CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
Financial Results for the Quarter Ended 30th June 2007
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 first quarter ended 30th June, 2007.
In Q1, the sales were Rs.472.79 Crores, as against Rs.413.55 Crores for the same period last year. The net profit for the quarter was at Rs.14.09 Crores. The net profit for the corresponding quarter in the previous year was Rs. 89.46 Crores, which included Rs. 71.30 Crores towards profit on sale of long term investments.
Despite the downturn in the 2-wheeler industry, the off-take of tubes was marginally higher compared to the corresponding quarter of the previous year. However, the margins were low on account of change in product-mix and non-absorption of increase in input cost by key customers. The export orders for precision tubes have been encouraging, but the significant appreciation of the Rupee against the dollar is a matter of concern.
The tube manufacturing facility being established by Tubular Precision Products (Suzhou) Co. Limited, a wholly owned subsidiary, near Suzhou in China is nearing completion. The commissioning of the plant is expected to take place in this quarter.
The sale of automotive chains to the OEMs witnessed a downturn in line with the performance of the 2-wheeler industry during the first quarter. However, the sale of industrial chains improved significantly, both in the domestic and export market. The sale of car doorframes was marginally lower on account of lower sales of older models of cars of our customers. The doorframe sale of the new models is expected to pick up in the forthcoming quarters. The Company is confident that the revenue stream from the new products would stabilise later this financial year.
The sale of standard as well as special bicycles improved significantly. In view of the brand equity enjoyed by the Company in the market place, the Company was able to improve on its margins despite stiff competition. The focus in the bicycle business continued to be on restructuring the distribution network. The initiatives towards rationalisation of dealer network and establishment of new dedicated outlets under the style “BSA Go” enabled us to perform better.
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 first quarter ended 30th June, 2007.
In Q1, the sales were Rs.472.79 Crores, as against Rs.413.55 Crores for the same period last year. The net profit for the quarter was at Rs.14.09 Crores. The net profit for the corresponding quarter in the previous year was Rs. 89.46 Crores, which included Rs. 71.30 Crores towards profit on sale of long term investments.
Despite the downturn in the 2-wheeler industry, the off-take of tubes was marginally higher compared to the corresponding quarter of the previous year. However, the margins were low on account of change in product-mix and non-absorption of increase in input cost by key customers. The export orders for precision tubes have been encouraging, but the significant appreciation of the Rupee against the dollar is a matter of concern.
The tube manufacturing facility being established by Tubular Precision Products (Suzhou) Co. Limited, a wholly owned subsidiary, near Suzhou in China is nearing completion. The commissioning of the plant is expected to take place in this quarter.
The sale of automotive chains to the OEMs witnessed a downturn in line with the performance of the 2-wheeler industry during the first quarter. However, the sale of industrial chains improved significantly, both in the domestic and export market. The sale of car doorframes was marginally lower on account of lower sales of older models of cars of our customers. The doorframe sale of the new models is expected to pick up in the forthcoming quarters. The Company is confident that the revenue stream from the new products would stabilise later this financial year.
The sale of standard as well as special bicycles improved significantly. In view of the brand equity enjoyed by the Company in the market place, the Company was able to improve on its margins despite stiff competition. The focus in the bicycle business continued to be on restructuring the distribution network. The initiatives towards rationalisation of dealer network and establishment of new dedicated outlets under the style “BSA Go” enabled us to perform better.
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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