CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
Financial Results for the Quarter Ended 30th September 2007
Quarterly And Half Yearly 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 second quarter and half year ended 30th September, 2007.
During the quarter sales were at Rs. 424.64 Crores, as against Rs.414.33 Crores during the same period last year. The net profit for the quarter was at Rs.15.72 Crores. The net profit for the corresponding quarter in the previous year was Rs. 26.37 Crores.
Sales for the half year amounted to Rs. 857.86 Crores as compared to Rs. 795.85 Crores last year. The profit for the half year was Rs. 29.81 Crores against Rs. 115.83 Crores, which included Rs. 71.30 Crores towards profit on sale of long term investments.
The bulk of the revenue of the engineering segment comes from the automotive sector and more specifically the motor cycle segment. High interest rates suppressed demand for these products and consequently the sale of precision tubes, in the half year, was lower by 9%. With the higher export of tubes and broad basing of its customers, in the domestic market, the division registered an overall revenue growth of 10%. Margins were under pressure due to the continuing increase in steel prices which were not fully compensated by customers. The continuing appreciation of the Indian Rupee significantly affected export realisations.
The sale of bicycles continued to be robust and grew by 8%. The new high end models introduced during the quarter have been well received by the market. The division continued to maintain its focus on re-engineering the supply chain and growing the number of its outlets under the style of “BSA GO.”
The revenue from Metal Formed Products grew by 8%. The sale of automotive chains to the OEMs was higher due to their aggressive sales in the replacement market. Industrial chain sales, improved significantly, both in the domestic and export market. The sale of car doorframes was marginally lower on account of lower sales of certain models of cars of our customers.
The Board of Directors approved the foray into E-Bikes (Electrically powered scooters, motorcycles and cycles) and establishing a Speciality Retail network dealing in sports, adventure, fitness, leisure products and accessories along with bicycles. The entry into these new lines of business is subject to the approval of the shareholders and the same will be sought through Postal Ballot.
With steady consumer off-take and trends in the automotive industry expected to improve in the second half of the fiscal year 2007-08, the company expects to improve its operating results across all its divisions.
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 $1.6 billion Murugappa Group is India’s leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.
The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.
The Board of Directors of Tube Investments of India Limited (TII) met today and approved the un-audited financial results for the second quarter and half year ended 30th September, 2007.
During the quarter sales were at Rs. 424.64 Crores, as against Rs.414.33 Crores during the same period last year. The net profit for the quarter was at Rs.15.72 Crores. The net profit for the corresponding quarter in the previous year was Rs. 26.37 Crores.
Sales for the half year amounted to Rs. 857.86 Crores as compared to Rs. 795.85 Crores last year. The profit for the half year was Rs. 29.81 Crores against Rs. 115.83 Crores, which included Rs. 71.30 Crores towards profit on sale of long term investments.
The bulk of the revenue of the engineering segment comes from the automotive sector and more specifically the motor cycle segment. High interest rates suppressed demand for these products and consequently the sale of precision tubes, in the half year, was lower by 9%. With the higher export of tubes and broad basing of its customers, in the domestic market, the division registered an overall revenue growth of 10%. Margins were under pressure due to the continuing increase in steel prices which were not fully compensated by customers. The continuing appreciation of the Indian Rupee significantly affected export realisations.
The sale of bicycles continued to be robust and grew by 8%. The new high end models introduced during the quarter have been well received by the market. The division continued to maintain its focus on re-engineering the supply chain and growing the number of its outlets under the style of “BSA GO.”
The revenue from Metal Formed Products grew by 8%. The sale of automotive chains to the OEMs was higher due to their aggressive sales in the replacement market. Industrial chain sales, improved significantly, both in the domestic and export market. The sale of car doorframes was marginally lower on account of lower sales of certain models of cars of our customers.
The Board of Directors approved the foray into E-Bikes (Electrically powered scooters, motorcycles and cycles) and establishing a Speciality Retail network dealing in sports, adventure, fitness, leisure products and accessories along with bicycles. The entry into these new lines of business is subject to the approval of the shareholders and the same will be sought through Postal Ballot.
With steady consumer off-take and trends in the automotive industry expected to improve in the second half of the fiscal year 2007-08, the company expects to improve its operating results across all its divisions.
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 $1.6 billion Murugappa Group is India’s leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.
The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.
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