CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
Financial Results for the Quarter Ended 31st December 2008
Quarterly Financial Results Of Tube Investments Of India Limited
The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the third quarter and nine months ended 31st December, 2008.
During the quarter sales were at Rs. 434.07 Crores, as against Rs.417.61 Crores during the same period last year. However the operations were impacted due to the sudden and steep decline in demand for its key products. The net loss for the quarter was at Rs.13.75 Crores as against a profit of Rs. 17.55 crores in the corresponding quarter of the previous year. Mr. L. Ramkumar, Managing Director said, “While volumes of all businesses were affected by slowdown in demand the auto related businesses were significantly impacted by lower turnover and profitability.”
Sales of Cold Rolled Steel Strips during the quarter declined 43% while tubes declined by 36%. Export of tubes was higher by 6% during the quarter. Sales of value added tubular components increased by 23% during the quarter.
The sale of bicycles continued to be steady. The growth in our focus specials segment was 10%. The division increased the number of exclusive retail outlets under the BSA Go brand to 42 and also increased the Hercules Bike Zone outlets to 180. During the quarter the Company also opened two Company Owned Company Operated BSA Go outlets. During the quarter export of bicycle frames to Europe commenced.
During the quarter the Company launched E scooters as a part of its plan to launch motorised vehicles. These products are under a new division “BSA Motors”. Four models in fourteen colours have been introduced in the Southern markets. The feedback has been encouraging and we plan to increase our presence across the Southern states during the quarter.
The revenue from Metal Formed Products grew by 23%. The growth largely came from the higher sale of cold rolled formed sections for railway wagons. The sale of car doorframes was also higher by 11%.
The turnover for the nine months was higher at Rs. 1607.99 crores against Rs. 1275.47 crores last year. The net profit for the period was also higher at Rs. 76.61 crores against Rs. 47.36 crores last year.
With its strong focus on improving internal efficiencies, introduction of new products & improving product mix and reduction of costs together with the measures announced by the Government of India to stimulate demand and increase economic activity the Company is hopeful of better performance in the coming quarter.
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.
About the Murugappa Group
Headquartered in Chennai, the Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Exploration Bureau and Groupe Chimique Tunisien, has consolidated its status as one of the fastest growing diversified business houses in India.
The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the third quarter and nine months ended 31st December, 2008.
During the quarter sales were at Rs. 434.07 Crores, as against Rs.417.61 Crores during the same period last year. However the operations were impacted due to the sudden and steep decline in demand for its key products. The net loss for the quarter was at Rs.13.75 Crores as against a profit of Rs. 17.55 crores in the corresponding quarter of the previous year. Mr. L. Ramkumar, Managing Director said, “While volumes of all businesses were affected by slowdown in demand the auto related businesses were significantly impacted by lower turnover and profitability.”
Sales of Cold Rolled Steel Strips during the quarter declined 43% while tubes declined by 36%. Export of tubes was higher by 6% during the quarter. Sales of value added tubular components increased by 23% during the quarter.
The sale of bicycles continued to be steady. The growth in our focus specials segment was 10%. The division increased the number of exclusive retail outlets under the BSA Go brand to 42 and also increased the Hercules Bike Zone outlets to 180. During the quarter the Company also opened two Company Owned Company Operated BSA Go outlets. During the quarter export of bicycle frames to Europe commenced.
During the quarter the Company launched E scooters as a part of its plan to launch motorised vehicles. These products are under a new division “BSA Motors”. Four models in fourteen colours have been introduced in the Southern markets. The feedback has been encouraging and we plan to increase our presence across the Southern states during the quarter.
The revenue from Metal Formed Products grew by 23%. The growth largely came from the higher sale of cold rolled formed sections for railway wagons. The sale of car doorframes was also higher by 11%.
The turnover for the nine months was higher at Rs. 1607.99 crores against Rs. 1275.47 crores last year. The net profit for the period was also higher at Rs. 76.61 crores against Rs. 47.36 crores last year.
With its strong focus on improving internal efficiencies, introduction of new products & improving product mix and reduction of costs together with the measures announced by the Government of India to stimulate demand and increase economic activity the Company is hopeful of better performance in the coming quarter.
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.
About the Murugappa Group
Headquartered in Chennai, the Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Exploration Bureau and Groupe Chimique Tunisien, has consolidated its status as one of the fastest growing diversified business houses in India.
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