Tube Investments of India (TII), part of Murugappa group on Monday, reported a 84% rise in its standalone net profit to Rs 251 crore for the fourth quarter of FY23 as compared to Rs 136 crore in the corresponding quarter of last fiscal.
The revenue of the company in Q4 was at Rs 1,663 crore as compared to Rs 1,735 crore of same period previous year, posting a decline of 4%.
The board of directors has approved long term borrowing of up to `300 crore by way of term loan or issue of privately placed secured non-convertible debentures, in one or more tranches to meet the company’s fund requirements for FY24.
MAM Arunachalam (known as Arun Murugappan), chairman, TII, said, “Engineering and metal formed products businesses continued their good performance in the fourth quarter as well. The bicycle industry continues to suffer from contraction in demand and our bicycle business worked towards cost reduction and improving operational efficiency through kaizen improvements. Overall, company has delivered excellent performance in both profits and profitability.”
The company had incorporated Tl Clean Mobility Pvt (TlCMPL) in February 2022 to focus on clean mobility solutions. During the year, the company has further invested Rs 150 crore in TICMPL, by way of subscription to equity shares at face value of Rs 10 each and the company has so far invested Rs 250 crore in equity shares of TICMPL.
TII along with TICMPL, executed securities subscription agreements (SSAs) with Multiples Private Equity Fund and other coinvestors for investment in TICMPL. As per the terms of the SSAs, Tll will be investing Rs 500 crore while the investors will be putting in around Rs 1,200 crore.
The board of directors has recommended a final dividend of Rs 1.50 per share for FY23. The company had declared an interim dividend of Rs 2 per share in February 2023 and the same was paid to shareholders in March 2023.
