Tube Investments of India (TII), a Murugappa group company that specialises in engineering, bicycles and metal formed products, has posted a net profit of Rs 671 crore for the quarter ended March 31, 2016 as against Rs 77 crore in the same quarter previous fiscal.
The surge in net profit was due to gains from its 14% stake sale in Cholamandalam MS General Insurance Company (CMSGICL), a yet another Murugappa firm, to its JV partner Mitsui Sumitomo Insurance company, Japan, for a consideration of R883 crore in fourth quarter.
The total revenue of the company stood at Rs 1063 crore as compared to Rs 903 crore in the corresponding quarter last fiscal, registering an increase of 18%.
For the whole year, the company has posted a net profit of Rs 730 crore as against Rs 121 crore, logging multi-fold growth. The company has registered a total revenue of Rs 3941 crore as compared to Rs 3828 crore, registering a growth of 3%.
The board of directors of the company has recommended a special dividend of Rs 3.50 per equity share of R2 each for the financial year ended March 31, 2016, considering the profit on stake sale in CMSGICL.
Together with the interim dividend of Rs 1.50 per share, paid in February, 2016, the total dividend for the financial year, 2015-16 works out to be Rs 5 per share.