Tube Investments posts 1% drop in standalone net profit

CHENNAI: Murugappa group company Tube Investments of India (TII) reported a 1% drop in standalone net profit for Q4FY24 at Rs 248 crore down from nearly 251 crore in the year ago quarter.

For financial year 2023-24, the company’s standalone net profit was Rs 734.51 crore, up 10.4% from just over Rs 665 crore in the year-ago fiscal.

In February, the company declared an interim dividend of Rs 2 per share which was paid to shareholders in March. The board has now recommended a final dividend of Rs1.5 per share for the financial year 2023-24.

Standalone revenue for the quarter was Rs 1,962 crore up from Rs 1663 crore in the year-ago period. Revenue FY24 was at Rs 7611 crore up 5% compared to Rs 7,236 crore of the previous year.

Return on invested capital for the full fiscal was at 54% as against 55% in the previous year. Free cash flow for the quarter was Rs 104 crore and the cumulative free cash flow for the year was Rs 376 crore which was 51% of PAT.

The company’s board in its meeting on Monday approved long-term borrowing up to Rs 350 crore by way of term loan and/or by way of issue of privately placed secured non-convertible debentures, in one or more tranches, if required, to meet the company's fund requirements for FY25.

Arun Murugappan, chairman, Tube Investments of India said: “Exports during the year have grown by 14%. Our subsidiaries, CG Power and Industrial Solutions as well as Shanthi Gears sustained their performance. CG Power & Industrial Solutions secured approval from the Union Cabinet under India’s semi-conductor scheme to establish an outsourced semiconductor assembly and test (OSAT) facility, with an investment of around Rs 7,600 crore over five years. This investment will be supported by government subsidies, equity contribution and bank borrowings, with technology and joint venture partnerships from Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand.”