CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED
(Formerly, TI Financial Holdings Limited)
(Formerly, TI Financial Holdings Limited)
Financial Results for the Quarter Ended 30th September 2008
Financial Results for the Quarter Ended 30th September, 2008
The Board of Directors of Tube Investments of India Limited (TI) met today and approved the un-audited financial results for the quarter ended 30th September, 2008.
During the quarter sales were at Rs. 635.76 Crores, as against Rs.424.64 Crores during the same period last year. The operating profit (EBIDTA) increased to Rs. 54.58 Crores (Rs. 32.20 Crores). The net profit for the quarter was at Rs. 42.07 Crores (Rs. 15.72 Crores). The sales for the first half of the year were at Rs. 1173.92 Crores (Rs. 857.86 Crores) and the net profit was at Rs.90.36 Crores (Rs.29.81 Crores).
Mr. Ramkumar, Managing Director said, “The improved profitability of all businesses during second quarter and first half of the year has been due to focus on cost reduction, product mix and substantially improving customer satisfaction.”
TI’s engineering business, comprising of precision steel strips, tubes and tubular components, increased sales by 43% on the back of strong demand for its products. The volatility in steel price still remains a cause for concern. While export of cold-rolled strips increased, export of tubes dropped marginally.
The sale of bicycles continued to be robust and growth in volume was 33% over the corresponding quarter in the previous year. The growth in value terms is even higher at 63%, primarily due to increase in market share in “Special Bicycles”, where TI is the market leader. The improved performance is reflective of the success of TI’s retail efforts in the recent times. The number of ‘BSA Go’, a one-stop premium store, has increased to 40, providing the customer with a superior buying experience. TI has plans to increase its presence in fitness segment and to expand to E-bikes, a fast growing two-wheeler segment.
The revenue from Metal Formed Products grew by 49%. The growth came from higher sales in all its product segments viz., automotive & industrial chains, car doorframes, fine blanked products and roll formed sections for railway wagons. The export of industrial chains increased significantly during the quarter. TI has set up an automotive chain manufacturing facility in Uttarakhand to service its key customers in the region. TI has clear plans to enhance its presence through broad basing the product range and user industry.
Mr. L Ramkumar, Managing Director said, “Despite signs of a global slowdown, TI is confident of sustaining its current level of operations and improving upon its productivity. However, the present liquidity crunch and volatile exchange fluctuation throw up new challenges for the second half of the year in the form of working capital and finance cost management.”
About Tube Investments of India
Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). In bicycles, TII is the second largest manufacturer with well-known brands - Hercules, BSA and Philips. TII is the market leader in precision steel tubes and roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry.
About the Murugappa Group
Headquartered in Chennai, the Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Exploration Bureau and Groupe Chimique Tunisien, has consolidated its status as one of the fastest growing diversified business houses in India.
The Board of Directors of Tube Investments of India Limited (TI) met today and approved the un-audited financial results for the quarter ended 30th September, 2008.
During the quarter sales were at Rs. 635.76 Crores, as against Rs.424.64 Crores during the same period last year. The operating profit (EBIDTA) increased to Rs. 54.58 Crores (Rs. 32.20 Crores). The net profit for the quarter was at Rs. 42.07 Crores (Rs. 15.72 Crores). The sales for the first half of the year were at Rs. 1173.92 Crores (Rs. 857.86 Crores) and the net profit was at Rs.90.36 Crores (Rs.29.81 Crores).
Mr. Ramkumar, Managing Director said, “The improved profitability of all businesses during second quarter and first half of the year has been due to focus on cost reduction, product mix and substantially improving customer satisfaction.”
TI’s engineering business, comprising of precision steel strips, tubes and tubular components, increased sales by 43% on the back of strong demand for its products. The volatility in steel price still remains a cause for concern. While export of cold-rolled strips increased, export of tubes dropped marginally.
The sale of bicycles continued to be robust and growth in volume was 33% over the corresponding quarter in the previous year. The growth in value terms is even higher at 63%, primarily due to increase in market share in “Special Bicycles”, where TI is the market leader. The improved performance is reflective of the success of TI’s retail efforts in the recent times. The number of ‘BSA Go’, a one-stop premium store, has increased to 40, providing the customer with a superior buying experience. TI has plans to increase its presence in fitness segment and to expand to E-bikes, a fast growing two-wheeler segment.
The revenue from Metal Formed Products grew by 49%. The growth came from higher sales in all its product segments viz., automotive & industrial chains, car doorframes, fine blanked products and roll formed sections for railway wagons. The export of industrial chains increased significantly during the quarter. TI has set up an automotive chain manufacturing facility in Uttarakhand to service its key customers in the region. TI has clear plans to enhance its presence through broad basing the product range and user industry.
Mr. L Ramkumar, Managing Director said, “Despite signs of a global slowdown, TI is confident of sustaining its current level of operations and improving upon its productivity. However, the present liquidity crunch and volatile exchange fluctuation throw up new challenges for the second half of the year in the form of working capital and finance cost management.”
About Tube Investments of India
Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). In bicycles, TII is the second largest manufacturer with well-known brands - Hercules, BSA and Philips. TII is the market leader in precision steel tubes and roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry.
About the Murugappa Group
Headquartered in Chennai, the Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30,000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Exploration Bureau and Groupe Chimique Tunisien, has consolidated its status as one of the fastest growing diversified business houses in India.
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