Murugappa Group’s company- Tube Investments net profit drops by 17% in Q3FY23

Murugappa group’s company Tube Investments of India Ltd. (TII) standalone net profit for the quarter ended December rose by 14% to ₹138 crore against the year-ago period on strong sales. During the quarter under review, total revenue from operations marginally increased to ₹1,710 crore from ₹1,701 crore. Free cash flow was ₹115 crore, it said in a regulatory filing.

Engineering division recorded revenue of ₹1,081 crore, followed by metal form products ₹371 crore, mobility ₹174 crore and other segments ₹166 crore.

“Engineering and metal formed products businesses continued their excellent performance in the third quarter as well. The bicycle industry continues to suffer from contraction in demand and our bicycle business managed its costs and operations well to remain profitable,” said M.A.M. Arunachalam, chairman.

Buoyed by the strong demand, the board approved expansion of its large diameter precision steel tube manufacturing plant at Tiruttani from 4,125 MT/month to 5,950 MT/month. It entails an investment of ₹141 crore. It will be financed through internal accrual and is expected to be completed in FY25.

The board declared an interim dividend of ₹2 per share and it will be paid by February 28.