Bicycles segment volume up 25 per cent
The growth in automobile industry has aided the performance of Tube Investments which witnessed good growth in all the business segments in the year ended March 31, 2010. The turnover has risen by 13.75 per cent to Rs. 2,358.49 crore from Rs. 2,073.36 crore in the previous. The operating profit before exceptional items stood at Rs. 169.45 crore against Rs. 36.36 crore. TII has made a one time provision for the diminution in the value of its investment in the overseas subsidiary set up to manufacture cold drawn welded tubes in China. The total provision made during the year was Rs. 39.95 crore covering the value of its investment and other receivables. After considering this exceptional charge the profit before tax was at Rs. 129.50 crore against Rs. 83.02 crore in the previous year. The net profit was higher by 12.5 per cent at Rs. 81.21 crore against Rs. 72.18 crore. The directors recommended a higher dividend of Rs.1.50 per equity share of Rs.2 against Re. 1 in the previous year.
According to L. Ramkumar, Managing Director, the company's focus this year was on improving operating efficiencies, using existing facilities better to service the increase in demand from its customers, new product offerings and superior customer service.The bicycles segment performed very well and grew in volume by 25 per cent and revenue by 31 per cent and improved its market share.