Tube Investments Q2 FY24 Revenue Grows 14.4% YoY, Profit Down 13.5%

Tube Investments of India Ltd. announced its financial results for the quarter ended September 2024. The company showcased a revenue increase of 14.4% year-on-year to ₹4,924.55 crore from ₹4,305.62 in the same quarter last year. Despite the revenue growth, net profit fell by 13.5%, totaling ₹299.17 crore compared to ₹346.19 crore in the same period last year. The company's EBITDA was ₹489.6 crore, marking a 13% decline year-on-year.

The Engineering segment reported revenue of ₹1,323 crore for the quarter, up from ₹1,274 crore in the same period last year, though PBIT declined slightly to ₹162 crore from ₹169 crore. The Metal Formed Products segment saw revenue increase to ₹404 crore, with PBIT dropping to ₹46 crore from ₹53 crore year-on-year. The Mobility segment's revenue was ₹168 crore, down from ₹177 crore, but it reduced its loss before interest and tax to ₹0.36 crore from ₹3 crore, indicating improvement. The "Others" segment posted revenue of ₹243 crore, up from ₹207 crore, although PBIT decreased to ₹9 crore from ₹17 crore.

Quick Insights:

• Revenue: ₹4,924.55 crore, up by 14.4% YoY.
• Net Profit: ₹299.17 crore, down by 13.5% YoY.
• EPS: ₹10.69, down by 25.9%
• Segment Performance: The Engineering segment led with revenue at ₹1,323 crore, though PBIT dipped slightly to ₹162 crore. The Mobility segment showed the most improvement, reducing its loss from ₹3 crore to ₹0.36 crore year-on-year.
• Management's Take: Steady growth achieved across key segments. Outlook remains positive.
• Stock Reaction: Results were announced on Monday post-market hours.

Stock Market Reaction

Tube Investments announced its quarterly results after market closing on Monday, 4th November 2024. Tube Investments share price closed at ₹4,311 on Monday, down by 3.6%. The stock hit an intraday high of ₹4,515 and a low of ₹4,311, respectively. 

About Tube Investments of India Ltd.

Tube Investments of India Ltd., a Murugappa Group company, is a diversified business with interests in engineering, bicycles, and metal-formed products. CG Power and Industrial Solutions Ltd., a subsidiary with a 58% stake held by the company, reported consolidated revenue of ₹2,413 crore for the quarter, up from ₹2,002 crore in the same period last year. Profit before exceptional items and tax was slightly lower at ₹294 crore, compared to ₹303 crore in the previous year.

Shanthi Gears Ltd., a subsidiary in the gears business with a 70% company stake, recorded quarterly revenue of ₹155 crore, an increase from ₹135 crore year-on-year, while profit before tax rose to ₹34 crore from ₹30 crore in the prior year’s corresponding quarter.