July 05, 2008

Tube Investments 2007-08 revenue up by 9.1% YoY

Bicycle and engineering products company Tube Investments of India Limited has posted revenue of INR 17.62 billion in 207-08 fiscal up by 9.1% YoY as against INR 16.15 billion in 2006-07 fiscal. It posted a net profit of INR 565 million down by 635% YoY as against INR 1.55 billion.

During 2007-08 fiscal, the bicycles business consolidated its position and improved its market share. The turnover increased to INR 5.77 billion, logging a growth of 13% YoY. The off take of bicycles by the trade segment was up by 16% YoY.

The metal formed products business grew up by 14% YoY fetching INR 3.70 billion for the period under review.

Last fiscal, Tube Investments’ engineering business grew to INR 8.16 billion, registering a growth of 5% YoY due to higher sales of cold rolled steel strips.

Sale of precision steel tubes was lower by 2% YoY due to the decline of the two wheeler segment, competition and lower realization.

Mr L Ramkumar MD of Tube Investments said that "While the profitability was affected by slow down in segments of the auto industry and steep input cost increases, cost reduction efforts and growth in new segments mitigated the drop to some extent."