May 03, 18.04 PM IST || Pocket News Alert
Bangalore, 3 March 2016: The Board of Directors of
Tube Investments of India Limited (TII) met today and approved the financial results for the quarter and the year ended 31st March, 2016. The Board has recommended a special dividend of INR 3.50 per share for the year ended 31st March 2016, considering the profit on sale of 14% stake in Cholamandalam MS General Insurance Company Limited. The Board had declared an interim dividend of INR 1.50 per share which was paid to the shareholders in February 2016.
During the quarter and year ended 31st March 2016, the Company sold 4,18,32,798 equity shares of face value INR 10/- each representing 14% shareholding in
M/s Cholamandalam MS General Insurance Company (CMSGICL) to its joint venture partner, M/s Mitsui Sumitomo Insurance Company Limited, Japan (MS) for a consideration of INR 883 Cr.
a. The excess of the sale consideration over the average carrying amount of the Company’s investment in CMSGICL aggregating INR 821 Cr. is recognised as a gain in the standalone financial statements.
b. The excess of the sale consideration over the proportionate reduction in the Company’s share of net assets and goodwill in CMSGICL aggregating INR 762 Cr. is recognised as a gain in the consolidated financial statements.
These are shown as "Profit on sale of Non-Current Investment" under Exceptional items for the quarter and year ended 31st March, 2016.
Consolidated Results
For the year 2015-16, after considering the stake sale in CMSGICL, TII has achieved consolidated Net Profit before minority interest and share of profit from associate of INR 1007 Cr. Net Profit after minority interest and share of profit from associate for the year 2015-16 was at INR 1039 Cr. against INR 424 Cr. for the previous year, a growth of 145% against the previous year.
During the quarter ended 31st March 2016, after considering the stake sale in CMSGICL, TII consolidated Net Profit before Minority Interest and share of profit from associate of INR 652 Cr., Net profit after minority interest and share of profit from associate for the quarter ended 31st March 2016 was at INR 726 Cr. against INR 148 Cr., for the corresponding quarter in the previous year, registering a growth of 392%.
Cholamandalam Investment and Finance Company Ltd, an associate company in the financial service business, registered an impressive growth of 21% and 13% in Revenue for the quarter and the year respectively. Consolidated Profit after Tax (PAT) for the year was at INR 575 Cr. against INR 444 Cr. in the previous year, registering an impressive growth of 29%. Consolidated Profit after Tax (PAT) for the quarter was at INR 194 Cr. against INR 137 Cr. for the corresponding quarter in the previous year, registering an impressive growth of 42%.
Cholamandalam MS General Insurance Company Ltd., a general insurance subsidiary of the Company registered an impressive growth of 30% in Gross Written Premium during the year. Gross Written Premium for the year was at INR 2466 Cr. as against INR 1896 Cr. and the Profit after Tax (PAT) for the year was at INR 148 Cr. as against INR 137 Cr. in the previous year. Gross Written Premium for the quarter was at INR 760 Cr. as against INR 514 Cr. and the PAT for the quarter was at INR 56 Cr. as against INR 30 Cr. for the corresponding quarter in the previous year.
Shanthi Gears Ltd., a subsidiary company in the Gears Business, registered a revenue growth of 6.2% and 6.3% for the quarter and the year respectively. Profit after Tax (PAT) for the year was at INR 18.2 Cr. as against INR 9.3 Cr in the previous year. Profit after Tax (PAT) for the quarter was at INR 5.3 Cr. as against INR 1.4 Cr. compared for the corresponding quarter in the previous year.
Standalone Results
TII’s revenue was INR 3941 Cr. as against INR 3828 Cr. in the previous year, a growth of 3%. The profit before interest, exceptional items and tax for the year was INR 274 Cr. as against INR 259 Cr. in the previous year. The Profit Before Tax (PBT) before exceptional items was INR 139 Cr. as against INR 121 Cr. in the previous year, a growth of 15%. After considering the stake sale in CMSGICL, the Company’s PAT for the year was INR 730 Cr. as compared to INR 121 Cr. in the previous year.
TII’s Revenue for the quarter was higher by 18% at INR 1063 Cr. as against INR 903 Cr. for the corresponding quarter in the previous year. The profit before interest, exceptional items and tax for the quarter was higher by 8% at INR 87 Cr. as against INR 81 Cr. for the corresponding quarter in the previous year. The PBT before exceptional items was INR 55 Cr. as against INR 47 Cr. for the corresponding quarter in the previous year, a growth of 16%. After considering the stake sale in CMSGICL, the Company’s PAT for the quarter was at INR 671 Cr. as compared to INR 77 Cr. for the corresponding quarter in the previous year.
On account of various market factors, changes in future project potential and expected usage, the Company has, in the current year, recognized an impairment loss of INR 37 Cr. in Engineering and Metal Formed Product Segment based on recoverable amounts determined by considering estimated net selling price for various asset classes.
Mr. L. Ramkumar, Managing Director said, “During the year, Auto Industry registered a modest growth of 6% growth in passenger vehicles and 2% in two wheeler segment. In spite of the lower industry growth and competitive environment, Company has maintained its leadership position and recorded PBT before Exceptional Items of INR 139 Cr. as against INR 121 Cr. in the previous year, a growth of 15%. Operational Excellence program has yielded good results by way of improving the cost competiveness of the company. Cycles and Accessories segment saw a good year of performance with the help of higher institutional orders from various state governments”.
Review of Businesses
Bicycles
The Bicycle division registered a growth of 14% in volumes during the year compared with the previous year. The revenue for the year was higher by 13% at INR 1485 Cr. as against INR 1314 Cr. in the previous year. This was driven by higher volume of institutional sales. Profit before Interest and Tax for the year was INR 79 Cr. as against INR 58 Cr. in the previous year, a growth of 37%. The revenue for the quarter was INR 423 Cr. as against INR 292 Cr. for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was INR 20 Cr. as against INR 13 Cr. for the corresponding quarter in the previous year.
Engineering
In the Engineering division, volumes remained flat in Tubes and there was a negative growth of 7% in Cold Rolled Steel Strips during the year compared with the previous year due to market conditions. The revenue for the year was lower by 6% at INR 1629 Cr. as against INR 1725 Cr. in the previous year. Profit before Interest and Tax for the year was INR 95 Cr., as against INR 103 Cr. in the previous year. The drop in profits was due to additional costs associated with the new large diameter tubing facility, the revenue from which is expected to pick up in 2016-17. The revenue for the quarter was INR 421 Cr. as against INR 404 Cr., for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was INR 27 Cr., as against INR 24 for the corresponding quarter in the previous year.
Metal Formed Products
In this segment, the sale of automotive Chains to OEMs recorded a volume growth of 7% over the previous year. The sale of Industrial Chains and Fine Blanked Components recorded a volume growth of 6% and 8% respectively over the previous year. The doorframe segment volume was lower by 5% compared with the previous year due to decline in the sale of select models of major car manufactures. The revenue for the year was higher by 3% at INR 954 Cr. as against INR 929 Cr. in the previous year. Profit before Interest and Tax for the year was INR 86 Cr. as against INR 81 Cr. in the previous year, a growth of 6%. The revenue for the quarter was INR 250 Cr. as against INR 240 Cr. for the corresponding quarter in the previous year. Profit before Interest and Tax for the quarter was INR 25 Cr. as against INR 26 Cr. for the corresponding quarter in the previous year.
About Murugappa Group
Founded in 1900, the INR 269 Billion Murugappa Group (as at 31 March 2016) is one of India's leading business conglomerates. The Group has 28 businesses including nine listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Parry Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.
Renowned brands like BSA, Hercules, Montra, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 32,000 employees. For more details, visit www.murugappa.com
To send us press release email us at newsattitude@gmail.com
