reduce cost in order to be competitive.
In Cycles business, the industry demand is static. The cost push on account of steel prices has impacted industry margins. It is expected that with softening of steel prices, the margins of cycle manufacturers will improve, enabling them to invest in market development. The new MTB models were well received in the market. The business is taking various initiatives to popularise cycling in order to grow the industry demand.
Mr. Adhiraj Sarin, Managing Director said “The sustained growth of domestic auto industry, the export opportunity and relative softening of the steel prices augur well with our business. The challenge is to get more competitive, enhance customer value and compete in the global opportunity.”
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 Adhiraj Sarin,
Managing Director
Ph: 044-5211, 4747
E-mail : SarinA@tii.murugappa.com
Mr. K Balasubramanian
Ph: 044 5211 0505
E-mail: BalasubramanianK@tii.murugappa.com
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